12 Sep 2012 07:00
Date: | 12 September 2012 |
On behalf of: | NetPlay TV plc ('the Company', 'the Group' or 'NetPlay') |
Embargoed until: | 0700hrs |
NetPlay TV plc
Interim Results
NetPlay TV plc (AIM: NPT), the interactive gaming company, announces its interim results for the six months ending 30 June 2012.
Highlights
§ Revenue increased by 33% to £13.02m (H1 2011: £9.81m)
§ EBITDA* increased by 49% to £2.35m (H1 2011: £1.58m)
§ Strong Cash generation, increasing by £2.60m to £10.54m (H1 2011: £0.46m increase to £6.04m)
§ Profit before tax increased by 500% to £1.61m (H1 2011: £0.27m)
§ ITV1 broadcast agreement renewed in April
§ Maiden interim dividend of 0.15p per share (H1 2011: nil)
Casino Key Performance indicators
§ New depositing customers increased by 74% to 24,951 (H1 2011: 14,364)
§ Total active depositing players increased by 51% to 36,730 (H1 2011: 24,254)
§ Mobile and tablet new depositing customers accounted for 18% of total depositing sign ups
§ Increased marketing expenditure and TV advertising has led to the strong increase in depositing players
Post Period Highlights
§ Continued strong trading in Q3 with average daily revenue up 28%†on the same period last year
§ Full year EBITDA expected to be ahead of current market expectations
____________
Note: All measures presented in this statement are from continuing operations unless explicitly mentioned otherwise.
*EBITDA is a non-GAAP, company specific measure and excludes share based payment charges. A full reconciliation of EBITDA to operating profit/loss can be seen in the consolidated statement of comprehensive income. Where not explicitly mentioned, EBITDA refers to EBITDA from continuing operations.
† as at 10 September 2012
Commenting on the results and the trading update, Charles Butler, NetPlay TV's Group CEO, said:
"I am very pleased to announce another set of strong results which is a testament to the success of our strategy. We have continued to see an increase in active depositing casino players and further investment in marketing has made a significant impact.
"Thanks to our continued drive for growth and the resulting increase in revenue and profitability, we are delighted to announce our maiden interim dividend which is a demonstration of the Board's confidence in NetPlay's business model and the Company's future growth. We look forward to continued success and to creating further value for our shareholders.
"The Company has had a strong start to 2012 and expects year end EBITDA to be ahead of current market expectations."
Enquiries:
NetPlayTV plc | www.NetPlayTV.plc.uk |
Charles Butler, Chief Executive Officer | Via Redleaf |
Redleaf Polhill | Tel: 020 7566 6720 |
Rebecca Sanders-Hewett / Jenny Bahr | NetPlayTV@redleafpolhill.com |
Singer Capital (Nominated Adviser) | |
Jonny Franklin-Adams | Tel: 020 3250 7500 |
Notes to Editors:
About NetPlayTV plc
NetPlay TV plc is listed on the AIM market of the London Stock Exchange (NPT). NetPlay TV operates a number of interactive gaming services under an Alderney gaming license, including Supercasino.com and Jackpot247.com. These services can also be viewed 24 hours a day live on Sky Channel 862, every evening on FIVE, and 5 nights a week on ITV1.
The Group is focused on the delivery of a converged interactive gaming experience allowing its customers to interact with its games on a variety of platforms, TV, Internet and mobile from a common integrated wallet.
Operational Review
The Company performed exceptionally well in the first half of 2012 with continued focus on its core live casino offering and investing heavily in marketing. TV advertising continues to be the primary source of new depositing customers and the Company has increased expenditure during the period resulting in an increase in new depositing customers of 74% versus H1 2011 and 46% versus H2 2011. In addition, the increased TV advertising was augmented with a renewal of the ITV1 broadcast agreement in April for our Jackpot247.com brand.
The increase in new depositing customers resulted in 33% revenue growth, with June being an exceptionally strong month and the highest monthly revenue ever recorded by the Company.
During the period NetPlay TV has continued to monitor cost control and drive efficiencies in its fixed cost base. This, alongside the increase in revenues has resulted in the Company's EBITDA margin increasing to 18% (H1 2011: 16%).
Mobile and tablet gaming continues to be a key area of focus and now accounts for 18% of all new depositing customers (H1 2011: 8%). During the period the Company has launched HTML5 versions of its live casino offering for iPhone, iPad and Android and is very pleased with the initial results.
