TIDMGON
RNS Number : 4684U
Galleon Holdings PLC
25 June 2009
Date: 25 June 2009
On behalf of: Galleon Holdings plc ('Galleon' or the 'Group')
Embargoed until: 0700hrs
Galleon Holdings plc
Interim results for the six months ended 31 March 2009
Galleon Holdings plc (AIM: GON), the AIM listed entertainment media company
developing and producing multi-platform properties with a focus on emerging
markets, is pleased to announce its interim results for the six months ended 31
March 2009.
Highlights:
* Profit before tax* of GBP0.64 million compared to GBP0.44 million for same
period last year, an increase of 45%
* Turnover increased by GBP9.6 million to GBP15.4 million (H1 2008: GBP5.8
million)
* EBITDA of GBP0.80 million compared to GBP0.48 million for the same period last
year
* Entertainment revenues of GBP11.1 million compared to GBP1.1 million for the
same period last year
* Continued expansion of operations in China
* Global roll out of Super Soccer Star, following successful series in China and
Malaysia, property now licensed in 47 territories
*Adjusted profit before tax is before charges for the impairment of goodwill
and share option expense
Post period end:
* Placing raised GBP3.85 million (gross) to accelerate growth in Galleon's
established and profitable media business in China
Commenting on the first half results, David Wong, Chairman, Galleon Holdings
plc, said:
"The first six months of this financial year has seen the continued growth of
our business in China, with particular progress made in the media sector. We
have demonstrated the effectiveness of our strategy to develop Multi-Platform
Entertainment properties to be launched in China and subsequently rolled out to
other territories.We continue to develop new ideas and now have more projects in
hand than ever before, all of which have the same global potential as Super
Soccer Star."
- Ends -
Enquiries:
+----------------------------------------------+---------------------------------+
| Galleon Holdings plc | www.galleonplc.com |
+----------------------------------------------+---------------------------------+
| Stephen Green, Chief Executive | Tel: 020 8742 3636 |
+----------------------------------------------+---------------------------------+
| | |
+----------------------------------------------+---------------------------------+
| Cenkos Securities (Nominated Adviser & | |
| Broker) | |
+----------------------------------------------+---------------------------------+
| Ken Fleming / Jon Fitzpatrick | Tel: 0131 220 9772 / 0131 220 |
| | 9773 |
+----------------------------------------------+---------------------------------+
| | |
+----------------------------------------------+---------------------------------+
| Redleaf Communications | Galleon@redleafpr.com |
+----------------------------------------------+---------------------------------+
| Samantha Robbins / Sanna Sumner / Mike Ward | Tel: 020 7566 6700 |
+----------------------------------------------+---------------------------------+
Chairman's Statement
I am delighted to see the Group continue to grow its profits and revenues, with
the success of the entertainment business and expansion of operations in
China being particularly pleasing.
Our strategy for the entertainment division has been to focus on developing
multi-platform entertainment properties ("MEPs") that can be launched in China
and then exported into multiple territories across the rest of the world. Owning
and controlling the mobile distribution channel in China through our mobile
service provider Yunbo has allowed us to play a more strategic role in the
exploitation of our entertainment content in the market as well as generating
additional revenues from activities. The growth of our mobile operations
business has been rapid and we see further opportunity to continue this growth,
particularly in the area of mobile games. This coupled with our extensive
relationships with TV and media partners in China provides a solid launch pad
for global MEPs. This is a major strategic benefit for the Group. The
multi-platform model generates a good mix of income across numerous revenue
streams, such as online, mobile, TV, advertising and sponsorship. This
flexibility in terms of revenue channels enables each property to be supported
by a robust commercial plan for a wide variety of territories where different
channels have different emphasis and importance. This is evident in the success
of Super Soccer Star and its global roll out.
Entertainment
Super Soccer Star continues to be a growth opportunity for us. Following its
launch in China and strong ratings in Malaysia, we have now concluded deals in
the first half of the year to take the property into India, North Africa,
Russia, Eastern Europe, Scandinavia, the Middle East and Vietnam. These deals
are structured so that we secure a non refundable advance for the rights and
also receive a percentage of the net profits. This serves to minimise the risk
to our business and allows us to accelerate the growth of the brand by working
with established partners on a local territory level. An example of the calibre
of our partners is IMG, the global sports and entertainment company, which acts
as a distributor for the property in a number of territories. The success of the
property has also consolidated our position with Chelsea Football Club, with the
extension of our agreement into a long term strategic partnership. For the
remainder of the year we are focusing on a second series in China, to be
broadcast nationally, and further sales into the US, Asia and Africa.
