Source - LSE Regulatory
RNS Number : 0154C
Best of the Best PLC
16 June 2021
 

Best of the Best plc

("Best of the Best", "BOTB", "the Company" or "the Group")

Preliminary results for the year ended 30 April 2021

 

Best of the Best plc runs competitions online to win cars and other prizes.

 

 

 

100% of revenues derived from online operations, delivering a very strong financial performance

 

 

Financial Highlights: 

 

Operational Highlights:  --

 

William Hindmarch, Chief Executive, said:

"In what has been an unprecedented and extremely challenging year for so many individuals personally, as well as many businesses, the Company was fortunate to have made the strategic decision some time ago to exit its predominantly airport-based retail estate and to concentrate on a pure online strategy.

 

As a result, I am pleased to announce strong revenue, profit growth and cash generation as the business continued to benefit from its transformation to a wholly online operation, combined with material increases in marketing investment and our broader product offering. Our growth strategy remains focused on driving digital sales, with our 'Dream Car' and 'Lifestyle' competitions joined by the 'Midweek Car' competition, now fully supported by native iOS and Android apps. Our digital only model gives us flexibility and focus, as well as capital efficiency and cost savings, combined with the potential to further increase online marketing investment.

 

We are excited about the opportunities that the year ahead holds for BOTB, with a recovering economy and hopefully a return to normality.  However, in contrast to the summer 2020 period, we have experienced somewhat of a reduction in customer engagement since the latest easing of lockdown restrictions on April 12, 2021, specifically relating to the understandably long-awaited re-opening of hospitality and non-essential retail.  We are closely monitoring this, but with our flexible model, growth strategy and plans for the year ahead, we expect customer engagement to return to normal levels before too long. I look forward to updating shareholders in due course."

 

BEST OF THE BEST PLC

Preliminary Results (continued)

For The Year Ended 30 April 2021

 

Enquiries:

 

Best of the Best plc

William Hindmarch, Chief Executive

Rupert Garton, Commercial Director

T: 020 7371 8866

 

 

 

Buchanan

(Public Relations & Press)

Chris Lane

Toto Berger

Charlotte Slater

T: 0207 466 5000

 

 

 

finnCap

(Nominated Adviser and Broker)

Corporate Finance

Carl Holmes

Kate Bannatyne

Teddy Whiley

Alice Lane

 

T: 020 7220 0500

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.  Please visit www.botb.com for further information

 

 

 

CHIEF EXECUTIVE'S STATEMENT

Having made the strategic decision to exit our predominantly airport-based retail estate and concentrate on a pure online strategy, we have been able to tailor our business, product and pricing specifically to a much more scalable, online only proposition.   The exit from our final physical site in September 2019 was, with the benefit of hindsight, opportune given the restrictions on travel that have been in place due to the pandemic.  Our online only strategy to significantly increase year on year growth in online marketing investment and player acquisition, combined with additional competition frequency, delivered a materially enhanced top line performance, strong profitability and cash generation.

As a purely online business, we are now completely focused on enhancing the products and experience we offer to both new and existing players by leveraging our proprietary systems, software and the extensive and valuable database that we have created over many years.  We now have our best ever product proposition following the investments we have made to enhance prize values and reduce ticket prices.  These initiatives have enabled us to retain existing players and acquire new ones. It is this focus and continued engagement with our customers that has driven our strong performance during the period.

The financial results for the year clearly reflect the benefits of our online only focus, with increased operating margins, improved capital efficiency and cost savings, enabling investment in new competitions, additional headcount, IT and app development. 

During the year we also launched a strategic review and explored early-stage discussions with a number of interested parties in an orderly fashion. The "formal sale process" mechanism was adopted in order to facilitate these discussions with certain regulatory dispensations under the Takeover Code.  Following extensive talks with a range of parties, the Board concluded that it was is in shareholders' best interests to focus on the continuing growth of the business under its existing strategy as a publicly quoted business. This pure online strategy, with a focus on cash generation, has enabled a policy of consistent shareholder returns and we are confident will continue to do so.

 

 

 

BEST OF THE BEST PLC

Preliminary Results (continued)

For The Year Ended 30 April 2021

 

Final Results

This financial year was the first year that 100% of revenue has been derived from online operations and the positive effect of this transition can be clearly seen in our strong financial performance.  Revenue for the year ended 30 April 2021 increased to £45.68 million (2020: £17.79 million) and profit before tax rose to £14.06 million (2020: £4.19 million).  Earnings per share increased to 122.52p (2020: 37.51p).

A total of £14.27 million of cash flow was generated from operations during the period. Net assets at 30 April 2021 stood at £8.96 million (2020: £3.30 million), underpinned by cash balances of £11.8 million (2020: £5.21 million) and our 965-year leasehold office properties valued at £0.95 million. The Group is debt free.

Dividends

In line with our progressive dividend policy, the Board is recommending a final dividend of 5.0p per share (2020: 3.0p) for the full year ended 30 April 2021 subject to shareholder approval at the Annual General Meeting on 15 September 2021.  The final dividend will be paid on 1 October 2021 to shareholders on the register on 17 September 2021. 

As the Company continues to be profitable, cash generative and benefits from a robust balance sheet, the Board is also pleased to declare the return of approximately £4.71 million to shareholders by way of a special dividend (the "Special Dividend") of 50.0p per ordinary share. 

The Special Dividend will be paid on 16 July 2021 to shareholders on the register at the close of business on 2 July 2021. The ex-dividend date is 1 July 2021. Following the payment of the Special Dividend the Company will retain working capital cash balances in excess of £6.0 million, which the Directors consider to be sufficient working capital to fund the Company's activities over the next 12 month period.

Strategy, competitions, pricing

The period to 30 April 2021 marked the first financial year since our inception in 2000 that the Company did not generate any physical site revenues.  Our strategic decision to move to an online only model was based on efficiencies that can be delivered, both financially and operationally, using evolving digital channels. 

We have continued to innovate and have successfully executed marketing strategies more effectively using predominantly digital media, complemented by traditional advertising channels. 

In recent years, we have successfully diversified our offering and significantly broadened our addressable market by offering players prizes across new categories and at a variety of ticket prices.  BOTB's principal competitions are the Weekly Dream Car Competition, which continued to perform well and the more recently launched Midweek Competition, with a more focussed selection of prizes.  During the year, the improvements we have made to enhance the overall user experience included materially reduced prices, a wider choice of cars, cash included as standard, and further improvements to the 'Spot the Ball' mechanic. 

I am pleased to report that our continued innovation is popular with our players and has driven increased levels of engagement and repeat play.

The Weekly Lifestyle Competition, which features luxury watches, motorbikes, holidays, other gadgets/technology and cash prizes, has continued to perform well.

Whilst the COVID-19 restrictions in place during most of the year significantly curtailed the ability of our presenting team to surprise winners at home or at work, we were pleased that the video calling alternatives available were well received by our players and continued to provide the engaging content for which BOTB has become so well regarded.

BOTB now has a database of over 1.7 million which supports existing competitions and can also provide us with new opportunities.  We have continued to consider and review potential new products and partnerships and will update shareholders as appropriate in due course.

