Interim Results

Released : 11/09/2024 07:00

RNS Number : 6303D
Gaming Realms PLC
11 September 2024
 

11 September 2024

 

 

Gaming Realms plc

 

(the "Company" or the "Group")

 

Interim Results

 

Core content licensing revenue growth of 28%

 

£5.8m Adjusted EBITDA1 (46% growth excluding brand licensing) and a 51% increase in profit before tax to £3.5m

 

Gaming Realms plc (AIM: GMR), the developer and licensor of mobile focused gaming content, is pleased to announce its interim results for the six months to 30 June 2024 (the "Period" or "H1'24").

 

Financial highlights:

 

H1'24

H1'23

 Change


 £m

 £m

 %

Revenue (Content licensing)

11.2

8.8

+28%

Revenue (Brand licensing)

0.3

1.0

-67%

Revenue (Social)

2.1

1.8

+17%

Total revenue

13.6

11.5

+18%

Adjusted EBITDA

5.8

4.8

+21%

Profit before tax

3.5

2.4

+51%





·      Total revenue grew 18% to £13.6m in H1'24 (H1'23: £11.5m)

·      Group Adjusted EBITDA grew 21% to £5.8m (H1'23: £4.8m), representing a 43% Adjusted EBITDA margin (H1'23: 41%)

·      Excluding brand licensing, the Group delivered adjusted EBITDA growth of 46% as operational leverage comes through

·      Total licensing revenues grew 18% to £11.5m (H1'23: £9.8m):

•   Content licensing revenue increased 28% to £11.2m (H1'23: £8.8m) with an EBITDA margin of 55% (H1'23: 54%)

•   Brand licensing revenue reduced 67% to £0.3m (H1'23: £1.0m) due to two brand deals completed in the same period of the previous year

·      Profit before tax increased 51% to £3.5m (H1'23: £2.4m)

·      Net cash at period end up 28% to £9.6m (Dec'23: £7.5m) with continued strong cash generation

 

Operational highlights:  

·      Launched with 22 new partners globally:

•   In North America with FanDuel in Pennsylvania and Connecticut, Fanatics in New Jersey, Michigan and Pennsylvania and Atlantic Lottery Corporation (Canadian Maritime Provincial Lottery)

•   In Europe with Solverde in Portugal, DAZN in the UK and Livescore in the Netherlands

·      Granted full iGaming Supplier License in West Virginia

·     Signed distribution agreement with Playtech which will lead to opportunities in Switzerland and the U.S. as well as other key partners in regulated markets

·      Released 7 new games into the market, including Slingo Capital Gains and Slingo Gold Cash. The Group now has 82 games in its portfolio (Dec'23: 75 games, Jun'23: 70 games)

·      Increased unique players in the content licensing business by 24% to 3.5m (H1'23: 2.8m)

·      Continued to grow the distribution business and launched content with ReelPlay, a second third-party slot studio

 

Post period-end:

 

·      Licensing revenue increased 33% in the two months post period-end compared to the same period in 2023

·      Launched content in West Virginia, the fifth regulated U.S. state to which the Group supplies its content

·      Granted iGaming Supplier License in British Columbia

·      Launched Slingo Originals content with Danske Spil in Denmark, Betclic in Italy, Bet365 in Pennsylvania and Virgin Bet in the U.K.

·      Released Slingo Press Your Luck as well as Slingo Phillies in partnership with BetMGM

 

1 EBITDA is profit before interest, tax, depreciation and amortisation expenses and is a non-GAAP measure. The Group uses EBITDA and Adjusted EBITDA to comment on its financial performance. Adjusted EBITDA is EBITDA excluding share option and related charges.

Summary:

Gaming Realms has continued its growth through the first half of 2024, as the Company continues to execute on its core strategy of developing and licensing games globally to market-leading brands and operators delivering high-margin revenues.

