RNS Number:0888C
New Media Lottery Services PLC
15 August 2007
15 AUGUST 2007
NEW MEDIA LOTTERY SERVICES PLC
("NMLS" or "the Company")
(AIM:NMLS)
UNAUDITED PRELIMINARY RESULTS
FOR THE YEAR ENDED 30 APRIL 2007
The Board of New Media Lottery Services PLC, the AIM traded supplier and white
label operator of lottery systems and games for government sanctioned lottery
programs and charities, today announces its preliminary results for the year
ended 30 April 2007.
FINANCIAL HIGHLIGHTS
* NMLS revenues grew 990% to Euro437,826 (2006: Euro40,174) with sales
continuing to grow quarter on quarter;
* Sales on client's Lottery Bingo site increased by 523% to Euro10.6 million
(2006: Euro1.7 million); and
* Corresponding client player deposits increased by 651% to Euro867,000
(2006: Euro115,413); and
* NMLS loss for the year to 30 April 2007: Euro2.68 million (2006 loss:
Euro1.1 million).
BUSINESS HIGHLIGHTS
* Well positioned to move into a period of rapid growth;
* Expected launch of mobile lottery systems in Venezuela in October 2007;
* Completed system testing of Server Based Lottery System;
* Ready to replicate lottery services in multiple jurisdictions throughout
the coming year; and
* Filed for US patent protection on a prepaid mobile lottery application.
Commenting on today's announcement, Lord Mancroft, non-executive chairman, said:
"The Company has made considerable progress during the year. NMLS is well
positioned to move into a period of rapid growth through its various operations,
supported by the continued growth at its client websites. The Company intends
to replicate lottery services in multiple jurisdictions throughout the coming
year."
---ends---
Enquiries:
New Media Lottery Services PLC (001) 540 437 1688
John Carson
www.nmlsplc.com
Bishopsgate Communications Ltd 020 7562 3350
Nick Rome
Fran Read
www.bishopsgatecommunications.com
Arbuthnot Securities 020 7012 2000
Nicholas Marsh
www.arbuthnotsecurities.co.uk
CHAIRMAN'S STATEMENT
I am pleased to present New Media Lottery Services PLC's preliminary results for
the year ended 30 April 2007. We have made considerable progress this year and
our performance is very promising.
NMLS provides and operates white label lottery gaming platforms to a number of
International Lottery programs including charities, sports associations and
state lottery organisations. Unlike many internet gaming companies, NMLS only
works with legitimate Government sanctioned Lottery Programs. It does not market
to players in jurisdictions with regulatory uncertainties such as North America.
Financials
Client site sales for the year to 30 April 2007 increased by 523% to Euro10.6
million compared to Euro1.7 million for the year to 30 April 2006. The net revenue
to the Company for this period was Euro420,928 compared to Euro39,352 for the year to
30 April 2006. Corresponding client player deposits similarly saw a substantial
increase of 651% to Euro867,000 compared to Euro115,413 for the year to April 30 2006.
A significant growth pattern has been established in the second half with client
site sales growing 78% over the previous six month period, and demonstrable
growth quarter on quarter.
NMLS' loss for the year to 30 April 2007 is Euro2.68 million (loss of Euro1.1 million
in the year to 30 April 2006). Expenses were higher principally due to added
staffing, costs associated with the AIM listing and increased travel and
marketing. Additionally, in prior years, the Company's administrative expenses
were predominantly paid by the Company's U.S. parent company.
Review and Current Prospects
There has been a series of developments at the Company during the period. We now
own a one-third share of the software being used by three relationships sites in
Brazil (following a www.match.com model) and the Company is developing its own
for Ireland. We have spent a great deal of time developing the server based
platform and we expect it to be revenue generating this coming year. NMLS is
well positioned to move into a period of rapid growth through its various
operations, supported by the continued growth at its client websites. The
Company intends to replicate lottery services in multiple jurisdictions
throughout the coming year.
Our software development group has now developed, tested and implemented NMLS'
Server Based Lottery System. Inspired Gaming Group plc and NMLS are pursuing a
number of lottery opportunities.
Rehab Lotteries
In July 2007, the Company announced that it had benefited from record sales at
RehabBingo.com, the site it manages and markets on behalf of Rehab Lotteries in
Ireland. Sales at Rehab Lotteries have been growing rapidly with the site
benefiting from a growing profile on the back of a number of marketing
initiatives which include the sponsorship of the 2007 Miss Ireland Pageant. This
sponsorship resulted in a significant amount of media coverage, including 40
pages in the national press and two hours of TV exposure. RehabBingo continues
to grow sales at pace with the site achieving record sales and player deposits
for the six months to 30 June 2007.
Aragua
NMLS has a 10 year lottery contract in place with the Aragua Lottery, the
Venezuelan state lottery programme. The Company owns 45% of the local company in
Venezuela established to hold the Aragua Lottery contract and the agreement
includes mobile lottery games, internet gaming and sports betting. The plan is
to introduce a variety of new products to the Venezuelan market and a launch of
NMLS' mobile lottery systems is expected in October 2007. Recent National
Government lottery legislation has been enacted which will eliminate illegal
lottery activities and strengthen our lottery program.