The success of Super Soccer Star has resulted in a number of potential partners
for a second franchise both within China and also in International markets.
Currently we have three "Super X Franchise" properties in discussion based on
other lifestyle themes like sport, fashion and well being.
Our China operations give us good visibility of the fast growing online games
market in China and the rest of the world. We have seen how strong the online
games component can be as a part of an MEP with Super Soccer Star Malaysia,
where an online viral game has generated 4 million unique users. We are creating
significant online and mobile audiences and can see an opportunity to offer
digital games to these consumers. In the last six months we have taken steps to
move deeper into this rapidly growing market both in China and the rest of the
world.
As a first step we launched Sokator-442, a soccer based fantasy MEP, as an
online game which will be cross-promoted with the large online audiences created
by Super Soccer Star around the world. Separately to this we are in discussions
in China about supporting the game through the co-production of animated content
for mass distribution to TV and cinema.
Online games will form a significant part of our development of current and
future MEPs. For example we are exploring an online game for Skunk fu! to
capitalise on the worldwide awareness generated by the TV show.
There has been a huge reaction to Apollo's Pad since it was aired by Canadian
broadcaster Bite TV over the last month where it has been their highest rated
show and one of the most popular website properties.
Croco Worldwide
Croco Worldwide is our global toy division, focused on designing and
manufacturing innovative bespoke in-pack premiums for global FMCG companies.
This division has successfully managed its way through some challenges in the
first half of the year with the fluctuations in oil prices and currency that
greatly affected the cost of materials and the global slowdown causing many of
its customers to delay ordering product. This has been achieved by diversifying
the customer base and also the geographical reach, which has been successfully
extended into India and Asia. The result is that, although margins were affected
in the first six months, both margins and revenue growth for the second half are
back on track.
Apart from growing this business organically through product sales we are also
looking at combining our product based promotions with the mobile and online
digital games content that we have within the Group. This mix of product and
digital content is very compelling for our large branded partners and also
allows us to approach other brands and clients that we have not been able to
target to date.
Current Trading & Outlook
We are pleased that in the first half we have grown in line with market
expectations. Our entertainment business continues to expand in terms of
revenues, not just geographically, but also by platform and channel. During the
first six months of the year we have established ourselves as a company that can
successfully launch an MEP in China and take that to the rest of the world. This
leaves us in a unique position with partners in China and International markets
eager for further content. The funds raised in the Placing earlier this month
will enable us accelerate our growth in China and react quickly to the
increasing number of opportunities that exist for our business and we anticipate
another successful outcome for the year.
David Wong
CHAIRMAN
25 June 2008
INDEPENDENT REVIEW report to GALLEON HOLDINGS PLC
Introduction
We have been engaged by the company to review the financial information in the
half-yearly financial report for the six months ended 31 March 2009 which
comprises the consolidated income statement, consolidated statement of changes
in equity, consolidated balance sheet, consolidated cash flow statement and
related notes 1 to 8. We have read the other information contained in the
interim report which comprises only the Chairman's statement and considered
whether it contains any apparent misstatements or material inconsistencies with
the information in the condensed set of financial statements.
This report is made solely to the company in accordance with guidance contained
in ISRE (UK and Ireland) 2410, "Review of Interim Financial Information
performed by the Independent Auditor of the Entity". Our review work has been
undertaken so that we might state to the company those matters we are required
to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the company, for our review work, for this report, or for the
conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The AIM rules of the London Stock Exchange require that the
accounting policies and presentation applied to the interim figures are
consistent with those which will be adopted in the annual accounts having regard
to the accounting standards applicable for such accounts.
As disclosed in note 2, the annual financial statements of the Group are
prepared in accordance with the basis of preparation.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the financial
information in the half-yearly financial report based on our review.
scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial information in the half-yearly financial
report for the six months ended 31 March 2009 is not prepared, in all material
respects, in accordance with the International Accounting Standard 34, as
adopted by the European Union and the basis of accounting described in note 2.