The first half of 2024 has seen the Group deliver another record performance in revenue and EBITDA, with core content licensing business revenues increasing 28% over the previous period, driven by 46% growth in revenues from North America.

In total, we launched with 22 new partners and 7 new games in H1 2024, including premium game titles Slingo Capital Gains and Slingo Gold Cash.  

Excluding brand licensing revenues, where there were two brand deals completed in the prior period, Group Adjusted EBITDA increased 46% to £5.4m (H1'23: £3.7m), demonstrating the growth within our core business.


Outlook for FY24:

Looking ahead, the Group is well placed to capitalise on this momentum and deliver further growth in new and existing markets.

Our focus for the remainder of the year is to further expand our international presence in new markets, while continuing to grow in existing markets with our partners. 

In August we launched our content in West Virginia, the fifth regulated iGaming state the Group's content is distributed in. After the period end, the Group was also granted an iGaming supplier license in British Columbia, where we expect to launch our content shortly.

These market expansions will be supplemented by premium game launches in the second half of 2024 including Slingo Fowl Play and Slingo Press Your Luck.

The Board remains optimistic around FY24 financial performance.

Commenting on the first half performance, Mark Segal, Chief Executive Officer, said:

 

"We are delighted with our strong performance in the first half of 2024, with total revenue increasing by 18% to £13.6 million. Our focus on expanding our content licensing business has led to a 28% revenue growth and the successful launch of seven new games. These results reflect our commitment to innovation and solidify our position in the gaming industry.

 

"The achievements of the first half demonstrate the dedication of our team and the appeal of our unique gaming offerings. We are poised for further growth as we continue to expand into new markets, launch with new partners and strengthen our existing partnerships."

 

An analyst briefing will be held virtually at 10.00am today. To attend, please contact Yellow Jersey at [email protected].

 

Enquiries

 

Gaming Realms plc 

Michael Buckley, Executive Chairman

Mark Segal, CEO

Geoff Green, CFO

0845 123 3773



Peel Hunt LLP - NOMAD and Joint Broker 

George Sellar

Lalit Bose

 

Investec Bank plc - Joint Broker

Ben Farrow

Lydia Zychowska

 

020 7418 8900

 

 

 

 

020 7597 4000

 

Yellow Jersey 

Charles Goodwin

Annabelle Wills

 

07747 788 221

 

About Gaming Realms

 

Gaming Realms creates and licenses innovative games for mobile, with operations in the U.K.U.S.Canada and Malta. Through its unique IP and brands, Gaming Realms is bringing together media, entertainment and gaming assets in new game formats. As the creator of a variety of SlingoTM, bingo, slots and other games, we use our proprietary data platform to build and engage global audiences. The Gaming Realms management team includes accomplished entrepreneurs and experienced executives from a wide range of leading gaming and media companies.

 

Business review

 

Gaming Realms had another strong period in the first half of 2024, continuing to deliver on the Group's core strategy of growing its content licensing business. 

 

The Group delivered another period of record revenue, EBITDA and profit generation.

 

Total Group revenue grew 18% to £13.6m (H1'23: £11.5m), driven by the Group's core content licensing business and supplemented by strong performance in the social publishing business.

 

The Group generated EBITDA of £5.5m (H1'23: £4.5m) and £5.8m before share option and related charges (H1'23: £4.8m). The Adjusted EBITDA margin increased to 43% (H1'23: 41%), demonstrating the operational leverage the Group can deliver.

 

The £1.0m increase in EBITDA generated compared with the prior period has seen the Group record a profit before tax of £3.5m (H1'23: £2.4m), an increase of £1.1m on the prior period.

 

Licensing

 

Licensing segment revenues increased 18% to £11.5m (H1'23: £9.8m), which is broken down as:

 

·      Content licensing revenue growth of 28% to £11.2m (H1'23: £8.8m); and

·      Brand licensing revenue reduced 67% to £0.3m (H1'23: £1.0m).

