29 Sep 2014 07:00
GameAccount Network plc
2014 Half Year Results
| LSE: GAME | ISE: GAME |
London & Dublin | 29 September, 2014: GameAccount Network plc (“GameAccount Network” or the “Group”), a leading developer and supplier of enterprise-level B2B gaming software and online gaming content, announces results for the six months ended 30 June 2014.
Financial Overview
Net Revenue of £4.2m (2013: £9.1m) Excluding system sales of £1.1m (2013: £6.8m), underlying Net Revenue increased 34% to £3.1m (2013: £2.3m) Clean Ebitda1 loss of £0.4m (2013: Earnings of £5.9m), in line with expectations Loss before tax of £0.9m (2013: Profit before tax of £4.9m) and loss per share of £0.02 (2013 EPS £0.16) Strong balance sheet: cash and cash equivalents at the end of the period of £14.0m (2013: £2.2m) Net Assets at the end of the period of £16.9m (2013: £5.8m)Strategic & Operating Developments
Launched Simulated Gaming™ in Connecticut & signed two (2) new US casino clients Post period end signed two (2) further Simulated GamingTM clients in the US and a further agreement to launch in the Australian market with a consortium of six gaming clubs Developed real money On-property Mobile Gaming capability. Post period announced first on-property mobile gaming client Expanded Internet gaming platform delivered for Betfair in New Jersey Strategic platform provision deal with Konami Gaming, Inc. Continued development of new iSight Back Office™ in US & Europe. Launched post period Invested in US and UK infrastructure: Technical, Licensing, People & PatentsDermot Smurfit, CEO of GameAccount Network commented:
“The first half of 2014 has continued the period of investment for GameAccount, and, performance to date is in line with our expectations.
Following a transformational year in 2013, GameAccount has continued to position its business to capture growth in online gaming markets, particularly in the US. The first half of 2014 saw the launch of key products across our offering, in particular Simulated Gaming™, together with a number of significant commercial and strategic developments.
Following our launch of real-money gaming in New Jersey last year, the launch of Simulated Gaming™ across the United States has been another innovative step for the business. Simulated GamingTM represents a US market opportunity estimated at $250m2 in 2015 which is immediately addressable and not contingent on the pace of regulation. We contracted with Foxwoods Resort Casino in 2013 which contributed to revenues in the first half of 2014. Year to date we have contracted with a further four casinos including Osage Casinos, Parx Casino, Empire City Casino and an undisclosed multi-State casino operator which will begin to contribute to revenues in Q4. Initial performance metrics for Simulated Gaming ™ are significantly ahead of expectations and the prospects for this business are exciting. We have today also announced the launch of Simulated Gaming ™ in Australia and are uniquely positioned to capitalise on the opportunities in this market.
Real-money gaming in New Jersey and the pace of regulation in the US market has been slower than expected but we are confident in the long-term prospects for real-money gaming in the years ahead. For 2015 we believe that the opportunity for GameAccount Network with Simulated Gaming ™ will substantially compensate for the slower than expected pace of the development of real-money gaming in the US.
Our investment in the business continues and we have grown our team and expanded our technical expertise, US infrastructure and gaming content portfolio in the first half. Consistent with our commitment at IPO, we were also recently awarded a patent for our iBridge Framework™ which will protect and benefit the business as we grow in the US market.
Our first half revenue from gaming system sales was down year-on-year however we are actively engaging with multiple potential system buyers and we remain confident in our ability to continue to deliver on sales of our gaming system to casino equipment manufacturers although the timing of such sales remains uncertain.”
