Thursday 14 August, 2008
New Media Lottery
Preliminary Results
RNS Number : 2957B New Media Lottery Services PLC 14 August 2008
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
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 RNS
The company news service from the London Stock Exchange END FR BRGDIBSBGGIX
|
|