 

 

 

BEST OF THE BEST PLC

Preliminary Results (continued)

For The Year Ended 30 April 2021

Continued investment in IT development

With the vast majority of our website visits and over half of our revenue now from mobile devices, mobile usage remains fundamental in our approach to IT development.  During the year, we have made further progress to enhance our mobile interface which has led to higher conversion rates, including improvements to the mobile registration, playing and payment experience, including Apple Pay, which in turn will assist both conversion and frequency of engagement.

Following a longer than expected period of development and testing, both our native iOS app and our native Android app are now live in the respective Apple and Play stores. Whilst the Android App was only recently released, customer reaction has so far been pleasingly positive and has now given us the confidence to commence a programme of customer awareness and app marketing activity.

New player acquisition and CRM

As planned, during the financial year we accelerated marketing investment, in particular using digital marketing to engage with new players and this has delivered efficient returns on investment and lifetime value metrics. All marketing investment is strictly calibrated on the cost per acquisition of a new customer versus their predicted lifetime value.    

We have continued to focus on social media as a core marketing channel, driving both customer acquisition and brand awareness.  Our engagement metrics increased with our Facebook page now attracting over 400,000 followers, with BOTB's YouTube channel at over 60,000 subscribers, and Instagram followers nearing 300,000.

Two new TV ads were produced and aired during the period, with ongoing testing and optimisation for different audiences. We have continued to complement our social media activities with campaigns executed on traditional media to maximise our exposure to a wide range of ages and demographics, including our 'traditional' airport customer.

Board Changes

In March 2021, Ben Hughes and Daniel Burns joined the Board as Executive Director and Non-Executive Director, respectively. 

Ben Hughes has served as Marketing Director for Best of the Best since 2010 and leads all marketing strategy, budgeting and delivery for the Company. During his tenure Ben has been responsible for devising and implementing the Company's marketing strategies to increase online revenues and to significantly grow the brand's online presence. Previously, Ben spent nine years at News International where he was Head of Marketing (Digital) for News Group Media.

Daniel Burns is an experienced corporate financier in the gaming, competitions, lottery and media sector with over 20 years of advisory experience covering both public and private companies. Daniel is Managing Partner at Oakvale Capital LLP, a corporate finance advisor in the gaming and media industry. Daniel previously worked as a corporate lawyer at Macfarlanes, focusing on venture capital and international mergers and acquisitions. He has sat on the advisory boards of a number of the largest gaming companies.

Following the appointment of Ben and Daniel, the Company had three Executive Directors and three Non-Executive Directors, of which one can be considered independent. The Board continues to place significant importance on corporate governance and as a result will seek to appoint an additional independent director in due course.  In consideration of this, Michael Hindmarch, Non-Executive Chairman, has also agreed to step down as Chairman by 1 October 2021, with an independent Non-Executive Chairman appointed in due course.

Outlook

Our performance in 2020 reflects our online focus and efficient investment in marketing activities and we are pleased that BOTB has delivered substantially increased revenue and profit.   BOTB's ability to generate cash, our strong balance sheet and the fact that we have no debt gives us confidence in our ability to deliver continued future growth.

 

We are excited about the opportunities that the year ahead holds for BOTB, with a recovering economy and hopefully a return to normality.  However, in contrast to the summer 2020 period, we have experienced somewhat of a reduction in customer engagement since the latest easing of lockdown restrictions on April 12, 2021, specifically relating to the understandably long-awaited re-opening of hospitality and non-essential retail.  We are closely monitoring this, but with our flexible model, growth strategy and plans for the year ahead, we expect customer engagement to return to normal levels before too long. I look forward to updating shareholders in due course.

BEST OF THE BEST PLC

Preliminary Results (continued)

For The Year Ended 30 April 2021

 

KEY PERFORMANCE INDICATORS

The Directors have monitored the performance of the Company with particular reference to the following key performance indicators:

 

1.     Sales, both online and at retail sites, compared to the prior year.

 

2.     Marketing efficiency calculated using the twelve-month Lifetime Value per customer, against the Cost per Acquisition.

 

RISK MANAGEMENT

In order to execute the Company's strategy, the Company will be exposed to both financial and non-financial risks.  The Board has overall responsibility for the Company's risk management, and it is the Board's role to consider whether those risks identified by management are acceptable within the Company's strategy and risk appetite.  The Board therefore regularly reviews the principal risks and considers how effective and appropriate the controls that management has in place to mitigate the risk exposure are and will make recommendations to management accordingly.

 

Financial Risk Management

 

Credit risk

The exposure to credit risk is limited to the carrying amounts of financial assets.  There is considered to be little exposure to credit risk arising on receivables due to the low value of receivables held at the year-end.  The credit risk arising on cash balances is limited because the third parties are banks with high credit ratings assigned by international credit rating agencies.

 

Liquidity risk

Sufficient cash balances are maintained to ensure that there are available funds for operations.  Operations are financed principally from equity and cash reserves

 

Non-financial Risk Management

 

Interruption to website and associated IT infrastructure

As the Company now operates wholly online, it is heavily reliant on the effective operation of its website and associated IT infrastructure.  Any interruption to the website or IT infrastructure would therefore have an immediate and significant impact on the Company.

 

The Company have various processes and controls in place to ensure the likelihood of interruption is minimised and, in the unlikely event that the website or IT infrastructure failed, it could be returned to operation in a short space of time.  This includes having contracts in place with third party suppliers to ensure any potential source of interruption is identified promptly and also to ensure that data, including customers' data, is protected.

 

Management and key personnel

The success of the Company to a significant extent is dependent on the Executive Directors and other senior managers.  To mitigate the risk of losing such personnel, the Company endeavour to ensure that they are fairly remunerated and well incentivised.

 

Regulatory change

The Company currently operates weekly skilled competitions, which are not regulated.  This could be subject to change in the future and the Company continue to seek appropriate legal advice to ensure they comply with all relevant legislation and licensing.

 

 

 

ON BEHALF OF THE BOARD

 

 

William Hindmarch

Chief Executive

 

 

BEST OF THE BEST PLC

Consolidated Statement of Comprehensive Income

For The Year Ended 30 April 2021

 

 

 

Notes

2021

 

2020

 

 

£000

 

£000

 

 

 

 

 

CONTINUING OPERATIONS

 

 

 

 

Revenue

 

45,681

 

17,789

Cost of sales

 

(17,410)

 

(7,267)

GROSS PROFIT

 

28,271

 

10,522

Administrative expenses

 

(14,209)

 

(6,328)

OPERATING PROFIT

 

14,062

 

4,194

Finance income

7

1

 

11

PROFIT BEFORE INCOME TAX

9

14,063

 

4,205

Income tax

10

(2,569)

 

(687)

PROFIT FOR THE YEAR

 

11,494

 

3,518

 

 

 

 

 

OTHER COMPREHENSIVE INCOME

 

 

 

 

Items that may be reclassified to profit or loss

 

 

 

 

Exchange differences on translating foreign operations

 

-

 

