Preliminary Results

RNS Number : 3335I

32Red Plc

10 March 2010

 

 32Red Plc("32Red" or "the Company")

Preliminary results for the year ended 31 December 2009

32Red, the award-winning casino operator, today announces preliminary results for the year ended 31 December 2009

 

Key points:

 

·; Strong second half recovery resulting in record Net Gaming Wins for a six month period

·; Targeted and cost-effective marketing yielding record new player recruitment in the year

·; Smooth integration of recently acquired Nedplay and Golden Lounge casinos complete

·; Increased Investment in marketing budgeted for 2010

·; Removal of 32Vegas casino by William Hill in August 2009

·; Soft launch of 32Red Bet

·; Casino of the Decade award from independent watchdog, Casinomeister

 

Key casino financials and performance indicators

 

·; Net Gaming Wins £12.8m (2008: £13.0m)

·; H2 09 Casino Net Gaming Wins up 21% on H1 09 and up 11% on H2 08 

·; Clean EBITDA* of £1.2m (2008: £1.8m)

·; Profit before tax £0.5 million (2008: £1.3 million)

·; EPS 0.76p (2008: 1.83p)

·; New Casino players 19,117, up 23% on 2008 

·; Casino cost per acquisition: £95 (2008: £119)

·; Active casino customers 25,187 up 15% on 2008

·; Casino player yield £458 (2008: £537)

* Clean EBITDA is Earnings before interest tax, depreciation, amortisation, share option costs and exceptional items.

Current trading

 

Revenues for January and February 2010 are up 10% on the corresponding period in 2009 with strong active player levels and encouraging recruitment of new players. The Company remains watchful of economic indicators but believes the potential of and strength in the brand can be further successfully exploited in 2010.

 

Commenting on the results Ed Ware, Chief Executive Officer, said:

 

"Our strong recovery in the second half of 2009 was principally the result of successful recruitment and retention of new players at attractive costs underlining the strength of the 32Red brand and the effectiveness of our marketing activity. We will continue to increase marketing spend, particularly expanding our profile through TV advertising. This will be supported by other cost effective marketing opportunities such as the ongoing sponsorship of Swansea City Football Club."

 

10 March 2010

 

32Red plc	Tel: +350 20049395
Ed Ware, CEO Jon Hale, Finance Director
College Hill	Tel: +44 (0) 20 7457 2020
Matthew Smallwood Jamie Ramsay Numis Securities Chris Wilkinson; Corporate Broking Michael Meade; NOMAD	Tel: +44 (0) 20 7260 1200

 

Chairman's Statement

 

I am pleased to set out below my review of the Directors' Report and Consolidated Financial Statements of 32Red Plc ("the Company") for the year ended 31 December 2009.

 

Financial review

 

Net Gaming Wins for the full year of 2009 were £12.75m and marginally behind the previous year (2008: £12.96m). However, closer inspection of the results reveals two distinctly different performances during the first and second halves of 2009. Second half revenues in 2009 represent a record high for a six month trading period for the Company and are in marked contrast to the trading performance delivered in the first half of the year when revenues declined by 11% against the same period in 2008.

 

Revenues (£000s)	H1 2009	H2 2009	2009	H1 2008	H2 2008	2008
Casino	5,219	6,319	11,538	6,030	5,674	11,704
Poker	492	479	971	548	504	1,052
Bingo and other	128	115	243	-	207	207
	5,839	6,913	12,752	6,578	6,385	12,963

 

The strong recovery during the second half of 2009 was led by the 32Red Casino which grew revenues by 21% when compared with the first half of the year and by 11% over the corresponding period in 2008. Overall it was an encouraging recovery and underlines the importance of the Company's flagship operation - the 32Red Casino - which remains crucial to the success of the overall business. Our continued efforts to improve operational effectiveness and optimising our marketing activities, coupled with the withdrawal of the 32Vegas online casino website by William Hill on 4 August 2009, are in the Board's view significant factors in the improvement in 32Red's performance over the second half of the year. The move by William Hill and the Company's return to strong growth fully supports the Board's commitment to taking action in order to protect 32Red's valuable intellectual property.

The strong recovery in the second half of the year, along with 32Red's return to growth, has resulted in a clean EBITDA* of £1.2m (2008: £1.8m) and operating profit before share option costs and exceptional items for the year of £0.9m (2008: £1.5m). 