US
The Company has filed for US patent protection on a prepaid mobile lottery
application. Management reviewed existing Mobile and Prepaid Mobile patents and
identified a process that improves security, offers a variety of game types and
is more conducive to working with a lottery Central Management System.
This follows the signing, in November 2006, of an exclusive non-transferable
software licence with Las Vegas Gaming Inc. ("LVGI"), a Nevada based operator,
manufacturer and distributor of products for the gaming industry. As a result,
NMLS will use LVGI's Optima Game Management Software, as a base engine for its
developed games. NMLS expects to utilize this software in Venezuela and a
number of other markets this coming year.
NMLS continues to leverage its investment in its software and expects to
announce additional contracts over the coming year. I would like to take this
opportunity to thank our staff for their support over this busy period and look
forward to updating investors as to our further progress.
Lord B. Mancroft
Chairman
New Media Lottery Services Public Limited Company
Consolidated Income Statement
for the year ended April 30th 2007
Continuing Operations
YE Interim 6 Months Final YE Final YE
Unaudited Unaudited Audited Audited
Note Apr-07 Oct-06 Apr-06 Apr-05
Euro Euro Euro Euro
Revenue 437,826 173,867 40,174 0
Administrative Expenses 7 -2,969,375 -1,669,965 -1,088,572 -260,002
Operating Loss -2,531,548 -1,496,098 -1,048,398 -260,002
Finance Costs -146,401 -65,734 -81,671 -757
Loss on Ordinary Activities -2,677,950 -1,561,832 -1,130,069 -260,759
before Taxation
Tax on Loss on Ordinary 0 0 0 0
Activities
Loss for the period -2,677,950 -1,561,832 -1,130,069 -260,759
attributable to
Equity Shareholders
Basic Loss per Ordinary -Euro0.11 -Euro0.06 -Euro0.05 -Euro5.81
Share
Diluted Loss per Ordinary -Euro0.11 -Euro0.06 -Euro0.05 -Euro5.81
Share
New Media Lottery Services Public Limited Company
Consolidated Balance Sheet
as at 30th April 2007
YE Interim 6 Months Final YE Final YE
Unaudited Unaudited Audited Audited
Apr-07 Oct-06 Apr-06 Apr-05
Euro Euro Euro Euro
Note
Non-Current Assets
Property, Plant and 199,785 150,239 33,365 24,524
Equipment
Intangible Assets 64,971 71,392 78,767 -
264,756 221,631 112,132 24,524
Current Assets
Trade and Other 332,222 373,096 244,716 219
Receivables
Cash and Other 128,884 207,307 1,763,358 2,190
Equivalents
461,106 580,402 2,008,074 2,409
Total Assets 725,862 802,033 2,120,205 26,933
Equity and Liabilities
Equity attributable to
equity holders of the
Parent
Issued Share Capital 3 240,621 240,621 238,130 449
Share Premium 4 3,771,935 3,771,935 3,619,414 1,063,615
Merger Reserve 5 539,377 539,377 539,377 -
Accumulated Loss 6 -6,775,836 -5,659,717 -4,097,887 -2,047,294
Total Equity -2,223,904 -1,107,784 299,034 -983,230
Current Liabilities
Trade and Other Payables 531,763 600,616 511,971 142,133
Bank Loan 1,281,113 - - -
1,812,876 600,616 511,971 142,133
Non-Current Liabilities
Other Liabilities 1,136,889 1,309,201 1,309,200 868,029
Total Liabilities 2,949,765 1,909,817 1,821,171 1,010,163
Total Equity and 725,862 802,033 2,120,205 26,933
Liabilities
New Media Lottery Services Public Limited Company
Consolidated Cash Flow Statement
for the year ended April 30th 2007
YE Interim 6 Months Final YE Final YE
Unaudited Unaudited Audited Audited
Apr-07 Oct-06 Apr-06 Apr-05
Euro Euro Euro Euro
Cash Outflow from Operating
Activities
Operating Loss -2,531,548 -1,496,098 -1,048,398 -260,005
Depreciation 45,482 10,546 11,139 15,287
Intangible Assets Amortised 7,734 7,375 997 0
Increase in debtors -87,506 -128,377 -244,498 3,721
(Decrease)/Increase in creditors -152,519 88,645 -78,945 111,699
Net Cash Outflow from Operating -2,718,357 -1,517,909 -1,359,705 -129,298
Activities
Cashflow from Investing Activities
Purchase of Property, Plant and -211,902 -127,420 -19,979 -170
Equipment
Purchase of Intangible Assets 6,062 0 -79,764 0
Net Cashflow used in Investing -205,840 -127,420 -99,743 -170
Activities
Cashflows from Financing
Activities
Proceeds from the Issue of Shares 155,012 155,012 2,658,191 0
Transaction Costs on the Issue of - 0 -665,105 0
Shares
Issue of Debentures - 0 1,309,201 0
Loan Proceeds 1,281,113 0 0 0
Finance Costs -146,401 -65,734 -81,671 -756
Net Cashflows from Financing 1,289,723 89,278 3,220,616 -756
Activities
Net Increase / (decrease) in cash -1,634,473 -1,556,051 1,761,167 -130,224
and cash equivalents at 31st
October
Cash and cash equivalents at 1,763,357 1,763,357 2,190 132,414
beginning of period
Cash and cash equivalents at end 128,884 207,306 1,763,357 2,190
of period
New Media Lottery Services Public Limited Company
Notes to the Consolidated Balance Sheet
as at April 30th 2007
1. Publication of Non-Statutory Accounts
The financial information set out in this draft statement, does not constitute
statutory accounts within the meaning of Section 150 of the Companies Act 1963.