-

OTHER COMPREHENSIVE INCOME FOR THE

 

 

 

 

  YEAR, NET OF INCOME TAX

 

-

 

-

TOTAL COMPREHENSIVE INCOME FOR THE

 

 

 

 

  YEAR

 

11,494

 

3,518

 

 

 

 

 

Profit attributable to:

 

 

 

 

  Owners of the parent

 

11,494

 

3,518

 

 

 

 

 

Total comprehensive income attributable to:

 

 

 

 

  Owners of the parent

 

11,494

 

3,518

 

 

 

 

 

 

 

 

 

 

Earnings per share expressed in pence per share

 

 

 

 

  Basic from continuing operations

12

122.52

 

37.51

  Diluted from continuing operations

12

121.82

 

37.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

The notes form part of this Preliminary Announcement

BEST OF THE BEST PLC

Consolidated Statement of Financial Position

As at 30 April 2021

 

 

 

Notes

2021

 

2020

 

 

£000

 

£000

ASSETS

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

Intangible assets

14

160

 

81

Property, plant and equipment

15

1,103

 

1,086

Investments

16

-

 

-

Deferred tax

21

-

 

3

 

 

1,263

 

1,170

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Trade and other receivables

17

271

 

376

Cash and cash equivalents

18

11,814

 

5,210

 

 

12,085

 

5,586

 

 

 

 

 

TOTAL ASSETS

 

13,348

 

6,756

 

 

 

 

 

EQUITY

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

Called up share capital

19

471

 

469

Share premium

 

277

 

199

Capital redemption reserve

 

236

 

236

Foreign exchange reserve

 

27

 

27

Retained earnings

 

7,953

 

2,369

TOTAL EQUITY

 

8,964

 

3,300

 

 

 

 

 

LIABILITIES

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade and other payables

20

3,053

 

3,004

Tax payable

 

1,317

 

452

Provision

21

14

 

-

TOTAL LIABILITIES

 

4,384

 

3,456

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

13,348

 

6,756

 

 

 

 

 

 

 

The notes form part of this Preliminary Announcement

BEST OF THE BEST PLC

Company Statement of Financial Position

As at 30 April 2021

 

 

 

Notes

2021

 

2020

 

 

£000

 

£000

ASSETS

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Intangible assets

14

160

 

81

Property, plant and equipment

15

1,103

 

1,086

Investments

16

-

 

-

Deferred tax

21

-

 

3

 

 

1,263

 

1,170

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Trade and other receivables

17

271

 

376

Cash and cash equivalents

18

11,814

 

5,210

 

 

12,085

 

5,586

 

 

 

 

 

TOTAL ASSETS

 

13,348

 

6,756

 

 

 

 

 

EQUITY

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

Called up share capital

19

471

 

469

Share premium

 

277

 

199

Capital redemption reserve

 

236

 

236

Retained earnings

 

7,975

 

2,390

TOTAL EQUITY

 

8,959

 

3,294

 

 

 

 

 

LIABILITIES

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade and other payables

20

3,058

 

3,010

Tax payable

 

1,317

 

452

Provision

21

14

 

-

TOTAL LIABILITIES

 

4,389

 

3,462

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

13,348

 

6,756

 

 

 

 

 

 

 

The notes form part of this Preliminary Announcement

BEST OF THE BEST PLC

Consolidated Statement of Changes in Equity

For The Year Ended 30 April 2021

 

 

 

 

 

Called up

 share capital

 

 

Share premium

 

Capital redemption reserve

 

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

Balance at 1 May 2019

 

469

 

199

 

236

  

 

 

 

 

 

 

   Dividends paid

 

-

 

-

 

-

Transactions with owners

 

-

 

-

 

-

   Profit for the year

 

-

 

-

 

-

Other comprehensive income

 

 

 

 

 

 

   Exchange differences arising on translating

 

 

 

 

 

 

   foreign operations

 

-

 

-

 

-

Total comprehensive income

 

-

 

-

 

-

Balance at 30 April 2020

 

469

 

199

 

236

   Issue of share capital

 

2

 

78

 

-

   Dividends paid

 

-

 

-

 

-

Transactions with owners

 

-

 

-

 

-

   Profit for the year

 

-

 

-

 

-

Other comprehensive income

 

 

 

 

 

 

   Exchange differences arising on translating 

 

 

 

 

 

 

   foreign operations

 

-

 

-

 

-

Total comprehensive income

 

-

 

-

 

-

Balance at 30 April 2021

 

471

 

277

 

236

 

 

 

 

Foreign exchange reserve

 

 

Retained earnings

 

 

 

Total

 

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

Balance at 1 May 2019

 

27

 

352

 

1,283

   Issue of share capital

 

 

 

 

 

 

   Dividends paid

 

-

 

(1,501)

 

(1,501)

Transactions with owners

 

-

 

(1,501)

 

(1,501)

   Profit for the year

 

-

 

3,518

 

3,518

Other comprehensive income

 

 

 

 

 

 

  Exchange differences arising on translating

 

 

 

 

 

 

   foreign operations

 

-

 

-

 

-

Total comprehensive income

 

-

 

3,518

 

3,518

Balance at 30 April 2020

 

27

 

2,369

 

3,300

   Issue of share capital

 

-

 

-

 

80

   Dividends paid

 

-

 

(5,910)

 

(5,910)

Transactions with owners

 

-

 

(5,910)

 

(5,910)

   Profit for the year

 

-

 

11,494

 

11,494

Other comprehensive income

 

 

 

 

 

 

  Exchange differences arising on translating

 

 

 

 

 

 

   foreign operations

 

-

 

-

 

-

Total comprehensive income

 

-

 

11,494

 

11,494

Balance at 30 April 2021

 

              27

 

7,953

 

8,964

 

 

 

 

The notes form part of this Preliminary Announcement

BEST OF THE BEST PLC

Company Statement of Changes in Equity

For The Year Ended 30 April 2021

 

 

 

 

 

Called up

 share capital

 

 

Share premium

 

Capital redemption reserve

 

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

Balance at 1 May 2019

 

469

 

199

 

236

   Issue of share capital

 

-

 

-

 

-

   Dividends paid

 

-

 

-

 

-

Transactions with owners

 

-

 

-

 

-

   Profit for the year

 

-

 

-

 

                   -

Total comprehensive income

 

-

 

                -

 

-

Balance at 30 April 2020

 

469

 

199

 

236

   Issue of share capital

 

2

 

78

 

-

   Dividends paid

 

-

 

-

 

-

Transactions with owners

 

-

 

-

 

-

   Profit for the year

 

-

 

-

 

-

Total comprehensive income

 

-

 

-

 

-

Balance at 30 April 2021

 

471

 

277

 

236

 

 

 

 

 

Retained

earnings

 

 

 

Total

 

 

£000

 

£000

 

 

 

 

 

Balance at 1 May 2019

 

373

 

1,277

   Issue of share capital

 

-

 

-

   Dividends paid

 

(1,501)

 

(1,501)

Transactions with owners

 

(1,501)

 

(1,501)

   Profit for the year

 

3,518

 

3,518

Total comprehensive income

 