 

Exceptional items of £0.1m (2008: £nil) represent expenses incurred during the year in respect of the ongoing litigation detailed below. Profit after taxation and after exceptional items totalled £0.5m (2008: £1.3m) for the Group. The Company has strengthened its balance sheet during the year and cash balances totalled £1.7m at 31 December 2009 (31 December 2008: £0.9m). The Board does not recommend the payment of a dividend for the financial year ended 31 December 2009 (2008: nil).

 

Litigation

 

During the year, 32Red initiated legal proceedings against three William Hill companies ("William Hill") in respect of the online casino, 32Vegas. The directors believe that the name 32Vegas infringes various 32Red registered trademarks and other intellectual property rights. 32Red issued a claim in the High Court of Justice on 4 March 2009 and this claim was served on 3 July 2009. Subsequent to service of the claim, William Hill changed the 32Vegas website, casino and brand in a move that was welcomed by 32Red.

 

In respect of the claim, William Hill filed a defence and counterclaim on 11 August 2009 denying liability and challenging the validity of the 32Red trademarks. A court hearing has been set for October 2010 and the Board will update shareholders as appropriate. 32Red has always registered and protected its valuable trade marks and is fully prepared to defend their validity in the courts if necessary.

 

Strategy

 

Further to progress being made in specific areas of business development and along with action being taken to protect the intellectual property, brand and identity of 32Red, the Board is committed to increasing significantly the marketing investment in 32Red during 2010. This makes 2010 an important year and although the spectre of economic uncertainty remains, we are confident that 32Red can further improve recruitment and retention with cost-effective campaigns.

 

The continued quality and stability offered by Gibraltar and its licensing and regulatory environment remains one of the bedrocks for the 32Red business. The Board believes that the PLC status of the Company may become a significant factor if and when 32Red decides to make additional applications to licensing authorities for gaming licences in Europe and beyond.

 

While 32Red will continue to focus on its core casino business, we will also test the marketability of our emerging products as well as utilising these services to retain players and limit leakage of 32Red customers to rival operators.

 

Acquisitions

 

On 15 February 2010, the Company announced that it had acquired the assets of two European-focused online casinos. The acquisition of the business assets of Nedplay casino (www.nedplay.com) from Floryntia Play Group NV was completed on 21 January 2010 and the acquisition of the assets of Golden Lounge casino (www.goldenlounge.com) from Golden Lounge Limited was completed on 12 February 2010.

 

The business assets acquired in both cases comprise of the player database, software agreements, the domain names and other intellectual property that were purchased for nominal considerations. The sole liabilities assumed by 32Red through these acquisitions are in respect of player balances and total £0.1m.

 

Both transactions were compelling and similar in many ways. The integration of both casinos into our platform has progressed smoothly and quickly. The Golden Lounge and Nedplay casinos have historically focused on European territories away from the UK and therefore sit well alongside the 32Red casino which continues to be a UK-centric operation. The Company will apply its award-winning levels of player support, operational discipline and marketing to both brands in the coming months, ahead of evaluating the total number of brands operated by 32Red Plc.

 

32Red named 'Casino of the Decade'

 

I am delighted to announce that the 32Red Online Casino recently received the award of 'Casino of the Decade' by independent watchdog and player advocate, Casinomeister. This significant award recognises the level of care and attention the 32Red team have consistently delivered over a number of years. This level of excellence continues to be a strong focus for the management team as 32Red develops more scale and depth.

 

I would like to take this opportunity to congratulate and thank all our employees for their continued hard work and commitment during 2009.

 

Current Trading and Outlook

 

Trading in 2010 to date has been strong across the Company's portfolio with revenues (excluding acquisitions) for the first two months of the year up 10% on the same period in 2009. The sector continues to evolve quickly and the Board continues to monitor corporate opportunities as the industry consolidates. The Board looks forward to a successful and exciting year.

 

David Fish QC

Chairman, 32Red Plc

* Clean EBITDA is Earnings before interest tax, depreciation, amortisation, share option costs and exceptional items.

Chief Executive's Statement

 

The year ended 31 December 2009 was certainly a 'game of two halves' for 32Red with a strong recovery in the second half of the year partially making up for the tough trading conditions experienced earlier in the year. A number of factors have contributed to the strong H2 recovery but as commented on already by the Chairman in his report, the continued focus on improving all aspects of the 32Red player experience along with the withdrawal of the 32Vegas brand by William Hill on 4 August 2009 are believed to be significant factors in the return to strong growth for 32Red in the latter half of the year. William Hill continue to deny that the use of the 32Vegas brand infringed 32Red's trade marks.

