TIDMBOTB
RNS Number : 6189L
Best of the Best PLC
14 January 2021
Best of the Best plc
("Best of the Best", "BOTB", "the Company" or "the Group")
Interim results for the six months ended 31 October 2020
Best of the Best plc runs competitions online to win cars and
other prizes.
Online-only model and efficient marketing investment drive
ongoing revenue and profit growth
Financial Highlights:
-- Total revenue for the six months GBP22.09 million (2019: GBP7.60 million)
-- Profit before tax GBP6.80 million (2019: GBP1.38 million)
-- Earnings per share 59.84p (2019: 12.40p)
-- Net assets of GBP6.75 million (2019: GBP2.26 million),
substantially underpinned by property and cash
-- Cash balances of GBP11.18 million at 31 October 2020 with no borrowings
Operational Highlights:
-- Strong performance reflects the move to a pure online model,
with continued growth in customer acquisition, enhanced content
creation and IT investment
-- New Midweek Car Competition added
-- Ticket prices reduced and Dream Car Competition prizes enhanced
William Hindmarch, Chief Executive, said:
"These strong results reflect our successful move to a pure
online model together with our increased confidence in marketing
investment as we look to accelerate growth.
Sales momentum since the period end has been encouraging, and we
expect pre-tax profits for the full year to be materially ahead of
management's expectations. We look forward to updating shareholders
with further progress in due course."
Enquiries:
Best of the Best plc William Hindmarch, Chief T: 020 7371
Executive 8866
Rupert Garton, Commercial
Director
Buchanan Chris Lane T: 020 7466
Toto Berger 5000
Charlotte Slater
Oakvale Capital Daniel Burns T: 0207 580
(Financial Adviser) Kieran Davey 3838
finnCap Corporate Finance T: 020 7220
(Nominated Adviser and Carl Holmes 0500
Broker) Kate Bannatyne
ECM
Alice Lane
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation 596/2014
Please visit www.botb.com for further information
Chief Executive's Statement
Over the past few years the Company has cautiously but actively
reduced the estate of physical sites upon which it was originally
established 20 years ago. Having previously traded from up to
twenty-six airport and shopping centre locations, the business has
completed its evolution and now operates entirely online.
The financial results for the first half reflect the benefits of
our successful transition to an online only model, with a reduced
cost base and improved capital efficiency. I am particularly
pleased with the smooth and measured way in which this transition
has been executed, with no loss of overall revenue or unwelcome
exceptional costs.
With the transition now complete, the Company is benefitting
from a very effective and scalable platform from which it can
continue to leverage its brand, supplier relationships and the
proprietary systems, software and database it has developed.
Whilst growing our investment in new customer acquisition,
alongside improving the products and experience we offer existing
players, BOTB has invested in increasing the range of competitions
and prizes. I am pleased with the growth delivered in the year to
date and how well positioned the business is for the future.
Interim Results
Revenue for the six months ended 31 October was GBP22.09 million
(2019: GBP7.60 million). Profit before tax was GBP6.80 million
(2019: GBP1.38 million) with earnings per share increasing to
59.84p (2019: 12.40p).
Net assets at 31 October 2020 stood at GBP6.75 million
underpinned by cash balances at the period end of GBP11.18 million
and our 967-year leasehold office properties in London, valued at
GBP0.95 million. The Group has no borrowings.
Competitions, Strategy & CRM
Both our 'Dream Car' and 'Lifestyle' competitions delivered
encouraging results and during the period we have added a new
Midweek Car Competition, offering a more focused selection of the
most popular lower-priced prizes. More recently, the ticket prices
in our car competitions have been materially reduced and all cars
in the Dream Car Competition are now awarded together with
GBP50,000 in cash as standard.
The Lifestyle Competition, which features luxury watches,
motorbikes, holidays, other gadgets/technology and cash prizes,
continued to perform well showing the benefits of considered
diversification. The wide range of prizes in the Lifestyle
Competition, with entry prices starting at just 15p, has also
significantly broadened our addressable market.
The weekly 'In The Headlights' edits, our YouTube car reviews
and other social channel automotive content continue to provide
valuable engagement with players. This activity has recently been
bolstered by a new 'Under the Hood' section of the website,
showcasing recent car winners and prize collections, in-house car
reviews, and other editorial content.
BOTB has built a substantial and valuable database, which not
only supports its existing competitions, but also offers
interesting opportunities for new products and strategic
partnerships, which are currently under review.
New player acquisition
We continued to invest confidently to attract new customers to
our increased range of competitions and content, through a wide
array of digital marketing channels, as well as TV, Radio, Print
and PR. Encouraging revenue growth has been delivered by an
enlarged in-house marketing team, deploying constantly updated,
dynamic and creative content at a granular level across all
channels. This has also delivered increasingly efficient customer
acquisition metrics.
