TIDMUSG
RNS Number : 7244D
Ultimate Sports Group PLC
28 June 2019
28 June 2019
Ultimate Sports Group PLC
("USG" or the "Company" or the "Group")
Final Results and Notice of AGM
Ultimate Sports Group PLC, the AIM listed investment vehicle, is
pleased to announce its results for the year ended 31 December
2018. The Company also gives notice that its Annual General Meeting
('AGM') will be held at the Hellenic Centre 16/18 Paddington
Street, London W1U 5AS on 24 July 2019 at 11.30am. Copies of the
Notice of AGM together with the Annual Report for the year ended 31
December 2018 will be posted to shareholders and be available to
view on the Company's website www.ultimatesportsgroup.me.
The financial information set out in this announcement does not
constitute statutory accounts as defined in the Companies Act
2006.
The Group Statement of Comprehensive Income, Group Statement of
Financial Position, Group Statement of Changes in Equity, Group
Statement of Cash Flows and associated notes have been extracted
from the Group's 2018 statutory financial statements upon which the
auditor's opinion is unqualified and does not include any statement
under section 498 of the Companies Act 2006.
Those financial statements will be delivered to the Registrar of
Companies following the release of this announcement.
This announcement and the annual report and accounts are
available on the Company's website www.ultimatesportsgroup.me . A
copy of the report and accounts will be sent to shareholders who
have elected to receive a printed copy with details of the annual
general meeting in due course.
Chairman's Statement and Chief Executive's Review
We are reporting a total comprehensive loss from continuing
activities of GBP144,485 before tax against a total comprehensive
loss before tax and discontinued activities for the prior year of
GBP780,192. There were no discontinued activities in the year ended
31 December 2018, whilst in the prior year there was a profit from
discontinued activities after tax of GBP53,567. USG's consolidated
cash balances as at 31 December 2018 were GBP535,329 (2017-
GBP129,611) The directors are not recommending the payment of a
dividend.
FUNDRAISE
As set out in the circular to shareholders issued in February
2018, the Company raised GBP537,500 (before legal and other
professional expenses) by the issue of 10,750,000 new shares at 5p
per share following approval obtained from shareholders at the
General Meeting in March 2018.
SUBSTANTIAL SHAREHOLDERS
The Company welcomes the involvement of Mr Richard Bernstein as
a strategic shareholder following on from the fundraising concluded
in March 2018. The Company also entered into an agreement with Mr
Bernstein pursuant to which he will seek to introduce the Company
to potential investment or acquisition opportunities. To date Mr
Bernstein has carried out and continues to undertake initial due
diligence on potential introductions at his own expense with follow
up work undertaken by the Company.
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 a Sport and Leisure
division which trades as Sport in Schools Ltd and The Elms Sport in
Schools ("ESS").
Pantheon as a group made a profit of GBP32,817 for the year
ended 31 December 2018 (2017 (profit - GBP2,950).
SPORT IN SCHOOLS LIMITED
On a turnover of GBP1,546,733 (2017- GBP1,368,710) ESS
contributed a much- improved divisional profit of GBP100,754 (2017
- GBP28,255). The improved result is a combination of increased
turnover by virtue of additional schools engaged, increased income
from existing schools due to an increase in government subsidies,
improved weather conditions resulting in less working days lost in
2018 and tighter control of overheads.
CORPORATE GOVERNANCE CODE
In accordance with changes to AIM Rules regarding corporate
governance our Annual Report & Accounts and Company website
reflect compliance with (and any departures from) the Guidance set
out in the QCA Corporate Governance Code.
PROSPECTS
We continue to pursue, from a firm financial base, a strategy of
developing the business of ESS and to carefully appraise all
acquisition opportunities, including those proposed by Mr
Bernstein.
R L Owen (Chairman)
G M Simmonds (Chief Executive)
* *S * *
For further information, please visit www.ultimatesportsgroup.me
or contact:
Ultimate Sports Group PLC
Geoffrey Simmonds, Managing Director +44 (0)20 7935 0823
St Brides (Financial PR)
Catherine Leftley/Gaby Jenner +44 (0)20 7236 1177
Cantor Fitzgerald Europe (Nomad and Broker)
David Foreman +44 (0)20 7894 7000
Consolidated statement of comprehensive income for the year
ended 31 December 2018
2018 2017
Notes GBP GBP
Continued activities
Revenue 6 1,547,006 1,369,193
Cost of sales (725,638) (769,310)
----------- -----------
Gross profit 821,368 599,883
Administrative expenses (965,943) (833,533)
----------- -----------
Operating Loss before exceptional
items (144,575) (233,650)
Exceptional item and non-
recurring costs 8 - (563,325)
----------- -----------
Operating loss 9 (144,575) (796,975)
Finance income 11 718 -
Finance costs 12 (628) (3,714)
Other gains and losses 13 - 20,497
----------- -----------
Loss before taxation (144,485) (780,192)
Taxation 14 - 17,572
----------- -----------
Loss after taxation from continuing
activities (144,485) (762,620)
Profit for the year from discontinued
activities 7 - 53,567
----------- -----------
(144,485) (709,053)
----------- -----------
Attributable to:
Equity holders of the parent
company (149,121) (709,470)
Non-controlling interests 4,636 417
----------- -----------
(144,485) (709,053)
----------- -----------
Other comprehensive loss
Losses on available-for-sale
investments taken to equity - (1,838)
Taxation on items taken directly
to equity 14 - 331
Other comprehensive loss - (1,507)
----------- -----------
Comprehensive loss attributable
to:
Equity holders of the parent
company (149,121) (710,977)
Non-controlling interests 4,636 417
Total comprehensive loss (144,485) (710,560)
=========== ===========
Loss per share (basic and diluted)
Loss from operations per share 15 (0.0051)p (0.0319)p
Other comprehensive loss per
share - (0.0001)p
---------- ----------
Total comprehensive loss per
share (0.0051)p (0.0320)p
========== ==========
Consolidated statement of financial position as at 31 December
2018
Notes 2018 2017
GBP GBP
Non-current assets
Goodwill and other intangibles 17 59,954 60,054
Property, plant and equipment 19 13,168 12,923
Total non-current assets 73,122 72,977
------------ ------------
Current assets
Trade and other receivables 20 89,760 68,981
Cash and cash equivalents 535,329 129,611
------------ ------------
Total current assets 625,089 198,592
------------ ------------
Total assets 698,211 271,569
Current liabilities
Trade and other payables 21 239,911 173,661
Borrowings 24 - 2,000