 

Net gaming wins for the 32Red business totalled £12.75m in 2009 (2008: £12.96m) with Casino revenues once again dominating the Group's trading and representing some 90% of total Company revenues (2008: 90%).

 

32Red Casino Key Performance Indicators

 

32Red Casino	2009	2008	2007
Net gaming wins (000s)	£11,538	£11,704	£8,996
Active players	25,187	21,808	18,992
New players	19,117	15,567	14,586
Yield per active player	£458	£537	£474
Cost per acquisition	£95	£119	£137

 

Recruitment of new casino players is now accelerating more steeply and a record 19,117 new casino players were attracted to 32Red during the year (2008: 15,567). Our marketing channels continue to be closely managed and we remain confident that our activities deliver a respectable return on investment, particularly our television advertising spend. Cost per acquisition of new casino players has been driven down to just £95 in 2009 (2008: £119) which is a result of constantly optimising campaigns and taking value for money marketing opportunities as they arise. These activities depend upon, and benefit from, the strength of the 32Red brand, its excellent reputation and distinguished identity. This cost-effective recruitment of new customers, along with continued targeted direct marketing campaigns, resulted in 25,187 active casino players in the year, up 15% on 2008.

 

The impressive growth in both active players and new players is partially offset by a reduction in player yields, which continue to come under pressure but are again strong in comparison to other operators. This is in no small way due to the excellent level of player support and service provided to players at 32Red. The management team will continue to focus on retaining high-roller players during 2010 although it is possible that external economic factors may yet have a disproportionate effect on this type of player.

 

Other products

 

32Red Poker operations have generated revenues of £1.0m in the year (2008: £1.1m). The Board continues to evaluate all aspects of the poker market and believes that recent moves to attempt to restrict those operators still accepting illegal bets from the US may lead to a more level playing field but timings are very difficult to gauge.

 

32Red Bingo operations generated £0.2m of revenue in the year (2008: £0.2m). Results from the initial marketing campaign were encouraging, confirming our belief that the 32Red brand sits comfortably as a bingo proposition and has some potential. With a re-launched website imminent, marketing spend on Bingo in 2010 will steadily increase and be supported by a new television campaign from the second Quarter of 2010 onwards.

 

32Redbet, the 32Red sportsbook offering was launched on 15 December 2009 in conjunction with the Global Betting Exchange's iBroker product. The Board believes that the sportsbetting service is a valuable addition to the 32Red suite of products and provides a degree of protection against existing 32Red players spending time with rival sportsbetting operators (who may also offer casino games). Once fully integrated into the 32Red wallet, the product will be marketed in advance of notable betting opportunities, including the soccer World Cup in the summer. The iBroker platform enables the Company to operate the sportsbook on a no-risk basis with the ability to hedge through the Betdaq betting exchange seamlessly. Importantly, where opportunities arise, 32Red has the ability to manage the risk, and to offer specialized markets designed to attract new customers to 32Red in a different way.

 

32Red Rummy was launched on 7 July 2009 and offers its existing players the chance to play one of the world's best-known and compelling card games. Rummy provides the Company with the opportunity to reach a new audience and is also presently being integrated into the 32Red central wallet.

 

32Red Spreadbet, a platform for financial spread betting and contracts for difference (CFDs) was launched on 9 March 2009. 32Red Spreadbet is the result of a partnership with CMC Spreadbet Plc and CMC Markets UK Plc, both of whom are authorised and regulated by the Financial Services Authority. The partnership offers 32Red customers access to a multitude of financial markets around the globe. 

 

Investments

 

As reported at the interim stage, the Company made two significant investments in 2009:-

 

Investment in marketing 

 

32Red is main sponsor of leading Championship football team, Swansea City, and is delighted with the notable success enjoyed so far this season by the Club. On behalf of everyone at 32Red, I would like to take this opportunity to wish Swansea every success with its push for promotion this season.

 

32Red also launched a UK television advertising campaign in 2009 and the resulting impressive recruitment of new players justifies an increased investment in this area during 2010.

 

Investment in new technology

 

The Company invested in a direct marketing solution that facilitates a more detailed segmentation of our player databases and will improve the effectiveness of our communications. The platform has been fully tested and was integrated in the last quarter of 2009. 32Red also successfully rolled out an automated bonus system tailored to meet the requirements of 32Red players. Both investments are aimed at further improving the 32Red player experience which we believe will result in even higher retention levels.