Notes
1. Clean EBITDA is a non GAAP company specific measure and excludes interest, tax, depreciation, amortisation, share based payment expense and other items which the directors consider to be non-recurring and one time in nature
2. Estimate from independent consultancy commissioned by GameAccount Network
Note regarding forward-looking statements
This announcement includes forward-looking statements, including statements concerning current expectations about future financial performance and economic and market conditions which GameAccount Network believes are reasonable. However, these statements are neither promises nor guarantees, but are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.
| For further information please contact: | ||||
| GameAccount Network | FTI Consulting | |||
| Dermot Smurfit | Mark Kenny/Jonathan Neilan | |||
| Chief Executive Officer | ||||
| +44 (0) 20 7292 6262 | +353 1 6633686 | |||
| dsmurfit@GameAccountNetwork.com | gameaccount@fticonsulting.com | |||
| Davy | ||||
| John Frain / Roland French | ||||
| +353 1 679 6363 | ||||
Half Year Results Conference Call Details
The GameAccount Network management team will host a conference call for analysts & institutional investors at 08.00 BST (03.00 EST).
Please use the following dial in numbers:
UK/International Participants: +44 203 139 4830
US Participants: +1 718 873 9077
Ireland Participants: +353 1 696 8154
Participant Pin Code: 50940668#
The Half Year Results Press Release and Presentation is available to download from the website, www.GameAccountNetwork.com
GameAccount Network plc
FINANCIAL AND OPERATIONAL REVIEW
Summary
Gross income of £13.2m is 22% less than the £17m recorded in the comparative period. Net revenue for the six months ended 30 June 2014 was £4.2m compared to £9.1m for the same period in 2013. The results for the first half of 2013 benefited from the recognition of a material system sale which generated £6.8m in gross income and net revenue in that period. On an underlying basis, net revenue excluding the impact of this system sale increased by 34% from £2.3m to £3.1m. This increase was generated primarily from increased platform and game development fees from the US market in line with the Group’s stated strategy to move towards higher margin product verticals. Loss before taxation of £0.9m compared to a profit of £4.9m in 2013 and loss after tax of £0.9m compares to a profit after tax of £3.9m for the comparative period in 2013.
The Group continues to invest heavily in the underlying Internet Gaming System capability and US market opportunity primarily through increased headcount in the UK and the continued expansion of the US sales team. The Group believes this investment is necessary in order to ensure that it is in a position to capitalise on the immediate Simulated GamingTM opportunity in the US and other markets.
Cash and cash equivalents for the period was £14.0m compared to £2.2m for the comparative period and Net Assets as at 30 June 2014 was £16.9m, an increase of £11.0m compared to the same period for the previous year.
Revenue
Gross Income decreased by 22% from £17m in the six months ended 30 June 2013 to £13.2m for the current period. This decrease has primarily been due to decreased gross income as a result of the timing of the recognition of revenues from a significant system sale in the six month period ended 30 June 2013. Underlying adjusted Gross Income excluding this system sale has increased by 20% to £12.2m in 2014.
Net revenue for the period of £4.2m is £4.9m less than the comparative six month period. The six month period for 2013 included revenues from a material system sale of £6.8m. Adjusting for the impact of this system sale, net revenue for the current period has increased by £0.8m to £3.1m primarily due to revenues generated through incremental platform development in the New Jersey market and additional game development fees for the conversion of existing offline slots titles to the online market in the US and regulated markets in Europe. B2B revenue share and other revenues increased from £1.3m to £1.4m including revenues from our European content distribution business and initial revenues from both real money gaming and simulated gaming in the US market. B2C net revenue decreased from £0.6m to £0.3m.
Expenses
Distribution costs include royalties payable to third parties, B2B and B2C direct marketing expenditure and the direct costs of operating the hardware platforms deployed across the business have increased from £1.4m to £1.6m for the six months to 30 June 2014. The increase is due primarily to increased royalties payable to providers of third party games content in Europe and the US and the incremental cost of operating hardware platforms due to expansion into the US regulated market.
Administration expenses include the costs of personnel and related expenditure for both the London and Nevada offices. Total administrative expenses have increased from £2.8m in 2013 to £3.5m in the period ended 30 June 2014 primarily due to increased headcount both in the UK and US to support the groups continued investment in both the underlying Internet Gaming System, enhanced games team capability in the UK and expanded sales presence in the US. This investment has enabled expansion into the US market primarily through strengthening the Group’s delivery capability to capitalise on the immediate opportunity presented by Simulated Gaming across the US market.
