Ultimate Sports Group PLC Interim Results

Date : 09/26/2019 @ 6:02AM
Source : UK Regulatory (RNS & others)
Stock : Ultimate Sports Group Plc (USG)
Quote : 26.0  0.0 (0.00%) @ 8:00AM

Ultimate Sports Group PLC Interim Results

Ultimate Sports (LSE:USG)
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3 Months : From Sep 2019 to Dec 2019

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TIDMUSG

RNS Number : 7082N

Ultimate Sports Group PLC

26 September 2019

Ultimate Sports Group PLC

("USG" or the "Company")

26 September 2019

Interim Results

Ultimate Sports Group plc ("USG" or the "Company"), the AIM listed investment company, is pleased to announce its interim results for the six months ended 30 June 2019.

CHAIRMAN'S STATEMENT AND CHIEF EXECUTIVE'S REVIEW

For the six months ended 30 June 2019 we are reporting a total comprehensive loss of GBP15,258 (30 June 2018: loss GBP45,552).

USG's cash balances as at 30 June 2019 were GBP440,233, falling GBP95,096 during the period (31 December 2018: GBP535,329) mainly due to an increase in trade receivables of GBP163,340, offset in part by a GBP75,092 increase in trade payables.

The directors are not recommending the payment of a dividend.

FUNDRAISE

Subsequent to the half year end, we reported on 15 July 2019, that the Company had raised GBP290,000 (before legal expenses) by the issue of 2,000,000 new shares at 14.5p per share.

SUBSTANTIAL SHAREHOLDERS

The Company continues to welcome the involvement of Mr. Richard Bernstein as a strategic shareholder following the fundraising announced in February 2018 and appreciates the additional confidence he has shown in the Company as reflected by recent purchases in the open market that increased his shareholding from 27.02% to 29.82% of the total issued share capital of the Company.

APPOINTMENT OF A NEW CHIEF EXECUTIVE

The Company was also pleased to announce the appointment of Matthew Farnum-Schneider as Chief Executive Officer effective from 1 August 2019. The Board considers that his appointment will spearhead the corporate development of the Group.

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 also known as The Elms Sport in Schools ("ESS").

Pantheon as a group made a profit of GBP62,533 for the six months ended 30 June 2019 (30 June 2018: GBP43,913).

SPORT IN SCHOOLS LIMITED ("SSL")

SSL increased turnover in the period by 18% to GBP943,392 (30 June 2018: GBP800,705). The increase is attributable to business expansion. This increased turnover resulted in an improved profit margin due to operational gearing and a divisional 41% increase in profit to GBP113,130 (30 June 2018: GBP80,059).

CORPORATE GOVERNANCE CODE

In accordance with the AIM Rules regarding corporate governance our website reflects our compliance with (and explains any departures from) the guidance set out in the QCA Corporate Governance Code.

PROSPECTS

As outlined in the Report and Accounts for the year ended 31 December 2018, we continue to pursue, from a firm financial base, a strategy of developing SSL and to carefully appraise any and all acquisition opportunities, including those proposed by Mr. Bernstein. Led by Matthew Farnum-Schneider, the Board is currently reviewing a number of acquisition opportunities operating in high growth markets. These opportunities are at various stages of discussion and there is no guarantee that they will result in a transaction. The Company will provide further updates as and when appropriate.

R.L. Owen (Chairman) 25 September 2019

 
                             Unaudited    Unaudited      Audited 
                              6 months     6 months     Year ended 
                              ended 30     ended 30     31 December 
                              June 2019    June 2018       2018 
 
                                GBP          GBP           GBP 
 
 Revenues                       943,433      800,836      1,547,006 
 Cost of revenues             (464,540)    (385,274)      (725,638) 
 
                                478,893      415,562        821,368 
 
 Administrative expenses      (494,734)    (461,285)      (965,943) 
 
 
 Operating loss                (15,841)     (45,723)      (144,575) 
 
 Finance income                     583          171            718 
 Finance costs                        -            -          (628) 
 
 
 Loss before taxation          (15,258)     (45,552)      (144,485) 
 Taxation                             -            -              - 
                                         ----------- 
 Loss after taxation           (15,258)     (45,552)      (144,485) 
                            ===========  ===========  ============= 
 
 
 Attributable to: 
 Owners of the company                      (24,091)    (51,755)   (149,121) 
 Non- controlling interests                    8,833       6,203       4,636 
                                          ----------  ----------  ---------- 
                                            (15,258)    (45,552)   (144,485) 
                                          ==========  ==========  ========== 
 