Social media continues to be a core marketing and community
channel, driving both customer acquisition and contributing to
brand awareness. We now have a Facebook following of over 350,000
alongside 240,000 Instagram users, actively engaged with our unique
content. Traditional media is also used to maximise the Company's
exposure to a wide range of demographics, including our
'traditional' airport customer. Investment in print and PR
continues to secure frequent coverage of weekly winners and is
working well to positively strengthen and promote the BOTB
brand.
All investment in this area is carefully analysed on the cost
per acquisition of a new customer, versus their lifetime value.
This metric, which is tracked in considerable detail across the
various channels, is critical in our decision making on where and
how we continue to grow our marketing budget in the year ahead.
IT development
There have been numerous iterative changes to the system
architecture and website during the period, all aimed at
incremental improvements in the user experience of new and existing
customers. Our in-house team of developers work to a fortnightly
deployment schedule with new code being released regularly and
consistently, using AB split testing to refine and roll out new
functionality.
Also during the period our native iOS App was soft launched,
with the native Android app to follow shortly. Our marketing team
is poised to promote both of these apps to our customers as a
simpler way to enter our competitions with a richer user
experience.
Dividends
In line with various previous distributions, as the Company
continues to be profitable, cash generative and benefits from a
robust balance sheet, the Board is also pleased to declare the
return of approximately GBP3.75 million to shareholders by way of a
special dividend (the "Special Dividend") of 40.0p per ordinary
share.
The Special Dividend will be paid on 5(th) February 2021 to
shareholders on the register at the close of business on 22nd
January 2021. The ex-dividend date is 21(st) January 2021.
Following the payment of the Special Dividend the Company will
retain working capital cash balances in excess of GBP7.0 million,
which the Directors consider to be sufficient working capital to
fund the Company's activities over the next 12 month period.
Update of FSP
The Company, together with its advisers, remains in ongoing
discussions with interested parties from a number of sector
verticals and including private equity, who are reviewing
information in a data room and having management team meetings.
These discussions are continuing despite the renewed constraints of
Covid-19, though the related restrictions are naturally impacting
the speed of discussions and decision making. The Board wishes to
reiterate that there can be no certainty that an offer will be
forthcoming or as to the terms of any such offer and looks forward
to keeping shareholders updated in due course.
Outlook
The first half of the year has delivered encouraging sales and
profits growth, and importantly, we also completed the transition
to an online-only business which has driven a step change in
growth. This momentum has continued since the period end and, as a
result, the Board now expects full year pre-tax profits to
materially exceed management expectations.
With the Group well-positioned for the remainder of the
financial year and beyond, the Board remains confident about the
prospects for the business. I look forward to updating shareholders
with further progress in due course.
William Hindmarch
Chief Executive
14 January 2021
BEST OF THE BEST PLC
Unaudited Consolidated Income Statement
For the Six Months Ended 31 October 2020
___________________________________________________________________________________________________
Six Months Six Months
Ended 31/10/20 Ended 31/10/19 Year Ended
Unaudited Unaudited 30/04/20
Audited
Notes GBP'000 GBP'000 GBP'000
Revenue 2 22,088 7,604 17,789
Cost of sales (8,206) (3,033) (7,267)
---------------- ---------------- ------------
GROSS PROFIT 13,882 4,571 10,522
Administrative expenses (7,083) (3,192) (6,328)
OPERATING PROFIT 6,799 1,379 4,194
Finance income 1 4 11
---------------- ---------------- ------------
PROFIT BEFORE TAX 6,800 1,383 4,205
Tax (1,188) (220) (687)
---------------- ---------------- ------------
PROFIT FOR THE PERIOD AND TOTAL COMPREHENSIVE
INCOME 5,612 1,163 3,518
================ ================ ============
Profit and total comprehensive income
attributable to:
Owners of the parent 5,612 1,163 3,518
---------------- ---------------- ------------
Profit on earnings per share expressed
in pence per share: 3
Basic from continuing operations 59.84 12.40 37.51
Diluted from continuing operations 59.39 12.39 37.44
BEST OF THE BEST PLC
Unaudited Consolidated Statement of Financial Position
As at 31 October 2020
_________________________________________________________________________________________________
Six Months Six Months
Ended 31/10/20 Ended 31/10/19 Year Ended
Unaudited Unaudited 30/04/20
Audited
Notes GBP'000 GBP'000 GBP'000
ASSETS
NON-CURRENT ASSETS
Development costs 157 70 81
Property, plant and equipment 1,098 1,106 1,086
Deferred tax - 3 3
--------------- --------------- ------------
1,255 1,179 1,170
CURRENT ASSETS