------------ ------------
Total current liabilities 239,911 175,661
------------ ------------
Total liabilities 239,911 175,661
Net assets 458,300 95,908
Equity
Share capital 25 2,388,664 2,281,164
Share premium account 782,031 393,454
Merger reserve 325,584 325,584
Retained earnings (2,979,116) (2,840,795)
Equity attributable to shareholders
of the parent company 517,163 159,407
Non- controlling interests (58,863) (63,499)
Total Equity 458,300 95,908
============ ============
Consolidated To
statement equity
of changes in holders
equity Fair of the
Share Share Merger value Retained parent Non-controlling
capital premium reserve reserve earnings company interest Total
GBP GBP GBP GBP GBP GBP GBP GBP
Balance at
1 January
2017 2,048,664 393,454 325,584 (1,507) (2,123,512) 642,683 (63,916) 578,767
Issue of
new shares 232,500 - - - - 232,500 - 232,500
Share issue
costs - - - - (7,813) (7,813) - (7,813)
Released on
sale of
available
for sale
investments - - - 1,838 - 1,838 - 1,838
Deferred
tax on
items
taken
directly to
equity - - - (331) - (331) - (331)
Loss for
the year - - - - (709,470) (709,470) 417 (709,053)
Reserves at
1 January
2018 2,281,164 393,454 325,584 - (2,840,795) 159,407 (63,499) 95,908
Issue of
new shares 107,500 430,000 - - - 537,500 - 537,500
Share issue
costs - (41,423) - - - (41,423) - (41,423)
Share based
payments - - - - 10,800 10,800 - 10,800
Loss for
the year - - - - (149,121) (149,121) 4,636 (144,485)
At 31
December
2018 2,388,664 782,031 325,584 - (2,979,116) 517,163 (58,863) 458,300
========== ========= ========= ======== ============ ========== ================ ==========
Company statement of financial position as at 31 December
2018
Notes 2018 2017
GBP GBP
Non-current assets
Investment in subsidiaries 18 505,755 516,468
Property, plant and equipment 19 - 1
------------ ------------
Total non-current assets 505,755 516,469
------------ ------------
Current assets
Trade and other receivables 20 361,793 342,203
Cash and cash equivalents 413,656 81,459
------------ ------------
Total current assets 775,449 423,662
------------ ------------
Total assets 1,281,204 940,131
Current liabilities
Trade and other payables 21 319,715 284,317
Total current liabilities 319,715 284,317
------------ ------------
Total liabilities 319,715 284,317
Net assets 961,489 655,814
Equity
Share capital 25 2,388,664 2,281,164
Share premium account 782,031 393,454
Merger reserve 325,584 325,584
Retained earnings (2,534,790) (2,344,388)
Total equity 961,489 655,814
============ ============
Company statement of changes in equity
Share Share Retained
capital premium Merger reserve earnings Total
GBP GBP GBP GBP GBP
At 1 January
2017 2,048,664 393,454 325,584 (1,316,258) 1,451,444
Issue of new
shares 232,500 - - - 232,500
Share issue costs - - - (7,813) (7,813)
Loss for the
year - - - (1,020,317) (1,020,317)
At 1 January
2018 2,281,164 393,454 325,584 (2,344,388) 655,814
Issue of new
shares 107,500 430,000 - - 537,500
Share issue costs - (41,423) - - (41,423)
Share based payments - - - 10,800 10,800
Loss for the
year - - - (201,202) (201,202)
At 31 December
2018 2,388,664 782,031 325,584 (2,534,790) 961,489
================= ========= =============== ============ ============
Consolidated statement of cash flows for the year ended 31
December 2018
Note 2018 2017
GBP GBP
Cash flow from all operating activities
Loss before taxation from continuing
activities (144,485) (780,192)
Profit before taxation from discontinued
activities 32c - 53,567
-------------------------- ------------------------
(144,485) (726,625)
Adjustments for:
Finance income (718) -
Finance expense 628 3,714
Impairment and amortisation of intangible
assets 100 520,792
Share based payments 10,800 -
Other gains and losses - (103,097)
Depreciation 7,507 26,145
Loss/ (profit) on disposed tangible
assets 1 (30,865)
Operating cash flow before working
capital movements (126,167) (309,936)
(Increase)/decrease in receivables (20,779) 28,720
Increase/(decrease) in payables 66,250 (48,886)
Net cash absorbed by operations (80,696) (330,102)
-------------------------- ------------------------
Taxation - 17,241
-------------------------- ------------------------
Cash flow from investing activities
Finance income 718 -
Property, plant and equipment acquired (7,753) (9,820)
Intangible asset development costs - (16,300)
Proceeds on sale of property, plant
and equipment - 33,187
Net proceeds on sale of business - 82,600
Proceeds on disposal of available
for sale investments - 48,334
Net cash (absorbed)/from investing
activities (7,035) 138,001
-------------------------- ------------------------
Cash flow from financing activities
Finance expense (628) (3,714)
Funds from share issue 496,077 224,687
Repayment of borrowings (2,000) (45,939)
Net cash from financing activities 493,449 175,034
-------------------------- ------------------------
Net increase in cash and cash equivalents
in the year 32b 405,718 174
Cash and cash equivalents at the
beginning of the year 129,611 129,437
Cash and cash equivalents at the
end of the year 535,329 129,611
========================== ========================
Company statement of cash flows for the year ended 31 December
2018
Notes 2018 2017
GBP GBP
Cash flow from operating activities
Loss before tax (201,202) (1,020,317)
Adjustments for:
Finance income (17,218) (16,500)
Finance expense - 3,714
Share based payments 10,800 -
Other gains - (1,034)
Provision for impairment in value
of investments in subsidiaries 10,713 90,103
Provision for intra group indebtedness 78,765 889,245
Depreciation and write offs - 18,592
Loss/(profit) on disposed tangible
assets 1 (30,865)
Operating cash flow before working
capital movements (118,141) (67,062)
Increase in receivables (81,855) (242,954)
Increase in payables 35,398 1,244
Net cash absorbed by operations (164,598) (308,772)
---------- ------------
Cash flow from investing activities
Finance income 718 -
Proceeds on sale of property, plant
& equipment - 33,187
Proceeds on sale of investments for
resale - 2,721
---------- ------------
Net cash inflow from investing activities 718 35,908
---------- ------------
Cash flow from financing activities
Funds from share issue 496,077 224,687
Finance expense - (3,714)
Hire purchase repayments - (42,439)
Net cash from financing activities 496,077 178,534
Net increase /(decrease) in cash
and cash equivalents in the year 32b 332,197 (94,330)
Cash and cash equivalents at the
beginning of the year 81,459 175,789
Cash and cash equivalents at the
end of the year 413,656 81,459
========== ============
Notes to the group and parent company financial statements
1. General information
Ultimate Sports Group Plc is a public company limited by shares,
domiciled and incorporated in England and Wales and its activities
are as described in the strategic report on pages 5 to 7.