 

The segment delivered £6.5m Adjusted EBITDA in the period, a 13% overall uplift over the £5.8m in H1'23. Excluding brand licensing revenues, Adjusted EBITDA in the licensing business increased 30% to £6.2m (H1'23: £4.8m).

 

Content licensing

The core focus of the Group continues to be growing the content licensing business by way of expanding into new regulated territories, growing our unique Slingo games portfolio and developing deep relationships with new and existing partners to maximise value and engagement.

 

During the period under review, the Group went live with a further 22 partners in existing markets within Europe and North America. After the period end, the Group went live with a further 11 new partners and we continue to have a strong pipeline for the remainder of the year and into 2025.

 

An additional 7 new Slingo games were released to the market during the period, bringing the Group's games portfolio to 82 games at the period end (H1'23: 70 games).

 

Slingo is a unique genre of game in the market, which is driving engagement with partners. It continues to prove highly popular with both partners and players.

 

This resulted in a 28% increase in content licensing revenues to £11.2m (H1'23: £8.8m). Total segmental expenses (excluding share option and related charges) increased 24% to £5.0m (H1'23: £4.0m), continuing to demonstrate the operational leverage of the content licensing business.

 

After the period end, the Group began distributing its content in West Virginia, which is the fifth regulated U.S. state that the Group distributes its content to.

 

Brand licensing

Revenues from the Group's brand licensing activities, which are non-core, were £0.3m in the period (H1'23: £1.0m). This reduction is a result of two brand deals completed in the previous period, including a one-off £0.6m that did not repeat in H1'24.

 

Social

 

Revenues in the Group's social publishing business increased 17% to £2.1m in the period (H1'23: £1.8m), while the Adjusted EBITDA contribution of the segment increased 106% to £0.5m (H1'23: £0.2m).

 

Marketing expenses of £0.2m (H1'23: £0.3m) have been invested during the period, aimed at increasing player numbers, activity and revenues over a 12 month period. Management does not expect this level of marketing investment to be repeated in the second half of the year, as we expect revenues to be maintained. Social remains a business where we can further monetise our Slingo portfolio.

 

Excluding marketing expenses, segmental expenses increased 15% to £1.4m (H1'23: £1.2m), principally due to revenue associated costs. We continue to invest in the development and operational team to support the Group's growth plan.

 

Cashflow and balance sheet

 

The Group's cash balance as at 30 June 2024 was £9.6m, an increase of £2.1m from the £7.5m reported at 31 December 2023. This increase represents a conversion of Adjusted EBITDA to cash of 37% (H1'23: 33%), demonstrating the increasing cash generative nature of the business, as well as continued improving operating leverage.

 

The current period increase in cash was largely driven by the £4.5m cash inflow from operations, offset by £2.4m development costs capitalised during the period and £0.5m of corporation tax payments made during the period.

 

The Group remains debt free, and the Board continues to review the optimal use of the cash balance.

 

The Group's net asset position at the period end was £28.1m (31 December 2023: £24.4m).

 

Dividend

 

The Board of Directors are not proposing an interim dividend for the Period as it continues to execute on its strategy and invest in the growth of the business.

 

After the period end, the Company completed a share capital reduction, which included the cancellation of the share premium account, in order to create positive distributable reserves. This enables the Company, as it wishes, to pay shareholders dividends or to be used for other valid corporate purposes, such as the purchase of its own shares.

