Interim Results
September 27 2007 - 3:05AM
UK Regulatory
RNS Number:5845E
Leisure & Gaming plc
27 September 2007
27 September 2007
Leisure & Gaming plc
Interim Results for the six months ended 30 June 2007
Leisure & Gaming plc ("L&G" or "the Company"), the online betting and gaming
group, today announces its interim results for the six months to 30 June 2007.
The Company's interim results incorporate its main operating subsidiary Betshop
Group (Europe) Limited ("Betshop"), Grouse Entertainment NV, its
Acropolis-branded online casino business, and central costs for L&G.
Highlights
* Significant top-line growth in the equivalent 6 month period from 2006 to
2007:
- 75% growth in turnover to Euro65.4m on a like-for-like basis
- 44% growth in net win to Euro13.9m on a like-for-like basis
* Gross profit and EBIT were severely impacted by adverse sporting results
in May and June, notably Milan's victory in the Champion's League Final:
- Euro1.2m gross profit compared to Euro1.7m in 2006
- Euro1.1m EBIT loss in Betshop compared to Euro0.1m loss in 2006
Recent trading
Trading over the summer period from 1 July to 17 September has been as follows:
- Turnover of Euro14.0m, compared to Euro15.7m for the equivalent period in 2006
- Net win of Euro3.6m, compared to Euro4.2m for the equivalent period in 2006
- Gross profit of Euro0.6m, compared to Euro0.8m for the equivalent period in 2006
Takeover Discussions
The Company has received an indicative offer from CGTV Games Limited ("CGTV"), a
global provider of casino software and slots located in Dublin, Ireland. This
approach may or may not lead to a cash offer being made by CGTV to acquire the
entire issued share capital of the Company and is subject to a number of
pre-conditions, including satisfactory due diligence, all of which are waivable
at CGTV's discretion.
In recognition of the time and cost implications of completing due diligence and
seeking to satisfy its pre-conditions, the Company has agreed to grant CGTV a
period of exclusivity up to 31 October 2007, during which it is prohibited from
soliciting other offers for the Company or its assets.
While there can be no certainty that an offer will be made, even if the
pre-conditions are satisfied or waived, the offer would be in cash at not less
than 13 pence per ordinary share, being the price at which the Company carried
out its most recent placing.
It should be noted that this statement is being made with the full agreement of
CGTV.
Report on Interim Results
The company is now considered to be in an offer period under the City Code on
Takeovers and Mergers ("the Code") and is required under Rule 28 of the Code to
report upon any profit forecast or estimate, which includes any unaudited
interim or preliminary figures, published during an offer period. This report
is being prepared in relation to the interim results and will be announced and
sent to shareholders as soon as possible.
Further announcements will be made in due course as appropriate.
For further information, please contact:
Henry Birch, Chief Executive, Leisure & Gaming plc
Tel: 020 8150 5718
Jonathon Brill/Caroline Stewart, Financial Dynamics
Tel: 020 7831 3113
William Vandyk, Blue Oar Securities
Tel: 020 7448 4400
Consolidated Income Statement
6 months 6 months Audited
ended ended Year ended
30 June 2007 30 June 2006 31 Dec 2006
Notes Eurom Eurom Eurom
Turnover 65.4 3.2 58.8
Net win 13.9 1.1 14.3
Other income 0.2 - 0.1
14.1 1.1 14.4
Cost of sales (12.9) (1.2) (12.8)
Gross profit 1.2 (0.1) 1.6
Share option charge - (0.7) (0.4)
Exceptional restructuring costs - - (2.8)
Impairment of goodwill - - (2.9)
Other administrative expenses (2.6) (1.9) (5.4)
Operating loss (1.4) (2.7) (9.9)
Net interest and similar income/(costs) (0.1) 0.3 (0.4)
Loss before tax (1.5) (2.4) (10.3)
Tax 0.6 - (0.2)
Loss from continuing operations (0.9) (2.4) (10.5)
Profit attributable to discontinued operations - 7.8 (72.4)
(Loss) / Profit for the period attributable to (0.9) 5.4 (82.9)
equity holders of the parent
Earnings per share (cents)
Basic (1.2c) 8.8c (132.1c)
Diluted (1.2c) 8.6c (132.1c)
From continuing operations
Basic (1.2c) (4.0c) (16.6c)
Diluted (1.2c) (4.0c) (16.6c)
Consolidated Income Statement - with pro forma comparatives*
Pro forma* Pro forma*
6 months 6 months Year
ended ended ended
30 June 2007 30 June 2006 31 Dec 2006
Notes Eurom Eurom Eurom
Turnover 65.4 37.4 95.5
Net win 13.9 9.6 23.3
Other income 0.2 0.1 0.2
14.1 9.7 23.5
Cost of sales (12.9) (8.0) (20.0)
Gross profit 1.2 1.7 3.5
Share option charge - (0.7) (0.4)
Exceptional restructuring costs - - (2.8)
Impairment of goodwill - - (2.9)
Other administrative expenses (2.6) (3.8) (7.3)
Operating loss (1.4) (2.8) (9.9)
Net interest and similar income / (costs) (0.1) 0.3 (0.4)
Loss before tax (1.5) (2.5) (10.3)
Tax 0.6 - (0.2)
Loss from continuing operations (0.9) (2.5) (10.5)
* the pro forma income statement shows 2006 as though Betshop were acquired on 1
January 2006. Thus the pro forma continuing operations includes Betshop, Grouse
and Leisure & Gaming central costs.