These financial statements are prepared in pounds sterling being
the currency of the primary economic environment in which the group
operates.
2. Basis of Accounting
The consolidated financial statements of the group and the
financial statements of the parent company for the year ended 31
December 2018 have been prepared under the historical cost
convention and are in accordance with International Financial
Reporting standards ("IFRS") as adopted by the EU. These policies
have been applied consistently except where otherwise stated.
For the purpose of the preparation of these consolidated
financial statements, the group has applied all standards and
interpretations that are effective for accounting periods beginning
on or after 1 January 2018. The adoption of new standards and
interpretations in the year has not had a material impact of the
group's financial statements.
IFRS 15
The group has adopted IFRS 15 retrospectively in its
consolidated financial statements for the year ended 31 December
2018. IFRS 15 replaces all existing revenue requirements in IFRS
and sets out principles for recognising revenue that must be
applied using a 5-step model. Revenue should only be recognised
when (or as) control of goods or services is passed to the
customer, when distinct 'performance obligations' are met, at the
amount to which the entity expects to be entitled. The group has
completed its assessment of IFRS and has not identified any
material differences between the group's current revenue
recognition policy and the requirements of IFRS 15.
Future standards in place but not yet effective.
No new standards, amendments or interpretations to existing
standards that have been published and that are mandatory for the
Group's accounting periods beginning on or after 1 January 2019, or
later periods, have been adopted early. The following standards and
amendments are not yet applied at the date of authorisation of
these financial statements:
-- IFRS 16 - Leases (effective 1 January 2019)
-- Annual Improvements to IFRS Standards 2015 - 2017 Cycle (effective 1 January 2019)
-- IAS 12 - Income taxes (effective 1 January 2019)
-- Definition of Material (Amendments to IAS 1 and IAS 8) (effective 1 January 2020)
-- Definition of a Business (Amendments to IFRS 3) (effective 1 January 2020)
Except for IFRS 16, see below, the group does not believe that
there will be a material impact on the financial statements from
the adoption of these standards / interpretations.
IFRS 16 requires the recognition of an asset and liability by
introducing a lessee accounting model. As at 31 December 2018, the
group would recognise an asset and liability in respect of leases
of approximately GBP79,000.
There were no material changes in the financial statements as a
result of adopting new or revised accounting standards during the
year.
3. Significant accounting policies
(a) Basis of consolidation
The financial statements of the group incorporate the financial
statements of the company and entities controlled by the company,
which are its subsidiary undertakings. Control is achieved where
the company has the power to govern the financial and operating
policies of its subsidiary undertakings so as to benefit from their
activities.
Details of subsidiary undertakings are set out in note 18.
All intra-group transactions and balances have been eliminated
in preparing the consolidated financial statements.
(b) Revenue
Revenue arises from the disposal of available-for-sale
investments and income from sports and leisure activities
undertaken by the company and its subsidiary undertakings. In the
case of sports and leisure activities it represents invoiced and
accrued amounts for services supplied in the year, exclusive of
value added tax and trade discounts.
(c) Intangible assets
Goodwill arising on consolidation represents the excess of the
cost of acquisition over the group's interest in the fair value of
the identifiable assets and liabilities of subsidiary entities at
the date of acquisition. Goodwill is initially recognised as an
asset at cost and is subsequently measured at cost less any
accumulated impairment losses. Goodwill which is recognised as an
asset is reviewed for impairment at least annually. Any impairment
is recognised immediately in the statement of comprehensive income
and is not subsequently reversed.
For the purpose of impairment testing, goodwill is allocated to
each of the group's cash generating units expected to benefit from
synergies of the combination. Cash-generating units to which
goodwill has been allocated are tested for impairment annually, or
more frequently when there is an indication that the unit may be
impaired. If the recoverable amount of the cash generating unit is
less than the carrying amount of the unit, the impairment loss is
allocated first to reduce the carrying amount of any goodwill
allocated to the unit then to the other assets of the unit pro-rata
on the basis of the carrying amount of each asset in the unit. An
impairment loss recognised for goodwill is not reversed in a
subsequent period.
On disposal of a subsidiary, associate or jointly controlled
entity, the amount of goodwill is included in the determination of
the profit or loss on disposal.
Goodwill arising on acquisitions before the date of transition
to IFRS's has been retained at the previous UK GAAP amounts subject
to being tested for impairment at that date.
Development costs are expensed in arriving at the operating
profit or loss for the year unless the directors are satisfied as
to the technical, commercial and financial viability of individual
project. In this situation, the expenditure is recognised as an
asset and is reviewed for impairment on an annual basis.
Any impairment is recognised immediately in the income statement
in administrative expenses and is not subsequently reversed.
3. Significant accounting policies
(d) Plant and equipment
Plant and equipment is stated at cost less depreciation.
Depreciation is provided at rates calculated to write off the cost
less their estimated residual value over their expected useful
lives.
The rates applied to these assets are as follows:
Plant & equipment 25% & 10% straight line
Motor vehicles 33.3% - straight line
(e) Operating leases
Rentals applicable to operating leases, where substantially all
of the benefits and risks of ownership remain with the lessor, are
charged against revenue as and when incurred.
(f) Deferred taxation
Deferred taxation is provided in full in respect of timing
differences between the treatment of certain items for taxation and
accounting purposes. The deferred tax balance is not
discounted.
The recognition of deferred tax assets is limited to the extent
that the group anticipates making sufficient taxable profits in the
future to absorb the reversal of the underlying timing
differences.
(g) Trade receivables
Trade receivables are recognised at fair value. A provision for
impairment of trade receivables is established where there is
objective evidence that the company or group will not be able to
collect all amounts due according to the original terms of the
receivables. Significant financial difficulties of the debtor,
probability that the debtor will enter bankruptcy or liquidation
and default or delinquency of payments are considered indicators
that the trade receivable is impaired. The amount of the provision
is the difference between the asset's carrying amount and the
present value of estimated future cash flows. The carrying amount
of the asset is reduced through the use of an allowance account and
the amount of the loss is recognised in the income statement within
administrative expenses. When a trade receivable is uncollectable
it is written off against the allowance account for trade
receivables.
(h) Investments
Investments are classified as available for sale, are measured
at fair value. Gains or losses in changes in fair value are
recognised directly in equity, until the security is disposed of or
is determined to be impaired, at which time the cumulative gain or
loss previously recognised in equity is included in the net profit
or loss for the period. Impairment losses recognised in profit or
loss are not subsequently reversed through profit or loss.