3,518

 

3,518

Balance at 30 April 2020

 

2,390

 

3,294

   Issue of share capital

 

-

 

80

   Dividends paid

 

(5,910)

 

(5,910)

Transactions with owners

 

(5,910)

 

(5,910)

   Profit for the year

 

11,495

 

11,495

Total comprehensive income

 

11,495

 

11,495

Balance at 30 April 2021

 

7,975

 

8,959

 

  

The notes form part of this Preliminary Announcement

BEST OF THE BEST PLC

Consolidated Statement of Cash Flows

For The Year Ended 30 April 2021

 

 

 

Notes

2021

 

2020

 

 

£000

 

£000

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

Cash generated from operations

 

14,270

 

4,892

Tax paid

 

(1,686)

 

(643)

Net cash from operating activities

 

12,584

 

4,249

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Purchase of intangible assets

 

(84)

 

(76)

Purchase of property, plant and equipment

 

(67)

 

(17)

Interest received

 

1

 

11

Net cash from investing activities

 

(150)

 

(82)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Share issue

 

80

 

-

Equity dividends paid

 

(5,910)

 

(1,501)

Net cash from financing activities

 

(5,830)

 

(1,501)

 

 

 

 

 

Increase in cash and cash equivalents

 

6,604

 

2,666

Cash and cash equivalents at beginning of year

 

5,210

 

2,544

Cash and cash equivalents at end of year

18

11,814

 

5,210

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS

 

 

2021

 

2020

 

£000

 

£000

 

 

 

 

Profit before income tax

14,063

 

4,205

Depreciation charges

50

 

49

Amortisation charges

5

 

5

Finance income

(1)

 

(11)

 

14,117

 

4,248

Decrease/(increase) in trade and other receivables

105

 

(216)

Increase in trade and other payables

48

 

1,211

Increase in provision

-

 

(351)

Cash generated from operations

14,270

 

4,892

 

  

 

The notes form part of this Preliminary Announcement

 

BEST OF THE BEST PLC

Company Statement of Cash Flows

For The Year Ended 30 April 2021

 

 

 

Notes

2021

 

2020

 

 

£000

 

£000

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

Cash generated from operations

 

14,270

 

4,892

Tax paid

 

(1,686)

 

(643)

Net cash from operating activities

 

12,584

 

4,249

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Purchase of intangible assets

 

(84)

 

(76)

Purchase of property, plant and equipment

 

(67)

 

(17)

Sales of property, plant and equipment

 

-

 

-

Interest received

 

1

 

11

Net cash from investing activities

 

(150)

 

(82)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Share issue

 

80

 

-

Equity dividends paid

 

(5,910)

 

(1,501)

Net cash from financing activities

 

(5,830)

 

(1,501)

 

 

 

 

 

Increase in cash and cash equivalents

 

6,604

 

2,666

Cash and cash equivalents at beginning of year

 

5,210

 

2,544

Cash and cash equivalents at end of year

18

11,814

 

5,210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS

 

 

 

2021

 

2020

 

 

£000

 

£000

 

 

 

 

 

Profit before income tax

 

14,063

 

4,205

Depreciation charges

 

50

 

49

Amortisation charges

 

5

 

5

Finance income

 

(1)

 

(11)

 

 

14,117

 

4,248

Decrease/(increase) in trade and other receivables

 

105

 

(216)

Increase in trade and other payables

 

48

 

1,211

Increase in provision

 

-

 

(351)

Cash generated from operations

 

14,270

 

4,892

 

 

 

The notes form part of this Preliminary Announcement

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement

For The Year Ended 30 April 2021

 

 

1.   GENERAL INFORMATION

The principal activity of the Company and the Group is to operate weekly competitions to win luxury cars and other prizes online.

 

These financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") and International Financial Reporting Interpretation Committee ("IFRIC") Interpretations as issued by the International Accounting Standards Board and in conformity with the requirements of the Companies Act 2006 applicable to those companies reporting under IFRS.  The financial statements have been prepared under the historical cost convention.

 

The principal accounting policies adopted in the preparation of the financial statements are set out below.  The policies have been consistently applied to all years presented, unless otherwise stated.

 

The financial statements are presented in Pounds Sterling.  All amounts, unless otherwise stated, have been rounded to the nearest thousand Pounds.

 

The preparation of financial statements in compliance with adopted IFRS requires the use of certain critical accounting estimates.  It also requires management to exercise judgement in applying those accounting policies.  The areas where significant judgements and estimates have been made in preparing these financial statements and their effect are disclosed in Note 4.

 

The Directors are satisfied that the Company and Group have adequate resources to continue in business for the foreseeable future.  For this reason, they continue to adopt the going concern basis in preparing the financial statements.

 

 

 

2.   PRINCIPAL ACCOUNTING POLICIES

 

2.1 NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

The Company and Group applied for the first time certain Standards, Amendments and Interpretations which are effective for annual periods commencing on or after 1 May 2020.  The Company and Group have not early adopted any other Standards, Amendments or Interpretations that have been issued but are not yet effective.

 

 

The following standards have been adopted:

 

·      Amendments to References to Conceptual Framework in IFRS Standards. The Amendments effective date 1 January 2021.

·      Amendments to IFRS 3 Business Combinations addresses the definition of a business combination, to help companies determine whether an acquisition is of a business or a group of assets. The Amendments are effective 1 January 2021.

·      Amendments to IAS 1 and IAS 8 addresses definition of material in the context of applying IFRS. The concept of what is and is not material is crucial in preparing financial statements, a change in the definition may fundamentally affect how preparers make judgements in preparing financial statements. The Amendments effective date 1 January 2021.

·      Covid-19 Related Rent Concessions (Amendment to IFRS 16).

 

 

 

 

 

 

 

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

2.   PRINCIPAL ACCOUNTING POLICIES (continued)

The following Adopted IFRSs have been issued but have not been applied by the Group in these financial statements, all of which are effective for the accounting period commencing 1 January 2022. Their adoption is not expected to have a material effect on the financial statements unless otherwise indicated:

·      Narrow scope amendments to IFRS 3, IAS 16 and IAS 27.

·      Annual improvements to IFRS Standards 2018 - 2020.

·      Amendments to IAS 1: Classification of Liabilities as Current or non Current.

As yet, none of these have been endorsed for use in the UK and will not be adopted until such time as endorsement is confirmed. The Directors do not expect any material impact as a result of adopting the standards and amendments listed above in the financial year they become effective.

The company has applied UK-adopted IAS. At the date of application, both UK-adopted IAS and EU-adopted IFRS  the same.

2.2 BASIS OF CONSOLIDATION

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiary undertakings).  Where necessary, adjustments are made to the financial statements of the subsidiaries to bring their accounting policies in line with those of the Group.  All intra-Group transactions, balances, income and expenses are eliminated on consolidation.

 

2.3 REVENUE RECOGNITION

The Company and Group operate weekly competitions to win luxury cars and other prizes online.  Revenue represents the value of tickets sold in respect of these competitions and is stated net of VAT, where applicable, and returns, rebates and discounts.  Revenue in respect of weekly competitions is recognised on the date the result of those individual competitions is determined, being the point when all performance obligations have been fulfilled. 