Consolidated Balance Sheet
Audited
30 June 2007 30 June 2006 31 Dec 2006
Notes Eurom Eurom Eurom
ASSETS
Non-current assets
Property, plant and equipment 0.1 1.0 0.1
Goodwill 31.1 117.6 31.2
Other intangibles 2.0 6.0 0.2
33.2 124.6 31.5
Current assets
Trade and other receivables 2.5 9.3 1.9
Cash and cash equivalents 2.6 28.9 4.9
5.1 38.2 6.8
Total assets 38.3 162.8 38.3
LIABILITIES
Current liabilities
Borrowings (1.4) (8.0) (1.8)
Trade and other payables (4.6) (23.1) (5.2)
Client funds (1.2) - (1.2)
Current tax liabilities (0.2) (0.6) (0.3)
(7.4) (31.7) (8.5)
Non-current liabilities
Deferred and contingent consideration (10.8) (17.1) (10.8)
Borrowings - (6.5) (0.5)
Loan notes (0.5) - (0.5)
(11.3) (23.6) (11.8)
Total liabilities (18.7) (55.3) (20.3)
Net Assets 19.6 107.5 18.0
EQUITY
Share capital 27.1 23.3 23.4
Share premium 77.6 76.2 76.2
Share option reserve 0.5 1.7 0.5
Shares to be issued 0.6 3.0 3.2
Retained earnings (86.2) 3.3 (85.3)
Equity attributable to equity holders of 19.6 107.5 18.0
the parent
Consolidated Statement of Changes in Equity
Share Share Share Shares Retained Total
Capital Premium Option to be earnings
Reserve issued
Eurom Eurom Eurom Eurom Eurom Eurom
Balance as at 31 December 2005 21.6 67.8 - 3.8 4.5 97.7
Profit for the period - - - - 5.4 5.4
Foreign exchange movements - - - - (5.6) (5.6)
Total recognised income and expense - - - - (0.2) (0.2)
Issue of ordinary shares 1.7 8.4 - (1.5) - 8.6
Share option charge - - 1.7 - (1.0) 0.7
Future issue of ordinary shares - - - 0.7 - 0.7
Net change directly in equity 1.7 8.4 1.7 (0.8) (1.0) 10.0
Balance as at 30 June 2006 23.3 76.2 1.7 3.0 3.3 107.5
Loss for the period - - - - (88.3) (88.3)
Foreign exchange movements - - - - 0.2 0.2
Total recognised income and expense - - - - (88.1) (88.1)
Issue of ordinary shares 0.1 - - - - 0.1
Release from future share issue - - - (2.4) - (2.4)
commitments
Share option charge - - (1.2) - 0.9 (0.3)
Fair value adjustment to management - - - - (1.4) (1.4)
incentive shares
Future issue of ordinary shares - - - 2.6 - 2.6
Net change directly in equity 0.1 - (1.2) 0.2 (0.5) (1.4)
Balance as at 31 December 2006 23.4 76.2 0.5 3.2 (85.3) 18.0
Loss for the period - - - - (0.9) (0.9)
Foreign exchange movements - - - - - -
Total recognised income and expense - - - - (0.9) (0.9)
Issue of ordinary shares 3.7 1.6 - (2.6) - 2.7
Costs attributable to share issue - (0.2) - - - (0.2)
Net change directly in equity 3.7 1.4 - (2.6) - 2.5
Balance as at 30 June 2007 27.1 77.6 0.5 0.6 (86.2) 19.6
Consolidated Cashflow Statements
6 months 6 months Audited Year
ended ended ended
30 June 30 June 31 Dec 2006
2007 2006 Total
Notes Eurom Eurom Eurom Eurom Eurom Eurom
Operating loss - continuing (1.4) (2.7) (9.9)
Adjustments for:
Decrease in trade and other receivables 0.1 0.1 6.7
(Decrease) / Increase in trade and other payables (0.7) (0.3) 1.3
Impairment of investment in subsidiary - - 2.8
Management incentive shares - - 1.3
Other costs settled in shares - - 0.2
Depreciation and amortisation 0.1 - 0.1
Share option charge - 0.7 0.4
Net cash from operating activities (1.9) (2.2) 2.9
Tax paid (0.1) (0.1) (0.3)
Investing activities
Purchases of subsidiary undertakings (net of cash - (8.7) (8.7)
acquired)
Settlement of deferred consideration - (4.2) (4.2)
Net contribution from discontinued operations - 6.4 -
Sale of US facing businesses (net of cash disposed) - - (4.8)
Purchases of intangible assets (1.8) - (2.9)
Purchases of property, plant and equipment - - (0.2)
Net cash used in investing activities (1.8) (6.5) (20.8)
Financing activities
Proceeds from issue of ordinary shares 2.5 - -
Bank loan - 16.8 16.8
Repayment of bank loan (0.9) - (14.4)
Net interest paid (0.1) - (0.2)
Net cash from financing activities 1.5 16.8 2.2
Cash and cash equivalents at beginning of period 4.9 20.9 20.9
Cash and cash equivalents at end of period 2.6 28.9 4.9
This information is provided by RNS
The company news service from the London Stock Exchange
END
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