Trade and other receivables 105 111 376
Cash and cash equivalents 11,183 3,238 5,210
--------------- --------------- ------------
11,288 3,349 5,586
TOTAL ASSETS 12,543 4,528 6,756
=============== =============== ============
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 469 469 469
Share premium 199 199 199
Capital redemption reserve 237 237 236
Foreign exchange reserve 20 26 27
Retained earnings 5,824 1,327 2,369
--------------- --------------- ------------
TOTAL EQUITY 6,749 2,258 3,300
=============== =============== ============
LIABILITIES
CURRENT LIABILITES
Trade and other payables 4,610 2,061 3,004
Tax payable 1,184 209 452
TOTAL LIABILITIES 5,794 2,270 3,456
=============== =============== ============
TOTAL EQUITY AND LIABILITIES 12,543 4,528 6,756
=============== =============== ============
BEST OF THE BEST PLC
Unaudited Consolidated Statement of Changes in Equity
For the Six Months Ended 31 October 2020
Called
up
share Retained Share
capital earnings premium
GBP'000 GBP'000 GBP'000
Balance at 1 May 2019 469 352 199
-------- -------------- --------
Dividends - (1,501) -
-------- -------------- --------
Transactions with owners - (1,501) -
-------- -------------- --------
Profit for the year - 3,518 -
Total comprehensive income - 3,518 -
-------- -------------- --------
Balance at 30 April 2020 469 2,369 199
-------- -------------- --------
Dividends - (2,157) -
-------- -------------- --------
Transactions with owners - (2,157) -
-------- -------------- --------
Profit for the period - 5,612 -
Total comprehensive income - 5,612 -
-------- -------------- --------
Balance at 31 October 2020 469 5,824 199
======== ============== ========
Capital Foreign
redemption exchange Total
reserve reserves equity
GBP'000 GBP'000 GBP'000
Balance at 1 May 2019 237 26 1,283
----------- --------- --------
Issue of share capital
Dividends - - (1,501)
----------- --------- --------
Transactions with owners - - (1,501)
----------- --------- --------
Profit for the year - - 3,518
Total comprehensive income - - 3,518
----------- --------- --------
Balance at 30 April 2020 237 26 3,300
----------- --------- --------
Dividends - - (2,157)
----------- --------- --------
Transactions with owners - - (2,157)
----------- --------- --------
Profit for the period - (6) 5,606
Total comprehensive income - (6) 5,606
----------- --------- --------
Balance at 31 October 2020 237 20 6,749
=========== ========= ========
BEST OF THE BEST PLC
Unaudited Consolidated Statement of Changes in Equity
For the Six Months Ended 31 October 2020
Called
up
share Retained Share
capital earnings premium
GBP'000 GBP'000 GBP'000
Balance at 1 May 2019 469 352 199
----------- --------- --------
Dividends - (188) -
----------- --------- --------
Transactions with owners - (188) -
Profit for the period - 1,163 -
----------- --------- --------
Total comprehensive income - 1,163 -
----------- --------- --------
Balance at 31 October 2019 469 1,327 199
----------- --------- --------
Capital Foreign
redemption exchange Total
reserve reserves Equity
GBP'000 GBP'000 GBP'000
Balance at 1 May 2019 237 26 1,283
----------- --------- --------
Dividends - - (188)
----------- --------- --------
Transactions with owners - - (188)
----------- --------- --------
Profit for the period - - 1,163
Total comprehensive income - - 1,163
----------- --------- --------
Balance at 31 October 2019 237 26 2,258
=========== ========= ========
BEST OF THE BEST PLC
Unaudited Consolidated Cash Flow Statement
For the Six Months Ended 31 October 2020
________________________________________________________________________________________________
Six Months Six Months
Ended 31/10/20 Ended 31/10/19 Year Ended
Unaudited Unaudited 30/04/20
Audited
Cash flows from operating activities Notes GBP'000 GBP'000 GBP'000
Cash generated from operations 5 8,697 1,362 4,892
Tax paid (455) (410) (644)
----------------- ----------------- -------------
Net cash from operating activities 8,242 952 4,248
Cash flows from investing activities
Purchase of intangible fixed assets (78) (63) (76)
Purchase of tangible fixed assets (35) (12) (18)
Sale of tangible fixed assets - - -
Interest received 1 4 11
----------------- ----------------- -------------
Net cash from investing activities (112) (71) (83)
Cash flows from financing activities
Equity dividends paid (2,157) (188) (1,500)
Net cash from financing activities (2,157) (188) (1,500)
----------------- ----------------- -------------
Increase in cash and cash equivalents 5,973 693 2,665
Cash and cash equivalents at beginning
of period 5,210 2,545 2,545
----------------- ----------------- -------------
Cash and cash equivalents at end
of period 11,183 3,238 5,210
================= ================= =============
BEST OF THE BEST PLC
Notes to the Interim Financial Statements
For the Six Months Ended 31 October 2020
1. BASIS OF PREPARATION
These condensed interim financial statements are for the six
months ended 31 October 2020. They have been prepared with regard
to the requirements of International Financial Reporting Standards
as adopted by the EU. They do not include all of the information
required for full financial statements and should be read in
conjunction with the financial statements (under IFRS) of the Group
for the year ended 30 April 2020.
