This announcement contains inside
information as stipulated under the Market Abuse Regulation (EU) No
596/2014 (MAR).
GoTech Group plc / Index: AIM / Epic:
GOT.L / Sector: Software
21 April 2017
GoTech Group
plc
(“GoTech”, the
“Company” or the “Group”)
Unaudited Interim
Results
GoTech, the sports and wellbeing focused technology company,
announces its unaudited interim results for the six months ended
31 March 2017.
Chairman’s Statement
It is nearly a year since the Company commenced trading on AIM
with significant advances achieved during this time resulting in
the transformation of GoTech into a technology company focused on
innovation in physical education and sport tracking and
performance. Amongst other things, we have: streamlined the
business; strengthened our strategy; initiated a new innovative
programme; changed the Company’s name to better reflect its
business interests and stated strategy; launched a new corporate
website; and bolstered our Board and management.
Our core focus remains on Skills2Achieve (‘S2A’), a digital,
physical literacy assessment programme for the UK school
market. Developed with the Youth Sport Trust (‘YST’), a
leading charity for sports-driven and educational programmes, S2A
aims to improve the health and wellbeing of young people, drive
achievement and impact whole school improvement.
Whilst sales of S2A remained at a low level, resulting in the
loss for the period of £288,000 (2016: £257,000 loss), it continues
to be well received by the schools that are using it and sector
professionals. To understand how best to achieve a higher
level of sales to schools we undertook a sales review. This
concluded that our focus should be on our new sponsorship
programme, the Champions Programme, which enables philanthropic
organisations, corporate sponsors (as part of their CSR activities)
and High Net Worth Individuals (‘HNWIs’) to acquire packages of S2A
licences for the benefit of clusters of primary schools of their
choice. The Saracens Sport Foundation, the charitable arm of
Saracens F.C., one of the UK's leading rugby union clubs,
Haileybury School, one of the UK’s leading independent secondary
schools, and various HNWIs are amongst those that have already
signed up to the programme. We also have a good pipeline of
other potential S2A Champions and we are pursuing specific
opportunities for this sales activity, including a product
messaging and branding review for maximum effect.
The Board remains confident that these sales initiatives will be
successful but appreciates that selling multiple licences in this
manner will likely involve a longer sales cycle, although should
result in higher value contracts with an increased propensity of
renewal. The Board is, therefore, hopeful that take-up will
improve in the second half of the year thus resulting in higher
sales and reduced losses. In advance of the generation of
significant revenues from these initiatives, the Company has taken
the necessary steps to run the Group in a prudent way to preserve
value for shareholders including reducing the cost base of the
Group where appropriate.
In tandem with advancing S2A, the Board has been considering
complementary business initiatives within the sports technology
sector with a view to progressing towards profitability. The
Board is keen to consider all possible opportunities, both organic
and acquisitive, which may drive an increase in shareholder
value. These initiatives are progressing well and we hope to
update the market on progress soon.
The Company has today convened a general meeting at which it is
seeking approval for the Directors to allot shares, disapplying
pre-emption rights, up to an aggregate nominal value of
£155,311.16. This value includes authorities already granted,
but which fall away following approval of the proposed resolutions,
for warrants which are in existence and have already been disclosed
to shareholders. Approval of the resolutions at the general
meeting will give the Company flexibility to act quickly in
response to any opportunities presented to it, including raising
funds, if required, to fund the existing S2A business or to support
any add on acquisitions or business opportunities which the Board
may consider it appropriate to pursue.
Looking ahead, I am confident that our long-term strategy and
highly driven team will ultimately see GoTech prosper. In a
nutshell, S2A is a unique proposition that is gaining serious
interest from leading organisations such as the NHS; our strategy
to create a business with multiple revenue streams including the
collection and analysis of valuable data is progressing well; and
we are actively pursuing other opportunities that we believe will
be earnings enhancing and help build the GoTech brand.
I would like to thank our team for their commitment and efforts
during the period as well as our shareholders for their continued
support.