 

These investments in technology along with some re-structuring across the business have enabled the Company to implement a range of cost savings that will reduce overheads by approximately £400,000 per annum.

 

Edward Ware, Chief Executive Officer32Red Plc

 

 

32Red Plc
Consolidated Income Statement
for the year ended 31 December 2009
	Notes
		2009	2008
		£	£
Net gaming wins	3	12,751,934	12,963,134
Cost of sales		(8,967,379)	(8,563,765)
Gross Profit		3,784,555	4,399,369
Administrative expenses		(2,574,958)	(2,632,547)
EBITDA before share option costs and exceptional items		1,209,597	1,766,822
Share option costs		(219,318)	(199,365)
Depreciation and amortisation		(329,234)	(288,130)
Exceptional items	4	(121,163)	-
Operating profit	2	539,882	1,279,327
Finance income	5	3,258	74,353
Finance costs	5	(12,954)	(86,539)
Profit on ordinary activities before taxation		530,186	1,267,141
Tax on ordinary activities		(450)	(450)
Profit for the year		529,736	1,266,691
Earnings per share (p)
Basic	6	0.76	1.83
Diluted	6	0.71	1.72
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2009
Profit and total comprehensive income for the year		529,736	1,266,691

 

32Red Plc
Consolidated Statement of Changes in Equity
for the year ended 31 December 2009
			Equity attributable to equity holders of 32Red Plc
			Share  capital		Share  premium		Share options reserve		Retained earnings			Total Equity
			£		£		£		£			£
Balance at 1 January 2008			137,950		14,161,825		176,552		(16,582,511)			(2,106,184)
Profit and total comprehensive income for the year			-		-		-		1,266,691			1,266,691
Share options lapsed			-		-		(5,056)		5,056			-
Share options charge			-		-		199,365		-			199,365
Share options exercised			800		9,200		(38,372)		38,372			10,000
Balance 31 December 2008			138,750		14,171,025		332,489		(15,272,392)			(630,128)
Profit and total comprehensive income for the year			-		-		-		529,736			529,736
Shares options lapsed			-		-		(121,726)		121,726			-
Share options charge			-		-		219,318		-			219,318
Share options exercised			60		690		(21,597)		21,597			750
Balance 31 December 2009			138,810		14,171,715		408,484		(14,599,333)			119,676

 

 

32Red Plc
Consolidated Balance Sheet
as at 31 December 2009
	Notes			2009		2008
				£		£
Assets
Non-current
Intangible assets	8			315,675		195,532
Property, plant and equipment	9			179,698		299,428
				495,373		494,960
Current
Other receivables				217,515		326,097
Cash and cash equivalents				1,706,372		909,615
				1,923,887		1,235,712
Total assets				2,419,260		1,730,672
Equity
Equity attributable to shareholders of 32Red Plc
Called up share capital				138,810		138,750
Share premium				14,171,715		14,171,025
Share option reserve				408,484		332,489
Retained earnings				(14,599,333)		(15,272,392)
Total equity				119,676		(630,128)
Current liabilities
Social security and other taxes				248,529		438,056
Bank loan due within one year				250,000		250,000
Trade and other payables				1,801,055		1,672,744
Total liabilities				2,299,584		2,360,800
Total equity and liabilities				2,419,260		1,730,672

 

 

32Red Plc
Consolidated Statement of Cash Flows
for the year ended 31 December 2009
							2009		2008
							£		£
Operating activities
Profit for the year							529,736		1,266,691
Interest adjustments							9,696		12,186
Amortisation							132,233		66,983
Depreciation							197,001		221,148
Change in trade and other receivables							108,582		554,117
Change in trade and other payables							(61,216)		(2,901,655)
Share options charge							219,318		199,365
							1,135,350		(581,165)
Investing activities
Additions to other intangible assets							(252,376)		(91,777)
Additions to property, plant and equipment							(87,269)		(57,258)
Disposal of property, plant and equipment							9,998		-
Interest received							3,258		74,353
							(326,389)		(74,682)
Financing activities
Share options exercised							750		10,000
Proceeds from borrowings							500,000		900,000
Repayment of borrowings							(500,000)		(650,000)
Interest paid							(12,954)		(86,539)
							(12,204)		173,461
Cash and cash equivalents, beginning of period							909,615		1,392,001
Net increase/(decrease) in cash and cash equivalents							796,757		(482,386)
Cash and cash equivalents, end of period							1,706,372		909,615

 

Notes:

 

1	Accounting policies

 

The financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRSs') as adopted by the European Union and issued by the International Accounting Standards Board ('IASB'). These accounting policies comply with each IFRS that is mandatory for accounting periods commencing on or after 1 January 2009. The financial statements have been prepared under the historical cost convention and on a going concern basis.