  

Consolidated statement of comprehensive income

for the 6 months ended 30 June 2024

 

 


 

6M

6M



30 June 2024

30 June 2023



Unaudited

Unaudited

 

Note

 £

 £

 Revenue

2

           13,581,477

           11,543,255

 Other income


                   85,994

                   63,147

 Marketing expenses


               (282,307)

               (437,398)

 Operating expenses


            (2,993,483)

            (2,274,375)

 Administrative expenses


            (4,619,437)

            (4,143,790)

 Share option and related charges

10

               (299,829)

               (246,056)





 EBITDA

2

             5,472,415

             4,504,783





 Amortisation of intangible assets

6

            (1,940,846)

            (2,011,497)

 Depreciation of property, plant and equipment

5

               (145,036)

               (135,044)

 Finance expense

3

                 (24,749)

                 (21,845)

 Finance income

3

                188,148

                   15,873

 Profit before tax

 

             3,549,932

             2,352,270

 Taxation (charge)/ credit


               (253,324)

                159,578

 Profit for the period


             3,296,608

             2,511,848

 Other comprehensive income

 



 Items that will or may be reclassified to profit or loss:

 


  

 Exchange loss arising on translation of foreign operations


                 (28,211)

                 (95,724)

 Total other comprehensive income


                 (28,211)

                 (95,724)

 Total comprehensive income


             3,268,397

             2,416,124

 




 Profit attributable to:

 



 Owners of the parent


             3,296,608

             2,511,848





 Total comprehensive income attributable to:

 



 Owners of the parent


             3,268,397

             2,416,124





 Earnings per share

 

Pence

Pence

 Basic

4

1.12

0.86

 Diluted

4

1.08

0.84


Consolidated statement of financial position

as at 30 June 2024

 

 

 

30 June
2024

31 December
2023



Unaudited

Audited

 

Note

 £

 £

 Non-current assets

 



 Intangible assets

6

13,816,148

13,272,711

 Property, plant and equipment

5

308,428

367,092

 Deferred tax asset


2,046,549

1,891,000

 Other assets


139,531

139,531



16,310,656

15,670,334

 Current assets

 



 Trade and other receivables

7

6,004,599

5,060,528

 Cash and cash equivalents


9,574,980

7,455,316



15,579,579

12,515,844

 Total assets


31,890,235

28,186,178

 Current liabilities

 



 Trade and other payables

8

3,445,254

3,383,248

 Lease liabilities


38,755

52,135



3,484,009

3,435,383

 Non-current liabilities

 



 Deferred tax liability


216,523

219,921

 Lease liabilities


105,215

133,445



321,738

353,366

 Total liabilities


3,805,747

3,788,749

 Net assets


28,084,488

24,397,429

 Equity

 



 Share capital

9

29,482,643

29,366,782

 Share premium


87,768,341

87,732,888

 Merger reserve


(67,673,657)

(67,673,657)

 Foreign exchange reserve


1,416,486

1,444,697

 Retained earnings


(22,909,325)

(26,473,281)

 Total equity


28,084,488

24,397,429

 

Consolidated statement of cash flows

for the 6 months ended 30 June 2024

 


 

30 June
2024

30 June
2023



Unaudited

Unaudited


 Note

£

 £

 Cash flows from operating activities

 



 Profit for the period


3,296,608

2,511,848

 Adjustments for:

 



 Depreciation of property, plant and equipment

5

145,036

135,044

 Amortisation of intangible fixed assets

6

1,940,846

2,011,497

 Finance income

3

(188,148)

(15,873)

 Finance expense

3

24,749

21,845

 Income tax charge/ (credit)


253,324

(159,578)

 Exchange differences


(2,029)

(6,653)

 Share based payment expense

10

267,348

116,220

 (Increase)/ decrease in trade and other receivables


(825,174)

119,974

 Increase/ (decrease) in trade and other payables


96,654

(215,605)

 Net cash flows from operating activities before taxation


5,009,214

4,518,719

 Net tax paid in the period


(548,452)

(578,675)

 Net cash flows from operating activities before taxation


4,460,762

3,940,044





 Investing activities

 



 Acquisition of property, plant and equipment

5

(75,260)

(25,336)

 Acquisition of intangible assets

6

(69,907)

(83,763)

 Capitalised development costs

6

(2,432,579)

(2,204,419)

 Bank interest received

3

176,213

-

 Net cash used in investing activities


(2,401,533)