EBITDA
Loss before interest, tax, depreciation and amortisation (Clean EBITDA) of £0.4m is £6.3m lower than the comparative figure (2013 earnings of £5.9m) reflecting the impact of the timing of system sales in the comparative period.
Clean EBITDA is a non GAAP company specific measure and excludes interest, tax, depreciation, amortisation, share based payment expense and other items which the directors consider to be non-recurring and one time in nature. The Directors regard Clean EBITDA as a reliable measure of profits that is not unduly subjective.
H2 Outlook
B2B game and platform development revenues continue to perform in line with expectations. B2B revenue share and other B2B revenues should benefit from continued growth in slots play in the Italian market; increased simulated gaming revenues from the existing deployment in Connecticut (Foxwoods Resort Casino); and, real money gaming revenues from New Jersey. Revenue will also benefit from the Q4 launch of additional simulated gaming deployments in New York (Empire City Casino) and Pennsylvania (Parx Casino).
The sale of internet gaming systems remains a key component of our current earnings stream. The Group expects to complete a material system sale before the end of 2014, however, the timing of such sale is uncertain. The financial outcome for the 2014 full year will be significantly impacted by the successful conclusion of a system sale; as was our performance in 2013.
2014 is a period of investment and performance is in line with our stated plan. The steps we have taken since IPO, and continue to take, position the Group for continued performance. We are increasingly well placed, with balance sheet strength, to capitalise on the opportunities presented by our simulated and real money gaming businesses in the US.
Cashflow
The cash balance at 30 June 2014 was £14.0m (2013: £2.2m) representing an increase of £11.8m. Cash balances have been significantly bolstered from the proceeds of issuing new shares in November 2013. During the period the Group has continued to invest in the underlying Internet Gaming System deployment capability and cash has decreased by £2.8m from £16.9m held at the end of 2013. In addition to operating cash outflow before movements in working capital and taxation of £0.3m cash outflows during the period include additional investment in working capital of £1.3m, £1.0m in incremental investment in intangible fixed assets primarily related to the capitalisation of internal development time and £0.2m invested in fixed assets including the acquisition of new hardware to establish a platform in the United States market.
KEY PERFORMANCE INDICATORS
The performance of the group during the year demonstrates the group’s strategy to both consolidate the core gaming content distribution business in Europe and to grow through higher margin revenue opportunities including IGS sales and Game Development in regulated markets. The directors regard clean earnings before interest, tax, depreciation and amortisation (“Clean EBITDA”) as a reliable measure of profits and the group’s key performance indicators are set out below:
| H1 2014 | H1 2013 | ||||
| £000 | £000 | ||||
| Gross income from gaming operations and services | 13,231 | 16,895 | |||
| Net revenue | 4,166 | 9,106 | |||
| Clean EBITDA | (444) | 5,862 | |||
| Net assets | 16,860 | 5,821 | |||
| Cash and cash equivalents | 14,033 | 2,211 |
The Board also monitor customer related KPIs, including number of active players, revenue by partner, business segment profitability and geographic split of turnover.