Fair value of quoted investments is based on current bid prices.
If an investment is suspended from trading, fair value is based on
quoted bid prices on the first day that trading recommences
following suspension.
Investments in subsidiary undertakings are stated at cost less
provision for impairment in the parent company balance sheet.
(i) Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held
at call with banks. Bank overdrafts are shown as borrowings within
current liabilities.
3. Significant accounting policies (continued)
(j) Financial liabilities and equity
Financial liabilities and equity instruments are classified
according to the substance of the contractual arrangements entered
into. An equity instrument is any contract that evidences a
residual interest in the assets of the group after deducting all of
its liabilities.
Ordinary shares are classified as equity. Incremental costs
directly attributable to new shares are shown in equity as a
deduction from the proceeds.
Trade payables are recognised initially at fair value and
subsequently measured at amortised cost using the effective
interest method.
Borrowings are recognised initially at fair value, net of
transaction costs incurred. Borrowings are subsequently stated at
amortised cost, any difference between the proceeds (net of
transaction costs) and the redemption value is recognised in the
income statement over the period of the borrowing using the
effective interest method.
Borrowings are classified as current liabilities unless the
group has an unconditional right to defer settlement of the
liability for at least 12 months after the date of the statement of
financial position.
4. Critical accounting judgements and key sources of estimation uncertainty
The preparation of the group's financial statements requires the
directors to make judgements, estimates and assumptions that effect
the application of policies and reported amounts in the financial
statements. These judgements and estimates are based on the
director's best knowledge of the relevant facts and circumstances.
Information about such judgements and estimation is contained in
the accounting policies and/or notes to the financial
statements.
Deferred tax asset
At the present time the directors' do not consider that there is
sufficient certainty regarding the utilisation of tax losses
available in the group. As a result, no deferred tax asset has been
recognised.
Impairment of goodwill
Determining whether goodwill is impaired requires an estimation
of the value in use of the cash generating units to which the
goodwill has been allocated. The value in use calculation requires
the entity to estimate the future cash flows expected to arise from
the cash generating unit and a suitable discount rate in order to
calculate present value. The carrying amount of goodwill is the
deemed cost on first time application of IFRS.
Details of the impairment review calculation are given in note
17.
Impairment of intangible assets
The carrying value of intangible assets comprising unamortised
website costs are determined by reference to an assessment of
future income generated by the UltimatePlayer.me platform. Having
regard to the Board's decision to delay future plans for further
website development, all unamortised costs have been fully impaired
as an exceptional item in 2017 (note 8).
5. Going concern
The directors have prepared financial forecasts covering the 12
months following approval of these financial statements, which show
the Group can continue to carry on trading within its existing
finance facilities over that period.
In view of the above, the directors consider it appropriate to
prepare the financial statements on a going concern basis.
6. Business segment analysis
Segmental information with regard to continuing and non-
continuing activities is disclosed below and is based on the
different business activities in the group.
All turnover, profits, losses, assets and liabilities relate to
operations undertaken in the UK.
Sports and Social
Year ended 31 December 2018 leisure media website Consolidated
GBP GBP GBP
Revenue 1,546,733 273 1,547,006
=========== =============== =============
Segment operating profit/(loss)* 100,754 (32,399) 68,355
=========== ===============
Group operating expenses** (212,930)
-------------
Operating loss (144,575)
Finance revenues less finance
costs 90
Loss before taxation (144,485)
Taxation -
Loss after taxation from
continuing activities (144,485)
Sports and Social
Year ended 31 December 2017 leisure media website Consolidated
GBP GBP GBP
Revenue 1,368,710 483 1,369,193
=========== =============== =============
Segment operating profit/(loss)* 28,255 (587,536) (559,281)
=========== ===============
Group operating expenses** (237,694)
Operating loss (796,975)
Other gains and losses 20,497
Finance revenues less finance
costs (3,714)
Loss before taxation (780,192)
Taxation relating to the
social media website 17,572
-------------
Loss after taxation from
continuing activities (762,620)
Discontinued activities 53,567 53,567
----------- -------------
(53,567) (709,053)
=========== =============
*Segment operating profit in relation to Sports and Leisure is
after charges for depreciation of GBP7,507 (2017: GBP7,553).
Segment operating losses in relation to the social media website is
after charges for amortisation and impairment of GBPNil (2017:
GBP520,792).
** 'Group operating expenses' represent the costs of running the
group as a whole. The directors consider that the costs of running
Pantheon Leisure Plc of GBP68,824 (2017: GBP53,370) form part of
these costs as opposed to forming part of the segmental costs of
the sports and leisure division.
Financial position at 31 Sports Social
December 2018 and leisure media website Consolidated
GBP GBP GBP
Segment assets 86,555 1,388 87,943
============= ==================
Non segmental assets 610,268
-------------
Consolidated total assets 698,211
=============
Segmental liabilities 203,071 - 203,071
============= ==================
Non segmental corporate liabilities 36,840
-------------
239,911
Capital additions 7,753 -
Depreciation/amortisation 7,507 -
and impairment
============= ==================
Financial position at 31
December 2017
Sports Social
and leisure media website Consolidated
GBP GBP GBP
Segment assets 55,714 1,846 57,560
============= ==================
Non segmental assets 214,009
-------------
Consolidated total assets 271,569
=============
Segment liabilities 158,457 4,162 162,619
============= ==================
Non segmental corporate liabilities 13,042
-------------
175,661
=============
Capital additions 9,820 16,300
Depreciation/amortisation
and impairment 7,553 520,792
============= ==================
Non segmental assets include group cash balances of GBP535,329
(2017: GBP129,611), goodwill of GBP59,954 (2017: GBP59,954), other
assets and receivables of GBP14,985 (2017: GBP24,444). Non
segmental liabilities include trade and other payables of GBP36,840
(2017: GBP13,042).
Sports and leisure segment assets include GBPnil (2017:
GBP2,727) from discontinued activities. Segment liabilities include
GBPnil (2017: GBP8,638) from discontinued activities.
7. Discontinued activities
2018 2017
GBP GBP
Revenue - 11,015
Cost of sales and expenses - (40,048)
---------------- --------------------
Operating loss - (29,033)
Net proceeds on disposal - 82,600
---------------- --------------------
- 53,567
------------------- --------------------
Football Partners Limited ceased small-sided football league activities
in December 2016 and disposed of its trade for GBP100,000 in 2017.