 
 Total comprehensive loss attributable 
  to: 
 Owners of the company                      (24,091)    (51,755)   (149,121) 
 Non- controlling interests                    8,833       6,203       4,636 
                                          ----------  ----------  ---------- 
                                            (15,258)    (45,552)   (144,485) 
                                          ----------  ----------  ---------- 
 
 
 
 Basic and diluted total comprehensive 
 loss per share                            (0.0007)p   (0.0018)p   (0.0051p) 
                                          ==========  ==========  ========== 
 
 
                                          Unaudited     Unaudited      Audited 
                                           as at 30      as at 30      As at 31 
                                           June          June          December 
                                            2019          2018          2018 
 
                                             GBP           GBP            GBP 
 
 Non- current assets 
 Goodwill and patents                         59,954        60,054        59,954 
 Property, Plant and equipment                89,158        13,713        13,168 
 Total non-current assets                    149,112        73,767        73,122 
                                        ------------  ------------  ------------ 
 
 Current assets 
 Trade and other receivables                 253,100       205,684        89,760 
 Cash and cash equivalents                   440,233       479,722       535,329 
                                        ------------  ------------  ------------ 
 Total current assets                        693,333       685,406       625,089 
                                        ------------  ------------  ------------ 
 
 Total assets                                842,445       759,173       698,211 
 
 Current liabilities 
 Trade and other payables                    325,871       218,397       239,911 
 Borrowings                                        -         1,000             - 
                                        ------------  ------------  ------------ 
 Total current liabilities                   325,871       219,397       239,911 
 
 Non-current liabilities 
 Trade and other payables                     65,208             -             - 
                                        ------------  ------------  ------------ 
 Total liabilities                           391,079       219,397       239,911 
                                        ------------  ------------  ------------ 
 
 
 Net assets                                  451,366       539,776       458,300 
                                        ============  ============ 
 
 Equity 
 
 Share capital                             2,388,664     2,388,664     2,388,664 
 Share premium                               782,031       775,374       782,031 
 Merger reserve                              325,584       325,584       325,584 
 Retained earnings                       (2,994,883)   (2,892,550)   (2,979,116) 
 
 Equity attributable to owners of the 
  company                                    501,396       597,072       517,163 
 
 Non-controlling interest                   (50,030)      (57,296)      (58,863) 
 
 
 Total Equity                                451,366       539,776       458,300 
                                        ============  ============  ============ 
 
 
                                     Six months   Six months 
                                        ended        ended      Year ended 
                                       30 June      30 June     31 December 
                                        2019         2018          2018 
                                        GBP          GBP           GBP 
 Total equity at the beginning 
  of period/year                        458,300       95,908         95,908 
 
 Issue of shares                              -      489,420        537,500 
 
 Share issue costs                            -            -       (41,423) 
 
 Share based payments                     5,400            -         10,800 
 
 Loss for the period/year              (15,258)     (45,552)      (144,485) 
 
 Impact of change in accounting 
  policy                                  2,924            -              - 
 At end of period/year                  451,366      539,776        458,300 
                                    ===========  ===========  ============= 
 
 
                                            Six months      Six months      Year ended 
                                               ended           ended        31 December 
                                            30 June 2019    30 June 2018       2018 
                                                GBP             GBP            GBP 
 Cash flow from all activities: 
 Loss before taxation                           (15,258)        (45,552)      (144,485) 
 
 Adjustments for: 
 Depreciation and amortisation                     4,105           3,557          7,607 
 Finance income                                    (583)           (171)          (718) 
 Finance costs                                         -               -            628 
 Share based payments                              5,400               -         10,800 
 Loss on disposed tangible assets                      -               -              1 
 
 Operating cash flow before working 
  capital movements                              (6,336)        (42,166)      (126,167) 
 
 Increase in receivables                       (163,340)       (136,703)       (20,779) 
 Increase in payables                             75,092          44,736         66,250 
 Net cash absorbed by operations                (94,584)       (134,133)       (80,696) 
                                          -------------- 
 
 Cash flow from Investing activities 
 Property, plant and equipment acquired          (1,095)         (4,347)        (7,753) 
 Finance income                                      583             171            718 
 
 Net cash used in investing activities             (512)         (4,176)        (7,035) 
                                          --------------  --------------  ------------- 
 