 

2.4 COST OF SALES

Cost of sales comprises principally of the cost of competition prizes, duties, rent and the associated costs of operating retail sites.

 

2.5 SEGMENT REPORTING

The accounting policy for identifying segments is based on internal management reporting information which is reviewed by the chief operating decision maker.  The Company and Group are considered to have a single business segment, being the operation of weekly competitions to win luxury cars and other prizes.

 

2.6 RESEARCH AND DEVELOPMENT EXPENDITURE

Expenditure on research is recognised as an expense in the period in which it is incurred.

 

Development costs are capitalised when all of the following conditions are satisfied:

 

·      Completion of the intangible asset is technically feasible so that it will be available for use or sale;

·      The Company or Group intends to complete the intangible asset and use or sell it;

·      The Company or Group has the ability to use or sell the intangible asset;

·      The intangible asset will generate probable future economic benefits.  Amongst other things, this requires that there is a market for the output from the intangible asset or for the intangible asset itself, or, if it is to be used internally, the asset will be used in generating such benefits;

·      There are adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and

·      The expenditure attributable to the intangible asset during its development can be measured reliably.

 

Development costs not meeting the criteria for capitalisation are expensed as incurred.

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

 

2.   PRINCIPAL ACCOUNTING POLICIES (continued)

 

2.7   FOREIGN CURRENCIES

Assets and liabilities in foreign currencies are translated into Sterling at the rates of exchange ruling at the statement of financial position date.  Transactions in foreign currencies are translated into Sterling at the rates of exchange ruling at the date of the transaction.  Exchange differences are taken into account in arriving at the operating result.

 

The assets and liabilities in the financial statements of foreign subsidiaries are translated into the Parent Company's presentation currency at the rates of exchange ruling at the statement of financial position date.  Income and expenses are translated at the actual rate on the date of the transaction.  The exchange differences arising from the retranslation of the opening net investment in subsidiaries are recognised in other comprehensive income and taken to the foreign exchange reserve in equity.  On disposal of a foreign subsidiary, the cumulative translation differences are transferred to profit or loss as part of the gain or loss on disposal.

 

2.8   SHARE BASED PAYMENT

The Company and Group have applied the requirements of IFRS 2 to share option schemes allowing certain employees within the Group to acquire shares of the Company.  For all grants of share options, the fair value as at the date of grant is calculated using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the options were granted.  The amount recognised as an expense is adjusted to reflect the actual number of share options that are likely to vest, except where forfeiture is only due to market-based conditions not achieving the threshold for vesting.  The expense is recognised over the expected life of the option.

 

2.9   PENSION CONTRIBUTIONS AND OTHER POST EMPLOYMENT BENEFITS

The Company operates a money purchase pension scheme for certain employees.  The cost of the contributions is charged to the statement of comprehensive income as incurred.

 

2.10 TAXATION

Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantively enacted by the statement of financial position date.

 

The tax currently payable is based on the taxable profit for the year.  Taxable profit/(loss) differs from the net profit/(loss) reported in the statement of comprehensive income as it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.

 

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method.  Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilised.  Such assets and liabilities are not recognised if the temporary differences arise from the initial recognition (other than in a business combination) of other assets or liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of the deferred tax asset is reviewed at each statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised.  Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items charged or credited directly to equity, in which case deferred tax is also dealt with in equity.

 

 

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

 

2.   PRINCIPAL ACCOUNTING POLICIES (continued)

 

2.11 IMPAIRMENT

The carrying amounts of the Company's and the Group's assets are reviewed at each statement of financial position date to determine whether there is any indication of impairment.  If any such indicator exists, the asset's recoverable amount is estimated.

 

An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.  Impairment losses are recognised in the statement of comprehensive income.

 

The recoverable amount of an asset is the greater of its net selling price and value in use.  In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset.

 

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.  An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation and amortisation, if no impairment loss had been recognised.

 

2.12 CURRENT VERSUS NON-CURRENT CLASSIFICATION

The Company and Group present assets and liabilities in the statement of financial position based on current/non-current classification.  An asset is current when it is:

 

·      expected to be realised or intended to be sold or consumed in the normal operating cycle; or

·      held primarily for the purpose of trading; or

·      expected to be realised within twelve months after the reporting period; or

·      cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

All other assets are classified as non-current.

 

A liability is current when:

·      it is expected to be settled in the normal operating cycle; or

·      it is held primarily for the purpose of trading; or

·      it is due to be settled within twelve months after the reporting period; or

·      there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting date.

 

The Company and Group classify all other liabilities as non-current.

 

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

 

2.13 INTANGIBLE ASSETS

Intangible assets are recognised at cost less any accumulated amortisation and impairment.

 

An intangible asset, which is an identifiable non-monetary asset without physical substance, is recognised to the extent that it is probable that the expected future economic benefits attributable to the asset will flow to the Company or Group and that its cost can be measured reliably.  The asset is deemed to be identifiable when it is separate or when it arises from contractual or other legal rights.

 

The Company's and Group's intangible assets consist of its IT platform, infrastructure and website.  The Directors have estimated the useful economic life of the assets to be three years and they are being amortised over that period on a straight line basis.

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

 

 

2.   PRINCIPAL ACCOUNTING POLICIES (continued)

 

2.14 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

 

Depreciation is provided at the following annual rates in order to write off each asset over its useful economic life:

 

Long leasehold property                                  - 1% on cost

Improvements to property                               - 4% on cost

Display equipment                                          - At varying rates on cost

Fixtures and fittings                                        - At varying rates on cost

Motor vehicles                                                - 25% on reducing balance

Computer equipment                                       - At varying rates on cost

 

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from the use or disposal.  Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of comprehensive income when the asset is derecognised.

 

The residual values, useful economic lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.

 

2.15 INVESTMENTS

Investments in subsidiaries and unlisted investments are recorded at cost less any provision for permanent diminution in value.

 

2.16 LEASES

 

The cost of leases of low value items and those with a term of less than one year at inception are recognised as incurred.

 

2.17 PROVISIONS

Provisions are liabilities where the exact timing or amount of the obligation is uncertain.  Provisions are recognised when the Company or Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.  Where the time value of money is material, provisions are discounted to current values using appropriate rates of interest.  The unwinding of the discounts is recorded in net finance income or expense.

 

 

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

 

2.   PRINCIPAL ACCOUNTING POLICIES (continued)

 

2.18 FINANCIAL INSTRUMENTS

Financial assets and liabilities are recognised in the Company's and Group's statement of financial position when the Company and Group becomes a party to the contractual provisions of the instrument.  The Company's and Group's financial instruments comprise cash, trade and other receivables and trade and other payables.

 

Trade and other receivables

Trade and other receivables are initially stated at their fair value plus transaction costs, then subsequently at amortised cost using the effective interest method, if applicable, less impairment losses.  Provisions against trade and other receivables are made when there is objective evidence that the Company and Group will not be able to collect all amounts due to them in accordance with the original terms of those receivables.  The amount of the write down is determined as the difference between the asset's carrying amount and the present value of estimated future cash flows.