8. Exceptional item and non- recurring costs
2018 2017
GBP GBP
Exceptional item:
Development cost - full impairment - 462,073
Non- recurring costs:
Website expenditure and amortisation - 101,252
- 563,325
======= ==========
9. Operating loss
2018 2017
The operating loss is stated GBP GBP
after charging /(crediting):
Auditors' remuneration - audit
services 18,900 20,875
Operating lease rentals - land
and buildings 17,635 13,507
Depreciation of property, plant
and equipment 7,753 26,145
Amortisation - Website development - 58,719
Impairment - Website development - 462,073
======= ========
Included in the audit fee for the group is an amount of GBP7,000
(2017: GBP6,700) in respect of the Company.
The auditors received fees of GBP1,630 (2017: GBP1,250) in
respect of the provision of services in connection with advice
relating to the group's interim results, and general advice.
10. (a) Staff Costs
Employee benefit costs were
as follows: Group
2018 2017
GBP GBP
Wages and salaries 1,152,825 1,128,737
Social security costs 58,061 67,549
Pension contributions 12,634 7,019
Share based payment 10,800 -
1,234,320 1,203,305
========== ==========
The average numbers of employees, including directors during the
year, were as follows:-
No. No.
Administration, sales and coaching
staff 94 115
======== ======
(b) Directors' remuneration
2018 2017
An analysis of directors' remuneration (who are
the key management personnel) is set out below: GBP GBP
Salary and consultancy fees 21,250 32,859
======= =======
Executive directors 16,250 32,859
Non-executive directors 5,000 -
------- -------
21,250 32,859
======= =======
The total cost of key management personnel being the executive
directors and including employers' national insurance was GBP21,250
(2017: GBP32,859).
The following amounts were paid for the services of the
directors in the year:
2018 2017
GBP GBP
Salaries Salaries
and benefits and benefits
R L Owen 13,750 15,996
G Simmonds - 16,863
D Hillel 2,500 -
J Zucker 2,500 -
D J Coldbeck 2,500 -
-------------- --------------
21,250 32,859
-------------- --------------
There were no directors' benefits (2017- GBP17,859).
11. Finance income
2018 2017
GBP GBP
Interest revenue - bank deposits 718 -
----- -----
12. Finance costs
2018 2017
GBP GBP
Bank overdraft interest 628 -
Interest on obligations under
hire purchase agreements - 3,714
------------------ ------
628 3,714
------------------ ------
13. Other gains and losses
2018 2017
GBP GBP
Profit on disposal of available
for sale investments - 20,497
--- -------
Investments in AIM listed companies were disposed of in 2017
giving rise to gains of GBP20,497 before fair value adjustments of
GBP1,838 recognised in the Statement of Other Comprehensive Income
in that year.
14. Taxation
2018 2017
GBP GBP
Deferred tax (credit)/charge
Origination and reversal of
temporary differences - (331)
Total deferred tax (credit)/(charge - (331)
Research and development tax
credits - (17,241)
--- ---------
Tax credit in income statement - (17,572)
=== =========
No income tax charge arises based on the loss for the year
(2017: nil).
The group has unutilised tax losses of GBP6,443,000 (2017:
GBP6,311,000) which includes GBP2,380,000 (2017: GBP2,364,000) in
relation to the company's subsidiary undertakings. Where it is
anticipated that future taxable profits will be available to
utilise these losses a deferred tax asset or a reduction in
deferred tax liability is recognised as appropriate.
Factors affecting the tax charge in the year
2018 2017
GBP GBP
Loss on ordinary activities before taxation (144,485) (724,787)
========== ==========
Loss on ordinary activities before taxation
at the standard rate of UK corporation
tax of 19% (2017: 19.25%) (27,452) (139,521)
Effects of:
Expenses not deductible for tax purposes 5,370 -
Share based payments 2,052 -
Dividend income 3,943 -
Temporary differences in respect of depreciation
and capital allowances not reflected in
deferred tax (79) 97,121
Unutilised tax losses not recognised as
a deferred tax asset 16,166 42,400
Adjustment on available-for-sale investments - (331)
Research and development tax credits - (17,241)
---------- ----------
Tax credit - (17,572)
========== ==========
In 2017 claims for tax credits in relation to research and
development costs were made giving rise to cash credits of
GBP17,241.
15. Loss per share
Basic loss per share has been calculated on the group's loss
attributable to equity holders of the parent company of GBP149,121
(2017: GBP709,470) and on the weighted average number of shares in
issue during the year, which was 29,174,996 (2017: 22,211,434).
Comprehensive loss per share is based on the same number of
shares and on the comprehensive loss for the year attributable to
the equity holders in the parent company of GBP149,121 (2017:
GBP710,977).
In view of the group loss for the year, share warrants and
options to subscribe for ordinary shares in the company are
anti-dilutive and therefore diluted earnings per share information
is not presented. There are options outstanding at 31 December 2018
on 307,500 ordinary shares and on 1,500,000 share warrants.
16. Loss for the financial year
As permitted by Section 400 of the Companies Act 2006, the
profit and loss account for the company is not presented as part of
these financial statements.
The consolidated loss for the year of GBP144,485 (2017-loss:
GBP709,053) includes a loss of GBP201,202 (2017-loss: GBP1,020,317)
dealt with in the accounts of the company.
17. Goodwill, intangibles and development costs
2018 2018 2018 2017
GBP GBP GBP GBP
Goodwill
Website and other
development intangibles Total Total
Cost at 1 January 587,187 60,054 647,241 630,941
Additions in the year - - - 16,300
------------- ------------- -------- --------
Cost at 31 December 587,187 60,054 647,241 647,241
------------- ------------- -------- --------
Amortisation at 1 January 587,187 - 587,187 66,395
Charged in the year - - - 58,719
Impairment write off - 100 100 462,073
------------- ------------- -------- --------
Amortisation at 31 December 587,187 100 587,287 587,187
------------- ------------- -------- --------
Carrying value at 31 December - 59,954 59,954 60,054
============= ============= ======== ========
Goodwill of GBP59,954 included above relates to the acquisition
of Pantheon Leisure Plc which is included at its deemed cost on
first time application of IFRS.
The Group acquired intangible assets costing GBP100 in 2013
following the acquisition of a subsidiary. The asset has been fully
impaired and written off in 2018.
Goodwill acquired in a business combination is allocated, at
acquisition, to cash generating units ("CGUs") that are expected to
benefit from that business combination. The carrying amount of
goodwill relates wholly to the leisure activities business
segment.
The recoverable amounts of the CGUs are determined from value in
use calculations. The key assumptions for the value in use
calculations are those regarding forecast revenues and operating
costs. Management have taken into account the following two
elements:
(i) Based on current assessments of the Sport in Schools
activities made by the directors, they consider that revenues will
continue to grow in 2019 and 2020; and
(ii) Operational costs are monitored and controlled
Development costs
Ultimate Player Limited continued to operate the
UltimatePlayer.me platform during the year. As a result of the
decision taken by the Board in 2017, to delay future plans for
further website development, unamortised development costs were
fully impaired and written off as an exceptional item in the prior
year (see note 8).
