Final Results
30 Juni 2004 - 9:00AM
UK Regulatory
RNS Number:2740A
Gaming Insight PLC
30 June 2004
Date: 30 June 2004
Enquiries:
Haresh Kanabar
Finance Director, Gaming Insight plc
tel: 020 7070 7283 nn
Gaming Insight Plc
Results for the 12 months ended 31 December 2003
Gaming Insight Plc ("Gaming Insight, GIN"), the digital media rights and
interactive gaming group announces results for the twelve months ended 31
December 2003.
Extracts from the Chairman's statement and the Report of the directors
2003 was a disappointing year for Gaming Insight: in June 2003, Gobarkingmad
Limited ("GBM"), the principal trading subsidiary of Gaming Insight, having
failed to realise its potential, was put into liquidation.
GBM was incorporated in April 2000 with a view to broadcasting live greyhound
racing over the internet and a dedicated television channel and taking bets on
its interactive betting platform. GBM planned to launch its interactive betting
channel on Sky television in mid 2001 and entered into a number of significant
contractual commitments to enable it to so. However, due to software and
technical problems the launch was delayed until June 2002. The financial
effects of this delay were to materially increase GBM's start-up costs.
Following the launch of GBM's television channel, GBM failed to realise its
full potential as a result of lower than expected levels of business, on-going
problems with the software, lack of UK racing rights and intense competition
within the industry. Appropriate action was taken to reduce GBM's cost base
and, where possible, to renegotiate supplier contracts. However, the cost base
of the business remained unacceptably high in proportion to the revenue
being generated. Considerable efforts were made to increase GBM's level of
business by securing domestic racing rights and entering into joint ventures
but these were ultimately unsuccessful.
In March 2003, GIN engaged external consultants with considerable gaming
expertise to conduct a strategic review of GBM and to assist the board in
formulating an appropriate strategy for the Company going forward. Following the
presentation of the strategic review, the Board of the Company decided not to
oppose winding up proceedings for GBM which went into liquidation on
18 June 2003.
In January 2003 the Board announced that Mr Victor Chandler and Mr David Warren
had joined the Board as non-Executive Directors, and that an additional #17m had
been raised by way of issuing 166.4m new shares. Also, loans amounting to
#596,000 were converted into equity at par. Seymour Pierce were appointed
brokers and nominated adviser to the Company in place of Nomura.
In order to allow the Company to develop its future strategy, Highland Fund
Advisors advanced a loan of #325,000 in June 2003. In December 2003 Highland
Fund Advisors and Brookspey Limited (a company controlled by Mr Nigel Robertson,
the Chairman of the Company) granted the Company a facility of #500,000 of
which #100,000 was advanced immediately and the balance of which was paid in
January 2004.
Directorate
In January 2003 Mr Victor Chandler and Mr David Warren joined the Board as
non-Executive Directors and Mr Haresh Kanabar was appointed Finance director. Mr
Stuart Polak, Mr David Sanderson and Mr Victor Chandler resigned as Directors in
June, September and December 2003 respectively and the Company thanks them for
their contribution. David Warren resigned from the board today.
Post Period
On 16 April 2004 Racing Network.co.uk ("RN"), in which the Company had a 51%
interest, was placed in voluntary liquidation. The Company's investment in
RN had been fully provided for and the write-off will have no effect on the
profit and loss account.
Outlook
The Company, which now has no operating subsidiaries and is a shell, is well
placed to take advantage of suitable opportunities when they arise. In recent
months the Board has looked closely at a number of possible acquisitions with
the intention of either acquiring or reversing an existing business into the
Company, but has not yet found itself in a position to recommend acceptable
terms and conditions for such a transaction. Nevertheless, the Board is c
ontinuously reviewing proposals for the future generation of value for the
Company and since the beginning of the current year the quality of the
proposals being received has notably improved.
Results and dividends
The consolidated profit and loss account shows the loss for the year.
No dividend is recommended in respect of the year.
Principal activities, trading review and future developments
Details of the principal activities and a review of trading and future
developments are included in the Chairman's report.
Nigel Robertson
Chairman
30 June 2004
Extracts from the Financial Statements as at 31 December 2003
Consolidated profit and loss account for the year 31 December 2003
Note 2003 2002
#'000 #'000
Turnover 2,204 12,345
Cost of sales (2,008) (11,371)
_______ _______
Gross profit 196 974
Administrative expenses (2,706) (14,722)
_______ _______
Operating loss (2,510) (13,748)
Gain on liquidation of a subsidiary 1,758 -
Interest receivable and similar income 7 5
Interest payable (11) (72)
_______ ______
Loss on ordinary activities before taxation (756) (13,815)
Taxation on loss on ordinary activities - -
_______ _______
Loss for the financial year (756) (13,815)
_______ _______
Loss per share
Basic and diluted 2 (0.1)p (4.1)p
_______ _______
All amounts relate to discontinued activities.
All recognised gains and losses have been included in the profit and loss
account.
Consolidated and company balance sheet at 31 December 2003
Group Group Company Company
2003 2002 2003 2002
#'000 #'000 #'000 #'000
Fixed assets
Intangible assets - - - -
Tangible assets 8 36 8 18
Investments in subsidiary - - - -
undertakings
_______ _______ _______ _______
8 36 8 18
Current assets
Debtors 60 897 44 405
Cash at bank and in hand 77 126 68 12
_______ _______ _______ _______
137 1,023 112 417
Creditors: amounts falling due 834 3,577 720 1,535
within one year
_______ _______ _______ _______
Net current liabilities (697) (2,554) (608) (1,118)
_______ _______ _______ _______
Total assets less current
liabilities (689) (2,518) (600) (1,100)
Creditors: amounts falling due 325 - 325 -
after more than one year
_______ _______ _______ _______
Net liabilities (1,014) (2,518) (925) (1,100)
_______ _______ _______ _______
Capital and reserves
Called up share capital 8,230 5,970 8,230 5,970
Deferred share capital 36,657 36,657 36,657 36,657
Share premium account 9,804 9,804 9,804 9,804
Profit and loss account (55,705) (54,949) (55,616) (53,531)
_______ _______ _______ _______
Shareholders' deficit (1,014) (2,518) (925) (1,100)
_______ _______ _______ _______
Included within Group and Company shareholders' funds is an amount of
#36,657,000 (2002 - #36,657,000) in respect of non-equity interests.