GameAccount Network Plc
For the period ended 30 June 2014
Consolidated statement of comprehensive income
| Notes |
Six months ended 30 June 2014 £000 Unaudited | Six months ended30 June 2013£’000 Unaudited | Year ended31 December2013£’000 Audited | ||||||
| Continuing Operations | |||||||||
| Gross income from gaming operations and services | 13,231 | 16,985 | 29,657 | ||||||
| Net revenues | 3 | 4,166 | 9,106 | 12,264 | |||||
| Distribution costs | (1,623) | (1,437) | (3,039) | ||||||
| Administrative expenses | (3,493) | (2,765) | (7,671) | ||||||
| Total operating costs | (5,116) | (4,202) | (10,710) | ||||||
| Clean EBITDA | (444) | 5,862 | 4,109 | ||||||
| Depreciation | (171) | (155) | (289) | ||||||
| Amortisation of intangible assets | (271) | (264) | (511) | ||||||
| Exceptional costs | 5 | (29) | (528) | (1,705) | |||||
| Employee share-based payment charge | (35) | (11) | (50) | ||||||
| Operating (loss)/profit | (950) | 4,904 | 1,554 | ||||||
| Finance income | 42 | 4 | 15 | ||||||
| (Loss)/ Profit before taxation | (908) | 4,908 | 1,569 | ||||||
| Tax charge | - | (980) | (460) | ||||||
| Profit for the period attributable to owners of the Company and comprehensive income for the period |
(908) | 3,928 | 1,109 | ||||||
| Basic earnings per share attributable to owners of the parent during the period | |||||||||
| Basic (pence) | 9 | (1.63) | 15.88 | 4.14 | |||||
| Diluted (pence) | 9 | (1.63) | 9.05 | 2.41 |
Clean EBITDA is a non GAAP company specific measure and excludes interest, tax, depreciation, amortisation, share based payment expenses and other items which the directors consider to be non-recurring and one time in nature. Where not explicitly mentioned, EBITDA refers to EBITDA from continuing operations.
GameAccount Network Plc
For the period ended 30 June 2014
Consolidated statement of financial position
| Notes | At 30 June 2014£’000 Unaudited | At 30 June 2013£’000 Unaudited | At 31 December 2013£’000 Audited | ||||||
| Non-current assets | |||||||||
| Intangible assets | 1,671 | 650 | 912 | ||||||
| Property, plant and equipment | 648 | 393 | 597 | ||||||
| Deferred tax asset | 510 | 20 | 510 | ||||||
| 2,829 | 1,063 | 2,019 | |||||||
| Current assets | |||||||||
| Trade and other receivables | 6 | 3,484 | 4,318 | 2,730 | |||||
| Cash and cash equivalents | 14,033 | 2,211 | 16,895 | ||||||
| 17,517 | 6,529 | 19,625 | |||||||
| Total assets | 20,346 | 7,592 | 21,644 | ||||||
| Current liabilities | |||||||||
| Trade and other payables | 7 | 3,486 | 1,771 | 3,954 | |||||
| 3,486 | 1,771 | 3,954 | |||||||
| Total liabilities | 3,486 | 1,771 | 3,954 | ||||||
| Equity attributable to equity holders of parent | |||||||||
| Share capital | 8 | 558 | 436 | 557 | |||||
| Share premium account | 14,570 | 10,696 | 14,528 | ||||||
| Retained earnings | 1,732 | (5,311) | 2,605 | ||||||
| 16,860 | 5,821 | 17,690 | |||||||
| Total equity and liabilities | 20,346 | 7,592 | 21,644 |
GameAccount Network Plc
For the period ended 30 June 2014
Consolidated statement of changes in equity
| Sharecapital£’000 | Sharepremium£’000 | Retainedearnings£’000 | Totalequity£’000 | ||||||
| At 1 January 2013 | 434 | 10,696 | (9,250) | 1,880 | |||||
| Issue of equity share capital | 2 | - | - | 2 | |||||
| Profit and total comprehensive income for the year | - | - | 3,928 | 3,928 | |||||
| Employee share-based payment charge | - | - | 11 | 11 | |||||
| At 30 June 2013(Unaudited) | 436 | 10,696 | (5,311) | 5,821 | |||||
| Profit and total comprehensive income for the period | - | - | (2,830) | (2,830) | |||||
| Employee share-based payment charge | - | - | 50 | 50 | |||||
| Issue of equity share capital | 121 | 15,128 | - | 15,249 | |||||
| Issue costs | - | (600) | - | (600) | |||||
| Effect of capital reduction | - | (10,696) | 10,696 | - | |||||
| At 31 December 2013 | 557 | 14,528 | 2,605 | 17,690 | |||||