(2,313,518)





 Financing activities

 



 IFRS 16 lease payments


(58,706)

(136,662)

 Issue of share capital on exercise of options

9

151,314

105,111

 Interest paid

3

(20,544)

(13,866)

 Net cash from/ (used in) financing activities


72,064

(45,417)

 Net increase in cash and cash equivalents

 

2,131,293

1,581,109

 Cash and cash equivalents at beginning of period

 

7,455,316

2,922,775

 Exchange loss on cash and cash equivalents


(11,629)

(13,652)

 Cash and cash equivalents at end of period


9,574,980

4,490,232


Consolidated statement of changes in equity

for the 6 months ended 30 June 2024

 


 Share capital

 Share premium

 Merger reserve

 Foreign Exchange Reserve

 Retained earnings

 Total to equity holders of parents


 £

 £

 £

 £

 £

 £

 1 January 2023

29,200,676

87,653,774

(67,673,657)

1,549,701

(32,818,245)

17,912,249

 Profit for the period

-

-

-

-

2,511,848

2,511,848

 Other comprehensive income

-

-

-

(95,724)

-

(95,724)

 Total comprehensive income for the period

-

-

-

(95,724)

(30,306,397)

2,416,124

 Contributions by and distributions to owners

 






 Share-based payment on share options (Note 10)

-

-

-

-

116,220

116,220

 Exercise of options 

88,150

16,961

-

-

-

 30 June 2023 (unaudited)

29,288,826

87,670,735

(67,673,657)

1,453,977

(63,008,422)

20,549,704

 













 1 January 2024

29,366,782

87,732,888

(67,673,657)

1,444,697

(26,473,281)

24,397,429

 Profit for the period

-

-

-

-

3,296,608

3,296,608

 Other comprehensive income

-

-

-

(28,211)

-

(28,211)

 Total comprehensive income for the period

-

-

-

(28,211)

3,296,608

3,268,397

 Contributions by and distributions to owners

 






 Share-based payment on share options (Note 10)

-

-

-

-

267,348

267,348

 Exercise of options (Note 9)

115,861

35,453

-

-

-

 30 June 2024 (unaudited)

29,482,643

87,768,341

(67,673,657)

1,416,486

(22,909,325)

28,084,488

Notes forming part of the consolidated financial statements

For the 6 months ended 30 June 2024

 

1. Accounting policies

 

General Information

 

Gaming Realms plc ("the Company") and its subsidiaries (together "the Group").

 

The Company is admitted to trading on AIM of the London Stock Exchange. It is incorporated and domiciled in the UK. The address of its registered office is Two Valentine Place, London, SE1 8QH.

 

The results for the six months ended 30 June 2024 and 30 June 2023 are unaudited.

 

Basis of preparation

 

The financial information for the year ended 31 December 2023 included in these financial statements does not constitute the full statutory accounts for that year. The Annual Report and Financial Statements for 2023 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2023 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

 

This interim report, which has neither been audited nor reviewed by independent auditors, was approved by the board of directors on 10 September 2024. The financial information in this interim report has been prepared in accordance with UK adopted international accounting standards. The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 December 2023 and which will form the basis of the 2024 financial statements.

 

The consolidated financial statements are presented in Sterling.

 

Going concern

 

The Group meets its day-to-day working capital requirements from the cash flows generated by its trading activities and its available cash resources. 

 

The Group prepares cash flow forecasts and re-forecasts at least bi-annually as part of the business planning process. 

 

The Directors have reviewed forecast cash flows for the period to December 2026, and consider that the Group will have sufficient cash resources available to meet its liabilities as they fall due.

 

Accordingly, these financial statements have been prepared on the basis of accounting principles applicable to a going concern, which assumes that the Group will realise its assets and discharge its liabilities in the normal course of business.