 

 

2	Operating result		2009		2008
			£		£
	This is stated after charging:
	Auditor's remuneration - audit fees		41,250		41,250
	- taxation		7,000		7,315
	- liquidation of subsidiary		6,889		-
	Depreciation of owned property, plant and equipment		197,001		221,148
	Amortisation of other intangible assets		132,233		66,983
	Operating lease rentals		24,461		24,461
	Share options charge		219,318		199,365
	Foreign exchange losses		110,059		59,136

 

Amortisation and depreciation are charged to administrative expenses.

 

 

3	Segment information

 

Business segment

Performance can be analysed by business segment as follows:

 

		2009		2008
		£		£
Casino
Net gaming wins		11,537,717		11,703,908
Segmental gross profit before marketing costs		5,343,822		5,887,386
Poker
Net gaming wins		971,059		1,052,343
Segmental gross profit before marketing costs		390,449		494,273
Bingo
Net gaming wins		243,158		206,883
Segmental gross profit before marketing costs		90,874		55,030
Consolidated
Net gaming wins		12,751,934		12,963,134
Gross profit before marketing costs		5,825,145		6,436,689
Marketing costs		(2,040,590)		(2,037,320)
Administrative expenses		(3,123,510)		(3,120,042)
Exceptional items		(121,163)		-
Operating profit		539,882		1,279,327

 

Aggregate marketing costs and administrative expenses have not been split between the business segments as this information is not reported to the Board of Directors.   Aggregate net assets are split between the business segments as follows:
			2009			2008
			£			£
Casino
Other receivables			203,917			318,089
Cash and cash equivalents			1,630,972			884,568
Trade and other payables			(1,718,417)			(1,365,883)
			116,472			(163,226)
Poker
Other receivables			2,500			2,206
Cash and cash equivalents			61,677			25,047
Trade and other payables			(50,915)			(90,878)
			13,262			(63,625)
Bingo
Other receivables			-			5,802
Cash and cash equivalents			24,820			-
Trade and other payables			(31,723)			(22,490)
			(6,903)			(16,688)
Sports book
Trade and other payables			-			(193,493)
			-			(193,493)
Consolidated net assets			122,831			(437,032)
Other non-current assets			495,374			494,960
Social security and other taxes			(248,529)			(438,056)
Bank loan			(250,000)			(250,000)
			119,676			(630,128)

 

Non-current assets, "employee tax obligations" and bank loans have not been split between business segments as this information is not reported to the Board of Directors.

 

Geographical segment

 

The Group's net gaming wins are divided into the following geographical areas by customer location:

 

		2009		2008
		£		£
Net gaming wins by geographical market
UK & Ireland		9,449,458		9,450,327
Europe		1,943,737		1,402,103
Rest of the World		1,358,739		2,110,704
		12,751,934		12,963,134

 

All non-current assets were located in Gibraltar at 31 December 2009 and 31 December 2008.

 

4	Exceptional item

 

 

		2009		2008
		£		£
Legal and other costs associated with ongoing litigation		121,163		-

 

During the year, 32Red initiated legal proceedings against three William Hill companies ("William Hill") in respect of the online casino, 32Vegas. The directors believe that the name 32Vegas infringes various 32Red registered trade marks and other intellectual property rights. 32Red issued a claim in the High Court of Justice on 4 March 2009 and this claim was served on 3 July 2009. Subsequent to service of the claim, William Hill has changed the 32Vegas website name, a move that was welcomed by 32Red. Exceptional items relate to legal and other expenses incurred during the ongoing litigation dispute with William Hill.

 

 

5	Finance income and costs

 

The following amounts have been included in the income statement for the reporting periods presented:

 

		2009		2008
		£		£
Interest income from short term deposits		3,258		74,353
Interest paid on loans		12,954		86,539

 

6	Earnings per share

 

Basic earnings per share has been calculated by dividing the net results attributable to ordinary shareholders by the weighted average number of shares in issue during the relevant financial periods.

 

The weighted average number of shares used for basic earnings per share amounted to 69,381,904 shares (2008: 69,174,315).

 

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. For share options, a calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to the outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.