During the period the Company disposed of its Bingo business for £0.43m allowing the Group to focus on its core live TV casino business.
Cash generation has been strong during the period at £2.60m (H1 2011: £0.46m) and this has resulted in the cash balance at 30 June 2012 increasing to £10.54m.
Dividend
Following a strong financial performance and the Capital Reduction completed on 3 May 2012, the Company is pleased to announce a maiden interim dividend of 0.15 pence per ordinary share which will be paid on 18 October 2012 to shareholders on the register on 28 September 2012.
Current Trading & Outlook
The second half of the year has continued on the strong trajectory set in H1 with average daily revenue 28%‡ ahead of Q3 last year.
We are continuing to invest in mobile and tablet and, by the end of H2 the Company will be launching a whole suite of mobile slot games from Playtech to complement the existing offering and expect this to further enhance revenues from mobile and tablets for the full year and into 2013.
The Board believes that a continuation of the strong H1 performance into H2 will position the Company with full year EBITDA ahead of market expectations.
Charles Butler, Chief Executive Officer
____________‡ as at 10 September 2012
Consolidated statement of comprehensive income
for the six months ended 30 June 2012
6 monthsended 30 June 2012 | 6 monthsended 30 June 2011 | Year ended 31 December 2011 | ||||
£ 000's | £ 000's | £ 000's | ||||
Note | Unaudited | Unaudited | Audited | |||
Revenue | 13,015 | 9,806 | 20,593 | |||
Cost of sales | (9,217) | (6,456) | (13,752) | |||
Gross profit | 3,798 | 3,350 | 6,841 | |||
Administrative expenses | (2,348) | (3,077) | (6,410) | |||
Other operating income | 134 | - | 117 | |||
Operating profit | 1,584 | 273 | 548 | |||
EBITDA§ from continuing operations | 2,347 | 1,578 | 3,305 | |||
Depreciation of property, plant & equipment | (385) | (460) | (901) | |||
Amortisation of intangible assets | (256) | (699) | (1,106) | |||
Share based payments | (122) | (146) | (750) | |||
Operating profit | 1,584 | 273 | 548 | |||
Finance income | 25 | 1 | 7 | |||
Finance costs | - | (6) | (6) | |||
Profit before taxation | 1,609 | 268 | 549 | |||
Income tax expense | - | - | - | |||
Profit from continuing operations | 1,609 | 268 | 549 | |||
Profit from discontinued operations | 214 | 96 | 93 | |||
Profit after tax | 1,823 | 364 | 642 | |||
Other comprehensive income: | ||||||
Foreign exchange arising on consolidation | - | 4 | - | |||
Other comprehensive income, net of tax | - | 4 | - | |||
Total comprehensive income | 1,823 | 368 | 642 | |||
Basic earnings per share | ||||||
From continuing operations (p) | 4 | 0.57 | 0.10 | 0.20 | ||
From discontinued operations (p) | 4 | 0.08 | 0.03 | 0.03 | ||
Diluted earnings per share | ||||||
From continuing operations (p) | 4 | 0.55 | 0.09 | 0.19 | ||
From discontinued operations (p) | 4 | 0.07 | 0.03 | 0.03 |
____________§ EBITDA is a non-GAAP, company specific measure and excludes share based payment charges. Where not explicitly mentioned, EBITDA refers to EBITDA from continuing operations.