The Group is listed on the AIM market of the London Stock
Exchange and has prepared the interim financial statements in
accordance with AIM rule 18. The Group has elected not to adopt the
full scope of IAS 34 'Interim Financial Reports', which is a
voluntary requirement.
The financial statements have been prepared under the historical
cost convention. Principal accounting policies adopted are
consistent with those of the annual financial statements for the
year ended 30 April 2020.
2. SEGMENTAL REPORTING
The Directors consider that the primary reporting format is by
business segment and that there is only one such segment being that
of competition operators. This disclosure has already been provided
in these financial statements.
3. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the earnings
attributable to the ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year.
Diluted earnings per share is calculated using the weighted
average number of shares outstanding during the year, adjusted to
assume the exercise of all dilutive potential ordinary shares under
the company's share option plans.
Six Months Six Months
Ended Ended Year Ended
31/10/20 31/10/19 30/04/20
Unaudited Unaudited Audited
Profit and basic and diluted earnings
attributable to the owners of the 5,611,363 GBP1,163,137 GBP3,517,626
parent
Weighted average number of ordinary
shares 9,377,253 9,377,253 9,377,253
Basic earnings per share 59.84p 12.40p 37.51p
Adjusted weighted average number
of ordinary shares 9,448,550 9,386,867 9,394,296
Diluted earnings per share 59.39p 12.39p 37.44p
BEST OF THE BEST PLC
Notes to the Interim Financial Statements
For the Six Months Ended 31 October 2020
4. DIVIDS
A Special Dividend of 20.0 pence per ordinary share was paid on
10 July 2020 to shareholders on the register at the close of
business on 26 June 2020.
A final dividend of 2.0 pence per ordinary share for the full
year ending 30 April 2020 was paid on 02 October 2020 to
shareholders on the register at 18 September 2020.
A Special Dividend of 40.0 pence per ordinary share will be paid
on 5 February 2021 to shareholders on the register at the close of
business on 22 January 2021. The ex-dividend date is 21 January
2021.
5. CASH GENERATED FROM OPERATIONS
Six Months Six Months Year
Ended 31/10/20 Ended 31/10/19 Ended 30/04/20
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Profit before income tax 6,800 1,383 4,205
Depreciation and amortisation
charges 25 25 53
Finance income (1) (4) (11)
Decrease / (increase) in trade
and other receivables 270 49 (215)
Increase / (decrease) in trade
and other payables 1,603 269 1,212
(Decrease) / increase in provisions - (360) (352)
8,697 1,362 4,892
---------------- ---------------- ----------------
6. RELATED PARTY DISCLOSURES
M W Hindmarch is considered to be a related party as he is a
Non-Executive Director of the Company. During the six months ended
31 October 2020, payments were made to him totalling GBP10,000
(GBP6,000 for the six months ended 31 October 2019) in respect of
consultancy services provided.
7. ULTIMATE CONTROLLING PARTY
The ultimate controlling party at the end of this interim period
was W S Hindmarch, the Chief Executive Officer of the Company, by
virtue of his controlling shareholding at the statement of
financial position date.
8. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information contained in this interim statement
does not constitute statutory accounts as defined in sections 434
of the Companies Act 2006. All information is unaudited apart from
that included for the year ended 30 April 2020.
The statutory accounts for the financial year ended 30 April
2020 were prepared under IFRS as adopted by the EU. These accounts,
upon which the auditor issued an unqualified opinion, did not
include references to any matters to which the auditor drew
attention by way of emphasis without qualifying their report and
did not contain statements under 498(2) or (3), (accounting records
or returns inadequate, accounts not agreeing with records and
returns or failure to obtain necessary information and
explanations) of the Companies Act 2006, have been delivered to the
Registrar of Companies.
This interim statement will be made available at the Company's
registered office at 2 Plato Place, 72-74 St. Dionis Road, London
SW6 4TU and will be available on the Company's website:
www.botb.com.
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