18. Investments in Subsidiaries
Company 2018 2017
Cost GBP GBP
Shares 1,947,932 1,947,932
Loan notes 220,000 220,000
---------- ----------
Total cost at beginning
and end of year 2,167,932 2,167,932
========== ==========
Provision for impairment
At 1 January 1,651,464 1,561,361
Increase of provision in
year 10,713 90,103
---------- ----------
At 31 December 1,662,177 1,651,464
========== ==========
Carrying value at 31 December 505,755 516,468
========== ==========
Included in investments is GBP220,000 of loan notes which carry
an interest coupon of 7.5% and are repayable on demand at par.
The following companies were subsidiaries at the balance sheet
date and the results and year end position of these companies has
been included in these consolidated financial statements. The
registered office for all the companies listed below is at 30 City
Road, London EC1Y 2AB.
Description
and proportion Country of
of share capital incorporation
Subsidiary undertakings owned or registration Nature of business
Westside Acquisitions Ordinary 100% England & Holding company
Limited Wales
Reverse Take-Over Investments Ordinary 100% England & Acquisition and development
Limited * Wales of shell companies
Westsidetech Limited Ordinary 100% England & Dormant
Wales
Westside Mining Plc Ordinary 100% England & Investment - inactive
Wales
Westside Sports Limited Ordinary 100% England & Holding company
Wales
Ultimate Player Limited Ordinary 100% England & Social media website
Wales
Football Data Services Ordinary 100% England & Website data services
Limited Wales - inactive
FootballFanatix Limited Ordinary 100% England & Social media website
Wales - inactive
Pantheon Leisure Plc ** Ordinary 85.87% England & Holding company
Wales
Sport in Schools Limited Ordinary 85.87% England & Sports coaching in
*** Wales schools
Football Partners Limited Ordinary 85.87% England & Dormant
*** Wales
The Elms Group Limited Ordinary 85.87% England & Inactive
*** Wales
Footballdirectory.co.uk Ordinary 85.87% England & Dormant
Limited **** Wales
* 33(1) /(3) % held indirectly through Westside Acquisitions Limited
** held indirectly through Westside Sports Limited
*** held indirectly through Pantheon Leisure Plc
**** held indirectly through The Elms Group Limited
19. Property, plant and equipment
Plant and
Group equipment Motor Vehicles Total
GBP GBP GBP
Cost
At 1 January 2017 148,443 83,662 232,105
Additions 9,820 - 9,820
Disposals (63,691) (83,662) (147,353)
Cost at 31 December 2017 94,572 - 94,572
Additions 7,753 - 7,753
Disposals (1,848) - (1,848)
At 31 December 2018 100,477 - 100,477
Depreciation
At 1 January 2017 137,787 62,748 200,535
Charge for the year 7,553 18,592 26,145
Disposals (63,691) (81,340) (145,031)
At 31 December 2017 81,649 - 81,649
Charge for the year 7,507 - 7,507
Disposals (1,847) (1,847)
----------- --------------- ----------
At 31 December 2018 87,309 - 87,309
=========== =============== ==========
Carrying value
At 31 December 2018 13,168 - 13,168
=========== =============== ==========
At 31 December 2017 12,923 - 12,923
=========== =============== ==========
Plant and
Company equipment Motor Vehicles Total
GBP GBP GBP
Cost
At 1 January 2017 1,848 83,662 85,510
Disposals - (83,662) (83,662)
Cost at 31 December 2017 1,848 - 1,848
Disposals (1,848) - (1,848)
----------- --------------- ---------
At 31 December 2018 - - -
----------- --------------- ---------
Depreciation
At 1 January 2017 1,847 62,748 64,595
Disposals - (81,340) (81,340)
Charge for year - 18,592 18,592
----------- --------------- ---------
At 31 December 2016 1,847 - 1,847
Disposals (1,847) - (1,847)
At 31 December 2017 - - -
----------- --------------- ---------
Carrying value
At 31 December 2018 - - -
=========== =============== =========
At 31 December 2017 1 - 1
=========== =============== =========
The company was party to hire purchase agreements in respect of
its motor vehicles during the prior year.
Depreciation charged on assets subject to hire purchase
agreements in the year was GBPNil. (2017: GBP18,592). The net book
value of these assets at the end of the year and at the end of last
year was GBPNil.
20. Receivables and loan notes
Non-current assets
Company
In 2018, amounts due within one year included GBP220,000 of loan
notes (2017 - GBP220,000). The loan notes are convertible into 50
million new shares in Pantheon Leisure Plc (the borrower) at any
time before redemption. The loan notes carry an interest coupon of
7.5% and are repayable on demand at par.
Pantheon Leisure Plc is a subsidiary undertaking of Ultimate
Sports Group Plc.
The loan notes are included in investments.
Group
The group has no receivables and loan notes classified as
non-current assets.
Current assets
Group Company
2018 2017 2018 2017
GBP GBP GBP GBP
Trade receivables 62,768 24,371 - -
Other receivables 18,681 17,375 10,166
Amounts due from subsidiary undertakings - - 347,102 318,053
Prepayments and deferred expenditure 8,311 27,235 4,525 24,150
89,760 68,981 361,793 342,203
======= ======= ======== ========
The average credit period given for trade receivables at the end
of the year is 15 days (2017:6 days). Trade receivables are stated
net of a provision for irrecoverable amounts of GBPNil (2017:
GBPNil).
Amounts due from subsidiary undertakings are stated net of
provisions for irrecoverable amounts which total GBP1,454,629
(2017: GBP1,375,864).
The total charge in the year in respect of irrecoverable
receivables in the group accounts was GBPNil (2017: GBPNil).
As at 31 December, the ageing analysis of trade receivables, all
of which are due and not impaired is as follows:
GBP
<3 months
2018 62,768
2017 24,371
==========
21. Trade and other payables
Group Company
2018 2017 2018 2017
GBP GBP GBP GBP
Trade payables 9,760 982 - -
Other payables 24,672 1,216 - -
Taxes and social security 99,459 74,981 - -
Amounts due to subsidiary undertakings - - 287,793 273,573
Accruals and deferred income 106,020 96,482 31,922 10,744
239,911 173,661 319,715 284,317
======== ======== ======== ========
The average credit period taken for trade payables at the end of
the year is 8 days (2017: 1 day).