A Humphreys
Chairman
CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH
2017 |
|
|
|
|
|
|
|
|
|
Six months |
Six months |
Year |
|
|
|
ended |
ended |
ended |
|
|
|
31/03/17 |
31/03/16 |
30/09/16 |
|
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
35 |
0 |
40 |
|
|
|
|
|
|
|
|
Cost of
Sales |
(8) |
0 |
(51) |
|
|
|
|
|
|
|
|
Gross
Profit (loss) |
27 |
0 |
(11) |
|
|
|
|
|
|
|
|
Administrative expenses |
(315) |
(257) |
(878) |
|
|
|
|
|
|
|
|
Operating
loss |
(288) |
(257) |
(889) |
|
|
|
|
|
|
|
|
Share of
loss of associate undertakings |
0 |
0 |
(57) |
|
|
|
|
|
|
|
|
Impairment
charge |
0 |
0 |
(2,964) |
|
|
|
|
|
|
|
|
Loss
before taxation |
(288) |
(257) |
(3,910) |
|
|
|
|
|
|
|
|
Income tax
expense |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Loss for
the year |
(288) |
(257) |
(3,910) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss
per share |
(0.213p) |
(0.730p) |
(5.520p) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
|
|
|
|
|
|
|
|
|
At 31/3/17 |
At 31/3/16 |
At 30/9/16 |
|
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
|
Investments |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Intangible
assets |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Trade
receivables |
31 |
157 |
121 |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
485 |
13 |
714 |
|
|
|
|
|
|
|
|
Total
Assets |
516 |
170 |
835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Capital |
6,501 |
6,401 |
6,501 |
|
|
|
|
|
|
|
|
Share
premium |
16,987 |
13,082 |
16,987 |
|
|
|
|
|
|
|
|
Share
option Reserve |
4 |
3 |
4 |
|
|
|
|
|
|
|
|
Retained
earnings |
(23,260) |
(19,319) |
(22,972) |
|
|
|
|
|
|
|
|
Total
Equity |
232 |
167 |
520 |
|
|
|
|
|
|
|
|
Trade and
other payables |
284 |
3 |
315 |
|
|
|
|
|
|
|
|
Total
equity and liabilities |
516 |
170 |
835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31
MARCH 2017 |
|
|
|
|
|
|
|
|
|
Six months |
Six months |
Year |
|
|
|
ended |
ended |
ended |
|
|
|
31/03/17 |
31/03/16 |
30/09/16 |
|
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
|
Cash
flows from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
Operating
loss before taxation |
(288) |
(257) |
(889) |
|
|
|
|
|
|
|
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
Share-based payment expense |
0 |
0 |
1 |
|
|
|
|
|
|
|
|
Decrease /
(increase) in trade and other receivables |
90 |
(89) |
(48) |
|
|
|
|
|
|
|
|
(Decrease)
/ increase in trade and other payables |
(31) |
(30) |
(273) |
|
|
|
|
|
|
|
|
Net
cash flow from operating activities |
(229) |
(376) |
(1,209) |
|
|
|
|
|
|
|
|
Cash
flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
Acquisition of subsidiaries |
0 |
0 |
(13) |
|
|
|
|
|
|
|
|
Add cash
acquired on acquisition of subsidiaries |
0 |
0 |
42 |
|
|
|
|
|
|
|
|
Net
cash inflow / (outflow) from investing activities |
0 |
0 |
29 |
|
|
|
|
|
|
|
|
Cash
flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
Issue of
new shares net of expenses |
0 |
383 |
1,888 |
|
|
|
|
|
|
|
|
Net
cash inflow from financing activities |
0 |
383 |
1,888 |
|
|
|
|
|
|
|
|
Net
(decrease) / increase in cash and cash equivalents |
(229) |
7 |
708 |
|
|
|
|
|
|
|
|
Cash and
cash equivalents at beginning of the period |
714 |
6 |
6 |
|
|
|
|
|
|
|
|
Cash and
cash equivalents at end of the period |
485 |
13 |
714 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
STATEMENT OF CHANGES IN EQUITY |
|
GROUP |
|
|
|
|
|
|
|
Share |
Share |
Share option |
Retained |
|
|
|
capital |
premium |
reserve |
earnings |
Total |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
|
Balance at 1 October
2016 |
6,501 |
16,987 |
4 |
(22,972) |
520 |
|
|
|
|
|
|
|
|
Comprehensive loss for
the period |
0 |
0 |
0 |
(288) |
(288) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 March
2017 |
6,501 |
16,987 |
4 |
(23,260) |
232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share |
Share |
Share option |
Retained |
|
|
|
capital |
premium |
reserve |
earnings |
Total |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
|
Balance at 1 October
2015 |
6,382 |
12,718 |
3 |
(19,062) |
41 |
|
|
|
|
|
|
|
|
Comprehensive loss for
the period |
0 |
0 |
0 |
(257) |
(257) |
|
|
|
|
|
|
|
|
Equity issued |
19 |
364 |
0 |
0 |
383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 March
2016 |
6,401 |
13,082 |
3 |
(19,319) |
167 |
|
|
|
|
|
|
|
|
|
|
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|
|
NOTES TO THE HALF-YEARLY RESULTS FOR
THE SIX MONTHS ENDED 31 MARCH
2017
1. BASIS OF PREPARATION
The interim report is unaudited and does not constitute
statutory accounts within the meaning of s.498 of the Companies Act
2006. The statutory accounts for 2017, which were prepared under
IFRS, have been delivered to the Registrar of Companies. The
auditor's opinion on these accounts was unmodified and did not
contain a statement under s.498 of the Companies Act 2006.
The interim financial information has been prepared on a basis
which is consistent with the accounting policies adopted by the
Company for the last financial statements and in compliance with
IAS 34. Comparative figures are given for the six months ended
31 March 2016 and the year ended
30 September 2016.
2. REVENUE AND LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
The results for the six months ended 31
March 2017 and 31 March 2016
are unaudited. The audited results for the year ended 30 September 2016 have also been shown.
3. EARNINGS PER ORDINARY SHARE
The earnings per share is based on a loss for the period of
£288,000 (six months ended 31 March
2016 – a loss of £257,000), being the loss attributable to
ordinary shareholders, and a weighted average of 135,304,536
ordinary shares (six months ended 31st March
2016 - 35,073,010 ordinary shares) The diluted loss per
share is not shown as the Company was loss making during the
period.
4. COPIES OF THE INTERIM RESULTS
Copies of the half-yearly results will be available from the
Company's registered office 27-28 Eastcastle Street, London, W1W 8DH, and will be available from
the Company's website www.gotechgroup-plc.com.
**ENDS**
For further information, please visit www.gotechgroup-plc.com or
contact:
Gail Ganney |
GoTech Group plc |
Tel: +44 (0) 1707 659111 |
|
|
|
Virginia Bull
James Reeve
Liz Kirchner |
Allenby Capital
Limited |
Tel: +44 (0) 20 3 328 5656 |
|
|
|
Duncan Vasey
Lucy Williams |
Peterhouse Corporate
Finance |
Tel: +44 (0) 20 7220 9797 |
|
|
|
Lottie
Brocklehurst
Isabel de Salis |
St Brides
Partners |
Tel: +44 (0) 20 7236
1177 |