| Profit and total comprehensive income for the period | - | - | (908) | (908) | |||||
| Employee share-based payment charge | - | - | 35 | 35 | |||||
| Issue of equity share capital | 1 | 42 | - | 43 | |||||
| At 30 June 2014 (Unaudited) | 558 | 14,570 | 1,732 | 16,860 |
The following describes the nature and purpose of each reserve within equity:
| Share Capital | Represents the nominal value of shares allotted, called up and fully paid |
| Share Premium | Represents the amount subscribed for share capital in excess of nominal value |
| Retained Earnings | Represents the cumulative net gains and losses recognised in the consolidated statement of comprehensive income |
GameAccount Network Plc
For the period ended 30 June 2014
Consolidated statement of cash flows
| Period ended 30 June 2014£’000 Unaudited | Period ended 30 June 2013£’000 Unaudited | Year ended 31December 2013£’000 Audited | |||||
| Cash flow from operating activities | |||||||
| (Loss)/Profit for the period before taxation | (908) | 4,908 | 1,569 | ||||
| Adjustments for: | |||||||
| Amortisation of intangible assets | 271 | 264 | 511 | ||||
| Depreciation of property, plant and equipment | 171 | 155 | 289 | ||||
| Share based payment expense | 35 | 11 | 50 | ||||
| Net finance income | (42) | (4) | (15) | ||||
| Foreign exchange | 153 | (24) | 238 | ||||
| Operating cash flow before movement in working capital and taxation | (320) | 5,310 | 2,642 | ||||
| Increase in trade and other receivables | (891) | (2,906) | (1,369) | ||||
| (Decrease)/Increase in trade and other payables | (466) | (1,575) | 612 | ||||
| Taxation | 40 | 30 | 30 | ||||
| Cash generated from operations | (1,637) | 859 | 1,915 | ||||
| Cash flow from investing activities | |||||||
| Purchase of intangible fixed assets | (1,030) | (250) | (759) | ||||
| Purchases of property, plant and equipment | (222) | (115) | (453) | ||||
| Net cash used in investing activities | (1,252) | (365) | (1,212) | ||||
| Cash flow from financing activities | |||||||
| Interest received | 42 | 4 | 15 | ||||
| Net proceeds on issue of shares | 43 | 2 | 14,651 | ||||
| Net cash generated from financing activities | 85 | 6 | 14,666 | ||||
| Net (decrease)/increase in cash and cash equivalents | (2,804) | 500 | 15,369 | ||||
| Cash and cash equivalents at beginning of period | 16,895 | 1,668 | 1,668 | ||||
| Effect of foreign exchange rate changes | (58) | 43 | (142) | ||||
| Cash and cash equivalents at end of period | 14,033 | 2,211 | 16,895 |
GameAccount Network Plc
For the period ended 30 June 2014
Notes to the financial statements
1. Basis of preparation and accounting policies
The financial information for the period ended 30 June 2014 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2013 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2013 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
This interim report, which has neither been audited nor reviewed by independent auditors, was approved by the board of directors on 26 September 2014. The financial information in this interim report has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 December 2013 and which will form the basis of the 2014 financial statements. A number of new and amended standards have become effective for periods beginning on 1 January 2014; however none of these are expected to materially affect the Group.
The risks and uncertainties and significant estimates and judgements faced by the Group have not changed significantly since the 2013 Annual Report was published and are not expected to change significantly during the remaining six months of the financial year.
2. Judgements and estimates
The preparation of interim financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were consistent with those that applied to the consolidated financial statements as at and for the year ended 31 December 2013.