 

EBITDA

 

EBITDA is a non-GAAP company specific measure defined as profit or loss before tax adjusted for finance income and expense, depreciation and amortisation.  EBITDA before share option and related charges (Adjusted EBITDA) is considered to be a key performance measure by the Directors as it serves as an indicator of financial performance.

 

2. Segment information

 

The Board is the Group's chief operating decision-maker. Management has determined the operating segments based on the information reviewed by the Board for the purposes of allocating resources and assessing performance.

 

The Group has two reportable segments.

·      Licensing - B2B brand and content licensing to partners in the North America and Europe; and

·      Social publishing - provides B2C freemium games to the US.

 

Revenue

 

The Group has disaggregated revenue into various categories in the following table which is intended to:

·   Depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic date; and

·   Enable users to understand the relationship with revenue segment information provided below.

2. Segment information (continued)

 


 Licensing

 Social
publishing

 Other

 Total

 H1 2024 revenue

 £

 £

 £

 £

 Primary geographical markets

 




 UK, including Channel Islands

593,404

-


593,404

 USA

5,628,833

2,056,687

-

7,685,520

 Isle of Man

791,493

-

-

791,493

 Malta

2,200,938

-

-

2,200,938

 Gibraltar

1,531,295

-

-

1,531,295

 Rest of the World

778,827


-

778,827


11,524,790

2,056,687

-

13,581,477

 





 Contract counterparties

 




 Direct to consumers (B2C)

-

2,056,687

-

2,056,687

 B2B

11,524,790

-

-

11,524,790


11,524,790

2,056,687

-

13,581,477

 


 Licensing

 Social
publishing

 Other

 Total

 H1 2023 revenue

 £

 £

 £

 £

 Primary geographical markets

 




 UK, including Channel Islands

531,124

-


531,124

 USA

3,978,599

1,754,604

-

5,733,203

 Isle of Man

392,765

-

-

392,765

 Malta

1,736,619

-

-

1,736,619

 Gibraltar

2,483,391

-

-

2,483,391

 Rest of the World

666,153


-

666,153


9,788,651

1,754,604

-

11,543,255

 





 Contract counterparties

 




 Direct to consumers (B2C)

-

1,754,604

-

1,754,604

 B2B

9,788,651

-

-

9,788,651


9,788,651

1,754,604

-

11,543,255

 

2. Segment information (continued)

 

EBITDA

 


 Licensing

 Social publishing

 Head Office

 Total

H1 2024

 £

 £

 £

 £

 Revenue

                  11,524,790

                     2,056,687

                                   -  

                  13,581,477

 Other income

                                   -  

                          85,994

                                   -  

                          85,994

 Marketing expense

                         (31,794)

                      (200,968)

                         (49,545)

                      (282,307)

 Operating expense

                   (2,186,710)

                      (806,773)

                                   -  

                   (2,993,483)

 Administrative expense

                   (2,776,194)

                      (622,170)

                   (1,221,073)

                   (4,619,437)

 Share option and related charges

                         (69,376)

                                611

                      (231,064)

                      (299,829)

 EBITDA

                     6,460,716

                        513,381

                   (1,501,682)

                     5,472,415

 


 Licensing

 Social publishing

 Head Office

 Total

H1 2023

 £

 £

 £

 £

 Revenue

                     9,788,651

                     1,754,604

                                   -  

                  11,543,255

 Other income

                                   -  

                          63,147

                                   -  

                          63,147

 Marketing expense

                         (55,826)

                      (334,197)

                         (47,375)

                      (437,398)

 Operating expense

                   (1,622,353)

                      (652,022)

                                   -  

                   (2,274,375)

 Administrative expense

                   (2,342,829)

                      (582,910)

                   (1,218,051)

                   (4,143,790)

 Share option and related charges

                         (50,100)

                           (5,499)

                      (190,457)

                      (246,056)

 EBITDA

                     5,717,543

                        243,123

                   (1,455,883)