22. Bank overdraft
Sport in Schools Limited has a bank overdraft facility secured
by a guarantee of up to GBP50,000 by Ultimate Sports Group Plc. The
overdraft is repayable on demand.
23. Deferred tax
The following are the deferred tax liabilities and assets
recognised by the group and movements during the current and
previous year:
Fair value Tax losses
Deferred tax liabilities gains offset Total
GBP GBP GBP
At 1 January 2017 (331) 331 -
Credited in the income statement 331 - 331
Charged directly to equity - (331) (331)
At 31 December 2018 and 31 December
2017 - - -
=========== =========== ======
24. Borrowings
There were no borrowings outstanding at 31 December 2018 (2017-
GBP2,000)
25. Issued and fully paid share capital
Number of Number of Number of
ordinary ordinary deferred
Ordinary shares 10p shares 1p shares 9p shares GBP
At 1 January 2017 20,486,638 - - 2,048,664
Shares issued in the year 2,325,000 - - 232,500
--------------- ----------- ------------
At 1 January 2018 22,811,638 - - 2,281,164
Subdivision of ordinary
shares (22,811,638) 22,811,638 22,811,638 -
New shares issued in the
year - 10,750,000 - 107,500
--------------- ----------- ------------
At 31 December 2018 - 33,561,638 22,811,638 2,388,664
=============== =========== ============ ==========
Following a capital reorganisation in March 2018 in which each
existing share of 10p each was subdivided into one new ordinary
share of 1p each and 1 deferred share of 9p each, the company
raised GBP537,500 before costs from a placing at a price of 5p per
share resulting in the issue of a further 10,750,000 ordinary
shares of 1p each.
Ordinary shares of 1p each:
Shareholders are entitled to receive dividends or distributions
in the event of a winding up with rights to attend and vote at
general meetings.
Deferred shares of 9p each:
Shareholders are entitled to receive 0.1p for each GBP999,999 of
dividends or other distributions in the event of a winding up with
no rights to attend and vote at general meetings.
At 31 December 2018 the company's issued shares carry no rights
to fixed income.
The market price of the company's shares at 31 December 2018 was
20.00p and the price range during the financial year was 8.50p and
20.88p.
26. Share warrants and options
Warrants
In March 2018, the company issued new warrants to subscribe for
shares. 750,000 A Warrants and 750,000 B Warrants were issued
exercisable at a price of 10p and 25p respectively per new ordinary
share.
Further details are given in note 30.
Options
In January 2011 the company adopted an unapproved share option
scheme details of which are given in note 30
To date the company has granted options to acquire 577,500
ordinary shares to key executives and employees engaged in the
development of the social network. At the year end and at the date
of this report there are options to acquire 307,500 ordinary shares
in issue.
27. Financial commitments
The group is committed to making the following future minimum
lease payments under non-cancellable operating leases which fall
due as follows:
2018 2017
GBP GBP
Within one year
Land and buildings 10,868 16,358
Other 5,636 -
Between two and five years
Land and buildings 43,472 47,193
Other 6,417 -
After five years
Land and buildings 24,453 35,321
---------------- ------------
90,846 98,872
---------------- ------------
28. Reserves
Retained earnings represent the cumulative retained profit or
loss of the group.
Share premium is the amount subscribed for share capital in
excess of nominal value and is a capital reserve required by UK
company law.
The merger reserve is a non-statutory reserve and represents the
difference between the fair value and nominal value of the shares
exchanged for shares on acquisition of Reverse Take-Over
Investments Plc which took place in 2003.
The fair value reserve represents the cumulative surplus and
deficits on recognition of available-for-sale investments at fair
value, less tax attributable to the net surplus.
29. Related parties
Details of the remuneration of directors is given in note 10. In
addition to the information given in that note, the following
provides further details of related party transactions involving
the company and its directors.
The directors are the key management personnel of the group.
Simmonds & Co
The group made payments of GBP26,500 (2017-GBP38,904) as
contributions towards office and secretarial costs to Simmonds
& Co, Chartered Accountants, a practice in which G Simmonds is
sole proprietor. No amounts were due at 31 December 2018 (2017 -
GBPNil).
In March 2017, G Simmonds was issued with 125,000 A Warrants and
125,000 B Warrants. Further details relating to these new warrants
are given in note 30.
R Owen
The company paid for office facilities to R Owen of GBP13,611
(2017- GBP 23,686). No amounts were due to R Owen at the 31
December 2018 (2017- Nil).
In March 2018, R Owen was issued with 125,000 A Warrants and
125,000 B Warrants. Further details relating to these new warrants
are given in note 30.
30. Share-based payment transactions
Warrants
In March 2018, the company issued new warrants to subscribe for
shares. 750,000 A Warrants and 750,000 B Warrants were issued
exercisable at a price of 10p and 25p respectively per new ordinary
share.
Warrants are valued using the Black-Scholes option pricing
model. The fair value per option granted and the assumptions used
in the calculation are as follows:
Grant date 13 March 2018 13 March 2018
Share price at grant 15p per share 15p per share
date
-------------- --------------
Exercise price 10p per share 25p per share
-------------- --------------
Shares under warrant 250,000 250,000
-------------- --------------
Expected volatility 100.0% 100.0%
-------------- --------------
Option life (years) 3 years 3 years
-------------- --------------
Expected life (years) 3 years 3 years
-------------- --------------
Risk-free interest rate 1.25% 1.25%
-------------- --------------
Fair value per option 3.15p 2.8p
-------------- --------------
In accordance with IFRS2, the fair value of the warrants issued
and recognised as a charge in the accounts for the year is
GBP10,800. In arriving at this amount, the expected volatility is
based on historical volatility, the expected life is the average
expected period to exercise and the risk-free rate of return is the
yield on a zero-coupon UK government bond for a term consistent
with the assumed option life.
30. Share-based payment transactions (continued).
Options
At the date of this report, options to acquire 577,500 ordinary
shares share have been granted to employees or key executives
involved in the group's trading operations. To date options over
270,000 shares have lapsed and there remain options over 307,500
shares that are exercisable.
Grant date 17 January 2011 6 March 2014 30 April 2014
Share price at grant 25p per share 27.5p per share 27.5p per share
date
---------------- ---------------- ----------------
Exercise price 25p per share 27.5p per share 27.5p per share
---------------- ---------------- ----------------
Shares under option 210,000 167,500 200,000
---------------- ---------------- ----------------
Expected volatility 17.0% 20.9% 20.9%
---------------- ---------------- ----------------
Option life (years) 10 years 7 Years 7 Years
---------------- ---------------- ----------------
Expected life (years) 10 Years 7 Years 7 Years
---------------- ---------------- ----------------
Risk-free interest rate 2.0% 2.0% 2.0%
---------------- ---------------- ----------------
Fair value per option 0.4p 0.07p 0.07p
---------------- ---------------- ----------------
In accordance with IFRS2, the fair value of the share options
issued and recognised as a charge in the accounts for the year is
GBPNil (2017 - GBPNil). In arriving at the amount, the expected
volatility is based on historical volatility, the expected life is
the average expected period to exercise and the risk-free rate of
return is the yield on a zero-coupon UK government bond for a term
consistent with the assumed option life.