 

			2009		2008
Net profit attributable to ordinary shares			£529,736		£1,266,691
Weighted average number of ordinary shares:
for basic earnings			69,381,904		69,174,315
for diluted earnings			74,264,867		73,757,291
Basic earnings per share			0.76p		1.83p
Diluted earnings per share			0.71p		1.72p
Weighted average number of ordinary shares for basic earnings			69,381,904		69,174,315
Weighted average options and warrants			4,882,963		4,582,976
Weighted average number of ordinary shares for diluted earnings			74,264,867		73,757,291

 

 

7	Taxation		2009		2008
			£		£
	Analysis of charge in period
	Current tax:
	Tax on profit on ordinary activities		450		450

 

The Company has been granted tax exempt status under the Companies (Taxation and Concessions) Act . Under the terms of such status an annual charge of £450 is payable to the Government of Gibraltar. Provided the Company complies with the necessary criteria, payment of such charges will satisfy the company's tax obligation in Gibraltar in relation to the year ended 31 December 2009.

 

		2009		2008
		£		£
Profit before taxation		530,186		1,267,141
Less : tax exempt profit		(530,186)		(1,267,141)
Taxable profit		-		-
Tax exempt fee		450		450
Tax charge		450		450

 

The Group has UK tax losses of approximately £nil (2008: £5.2m) available to offset against future taxable profits in the UK.

 

8 Intangible assets

 

		Website Development		Software Licence		Total
		£		£		£
Cost
At 1 January 2008		210,905		180,020		390,925
Additions		53,978		37,799		91,777
At 31 December 2008		264,883		217,819		482,702
Additions		28,932		223,444		252,376
At 31 December 2009		293,815		441,263		735,078
Amortisation
At 1 January 2008		128,383		91,804		220,187
Provided during the year		45,641		21,342		66,983
At 31 December 2008		174,024		113,146		287,170
Provided during the year		21,218		111,015		132,233
At 31 December 2009		195,242		224,161		419,403
Net book value
At 31 December 2009		98,573		217,102		315,675
At 31 December 2008		90,859		104,673		195,532

 

 

9 Property, plant and equipment

 

	Motor Vehicles		Computer and Office Equipment		Leasehold Improvements		Total
	£		£		£		£
Cost
At 1 January 2008	132,795		915,447		46,696		1,094,938
Additions	-		25,838		31,420		57,258
At 31 December 2008	132,795		941,285		78,116		1,152,196
Additions	-		87,269		-		87,269
Disposals	(24,995)		-		-		(24,995)
At 31 December 2009	107,800		1,028,554		78,116		1,214,470
Depreciation
At 1 January 2008	66,543		546,840		18,237		631,620
Provided during the year	26,559		180,187		14,402		221,148
At 31 December 2008	93,102		727,027		32,639		852,768
Charge for the year	19,912		161,466		15,623		197,001
Disposals	(14,997)		-		-		(14,997)
At 31 December 2009	98,017		888,493		48,262		1,034,772
Net book value
As at 31 December 2009	9,783		140,061		29,854		179,698
As at 31 December 2008	39,693		214,258		45,477		299,428

 

 

 

10

Post balance sheet events

 

On 21 January 2010 the Group acquired the trade and assets of Nedplay casino from Floryntia Play Group NV. On 12 February 2010 the Group acquired the trade and assets of Golden Lounge casino from Golden Lounge Limited. The business assets acquired in both cases comprise of the player database, software agreements, the domain names and other intellectual property that were purchased for a nominal consideration. The sole liabilities assumed by the Group are in respect of player balances and total £115,000. At the present time, the directors consider that it is not practical to provide a more detailed analysis of the valuation of the assets acquired and this will be disclosed in the next reporting period.

 

On 26 February 2010, the Company received approval from the Supreme Court of Gibraltar to effect a special resolution passed by shareholders at the Extraordinary General Meeting held on 15 April 2009. This resolution allows the Company to reduce its share premium account to a nil balance and offset the amount by which the Company's share premium account is reduced against retained losses.

 

 

11 Publication of Non-Statutory Accounts

 

The financial information set out in this preliminary announcement does not constitute statutory accounts as defined under Gibraltar company law.

 

The summarised consolidated balance sheet at 31 December 2009 and the summarised consolidated income statement, summarised consolidated statement of comprehensive income, summarised consolidated statement of changes in equity, summarised consolidated statement of cash flows and associated notes for the year then ended have been extracted from the Group's 2009 statutory financial statements upon which the auditor's opinion is unqualified and unmodified.

 

Those financial statements have not yet been delivered to the registrar of companies.

 

This information is provided by RNS

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