                     4,504,783

 

3. Finance income and expense

 


 

6M
30 June 2024

6M
30 June 2023



 £

 £

 Finance income

 



 Bank interest received


                   176,213

                           733

 Interest income on unwind of deferred income


                     11,935

                     15,140

 Total finance income

 

                   188,148

                     15,873





 Finance expense

 



 Bank interest paid


                     20,544

                     13,866

 Interest expense on lease liability


                        4,205

                        7,979

 Total finance expense

 

                     24,749

                     21,845

 

4. Earnings per share

 

Basic earnings per share is calculated by dividing the result attributable to ordinary shareholders by the weighted average number of shares in issue during the period.  The calculation of diluted EPS is based on the result attributable to ordinary shareholders and weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares.  The Group's potentially dilutive securities consist of share options.

 


6M
30 June 2024

6M
30 June 2023


 £

 £




 Profit after tax attributable to the owners of the parent Company

3,296,608

2,511,848





 Number

 Number

 Denominator - basic

 


 Weighted average number of ordinary shares

294,636,673

292,174,223




 Denominator - diluted

 


 Weighted average number of ordinary shares

294,636,673

292,174,223

 Weighted average number of option shares

11,963,655

8,092,867

 Weighted average number of shares

306,600,328

300,267,090





 Pence

 Pence

 Basic earnings per share

1.12

0.86

 Diluted earnings per share

1.08

0.84


5. Property, plant and equipment



 ROU lease assets

 Leasehold improvements

 Computers and related equipment

 Office furniture and equipment

 Total


 £

 £

 £

 £

 £

 Cost

 





 At 1 January 2024

805,532

67,570

521,010

84,432

1,478,544

 Additions

16,901

-

56,398

18,863

92,162

 Disposals

(10,464)

(60,968)

(17,644)

-

(89,076)

 Exchange differences

(5,001)

(163)

(4,635)

(1,322)

(11,121)

 At 30 June 2024

806,968

6,439

555,129

101,973

1,470,509

 






 Accumulated depreciation and impairment

 





 At 1 January 2024

600,350

63,093

381,741

66,268

1,111,452

 Depreciation charge

80,604

4,477

56,437

3,518

145,036

 Disposals

(10,464)

(60,968)

(17,644)

-

(89,076)

 Exchange differences

(1,166)

(163)

(2,950)

(1,052)

(5,331)

 At 30 June 2024

669,324

6,439

417,584

68,734

1,162,081

 






 Net book value

 





 At 1 January 2024

205,182

4,477

139,269

18,164

367,092

 At 30 June 2024

137,644

-

137,545

33,239

308,428


6. Intangible assets

 


 Goodwill

 Customer database

 Software

 Development costs

 Licenses

 Domain names

 Intellectual Property

 Total

 

 £

 £

 £

 £

 £

 £

 £

 £

 Cost

 








 At 1 January 2024

6,745,556

1,485,413

1,425,458

26,463,512

379,905

8,874

5,859,424

42,368,142

 Additions

-

-

-

2,432,579

69,907

-

-

2,502,486

 Disposals

-

-

(130,520)

-

(14,562)

-

-

(145,082)

 Exchange differences

2,135

-

-

(43,724)

(214)

-

-

(41,803)

 At 30 June 2024

6,747,691

1,485,413

1,294,938

28,852,367

435,036

8,874

5,859,424

44,683,743

 









 Accumulated amortisation and impairment

 







 At 1 January 2024

1,650,000

1,485,413

1,416,818

18,479,931

194,971

8,874

5,859,424

29,095,431

 Amortisation charge

-

-

5,574

1,829,270

106,002

-

-

1,940,846

 Disposals

-

-

(130,520)

-

(14,562)

-

-

(145,082)

 Exchange differences

-

-

-

(23,384)

(216)

-

-

(23,600)