Consolidated statement of financial position
as at 30 June 2012
As at 30 June 2012 | As at 30 June 2011 | As at 31 Dec 2011 | ||||
£ 000's | £ 000's | £ 000's | ||||
Note | Unaudited | Unaudited | Audited | |||
Non-current assets | ||||||
Property, plant and equipment | 5 | 669 | 1,396 | 977 | ||
Goodwill | 3,617 | 3,617 | 3,617 | |||
Other intangible assets | 6 | 1,767 | 2,532 | 2,148 | ||
Trade and other receivables | 141 | 141 | 141 | |||
Total non-current assets | 6,194 | 7,686 | 6,883 | |||
Current assets | ||||||
Trade and other receivables | 1,023 | 762 | 814 | |||
Cash and cash equivalents | 10,537 | 6,036 | 7,940 | |||
Total current assets | 11,560 | 6,798 | 8,754 | |||
Total assets | 17,754 | 14,484 | 15,637 | |||
Equity | ||||||
Share capital | 7 | 2,830 | 10,653 | 10,679 | ||
Share premium | 108 | 22,838 | 22,923 | |||
Merger reserve | 1,088 | 1,088 | 1,088 | |||
Other reserves | (1) | 675 | (1) | |||
Retained earnings | 8,648 | (25,477) | (23,991) | |||
Total equity | 12,673 | 9,777 | 10,698 | |||
Current liabilities | ||||||
Trade and other payables | 5,081 | 4,679 | 4,939 | |||
Borrowings | - | 7 | - | |||
Provisions | - | 21 | - | |||
Total current liabilities | 5,081 | 4,707 | 4,939 | |||
Total equity and liabilities | 17,754 | 14,484 | 15,637 |
Consolidated statement of cash flows
for the six months ended 30 June 2012
6 months ended 30 June 2012 | 6 months ended 30 June 2011 | Year ended 31 December 2011 | |||
£ 000's | £ 000's | £ 000's | |||
Unaudited | Unaudited | Audited | |||
Cash flows from operating activities | |||||
Profit for the period | 1,823 | 364 | 642 | ||
Adjustments for: | |||||
Depreciation and amortisation | 644 | 1,170 | 2,029 | ||
Share based payments | 122 | 146 | 750 | ||
Foreign exchange differences | - | 5 | - | ||
Loss on disposal of property, plant and equipment | - | - | 8 | ||
Profit on disposal of discontinued operation | (274) | - | - | ||
Finance income | (25) | (1) | (7) | ||
Finance costs | - | 6 | 6 | ||
Increase in trade and other receivables | (210) | (113) | (165) | ||
Increase/(decrease) in trade and other payables | 142 | (769) | (644) | ||
Decrease in provisions | - | (108) | (129) | ||
Net cash from operating activities | 2,222 | 700 | 2,490 | ||
Cash flows from investing activities | |||||
Purchase of property, plant and equipment | (77) | (28) | (102) | ||
Sale of property, plant and equipment | - | - | 5 | ||
Purchase of intangible assets | (28) | (175) | (169) | ||
Sale of intangible assets | - | - | 67 | ||
Disposal of discontinued operations | 425 | - | - | ||
Interest received | 25 | 1 | 7 | ||
Net cash from/(used in) investing activities | 345 | (202) | (192) | ||
Cash flows from financing activities | |||||
Net proceeds from issuance of ordinary shares | 30 | - | 111 | ||
Interest paid | - | (6) | (6) | ||
Repayment of borrowings | - | (36) | (43) | ||
Net cash from/(used in) financing activities | 30 | (42) | 62 | ||
Net increase in cash | 2,597 | 456 | 2,360 | ||
Cash & cash equivalents at beginning of period | 7,940 | 5,580 | 5,580 | ||
Cash & cash equivalents at end of period | 10,537 | 6,036 | 7,940 | ||
Consolidated statement of changes in equity
for the six months ended 30 June 2012
Share capital | Share premium | Merger reserve | Other reserves | Retained earnings | Total | |
£ 000's | £ 000's | £ 000's | £ 000's | £ 000's | £ 000's | |
Restated as at 1 January 2011 | 10,653 | 22,838 | 1,317 | 72 | (25,617) | 9,263 |
Disposal of investments | - | - | (229) | - | 229 | - |
Share based payments charge in period | - | - | - | - | 146 | 146 |
Profit and total comprehensive income | - | - | - | 4 | 364 | 368 |
As at 30 June 2011 | 10,653 | 22,838 | 1,088 | 76 | (24,878) | 9,777 |
Disposal of Investments | - | - | - | (73) | 73 | - |
Share based payments charge in period | - | - | - | - | 540 | 540 |
Shares issued for: | ||||||
Employee share options | 26 | 85 | - | - | - | 111 |
Share options lapsed, exercised or cancelled | - | - | - | - | (4) | (4) |
Profit and total comprehensive income | - | - | - | (4) | 278 | 274 |
As at 31 December 2011 | 10,679 | 22,923 | 1,088 | (1) | (23,991) | 10,698 |
Share Capital Reorganisation | (7,856) | (22,838) | - | - | 30,694 | - |
Share based payments charge in period | - | - | - | - | 122 | 122 |
Shares issued for: | ||||||
Employee share options | 7 | 23 | - | - | - | 30 |
Profit and total comprehensive income | - | - | - | - | 1,823 | 1,823 |
As at 30 June 2012 | 2,830 | 108 | 1,088 | (1) | 8,648 | 12,673 |
Notes to the interim results
1. Basis of preparation
The financial information for the year ended 31 December 2011 does not constitute the full statutory accounts for that year. The Annual Report and Financial Statements for 2011 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2011 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 11 September 2012. 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 2011 and which will form the basis of the 2012 financial statements. A number of new and amended standards have become effective for periods beginning on 1 January 2012, however none of these are expected to materially affect the Group.