3. Net revenue
| Period ended30 June 2014£’000 Unaudited | Period ended30 June2013£’000 Unaudited | Year ended31 December2013£’000 Audited | |||||
| B2C | 319 | 599 | 983 | ||||
| B2B | |||||||
| - Game and platform development | 2,450 | 7,212 | 8,714 | ||||
| - Revenue share and other revenue | 1,397 | 1,295 | 2,567 | ||||
| Total B2B | 3,847 | 8,507 | 11,281 | ||||
| 4,166 | 9,106 | 12,264 |
GameAccount Network Plc
For the period ended 30 June 2014
Notes to the financial statements (continued)
4. Segmental information
Information reported to the Group’s Chief Executive, the strategic chief operating decision-maker, for the purposes of resource allocation and assessment of the Group’s segmental performance is primarily focused on the origination of the revenue stream. The Group’s principal reportable segments under IFRS 8 are therefore as follows:
• Business to business (“B2B”)
• Business to consumer (“B2C”)
Segment revenues and results
The following is an analysis of the Group’s revenue and results by reportable segment.
| Period ended 30 June 2014 (Unaudited) | B2C£’000 | B2B£’000 | Total£’000 | ||||
| Net revenue | 319 | 3,847 | 4,166 | ||||
| Distribution costs (excluding depreciation and amortisation) | (465) | (716) | (1,181) | ||||
| Segment result | (146) | 3,131 | 2,985 | ||||
| Administration expenses | (3,493) | ||||||
| Depreciation | (171) | ||||||
| Amortisation of intangible assets | (271) | ||||||
| Finance income | 42 | ||||||
| Loss before taxation | (908) | ||||||
| Taxation | - | ||||||
| Loss for the period after taxation | (908) |
| Period ended 30 June 2013 (Unaudited) | B2C£’000 | B2B£’000 | Total£’000 | ||||
| Net revenue | 599 | 8,507 | 9,106 | ||||
| Distribution costs (excluding depreciation and amortisation) | (681) | (337) | (1,018) | ||||
| Segment result | (82) | 8,170 | 8,088 | ||||
| Administration expenses | (2,765) | ||||||
| Depreciation | (155) | ||||||
| Amortisation of intangible assets | (264) | ||||||
| Finance income | 4 | ||||||
| Profit before taxation | 4,908 | ||||||
| Taxation | (980) | ||||||
| Profit for the period after taxation | 3,928 |
GameAccount Network Plc
For the period ended 30 June 2014
Notes to the financial statements (continued)
| Year ended 31 December 2013 (Audited) | B2C£’000 | B2B£’000 | Total£’000 | ||||
| Net revenue | 983 | 11,281 | 12,264 | ||||
| Distribution costs (excluding depreciation and amortisation) | (1,096) | (1,143) | (2,239) | ||||
| Segment result | (113) | 10,138 | 10,025 | ||||
| Administration expenses | (7,671) | ||||||
| Depreciation | (289) | ||||||
| Amortisation of intangible assets | (511) | ||||||
| Finance income | 15 | ||||||
| Loss before taxation | 1,569 | ||||||
| Taxation | (460) | ||||||
| Profit for the year after taxation | 1,109 |
The accounting policies of the reportable segments follow the same policies as described in note 2. Segment result represents the gross profit earned by each segment without allocation of the share of administration costs including Directors’ salaries, finance costs and income tax expense. This is the measure reported to the Group’s Chief Executive for the purpose of resource allocation and assessment of segment performance.
Administration expenses comprise principally the employment and office costs incurred by the Group.
Segment assets and liabilities
Assets and liabilities are not separately analysed or reported to the Group’s Chief Executive and are not used to assist in decisions surrounding resource allocation and assessment of segment performance. As such, an analysis of segment and liabilities has not been included in this financial information. All non-current assets are located in Europe and USA.
