New Media Lottery Services Announcements
Preliminary Results
14 August 2008 07:00:05
RNS Number : 2957B New Media Lottery Services PLC 14 August 2008
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14 AUGUST 2008
NEW MEDIA LOTTERY SERVICES PLC
("NMLS" or "the Company")
(AIM:NMLS)
UNAUDITED PRELIMINARY RESULTS
FOR THE YEAR ENDED 30 APRIL 2008
The Board of New Media Lottery Services PLC, the AIM traded gaming content and systems provider today announces its preliminary results for the year ended 30 April 2008.
FINANCIAL HIGHLIGHTS
Revenues grew 104% to €848,379 (2007: €415,797) with sales continuing to grow quarter on quarter;
Sales on client's Lottery Bingo site increased by 99% to €21.1 million (2007: €10.6 million);
Corresponding client player deposits increased by 88% to over €1.6 million (2007: €867,000);
Professional and administrative costs reduced despite more than doubling revenue;
At the year end Net debt was €3.7m (2007: €2.4m), and overall net liabilities were €4.0m (2007: €2.2m); and
Losses fell to €1.8 million (2007 loss: €2.7 million).
BUSINESS HIGHLIGHTS
Well positioned to move into a period of rapid growth;
The Company has recently launched a second lottery game website in Ireland with full marketing support commencing in September 08;
Expected launch of multiple white label bingo and lottery gaming sites later this year;
Expected roll out of a Server based lottery program with Inspired Gaming later this year;
Ready to replicate lottery services in multiple jurisdictions throughout the coming year; and
Application filed for US patent protection on a prepaid mobile lottery application.
POST BALANCE SHEET HIGHLIGHTS
€1.3 million raised by way of a secured convertible loan from Trafalgar Capital Specialized Investment Fund.
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
Michael Kinirons
www.bishopsgatecommunications.com
Arbuthnot Securities 020 7012 2000
Paul Vanstone
www.arbuthnotsecurities.co.uk
CHAIRMAN'S STATEMENT
I am pleased to present NMLS' preliminary results for the year ended 30 April 2008. The Company has made considerable progress this year and its 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 2008 increased by 99% to €21.1 million compared to €10.6 million for the year to 30 April 2007. The net revenue to the Company for this period was €[848,379] compared to €[415,797] for the year to 30 April 2007. Corresponding client player deposits similarly saw a substantial increase of 88% to more than €1.6 million compared to €867,000 for the year to April 30 2007.
NMLS' loss for the year to 30 April 2008 is €1.83 million (loss of €2.68 million in the year to 30 April 2007).
In June 2008 the Company raised €1.3 million by way of a secured convertible loan from Trafalgar Capital Specialized Investment Fund.
Review and Current Prospects
There have been a series of developments at the Company during the period in review.
NMLS has successfully launched its own social networking site called www.lonely.ie. The lonely.ie site is supported by advertiser revenue and drives significant traffic to the lottery gaming sites. Lonely.ie has exceeded expectations in both advertising revenue growth and user participation.
The Company has spent a great deal of time developing the server based platform for use in Ireland and expects it to be revenue generating in 2008/2009. NMLS is well positioned to develop and hopes to benefit from a period of rapid growth through its various operations. This will be supported by the continued growth at its client websites. The Company also intends to duplicate lottery services in multiple jurisdictions throughout the coming year.
The NMLS software development group has now fully developed tested and implemented the Company's Server Based Lottery System. Inspired Gaming Group plc and NMLS are currently assessing a number of lottery opportunities.
Rehab Lotteries
Sales at Rehab Bingo 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 a local Football Franchise. On a quarter by quarter basis the Company continues to grow and exceed expectations. In addition, NMLS has launched a complementary Rehab Lottery Game site which will commence full scale marketing this September. During the next quarter the Company will be launching a variety of additional lottery gaming sites in association with strategic marketing partners.
US
The Company has filed for US patent protection on a new 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.
NMLS continues to leverage its investment in new 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 on our further progress in due course.