The financial information for the full preceding period is based on the
statutory accounts for the year ended 30th April 2006. Those accounts, on which
the auditors issued an unqualified opinion, have been delivered to the registrar
of Companies.
2. Accounting policies
The draft financial information has been prepared on the basis of the accounting
policies set out in the Group's statutory accounts for the year ended 30th April
2006.
3. Share Capital
Authorised Equity # # # #
150,000,000 Ordinary Shares 1,000,000 1,000,000 1,000,000 1,000,000
of #0.66667
pence each
Allotted, called up and Euro Euro Euro Euro
fully paid equity
24,800,000 Ordinary Shares 240,621 240,621 238,130 449
of #0.66667
pence each (Apr 2006:
24,450,000 , 2005:
20,205,150)
Share Capital Movement
Opening Balance May 1st 2006 238,130
- 20th October 2006
Issue of 200,000 Ordinary Shares of
#0.66667 pence each 1,993
- 20th October 2006
Issue of 50,000 Ordinary Shares of
#0.66667 pence each 498
Closing Balance April 30th 2007 240,621
On the 20th October 2006, 200,000 Ordinary Shares of #0.66667 pence each were
issued to Las Vegas Gaming Inc, (LVGI) a Nevada Corporation for #0.66667 pence
each in consideration for the International rights to the 'Optima' System being
transferred to New Media Lottery Services Plc.
The value of the shares issued is Euro124,010.16, creating a share premium on this
issue of Euro122,017.
On the 20th October 2006, 50,000 Ordinary Shares of #0.66667 pence each were
issued to Tony Caporicci for #0.66667 pence each in consideration for services
rendered in arranging the International rights to the 'Optima' System being
transferred to New Media Lottery Services Plc.
The value of the shares issued is Euro31,002.54, creating a share premium on this
issue of Euro30,504. The shares have been recognised as have the associated costs
incurred in lieu of the shares.
4. Share Premium
Opening Balance May 1st 2006 3,619,414
- 20th October 2006
Issue of 200,000 Ordinary Shares of
#0.66667 pence each 122,017 (note 3)
- 20th October 2006
Issue of 50,000 Ordinary Shares of
#0.66667 pence each 30,504 (note 3)
Closing Balance April 30th 2007 3,771,935
5. Merger Reserve
Opening Balance May 1st 2006 539,377
No Movement
Closing Balance April 30th 2007 539,377
6. Accumulated Reserves
Opening Balance May 1st 2006 -4,097,887
Unaudited results - YE April 2007 -2,677,950
Closing Balance April 30th 2007 -6,775,836
7. Administrative Expenses
YE Interim 6 Months Final YE Final YE
Unaudited Unaudited Audited Audited
Apr-07 Oct-06 Apr-06 Apr-05
Euro Euro Euro Euro
Accountancy Fees & Audit Fees 251,710 68,500 36,942 0
Employee wages, salary and benefits 941,490 479,753 246,319 0
Directors Fees 76,051 44,698 59,500 0
Programming Costs 55,899 29,617 30,137 91,081
Other Administration Expenses 532,898 376,708 190,826 25,291
Foreign Exchange Gains and Losses -190,563 29,491 110,321 -37,179
Depreciation and Amortisation 53,216 17,921 12,136 15,287
Website Hosting 138,493 46,193 63,637 18,114
Advertising & Marketing 396,823 186,519 96,552 3,822
Consultancy Fees 323,041 131,553 121,746 104,701
Legal and Professional 308,158 151,739 105,607 38,886
Web Development 6,646 71,988 3,159 0
Rent 75,513 35,285 11,691 0
2,969,375 1,669,965 1,088,573 260,002
The Company's administrative expenses appear to have increased substantially
during this year end compared to the twelve months ended 30 April 2006 (the
comparative period). The administrative expense increase is substantially due
to a change in the allocation of such expenses. Prior to the 17th March 2006,
significant administrative expenses were paid by the Company's U.S. parent
company, named New Media Lottery Services, Inc., a Delaware corporation. After
the 17 March 2006, the Company began funding all of their administrative
expenses.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR BUGDISUBGGRS
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