2. Discontinued operations
In the period the Group disposed of its Bingo business segment in two transactions on the 29 February 2012 and 31 March 2012 for cash consideration of £425,000. As a result of this, discontinued operations comprise the 'Bingo' business segment as reported in past Annual Reports.
The post-tax gain on disposal of the discontinued operation was determined as follows:
£ 000's | ||
Sale proceeds | 425 | |
Net assets disposed: | ||
Intangible assets | (150) | |
Expenses related to sale | (1) | |
Gain from sale of discontinued operations | 274 |
The following table shows how the result for the discontinued operations is derived:
6 months ended 30 June 2012 | 6 months ended 30 June 2011 | Year ended 31 December 2011 | |
£ 000's | £ 000's | £ 000's | |
Revenue | 278 | 787 | 1,679 |
Cost of sales | (335) | (680) | (1,564) |
Depreciation and Amortisation | (3) | (11) | (22) |
Gain from sale of discontinued operations | 274 | - | - |
Profit for the period | 214 | 96 | 93 |
Included within discontinued operations is £176,000 charge in relation to tax liabilities.
Analysis of the cash flows of discontinued operations is as follows:
6 months ended 30 June 2012 | 6 months ended 30 June 2011 | Year ended 31 December 2011 | |
£ 000's | £ 000's | £ 000's | |
Profit for the period | 214 | 96 | 93 |
| |||
Adjustments for: | |||
Depreciation and amortisation | 3 | 11 | 22 |
Profit on disposal of discontinued operation, net of tax | (274) | - | - |
Decrease in trade and other receivables | 57 | 24 | 56 |
Increase/(decrease) in trade and other payables | 167 | (28) | 15 |
Net cash from operating activities | 167 | 103 | 186 |
Disposal of discontinued operation | 425 | - | - |
Net cash from investing activities | 425 | - | - |
Net cash flows from discontinued operations | 592 | 103 | 186 |
3. Segmental Information
The Group has reportable segments as follows:
·; Casino - this division consists of online casino products. The brands operated in this division are Supercasino.com and Jackpot247.com which are aggregated into one reportable segment.
·; Bingo - this division was discontinued in the first quarter of 2012 and its results are included within note 2.
Factors that management used to identify the Group's reportable segments
The Group's reportable segments are strategic business units that offer different products and services. Each segment has its own management team. These divisions are managed separately because each business requires different software technology and marketing strategies.
Measurement of operating segment profit
The Group evaluates performance on the basis of segment EBITDA which is defined as the segment profit or loss excluding segment depreciation and amortisation and non-recurring losses, such as exceptional items, intangible asset impairment, and the effects of share-based payments. Head office costs not derived from operations of any segment and are only disclosed in total.
For the six months ended 30 June 2012 (Unaudited): | Casino | Bingo (Discontinued) | Total | |
£ 000's | £ 000's | £ 000's | ||
Income statement items | ||||
Revenue from external customers | 13,015 | - | 13,015 | |
Other costs | (10,898) | - | (10,898) | |
Other operating income | 134 | - | 134 | |
Discontinued operations | - | 214 | 214 | |
Segment profit | 2,251 | 214 | 2,465 | |
Head office costs | (545) | |||
Share Based payments | (122) | |||
Finance income | 25 | |||
Finance cost | - | |||
Profit after tax | 1,823 | |||
Less discontinued operations | (214) | |||
Profit from continuing operations | 1,609 | |||
Reconciliation to EBITDA | Casino | Bingo (Discontinued) | Total | |