 Financing activities 
 Proceeds from share issues                            -         489,420        496,077 
 Finance costs                                         -               -          (628) 
 Repayment of borrowings                               -         (1,000)        (2,000) 
 Net cash from financing activities                    -         488,420        493,449 
                                          --------------  --------------  ------------- 
 
 
 Net (decrease)/increase in cash and 
  cash equivalents                              (95,096)         350,111        405,718 
 
 Cash and cash equivalents and bank 
  overdraft at the beginning of the 
  period/year                                    535,329         129,611        129,611 
 
 Cash and cash equivalents at the 
  end of the period/year                         440,233         479,722        535,329 
                                          ==============  ==============  ============= 
 
   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 2019 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 2018 has been extracted from the statutory accounts. The auditors' report on those statutory accounts was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006. 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 ("IFRS") using the same accounting policies and methods of computation as were used in the annual financial statements for the year ended 31 December 2018 with exception of the application of new accounting standards. As permitted, the interim report has been prepared in accordance with the AIM rules for companies but is not compliant in all respects with IAS34 'Interim Financial Statements'.

In the current financial year, the Group has adopted IFRS 16 Leases which has resulted in the Group recognising a right-of-use asset and lease liability for all contracts that are or contain a lease. The Group has applied the modified retrospective adoption method, with no restatement of prior year comparatives. Full disclosure of the accounting policy in respect of IFRS 16 will be made in the consolidated annual financial statements of the Group for the year ending 31 December 2019. The impact of the adoption of IFRS 16 has resulted in an increase in opening tangible fixed assets of GBP79,000, offset by an increase in opening liabilities of GBP79,000, due to the recognition of the lease assets and liabilities.

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 25 September 2019.

   2.     Business segment analysis 
 
 Six months ended 30 June 
  2019 
 
 
                                      Sports and       Social 
                                        leisure     media website   Consolidated 
 
 Results from operations                 GBP            GBP             GBP 
 
 Revenue                                 943,392               41        943,433 
                                     ===========  ===============  ============= 
 
 Segment operating profit/(loss)         113,130         (12,493)        100,637 
                                     ===========  =============== 
 
 Group operating expenses                                              (116,478) 
                                                                   ------------- 
 
 Operating loss                                                         (15,841) 
 
 Finance income                                                              583 
                                                                   ------------- 
 
 Loss before tax from all 
  activities                                                            (15,258) 
 
 Taxation                                                                      - 
                                                                   ------------- 
 
 Operating loss after tax                                               (15,258) 
                                                                   ============= 
 
 
 
 Six months ended 30 June 
  2018 
                                    Sports and       Social 
                                      leisure     media website   Consolidated 
 Results from operations               GBP            GBP             GBP 
 
 Revenue                               800,705              131        800,836 
                                   ===========  ===============  ============= 
 
 Segment operating profit/(loss)        80,059         (20,079)         59,980 
                                   ===========  =============== 
 
 Group operating expenses                                            (105,703) 
                                                                 ------------- 
 
 Operating loss                                                       (45,723) 
 
 Finance income                                                            171 
                                                                 ------------- 
 
 Loss before tax from all 
  activities                                                          (45,552) 
                                                                 ============= 
 
 
 
 Year Ended 31 December 
  2018 
                                      Sports and       Social 
                                        leisure     media website   Consolidated 
 Results from operations                 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                                                            718 
 Finance costs                                                             (628) 
 
 
 Loss before tax from all 
  activities                                                           (144,485) 
                                                                   ============= 
 
 
   3.             Basic and diluted loss per share 

Comprehensive loss per share for the six months period ended 30 June 2019 has been calculated on the comprehensive loss attributable to owners of the company of GBP24,091 and on the weighted average number of shares in issue during the period of 33,561,639.

Comprehensive loss per share for the six months period ended 30 June 2018 has been calculated on the comprehensive loss attributable to owners of the company of GBP51,755 and on the weighted average number of shares in issue during the period of 29,344,788.

Comprehensive loss per share for the year ended 31 December 2018 has been calculated on the comprehensive loss attributable to owners of the company of GBP149,121 and on the weighted average number of shares in issue during the year of 29,174,996.

For the six month period ended 30 June 2019, six month period ended 30 June 2018 and for the year ended 31 December 2018, 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.

* *S * *

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

 
Ultimate Sports Group PLC 
 Richard Owen (Executive Chairman)             +44 (0)7721 613613 
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 
 

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

IR LFFFFARIEFIA

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September 26, 2019 02:02 ET (06:02 GMT)



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