Consolidated cash flow statement for the year 31 December 2003
2003 2003 2002 2002
#'000 #'000 #'000 #'000
Net cash outflow from operating (2,101) (3,485)
activities
Returns on investments and
servicing of finance
Interest received 7 5
Interest paid (11) (72)
_______ _______
Net cash outflow from returns on (4) (67)
investments and servicing of finance
Tax paid - -
Capital expenditure and financial
investment
Purchase of tangible fixed assets (2) (70)
_______ _______
Net cash outflow from capital
expenditure and (2) (70)
financial investment
Acquisitions and disposal
Cash disposed of on liquidation of (16) -
subsidiary
_______ _______
Net cash outflow from acquisitions and
disposals (16) -
Financing
Repayment of loans (45) (76)
Issue of shares 1,664 1,300
Receipt of loans 455 1,973
_______ _______
Net cash inflow from financing 2,074 3,197
_______ _______
Decrease in cash (49) (425)
_______ _______
Notes to the financial statements
1. Accounting policies
The financial information set out above has been prepared using accounting
polices consistent with those used in the preparation of the full statutory
accounts.
Basis of consolidation
The consolidated financial statements incorporate the results of Gaming Insight
plc and all of its subsidiaries as at 31 December 2003 using the acquisition
method of accounting. The results of subsidiary undertakings are included from
the date of acquisition and until the date of disposal.
Goodwill
Goodwill represents the difference between the fair value of the consideration
paid on acquisition of a business and the fair value of its identifiable net
assets at the date of acquisition, less any provision for impairment. It is
capitalised and amortised through the profit and loss account over the
directors' estimate of its useful economic life which is three years.
Impairment of fixed assets and goodwill
The need for any fixed asset impairment write down is assessed by comparison of
the carrying value of the asset against the higher of realisable value and value
in use.
Development costs
Development costs in respect of websites and software are charged to the profit
and loss account in the year of expenditure, unless individual projects satisfy
all of the following criteria:
* the project is clearly defined and related expenditure is separately
identifiable;
* the project is technically feasible and commercially viable;
* current and future costs are expected to be exceeded by future sales; and
* adequate resources exist for the project to be completed.
In such circumstances the costs are carried forward and amortised over the
directors' estimate of the useful life, commencing in the year the company
starts to benefit from the expenditure.
2. Loss per share
Year Ended Year Ended
31 December 2003 31 December 2002
Basic (0.1p) (4.1p)
The calculation of loss per share is based on the loss for the year of #756,000
(2002 - #13,815,000) and on the weighted average number of shares in issue
during the year of 804,196,506 (2001 - 338,674,564). No calculation has been
shown for diluted loss per share because the options are non-dilutive.
3. Post balance sheet events
On 16 April 2004 Racing Network.co.uk ("RN"), in which the Company had a 51%
interest, was placed in voluntary liquidation. The Company's investment in
RN had been fully provided for and the write-off will have no effect on the
profit and loss account.
Additional loan finance was secured in January 2004 from Highland Fund Advisors
and Brooksprey Limited. The Company received #300,000 on 13 January 2004 and
#100,000 was received on 14 January 2004. The loans carry on interest rate of 5%
and are repayable in December 2004
4. Fundamental uncertainty - going concern
The report of the independent auditors included the following explanation of the
fundamental uncertainty with regards to going concern:
The financial statements have been prepared on the going concern basis which
assumes that the group will continue in operational existence for the
foreseeable future.
The group incurred a loss of #756,000 for the year and has incurred further
losses since the balance sheet date.
The group remains dependent on the continued financial support from a major
shareholder who has confirmed to the directors that he intends to maintain such
support for the foreseeable future. Accordingly, they consider the going concern
basis of preparation to be appropriate.
The financial statements do not include adjustments that would result if the
financial support from the major shareholder were no longer available.
5. Qualified Opinion arising from limitation in audit scope
The report of the independent auditors included the paragraph regarding
qualified opinion arising from limitation in audit scope.
In our opinion the financial statements give a true and fair view of the state
of affairs of the group and the Company's affairs as at 31 December 2003 and,
except for any adjustments that might have been found to be necessary had we
been able to obtain sufficient evidence concerning gross bets placed and of the
loss for the group for the year then ended and have been properly prepared in
accordance with the Companies Act 1985.
In respect alone of the limitation on our work relating to gross bets placed,
following the shut-down of betting systems and the closure of betting
activities, we have not obtained all the information and explanations that we
considered necessary for the purpose of our audit; and we were unable to
determine whether proper accounting records had been maintained.
The figures for the year ended 31 December 2003 do not constitute full accounts
within the meaning of Section 240 of the Companies Act 1985. They have been
prepared under the accounting policies set out on the Company's statutory
accounts for the year ended 31 December 2002. The figures for the year ended 31
December 2002 have been extracted from the full accounts for that period, which
have been delivered to the Registrar of Companies and on which the auditors gave
an unqualified report.
This information is provided by RNS
The company news service from the London Stock Exchange
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