£ 000's | £ 000's | £ 000's | ||
Segment Profit | 2,251 | 214 | 2,465 | |
Depreciation and amortisation | 641 | 3 | 644 | |
Segment EBITDA | 2,892 | 217 | 3,109 | |
Head office costs | (545) | |||
EBITDA from continuing and discontinued operations | 2,564 | |||
Less EBITDA from discontinued operations | (217) | |||
EBITDA from continuing operations | 2,347 |
For the six months ended 30 June 2011 (Unaudited):
| Casino | Bingo (Discontinued) | Total | |
£ 000's | £ 000's | £ 000's | ||
Income statement items | ||||
Revenue from external customers | 9,806 | 787 | 10,593 | |
Other costs | (8,681) | (691) | (9,372) | |
Segment profit | 1,125 | 96 | 1,221 | |
Head office costs | (706) | |||
Share based payments | (146) | |||
Finance income | 1 | |||
Finance cost | (6) | |||
Profit after tax | 364 | |||
Less discontinued operations | (96) | |||
Profit from continuing operations | 268 | |||
Reconciliation to EBITDA | Casino | Bingo (Discontinued) | Total | |
£ 000's | £ 000's | £ 000's | ||
Segment profit | 1,125 | 96 | 1,221 | |
Depreciation and amortisation | 1,159 | 11 | 1,170 | |
Segment EBITDA | 2,284 | 107 | 2,391 | |
Head office costs | (706) | |||
EBITDA from continuing and discontinued operations | 1,685 | |||
Less EBITDA from discontinued operations | (107) | |||
EBITDA from continuing operations | 1,578 |
For the year ended 31 December 2011:
| Casino | Bingo (Discontinued) | Total | |
£ 000's | £ 000's | £ 000's | ||
Income statement items | ||||
Revenue from external customers | 20,593 | 1,679 | 22,272 | |
Other operating income | 117 | - | 117 | |
Other costs | (17,995) | (1,586) | (19,581) | |
Segment profit | 2,715 | 93 | 2,808 | |
Head office costs | (1,417) | |||
Share Based payments | (750) | |||
Finance income | 7 | |||
Finance cost | (6) | |||
Profit after tax | 642 | |||
Less discontinued operations | (93) | |||
Profit before tax and discontinued operations | 549 | |||
Reconciliation to EBITDA | Casino | Bingo (Discontinued) | Total | |
£ 000's | £ 000's | £ 000's | ||
Segment profit | 2,715 | 93 | 2,808 | |
Depreciation and amortisation | 2,007 | 22 | 2,029 | |
Segment EBITDA | 4,722 | 115 | 4,837 | |
Head office costs | (1,417) | |||
EBITDA | 3,420 | |||
Less EBITDA from discontinuing operations | (115) | |||
EBITDA from continuing operations | 3,305 |
4. Earnings per share
6 months ended 30 June 2012 | 6 months ended 30 June 2011 | Year ended 31 December 2011 | |
£ 000's | £ 000's | £ 000's | |
Profit attributable to shareholders | |||
Profit after taxation from continuing operations | 1,609 | 268 | 550 |
Profit after taxation from discontinued operations | 214 | 96 | 93 |
Number of Shares | Number of Shares | Number of Shares | |
Weighted average numbers of ordinary shares in issue | 282,702,254 | 279,624,716 | 280,047,424 |
Dilutive effect of shares under option | 9,540,254 | 8,409,032 | 8,954,953 |
Weighted average numbers of dilutive ordinary shares | 292,242,508 | 288,033,748 | 289,002,377 |
Pence pershare | Pence per share | Pence per share | |
Earnings per share (EPS) | |||
From continuing operations | 0.57 | 0.10 | 0.20 |
From discontinued operations | 0.08 | 0.03 | 0.03 |
0.65 | 0.13 | 0.23 | |
Diluted earnings per share | |||
From continuing operations | 0.55 | 0.09 | 0.19 |
From discontinued operations | 0.07 | 0.03 | 0.03 |
0.62 | 0.12 | 0.22 |
Adjusted Earnings per Share
The Directors believe that EPS calculated using net cash generated from operating activities better reflects the underlying performance of the business and assists in providing a clearer view of the performance of the Group. It is also a performance measure used internally to manage the operations of the business.