Lord B. Mancroft
Chairman
New Media Lottery Services Public Limited Company
Consolidated Income Statement
for the year ended April 30th 2008
Continuing Operations
YE
Interim 6 Months
YE
Interim 6 Months
Unaudited
Unaudited
Audited
Unaudited
Note
Apr-08
Oct-07
Apr-07
Oct-06
€
€
€
€
Revenue
10
863,099
373,238
432,695
173,867
Administrative Expenses
9
-2,451,147
-1,162,432
-2,990,050
-1,669,965
Operating Loss
-1,588,048
-789,194
-2,557,355
-1,496,098
Finance Costs
- 246,292
-127,109
-139,125
-65,734
Loss on Ordinary Activities before Taxation
- 1,834,341
-916,303
-2,696,480
-1,561,832
Tax on Loss on Ordinary Activities
-
-
-
-
Loss for the period attributable to
Equity Shareholders
-1,834,341
-916,303
-2,696,480
-1,561,832
Basic Loss per Ordinary Share
-€0.07
-€0.04
-€0.11
-€0.06
Diluted Loss per Ordinary Share
-€0.07
-€0.04
-€0.11
-€0.06
New Media Lottery Services Public Limited Company
Consolidated Balance Sheet
as at 30th April 2008
YE
Interim 6 Months
YE
Interim 6 Months
Unaudited
Unaudited
Audited
Unaudited
Apr-08
Oct-07
Apr-07
Oct-06
€
€
€
€
Note
Non-Current Assets
Property, Plant and Equipment
26,663
24,085
33,789
150,239
Intangible Assets
143,518
206,533
230,967
71,392
170,181
230,618
264,756
221,631
Current Assets
Trade and Other Receivables
324,981
352,766
460,023
373,096
Cash and Other Equivalents
132,896
114,642
115,387
207,307
457,877
467,409
575,410
580,402
Total Assets
628,058
698,026
840,166
802,033
Equity and Liabilities
Equity attributable to equity holders
of the Parent
Issued Share Capital
3
242,822
241,618
241,618
240,621
Share Premium
4
3,881,372
3,845,565
3,845,566
3,771,935
Merger Reserve
5
539,377
539,377
539,377
539,377
Other Reserve
6
7,805
-
-
-
Accumulated Loss
7
-8,628,710
-7,710,672
-6,794,368
-5,659,717
Total Equity
-3,957,333
-3,084,112
-2,167,807
-1,107,784
Current Liabilities
Trade and Other Payables
736,354
507,889
524,731
600,616
Bank Loan
8
1,220,452
1,727,951
1,281,113
-
Other Liabilities
2,243,180
1,546,299
1,202,130
-
4,199,986
3,782,139
3,007,974
600,616
Non-Current Liabilities
Other Liabilities - Bank Loan
8
385,406
-
-
1,309,201
Total Liabilities
4,585,392
3,782,139
3,007,974
1,909,817
Total Equity and Liabilities
628,059
698,027
840,167
802,033
New Media Lottery Services Public Limited Company
Consolidated Cash Flow Statement
for the year ended April 30th 2008
YE
Interim 6 Months
YE
Interim 6 Months
Unaudited
Unaudited
Audited
Unaudited
Apr-08
Oct-07
Apr-07
Oct-06
€
€
€
€
Cash Outflow from Operating Activities
Operating Loss before Tax
-1,834,341
-916,303
-2,696,480
-1,561,832
Depreciation
17,183
9,704
18,777
10,546
Intangible Assets Amortised
68,551
34,013
31,352
7,375
Decrease/(Increase) in debtors
135,042
107,257
-132,855
-128,377
Increase/(Decrease) in creditors
211,623
-16,841
-94,310
88,645
Costs incurred in exchange for shares
44,815
-
31,002
-
Loss on Disposal
34,481
-
-
-
Finance Charges
246,292
127,109
139,125
65,734
Net Cash Outflow from Operating Activities
-1,076,354
-655,061
-2,703,389
-1,517,910
Cashflow from Investing Activities
Purchase of Property, Plant and Equipment
-25,640
-9,580
-19,202
-127,420
Purchase of Intangible Assets
-
-
- 59,542
-
Amounts advanced to Joint Venture
-
-
- 7,825
-
Net Cashflow used in Investing Activities
-25,640
- 9,580
-86,569
-127,420
Cashflows from Financing Activities
Proceeds from the Issue of Shares
-
-
-
155,012
Transaction Costs on the Issue of Shares
-
-
-
-
Loan / Debenture Proceeds
1,365,796
791,006
1,281,113
-
Finance Costs
-246,292
-127,109
-139,125
-65,734
Net Cashflows from Financing Activities
1,119,504
663,896
1,141,988
89,278
Net Increase / (decrease) in cash and
cash equivalents
17,510
-744
-1,647,970
-1,556,052
Cash and cash equivalents at beginning of period
115,387
115,387
1,763,357
1,763,357
Cash and cash equivalents at end of period
132,897
114,643
115,387
207,305
New Media Lottery Services Public Limited Company
Notes to the Consolidated Balance Sheet
as at April 30th 2008
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 2007. 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 2007.