31. Capital management and financial instruments
The group is solely equity funded which represents the group's
capital.
The group's objectives when maintaining capital are:
- To safeguard the entity's ability to continue as a going
concern, so that it can begin to provide returns for shareholders
and benefits for other stakeholders; and
- To provide an adequate return to shareholders by pricing
products and services commensurately with the level of risk.
The group sets the amounts of capital it requires in proportion
to risk. The group manages its capital structure and makes
adjustments to it in light of changes in economic conditions and
risk characteristics of the underlying assets. In order to maintain
or adjust the capital structure, the group may adjust the amount of
dividends paid to shareholders, return capital to shareholders,
issue new shares, or sell assets to reduce debt.
Capital for the group comprises all components of equity - share
capital of GBP2,388,664 (2017: GBP2,281,164), share premium of
GBP782,031 (2017: GBP393,454), other reserves of GBP325,584 (2017:
GBP325,584), the retained deficit of GBP2,979,116 (2017:
GBP2,840,795) and debts which comprises loans of GBPNil (2017:
GBP2,000).
During the year ended 31 December 2018 the group's strategy was
to preserve net cash resources by limiting cash absorbed from
losses and through good cash management.
Financial assets and financial liabilities are recognised in the
group's balance sheet when the group becomes a party to the
contractual provision of the instrument.
At 31 December 2018 and 31 December 2017, there were no material
differences between the fair value and the book value of the
group's financial assets and liabilities. All financial assets and
liabilities are measured at amortised cost. Relevant financial
assets and liabilities are set out below.
31. Capital management and financial instruments (continued).
Group Company
2018 2017 2018 2017
GBP GBP GBP GBP
Financial assets
Cash and cash equivalents 535,329 129,611 413,656 81,459
Due from subsidiary undertakings - - 347,102 318,053
Trade and other short- term receivables 70,395 32,571 - -
-------- -------- -------- --------
605,724 162,182 760,758 399,512
-------- -------- -------- --------
Financial liabilities (which are included at amortised cost)
Trade and other short- term payables 34,432 2,198 - -
Due to subsidiary undertakings - - 287,793 273,573
Loans - 2,000 - -
34,432 4,198 287,793 273,573
======== ======== ======== ========
The group's financial instruments comprise cash and cash
equivalents, receivables, payables, loan obligations that arise
directly from its operations
Amounts shown in trade and other short term receivables exclude
prepayments and deferred expenditure for the group of GBP8,311
(2017: GBP27,235) and VAT recoverable of GBP11,054 (2017: GBP9,175)
for the group and for the company GBP4,522 (2017: GBPNil) of short
term receivables and VAT recoverable of GBP10,166 (2017:
GBP7,430).
Trade and short- term payables exclude deferred income and
accruals of GBP106,020 (2017: GBP96,482), tax and social security
creditors of GBP99,459 (2017: GBP74,981). For the company - for tax
and accruals of GBP31,922 (2017: GBP10,744).
The group has not adopted a policy of using financial
derivatives and does not rely on the use of interest rate
hedges.
In common with other businesses, the group is exposed to risks
that arise from its use of financial instruments. There have been
no substantive changes to the group's response to financial
instrument risk and the methods used to measure them from previous
periods.
The main risks arising from the group's financial instruments
are market, credit and liquidity risks.
Market risk arises mainly from uncertainty about future prices
of available-for-sale investments held by the group. The board
monitors movements in the carrying value of its investments on a
regular basis. As there are no remaining investments there is no
longer any market risk attributable to investments.
Credit risk arises from trade receivables where the party fails
to discharge their obligation in relation to the instrument. To
minimise this risk, management have appropriate credit assessment
methods to establish credit worthiness of new customers and monitor
receivables by regularly reviewing aged receivable reports. There
is no concentration of credit risk other than in respect to cash
held on deposit at the company's bank as set out above.
The amount exposed to risk in respect of trade receivables at 31
December 2018 was GBP62,768 (2017: GBP24,371).
Liquidity risk arises in relation to the group's management of
working capital and the risk that the company or any of its
subsidiary undertakings will encounter difficulties in meeting
financial obligations as and when they fall due. To minimise this
risk the liquidity position and working capital requirements are
regularly reviewed by management.
The directors do not consider changes in interest rates have a
significant impact on the group's cost of finance or operating
performance.
As the group's operations are conducted in the United Kingdom,
risks associated with foreign currency fluctuations are not
relevant.
32. Notes to statement of cash flows
a) Analysis of net funds
At 1 January At 31 December
2018 Cash Flow 2018
GBP GBP GBP
Group
Cash and cash equivalents 129,611 405,718 535,329
Borrowings (2,000) 2,000 -
Net funds 127,611 407,718 535,329
============= ========== ===============
Company
Cash and cash equivalents 81,459 332,197 413,656
Net funds 81,459 332,197 413,636
============= ========== ===============
(b) Reconciliation of net cash flow to movement in net funds
Group Company
GBP GBP
Increase in cash and cash equivalents
in the year 405,718 332,197
Cash outflow on borrowings repaid in
the year 2,000 -
Movement in net funds 407,718 332,197
======== ========
(c) Statement of cash flows from discontinued activities
2018 2017
GBP GBP
Cash flow from discontinued activities
Profit/(loss) before tax - 53,567
Adjustments for:
Gain on disposal of trade - (82,600)
Movements in working capital
Increase in debtors - (914)
Decrease/(Increase) in creditors 13,865 (42,084)
Cash generated/absorbed from operations 13,865 (72,031)
--------- ---------
Investing activities
Net proceeds on disposal of trade - 82,600
Net cash used in investing activities - 82,600
--------- ---------
Financing activities
Repayment of borrowings - (2,000)
Net cash used in financing activities (2,000)
--------- ---------
Net cash increase in cash and cash
equivalents 13,865 8,569
Cash and cash equivalents at the beginning
of the year (13,865) (22,434)
Cash and cash equivalents at the end
of the year - (13,865)
========= =========
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 or visit www.rns.com.
END
FR FRMFTMBMTBTL
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June 28, 2019 02:00 ET (06:00 GMT)
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