 

Cash and cash equivalents

The Company and Group manage short-term liquidity through the holding of cash and highly liquid interest-bearing deposits.  Only deposits that are readily convertible into cash with maturities of three months or less from inception, with no penalty of lost interest, are shown as cash and cash equivalents.

 

Trade payables

Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Company and Group becomes a party to the contractual provisions of the instrument.  All financial liabilities are recorded at amortised cost using the effective interest method, with interest-related charges recognised as an expense in finance cost in the statement of comprehensive income.

 

2.19 EQUITY

Equity comprises the following:

 

·      Called up share capital represents the nominal value of the equity shares;

·      Share premium represents the excess over nominal value of the fair value of consideration received from the equity shares, net of expenses of the share issue;

·      Capital redemption reserve represents the value of the re-purchase by the Company of its own share capital;

·      Foreign exchange reserve represents accumulated exchange differences from the translation of subsidiaries with a functional currency other than Sterling; and

·      Retained earnings represent accumulated profits and losses from incorporation and any credit arising under share-based payments

 

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

 

3.   CAPITAL MANAGEMENT

The Company defines capital as the total equity of the Company.  The objective of the Company's capital management is to ensure that it makes the maximum use of its capital to support its business and to maximise shareholder value.  There are no external constraints on the Company's capital.

 

4.   CRITICAL JUDGEMENTS AND ACCOUNTING ESTIMATES

The Company and Group make certain estimates and assumptions regarding the future.  Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.  In the future, actual expenditure may differ from these estimates and assumptions.  The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

 

Impairment of assets

The Company and Group are required to consider assets for impairment where such indicators exist, using value in use calculations or fair value estimates.  The use of these methods may require the estimation of future cash flows and the choice of a discount rate in order to calculate the present value of the cash flows.  Actual outcomes may vary.

 

Useful lives of property, plant and equipment and intangible assets

Property, plant and equipment are depreciated, and intangible assets are amortised over their useful lives.  Useful lives are based on management's estimates, which are periodically reviewed for continued appropriateness.  Changes to estimates can result in variations in the carrying values and amounts charged to the statement of comprehensive income in specific periods.

 

5.   SEGMENTAL REPORTING

For management purposes, the Company and Group are considered to have one single business segment, being the operation of weekly competitions to win luxury cars and other prizes.  The Group comprises Best of the Best PLC and its subsidiary company BOTB Ireland Limited.  BOTB Ireland Limited generated no sales during either the current or prior year and it holds few assets and is expected to have very little trading activity going forward.  The two companies do not transact with each other.  Further segment information is therefore not presented in these financial statements. 

Sales from UK activities totalled £41,499,000 (2020: £14,940,000) whilst sales from non-UK activities totalled £4,182,000 (2020: £2,848,000).

 

 

 

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

6.   EMPLOYEES AND DIRECTORS

 

 

Group

 

Company

 

2021

 

2020

 

2021

 

2020

 

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

Wages and salaries

1,941

 

1,748

 

1,941

 

1,748

Social security costs

241

 

224

 

241

 

224

Other pension costs

16

 

35

 

16

 

35

 

2,198

 

2,007

 

2,198

 

2,007

 

The average monthly number of employees during the year, including the Directors, was as follows:

 

 

Group

 

Company

 

 

2021

 

2020

 

2021

 

2020

 

Number

 

Number

 

Number

 

Number

 

 

 

 

 

 

 

 

Sales

9

 

1

 

9

 

1

Administration

10

 

17

 

10

 

17

Management

2

 

3

 

2

 

3

 

21

 

21

 

21

 

21

                 

 

 

2021

 

2020

 

£000

 

£000

 

 

 

 

Directors' remuneration

613

 

562

 

The number of Directors to whom retirement benefits were accruing was as follows:

 

 

2021

 

2020

 

Number

 

Number

 

 

 

 

Money purchase schemes

3

 

2

 

 

The Directors consider themselves to be the only key management personnel.  As such, a separate analysis of remuneration paid to key management personnel has not been presented.

 

Information regarding the highest paid Director is as follows:

 

 

2021

 

2020

 

£000

 

£000

 

 

 

 

Emoluments

277

 

263

 

 

7.   FINANCE INCOME

 

 

2021

 

2020

 

£000

 

£000

 

 

 

 

Finance income:

 

 

 

Deposit account interest

1

 

11

 

 

 

 

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

9.   PROFIT BEFORE INCOME TAX

The profit before income tax is stated after charging/(crediting):

 

 

2021

 

2020

 

£000

 

£000

 

 

 

 

Depreciation and impairment of property, plant and equipment

50

 

49

Amortisation of intangible assets

5

 

5

Foreign exchange losses

1

 

2

Auditor's remuneration

 

 

 

   Audit fees

36

 

34

   Taxation services

3

 

2

   Other

18

 

23

 

 

10. INCOME TAX

Analysis of tax expense

 

 

2021

 

2020

 

£000

 

£000

 

 

 

 

Current tax:

 

 

 

  Current year charge

2,552

 

686

  Prior year over provision

-

 

(8)

Total current tax

2,552

 

678

 

 

 

 

Deferred tax

 

 

 

   Origination and reversal of temporary timing differences

17

 

9

Total deferred tax

17

 

9

 

 

 

 

Total tax charge for the year

2,569

 

687

 

Factors affecting the tax expense

The tax assessed for the year is lower than the standard rate of corporation tax in the UK.  The difference is explained below:

 

 

2021

 

2020

 

£

 

£

 

 

 

 

Profit on ordinary activities before income tax

14,063

 

4,205

 

 

 

 

Profit on ordinary activities multiplied by the standard rate of corporation

 

 

 

  tax in the UK of 19% (2020: 19%)

2,672

 

799

 

 

 

 

Effects of:

 

 

 

 

 

 

 

  Other timing differences

(1)

 

(4)

  Non-deductible expenses

-

 

-

  Research and development enhanced deduction

(102)

 

(100)

  Over provision in prior year

 

 

(8)

Tax expense

2,569

 

687

 

 

 

 

 

 

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

 

11. PROFIT OF THE PARENT COMPANY

As permitted by Section 408 of the Companies Act 2006, the income statement of the Parent Company is not presented as part of these financial statements.  The parent Company's profit for the financial year was £11,494,000,000 (2020: £3,517,000).

 

12. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the earnings attributable to the ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.

 

 

Diluted earnings per share is calculated using the weighted average number of shares outstanding during the year, adjusted to assume the exercise of all dilutive potential ordinary shares under the Company's share option plans.