 At 30 June 2024

1,650,000

1,485,413

1,291,872

20,285,817

286,195

8,874

5,859,424

30,867,595

 









 Net book value

 








 At 1 January 2024

5,095,556

-

8,640

7,983,581

184,934

-

-

13,272,711

 At 30 June 2024

5,097,691

-

3,066

8,566,550

148,841

-

-

13,816,148

 

7. Trade and other receivables

 

 

30 June
2024

31 December
2023

 

 £

 £

 Trade receivables

3,538,834

3,024,745

 Other receivables

247,003

134,558

 Tax and social security

271,626

223,113

 Prepayments and accrued income

1,947,136

1,678,112


6,004,599

5,060,528

 

All amounts shown fall due for payment within one year.

 

8. Trade and other payables

 

 

30 June
2024

31 December
2023

 

 £

 £

 Trade payables

1,128,874

727,706

 Other payables

123,052

157,785

 Tax and social security

178,604

368,894

 Accruals

2,014,724

2,128,863


3,445,254

3,383,248

 

The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value. All amounts shown fall due for payment within one year.

 

9. Share capital

 

 


30 June
2024

30 June
2024

30 June
2023

30 June
2023

 Ordinary shares

 Number

 £

 Number

 £

 Ordinary shares of

294,826,444

29,482,643

292,888,281

29,288,826

 10 pence each

 

The issue of 1,158,605 ordinary shares relates to the exercise of share options during the period.  The increase in share capital of £115,861 and share premium of £35,453 totalling £151,314 is disclosed in the consolidated statement of changes in equity and consolidated statement of cash flows.

 

10. Share based payments

The share option and related charges income statement expense comprises:

 


6M
30 June 2024

6M
30 June 2023


 £

 £

 IFRS 2 share-based payment charge

267,348

116,220

 Direct taxes related to share options

32,481

129,836


299,829

246,056

 

IFRS 2 (Share-based payments) requires that the fair value of equity settled transactions are calculated and systematically charged to the statement of comprehensive income over the vesting period.  The total fair value that was charged to the income statement in the period in relation to equity-settled share-based payments was £267,348 (H1'23: £116,220).

 

Where individual EMI thresholds are exceeded, or when unapproved share options are exercised by employees, the Group is subject to employer taxes payable on the taxable gain on exercise.  Since these taxes are directly related to outstanding share options, the income statement charge has been included within share option and related charges.  The Group uses its closing share price at the reporting date to calculate such taxes to accrue.  The tax related income statement charge for the period was £32,481 (H1'23: £129,836).

 

11. Related party transactions

 

Jim Ryan is a Non-Executive Director of the Company and the CEO of Pala Interactive, which has a real-money online casino and bingo site in New Jersey, Pennsylvania and Ontario. During the period, total license fees earned by the Group were $43,785 (H1'23: $30,259) with $10,569 due at 30 June 2024 (30 June 2023: $23,180).  During the period the Group distributed its content to certain North American partners via Pala's B2B platform distribution network, with platform fees of $9,972 being incurred (H1'23: $7,933) of which $5,645 was owed at 30 June 2024 (30 June 2023: $3,243).

 

During the period £75,000 (H1'23: £90,000) of consulting fees were paid to Dawnglen Finance Limited, a company controlled by Michael Buckley. No amounts were owed at 30 June 2024 (30 June 2023: £Nil).

 

12. Post balance sheet events

 

On 16 July 2024, following approval by the High Court of Justice, the Company completed a share capital reduction, which included the cancellation of the share premium account. The nominal value of each ordinary share was reduced from £0.10 to £0.001. The capital reduction was registered with the Registrar of Companies on 1 August 2024. The share capital reduction or the cancellation of the share premium account will have no impact on net assets, shares in issue or total equity of the Company.

 

On 7 August 2024 2,405,000 share options were granted to certain Directors and employees of the Group. All of the options vest on 30 June 2027 and have an exercise price of £Nil.

 

 

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