Net cash generated from operating activities attributable to shareholders | Period ended 30 June 2012 £'000 | Period ended 30 June 2011 £'000 | Year ended 31 December 2011 £'000 |
from continuing operations | 1,630 | 597 | 2,304 |
from discontinued operations | 592 | 103 | 186 |
Adjusted earnings per share | Pence per share | Pence per share | Pence per share |
From continuing operations | 0.58 | 0.21 | 0.81 |
From discontinued operations | 0.21 | 0.04 | 0.07 |
0.79 | 0.25 | 0.88 | |
Adjusted diluted earnings per share | Pence per share | Pence per share | Pence per share |
From continuing operations | 0.56 | 0.20 | 0.79 |
From discontinued operations | 0.20 | 0.04 | 0.06 |
0.76 | 0.24 | 0.85 |
5. Property, plant and equipment
Leaseholdimprovements | Computerequipment | Fixtures &fittings | Total
| |
£ 000's | £ 000's | £ 000's | £ 000's | |
Cost | ||||
As at 1 January 2011 | 465 | 2,576 | 162 | 3,203 |
Additions | - | 66 | - | 66 |
Disposal | - | - | - | - |
As at 30 June 2011 | 465 | 2,642 | 162 | 3,269 |
Additions | - | 27 | 9 | 36 |
Disposal | - | (107) | (1) | (108) |
As at 31 December 2011 | 465 | 2,562 | 170 | 3,197 |
Additions | - | 77 | - | 77 |
Disposal | - | - | - | - |
As at 30 June 2012 | 465 | 2,639 | 170 | 3,274 |
Depreciation | ||||
As at 1 January 2011 | 234 | 1,093 | 86 | 1,413 |
Charge in the period | 66 | 371 | 23 | 460 |
Disposal | - | - | - | - |
As at 30 June 2011 | 300 | 1,464 | 109 | 1,873 |
Charge in the period | 66 | 356 | 19 | 441 |
Disposal | - | (93) | (1) | (94) |
As at 31 December 2011 | 366 | 1,727 | 127 | 2,220 |
Charge in the period | 22 | 343 | 20 | 385 |
Disposal | - | - | - | - |
As at 30 June 2012 | 388 | 2,070 | 147 | 2,605 |
Net book value | ||||
As at 30 June 2012 | 77 | 569 | 23 | 669 |
As at 31 December 2011 | 99 | 835 | 43 | 977 |
As at 30 June 2011 | 165 | 1,178 | 54 | 1,396 |
6. Intangible assets
Customerdatabases | Domainnames | Websites andotherdevelopment | TVchannellicence | Partnerrelationships | Total | |
£ 000's | £ 000's | £ 000's | £ 000's | £ 000's | £ 000's | |
Cost | ||||||
As at 1 January 2011 | 3,474 | 5,503 | 105 | 494 | 997 | 10,573 |
Additions | 10 | 89 | 37 | - | - | 136 |
Disposals | - | - | - | (494) | - | (494) |
As at 30 June 2011 | 3,484 | 5,592 | 142 | - | 997 | 10,215 |
Additions | 4 | 9 | 20 | - | - | 33 |
Disposals | - | - | - | - | - | - |
As at 31 December 2011 | 3,488 | 5,601 | 162 | - | 997 | 10,248 |
Additions | - | 11 | 17 | - | - | 28 |
Disposals | - | (225) | - | - | - | (225) |
As at 30 June 2012 | 3,488 | 5,387 | 179 | - | 997 | 10,051 |
Amortisation | ||||||
As at 1 January 2011 | 2,307 | 3,571 | 97 | 427 | 997 | 7,399 |
Charge in the period | 616 | 84 | 11 | - | - | 711 |
Disposals | - | - | - | (427) | - | (427) |
As at 30 June 2011 | 2,923 | 3,655 | 108 | - | 997 | 7,683 |
Charge in the period | 371 | 28 | 18 | - | - | 417 |
Disposals | - | - | - | - | - | - |
As at 31 December 2011 | 3,294 | 3,683 | 126 | - | 997 | 8,100 |
Charge in the period | 187 | 54 | 18 | - | - | 259 |
Disposals | - | (75) | - | - | - | (75) |
As at 30 June 2012 | 3,481 | 3,662 | 144 | - | 997 | 8,284 |
Net book value | ||||||
As at 30 June 2012 | 7 | 1,725 | 35 | - | - | 1,767 |
As at 31 December 2011 | 194 | 1,918 | 36 | - | - | 2,148 |
As at 30 June 2011 | 561 | 1,937 | 34 | - | - | 2,532 |
7. Share capital
6 months ended 30 June 2012 | 6 monthsended 30 June2011 | Year ended 31 December 2011 | |
£ 000's | £ 000's | £ 000's | |
Balance at beginning of period | 10,679 | 10,653 | 10,653 |
New shares issued in period | 7 | - | 26 |
Share capital reorganisation: cancellation of Deferred Shares | (7,856) | - | - |
Balance at end of period | 2,830 | 10,653 | 10,679 |
The reduction of share premium account and cancellation of issued Deferred Shares, as described in a circular sent to shareholders on 16 March 2012, was approved by the High Court of Justice and became effective upon registration by the Registrar of Companies on 3 May 2012.