 

 

2021

 

2020

 

 

 

 

Profit for the year and basic and diluted earnings attributable to the

owners of the parent - £000


         11,494                  

 

 

3,518

 

 

 

 

Weighted average number of ordinary shares - number

9,381,253

 

9,377,253

Basic earnings per share - pence

122.52p

 

37.51p

 

 

 

 

Adjusted weighted average number of ordinary shares - number

9,435,186

 

9,394,296

Diluted earnings per share - pence

121.82p

 

37.44p

 

13. DIVIDENDS

A final dividend of  3.0 pence per ordinary share for the full year ending 30 April 2020 was paid on 2 October 2020 to shareholders on the register at 18 September 2020. A special dividend of 20.0 pence per ordinary share was paid on 10 July 2020 to shareholders on the register at the close of business on 26 June 2020, and a further special dividend of 40.0 pence per ordinary share was paid on 5 February 2021 to shareholders on the register at the close of business on 22 January 2021.

 

The Board is recommending a final dividend of 5.0 pence per share (2020: 3.0 pence per share) for the full year ending 30 April 2021 subject to shareholder approval at the Annual General Meeting on 15 September 2021.  The final dividend will be paid on 1 October 2021 to shareholders on the register on 17 September 2021.

 

A special dividend of 50.0 pence per ordinary share will also be paid on 16 July 2021 to shareholders on the register at the close of business on 2 July 2021.

 

 

 

 

14. INTANGIBLE ASSETS - GROUP AND COMPANY

 

Development costs

 

£000

COST

 

At 1 May 2020

391

Additions

84

At 30 April 2021

475

 

 

AMORTISATION

 

At 1 May 2020

310

Charge for year

5

At 30 April 2021

315

 

 

NET BOOK VALUE

 

  2021

160

  2020

81

 

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

14. INTANGIBLE ASSETS - GROUP AND COMPANY (continued)

 

Development costs

 

£000

COST

 

At 1 May 2019

315

Additions

76

At 30 April 2020

391

 

 

AMORTISATION

 

At 1 May 2019

305

Charge for year

5

At 30 April 2020

310

 

 

NET BOOK VALUE

 

  2020

81

  2019

10

 

15. PROPERTY, PLANT AND EQUIPMENT - GROUP AND COMPANY

 

 

Long leasehold

 

Improvements to property

 

Display

equipment

 

£000

 

£000

 

£000

COST

 

 

 

 

 

At 1 May 2020

954

 

26

 

103

Additions

-

 

29

 

-

At 30 April 2021

 

55

 

103

 

 

 

 

 

 

DEPRECIATION AND IMPAIRMENT

 

 

 

 

 

At 1 May 2020

14

 

4

 

77

Charge for the year

4

 

1

 

-

At 30 April 2021

 

5

 

77

 

 

 

 

 

 

NET BOOK VALUE

 

 

 

 

 

  2021

936

 

50

 

26

  2020

940

 

22

 

26

 

 

Motor vehicles

 

Computer equipment

 

 

Total

 

£000

 

£000

 

£000

COST

 

 

 

 

 

At 1 May 2020

155

 

147

 

1,385

Additions

-

 

37

 

66

At 30 April 2021

155

 

184

 

1,451

 

 

 

 

 

 

DEPRECIATION AND IMPAIRMENT

 

 

 

 

 

At 1 May 2020

71

 

133

 

299

Charge for the year

21

 

24

 

50

At 30 April 2021

92

 

156

 

348

 

 

 

 

 

 

NET BOOK VALUE

 

 

 

 

 

  2021

63

 

28

 

1,103

  2020

84

 

14

 

1,086

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

15. PROPERTY, PLANT AND EQUIPMENT - GROUP AND COMPANY (continued)

 

 

Long leasehold

 

Improvements to property

 

Display

equipment

 

Fixtures and fittings

 

£000

 

£000

 

£000

 

£000

COST

 

 

 

 

 

 

 

At 1 May 2019

954

 

26

 

103

 

172

Additions

-

 

-

 

-

 

-

Disposals

-

 

-

 

-

 

(172)

At 30 April 2020

954

 

26

 

103

 

-

 

 

 

 

 

 

 

 

DEPRECIATION AND IMPAIRMENT

 

 

 

 

 

 

 

At 1 May 2018

10

 

3

 

77

 

172

Charge for the year

4

 

1

 

-

 

-

Eliminated on disposals

-

 

-

 

-

 

(172)

At 30 April 2020

14

 

4

 

77

 

-

 

 

 

 

 

 

 

 

NET BOOK VALUE

 

 

 

 

 

 

 

  2020

940

 

22

 

26

 

-

  2019

944

 

23

 

26

 

-

 

 

Motor vehicles

 

Computer equipment

 

 

Total

 

£000

 

£000

 

£000

COST

 

 

 

 

 

At 1 May 2019

155

 

129

 

1,539

Additions

-

 

18

 

18

Disposals

-

 

-

 

(172)

At 30 April 2020

155

 

147

 

1,385

 

 

 

 

 

 

DEPRECIATION AND IMPAIRMENT

 

 

 

 

 

At 1 May 2019

43

 

116

 

422

Charge for the year

28

 

17

 

50

Eliminated on disposals

-

 

-

 

(172)

At 30 April 2020

71

 

133

 

299

 

 

 

 

 

 

NET BOOK VALUE

 

 

 

 

 

  2020

84

 

14

 

1,086

  2019

113

 

13

 

1,117

 

  

 

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

16. INVESTMENTS

 

Group

 

Unlisted investments

 

£000

 

 

COST

 

At 1 May 2020 and 30 April 2021

70

 

 

IMPAIRMENT

 

At 1 May 2020 and 30 April 2021

70

 

 

NET BOOK VALUE

 

  At 1 May 2020 and 30 April 2021

-

 

Unlisted investments relate to the cost of acquiring options in another company. 

 

 

Company

 

 

Shares in group undertakings

 

 

Unlisted investments

 

 

 

Total

 

£000

 

£000

 

£000

 

 

 

 

 

 

COST

 

 

 

 

 

At 1 May 2020 and 30 April 2021

-

 

70

 

70

 

 

 

 

 

 

IMPAIRMENT

 

 

 

 

 

At 1 May 2020 and 30 April 2021

-

 

70

 

70

 

 

 

 

 

 

NET BOOK VALUE

 

 

 

 

 

  At 1 May 2020 and 30 April 2021

-

 

-

 

-

 

 

Shares in Group undertakings comprise of the following subsidiary company:

 

Name of company

 

Nature of business

 

% holding

 

Country of incorporation

BOTB Ireland Limited

 

Competition operator

 

100

 

Republic of Ireland

 

BOTB Ireland Limited registered office is Suite 3 One Earlsfort Centre, Lower Hatch Street, Dublin 2, Ireland

 

 

17. TRADE AND OTHER RECEIVABLES - GROUP AND COMPANY

 

 

Group

 

Company

 

2021

 

       2020

 

2021

 

2020

 

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

Trade receivables

3

 

2

 

3

 

2

Other receivables

37

 

309

 

37

 

309

Prepayments and accrued income

231

 

65

 

231

 

65

 

271

 

376

 

271

 

376

 

The fair value of trade and other receivables approximates to their carrying values. 