3. Share Capital
YE
Interim 6 Months
YE
Interim 6 Months
Unaudited
Unaudited
Audited
Unaudited
Apr-08
Oct-07
Apr-07
Oct-06
Authorised Equity
GBP£
GBP£
GBP£
GBP£
150,000,000 Ordinary Shares of GBP0.66667
pence each
1,000,000
1,000,000
1,000,000
1,000,000
Allotted, called up and fully paid equity
€
€
€
€
24,935,000 Ordinary Shares of GBP0.66667
pence each (Apr 2007: 24,800,000)
242,822
241,618
241,618
240,621
Share Capital Movement
Opening Balance May 1st 2007
241,618
- February 2008
Issue of 135,000 Ordinary Shares of GBP0.66667 pence
each
1,204
Closing Balance April 30th 2008
242,822
In February 2008, 135,000 Ordinary Shares of GBP£ 0.66667 pence each were issued to employees of the Group for GBP£ 0.66667 pence each in consideration for continuing contribution and loyalty to New Media Lottery Services Plc.
The value of the shares issued are €37,101, creating a share premium on this issue of €35,806.
New Media Lottery Services Public Limited Company
Notes to the Consolidated Balance Sheet
as at April 30th 2008
4. Share Premuim
Opening Balance May 1st 2007
3,845,566
- February 2008
Issue of 135,000 Ordinary Shares of GBP0.66667 pence
each
35,806
(note 3)
Closing Balance April 30th 2008
3,881,372
5. Merger Reserve
Opening Balance May 1st 2007
539,377
No Movement
Closing Balance April 30th 2008
539,377
6. Other Reserves
Opening Balance May 1st 2007
-
February 2008 - see below
7,805
Closing Balance April 30th 2008
7,805
In February 2008 the Group granted options over 30,000 Ordinary Shares of GBP0.66667 pence each
at an option price of GBP 1 pence each. The options were granted to employees of the Group in recognition
of their continuing contribution and loyalty.
7. Accumulated Reserves
Opening Balance May 1st 2007
-6,794,368
Unaudited results - YE April 2008
-1,834,341
Closing Balance April 30th 2008
-8,628,709
8. Bank Loan
USD$
Opening Balance May 1st 2007
1,750,000
Movement during year
750,000
Closing Balance April 30th 2008
2,500,000
Due within one year
1,900,000
Due after one year
600,000
2,500,000
The above loan is with Comerica Bank.
New Media Lottery Services Public Limited Company
Notes to the Consolidated Balance Sheet
as at April 30th 2008
9. Administrative Expenses
YE
Interim 6 Months
YE
Interim 6 Months
Unaudited
Unaudited
Unaudited
Unaudited
Apr-08
Oct-07
Apr-07
Oct-06
€
€
€
€
Accountancy Fees & Audit Fees
99,859
46,558
251,710
68,500
Employee Wages, Salary and Benefits
756,674
355,006
583,887
340,661
Directors Fees
321,793
180,019
433,654
183,790
Programming Costs
33,090
31,623
55,899
29,617
Other Administration Expenses
345,256
114,123
414,850
326,607
Foreign Exchange Gains and Losses
-441,814
-162,237
-140,574
29,491
Depreciation and Amortisation
85,734
43,718
51,126
17,921
Website Hosting
114,167
60,496
122,619
46,193
Advertising & Marketing
479,015
205,029
396,823
186,519
Consultancy Fees
157,083
87,066
323,041
131,553
Legal and Professional
202,401
82,651
298,046
151,739
Web Development
5,104
-
6,646
71,988
Rent
84,035
42,450
75,513
35,285
Bingo Royalties
174,271
75,931
116,810
50,101
Loss on Disposal
34,481
-
-
-
2,451,147
1,162,432
2,990,050
1,669,965
Foreign exchange gains have arisen on the retranslation of capital and reserves at the opening and closing rates applicable to the Group. During the year the rates have fluctuated giving rise to the above gain. The Group has also achieved the reduction of its Professional and Consultancy costs during this year.
10. Revenue Analysis
2008
2007
€
€
Turnover from client sites
848,379
415,797
Interest Income
14,720
16,898
863,099
432,695
This information is provided by RNSThe company news service from the London Stock Exchange END FR BRGDIBSBGGIX
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