Geographical analysis of revenues
This analysis is determined based upon the location of the legal entity of the customer.
| Periodended30 June2014£’000 Unaudited | Period ended 30 June 2013 £000 Unaudited | Yearended31 December2013£’000 Audited | |||||
| UK and Channel Islands | 789 | 1,346 | 2,735 | ||||
| Italy | 587 | 567 | 941 | ||||
| USA | 1,537 | 119 | 1,314 | ||||
| Australia | 1,147 | 6,903 | 7,007 | ||||
| Rest of the World | 106 | 171 | 267 | ||||
| 4,166 | 9,106 | 12,264 |
GameAccount Network Plc
For the period ended 30 June 2014
Notes to the financial statements (continued)
Geographical analysis of non-current assets
| At30 June2014£’000 Unaudited | At30 June2013£’000 Unaudited | At31 December2013£’000 Audited | |||||
| UK and Channel Islands | 2527 | 1,044 | 1,726 | ||||
| USA | 302 | - | 288 | ||||
| Italy | - | 19 | 5 | ||||
| 2,829 | 1,063 | 2,019 |
5. Exceptional costs
| Periodended30 June 2014£’000 Unaudited | Periodended30 June 2013£’000 Unaudited | Yearended31 December2013£’000 Audited | |||||
| IPO transaction costs | - | - | 1,349 | ||||
| Other transaction costs | - | 314 | 333 | ||||
| Compensation for loss of office, redundancy and compromise costs, together with associated legal expenses | 29 | 214 | 214 | ||||
| Other exceptional costs | - | - | 137 | ||||
| Exceptional income (Remote Gaming Duty refund) | - | - | (328) | ||||
| 29 | 528 | 1,705 |
6. Trade and other receivables
| At30 June2014£’000 Unaudited | At 30 June2013£’000 Unaudited | At31 December2013£’000 Audited | |||||
| Trade receivables | 1,942 | 792 | 1,091 | ||||
| Other receivables | 264 | 186 | 275 | ||||
| Prepayments and accrued income | 1,232 | 3,285 | 1,279 | ||||
| Corporation tax receivable | 46 | 55 | 85 | ||||
| 3,484 | 4,318 | 2,730 |
Other receivables include amounts due from payment service providers and VAT recoverable
GameAccount Network Plc
For the period ended 30 June 2014
Notes to the financial statements (continued)
7. Trade and other payables
| At 30 June 2014£’000 Unaudited | At 30 June 2013£’000 Unaudited | At 31 December 2013£’000 Audited | |
| Amounts falling due within one year | |||
| Trade payables | 1,200 | 742 | 1,561 |
| Other taxation and social security | 151 | 96 | 310 |
| Other payables | 539 | 277 | 379 |
| Accruals and deferred income | 1,596 | 656 | 1,704 |
| 3,486 | 1,771 | 3,954 |
8. Share capital
| At30 June2014£’000 Unaudited | At30 June2013£’000 Unaudited | At31 December2013£’000 Audited | |||||
| Ordinary shares | 558 | 248 | 557 | ||||
| Preference shares | - | 188 | - | ||||
| 558 | 436 | 557 |
Issue of shares
216,480 ordinary shares of 1p each were issued at a premium of 21p during the period ended 30 June 2014.
GameAccount Network Plc
For the period ended 30 June 2014
Notes to the financial statements (continued)
9. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity shareholders of the company by the weighted average number of ordinary shares in issue during the period. The number of shares in issue has been restated for the share split that occurred in 2013.
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares The company has share options and a calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average market share price for the period) based on the monetary value of the subscription rights attached to the outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.
| Periodended30 June2014Pence Unaudited | Periodended30 June2013Pence Unaudited | Yearended31 December2013Pence Audited | |||||
| Basic | (1.63) | 15.88 | 4.14 | ||||
| Diluted | (1.63) | 9.05 | 2.41 |
| Earnings | Periodended30 June2014£’000 Unaudited | Periodended30 June2013£’000 Unaudited | Yearended31 December2013£’000 Audited | ||||
| (Loss)/Profit for the period | (908) | 3,928 | 1,109 |
| Denominator | Periodended30 June2014Number Unaudited | Periodended30 June2013Number Unaudited | Yearended31 December2013Number Audited | ||||
| Weighted average number of equity shares (basic) | 55,882,538 | 24,737,098 | 26,762,284 | ||||
| Weighted average number of equity shares for diluted EPS | 57,770,747 | 43,414,923 | 45,968,929 |
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