 

 

 

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

18. CASH AND CASH EQUIVALENTS - GROUP AND COMPANY

 

 

Group

 

Company

 

2021

 

2020

 

2021

 

2020

 

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

Bank accounts

11,812

 

5,209

 

11,812

 

5,209

Cash in hand

2

 

1

 

2

 

1

 

11,814

 

5,210

 

      11,814

 

5,210

 

19. CALLED UP SHARE CAPITAL - COMPANY

 

Allotted, issued and fully paid

2021

 

2020

 

2021

 

2020

Ordinary shares of 5 pence each

Number

 

Number

 

£000

 

£000

 

 

 

 

 

 

 

 

At the start of the year

9,377,253

 

9,377,253

 

469

 

469

Shares allotted during the year

35,648

 

-

 

2

 

-

Purchased for cancellation in the year

-

 

-

 

-

 

-

At the end of the year

9,412,901

 

9,377,253

 

471

 

469

 

35,648 Ordinary shares of £0.05 per share were allotted and issued following the exercise of share options granted in December 2017.

 

20. TRADE AND OTHER PAYABLES - GROUP AND COMPANY

 

 

Group

 

Company

 

2021

 

2020

 

2021

 

2020

 

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

Trade creditors

286

 

165

 

286

 

165

Amounts owed to Group undertakings

-

 

-

 

5

 

5

Social security and other taxes

638

 

902

 

638

 

902

Other creditors

1,709

 

1,493

 

1,709

 

1,494

Contract liability balances

416

 

441

 

416

 

441

Pension creditor

4

 

3

 

4

 

3

 

3,053

 

3,004

 

3,058

 

3,010

 

21. DEFERRED TAX - GROUP AND COMPANY

 

Group

 

Company

 

2021

 

2020

 

2021

 

2020

 

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

Asset at 1 May

3

 

13

 

3

 

13

Movement in the year

(17)

 

(10)

 

(17)

 

(10)

(Liability)/asset at 30 April

(14)

 

3

 

(14)

 

3

 

Deferred tax liabilities and assets have been recognised in respect of accelerated capital allowances giving rise to deferred tax liabilities and assets where the Directors believe that it is probable that these liabilities will fall due and assets will be recovered.

 

 

 

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

22. PROVISIONS - GROUP AND COMPANY

 

Group

 

Company

 

2021

 

2020

 

2021

 

2020

 

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

At 1 May

-

 

360

 

-

 

360

Utilised during the year

-

 

(172)

 

-

 

(172)

Released during the year

-

 

(188)

 

-

 

(188)

Asset at 30 April

-

 

-

 

-

 

-

 

The onerous retail site lease was exited in the prior year and the costs of early termination, including related closure costs, have been utilised against the brought forward provision.

 

The balance has been released to the Consolidated Statement of Comprehensive Income.

 

 

23. SHARE BASED PAYMENT - GROUP AND COMPANY

Details of the share options outstanding during the year are as follows:

 

 

Grant date

Outstanding at 1 May 2020

 

Granted

 

Exercised

 

Forfeited

Outstanding at 30 April 2021

 

Expiry date

 

Exercise price

 

 

 

 

 

 

 

 

19-12-2017

45,000

 

(30,648)

(5,000)

9,352

19-12-2027

2.25

28-02-2020

85,000

 

-

-

85,000

28-02-2030

3.85

19-07-2020

-

10,000

-

-

10,000

19-07-2030

16.00

19-09-2020

-

5,000

-

-

5,000

19-09-2030

18.00

 

The Company and Group operate a share option scheme for certain Directors and employees.  Options are exercisable at a price defined by the individual option agreements.  The vesting period on each option is three years.  If the options remain unexercised during the specified period from the date of grant, the options expire.  Options are generally forfeited if the employee leaves the Group before the options vest, however, this is at the discretion of the Board.

 

Details of the share options and the weighted average exercise price ('WAEP') outstanding during the year are as follows:

 

 

2021

 

2021

 

2020

 

2020

 

Number

 

WAEP

 

Number

 

WAEP

 

 

 

 

 

 

 

 

Outstanding at the beginning of year

130,000

 

330.00

 

45,000

 

225.00

Granted during the year

15,000

 

1666.67

 

85,000

 

385.00

Exercised during the year

(30,648)

 

225.00

 

-

 

-

Lapsed during the year

(5,000)

 

225.00

 

-

 

-

Outstanding at the end of the year

109,352

 

547.00

 

130,000

 

330.00

Exercisable at the end of the year

9,352

 

225.00

 

-

 

-

 

The weighted average remaining contractual life of share options outstanding as at 30 April 2021 was 8 years and 8 months (2020: 9 years and 1 month).

 

No amount has been recognised in these financial statements in respect of share option charges as the amount would be insignificant (2020: £Nil).

 

 

24. LEASES - GROUP AND COMPANY

 

The amounts recognised in the Consolidated Statement of Comprehensive Income was as follows:

 

 

Group

 

Company

 

2021

 

2020

 

2021

 

2020

 

£000

 

£000

 

£000

 

£000

Expenses related to short term leases

10

 

14

 

10

 

14

 

During the year the retail site lease was exited. This has been treated as a short-term lease and expensed

BEST OF THE BEST PLC

Notes to the Preliminary Announcement (continued)

For The Year Ended 30 April 2021

 

25. LEASES - GROUP AND COMPANY (continued)

.

The amount recognised in the Consolidated and Company Statement of Cash Flows was as follows:  

 

 

Group

 

Company

 

2021

 

2020

 

2021

 

2020

 

£000

 

£000

 

£000

 

£000

Cash flows from operating activities

10

 

14

 

10

 

14

 

 

26. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - GROUP AND COMPANY

The principal financial assets of the Group are bank balances.  The Group's principal financial liabilities are trade and other payables.  The main purpose of these financial instruments is to generate sufficient working capital for the Group to continue its operations. The Group's financial assets and liabilities are all measured at amortised cost and so no fair value disclosures are required.

 

Credit risk

The Group's exposure to credit risk is limited to the carrying amounts of financial assets recognised at the statement of financial position date, as summarised below.  Management considers that the Group is exposed to little credit risk arising on its receivables due to the value of those receivables.  The credit risk on cash balances is limited because the third parties are banks with high credit ratings assigned by international credit rating agencies.

 

 

 

 

 

 

2021

 

2020

 

 

 

 

 

£000

 

£000

Financial assets classified as loans and receivables - carrying amounts:

 

 

 

 

 

 

 

   Trade receivables

 

 

 

 

3

 

288

   Other receivables

 

 

 

 

37

 

22

   Cash and cash equivalents

 

 

 

 

11,415

 

5,210

 

 

 

 

 

11,455

 

5,520

 

Liquidity risk

The Group's funding strategy is to generate sufficient working capital to settle liabilities as they fall due and to ensure sufficient financial resource is in place to support management's long-term growth plans.

 

The Group's financial liabilities have contractual maturities as follows:

 

 

2021

 

2020

 

£000

 

£000

 

£000

 

£000

Financial liabilities- carrying amounts

Up to 1 year

 

After 1 year

 

Up to 1 year

 

After 1 year

 

 

 

 

 

 

 

 

Trade and other payables

2,636

 

-

 

2,564

 

-

 

2,636

 

 

 

2,564

 

-

 

 

 

 

 

 

 

 

 

 

 

 

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