GRANT THORNTON UK LLP
AUDITOR
Birmingham
25 June 2009
GALLEON HOLDINGS PLC
CONSOLIDATED INCOME STATEMENT
For the six months ended 31 March 2009
+--------------------------------+-------+-----------+-----------+-------------+
| | | Unaudited | Unaudited | Audited |
| | | Six | Six | Year |
| | | months | months | ended 30 |
| | | ended 31 | ended 31 | September |
| | | March | March | 2008 |
| | | 2009 | 2008 | |
+--------------------------------+-------+-----------+-----------+-------------+
| | Note | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+-------+-----------+-----------+-------------+
| | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| Revenue | 3 | 15,414 | 5,794 | 12,125 |
+--------------------------------+-------+-----------+-----------+-------------+
| | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| Cost of sales | | (13,122) | (4,124) | (8,433) |
+--------------------------------+-------+-----------+-----------+-------------+
| | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| Gross profit | | 2,292 | 1,670 | 3,692 |
+--------------------------------+-------+-----------+-----------+-------------+
| | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| Administrative expenses | | (1,783) | (1,429) | (3,252) |
+--------------------------------+-------+-----------+-----------+-------------+
| | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| EBITDA | | 803 | 480 | 1,056 |
+--------------------------------+-------+-----------+-----------+-------------+
| | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| Depreciation, amortisation and | | (294) | (239) | (616) |
| impairment | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| Profit from operations | | 509 | 241 | 440 |
+--------------------------------+-------+-----------+-----------+-------------+
| | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| Finance income | | 67 | 154 | 289 |
+--------------------------------+-------+-----------+-----------+-------------+
| Finance costs | | (2) | (40) | (8) |
+--------------------------------+-------+-----------+-----------+-------------+
| | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| Profit before taxation | | 574 | 355 | 721 |
+--------------------------------+-------+-----------+-----------+-------------+
| | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| Taxation expense | 4 | (112) | (71) | (285) |
+--------------------------------+-------+-----------+-----------+-------------+
| | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| Profit for the financial | | 462 | 284 | 436 |
| period | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| Earnings per share | | | | |
+--------------------------------+-------+-----------+-----------+-------------+
| - Basic | 5 | 0.4p | 0.3p | 0.5p |
+--------------------------------+-------+-----------+-----------+-------------+
| - Diluted | 5 | 0.3p | 0.3p | 0.3p |
+--------------------------------+-------+-----------+-----------+-------------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 31 MARCH 2009
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| | Share | Share | Shares | Capital | Other | Foreign | Retained | Total |
| | capital | premium | to be | redemption | reserves | exchange | earnings | equity |
| | | | issued | reserve | | reserve | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| | | | | | | | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| At 30 September 2007 | 648 | 6,650 | - | 9,601 | 210 | - | (14,276) | 2,833 |
| (Audited) | | | | | | | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| | | | | | | | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| Profit for the year | - | - | - | - | - | - | 436 | 436 |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| Issue of share | 350 | 9,977 | 5,864 | - | - | - | - | 16,191 |
| capital | | | | | | | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| Cost of issue of | - | (209) | - | - | - | - | - | (209) |
| share capital | | | | | | | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| Foreign Exchange | - | - | - | - | - | 182 | - | 182 |
| Reserve | | | | | | | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| Share based payments | - | - | - | - | - | - | 79 | 79 |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| At 30 September 2008 | 998 | 16,418 | 5,864 | 9,601 | 210 | 182 | (13,761) | 19,512 |
| (Audited) | | | | | | | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| | | | | | | | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| Profit for the | - | - | - | - | - | - | 462 | 462 |
| period | | | | | | | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| Foreign exchange | - | - | - | - | - | 3,269 | - | 3,269 |
| differences | | | | | | | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| Issue of share | 106 | 2,418 | 2,105 | - | - | - | - | 4,629 |
| capital | | | | | | | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| Deferred | | | (2,454) | | | | | (2,454) |
| consideration paid | | | | | | | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| Share based payments | - | - | - | - | - | - | 62 | 62 |
| | | | | | | | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
| At 31 March 2009 | 1,104 | 18,836 | 5,515 | 9,601 | 210 | 3,451 | (13,237) | 25,480 |
| (Unaudited) | | | | | | | | |
+----------------------+---------+---------+---------+------------+----------+----------+----------+---------+
CONSOLIDATED BALANCE SHEET
For the six months ended 31 March 2009
+---------------------------------+------+-----------+-----------+------------+
| | | Unaudited | Unaudited | Audited |
| | | 31 March | 31 March | 30 |
| | | 2009 | 2008 | September |
| | | | | 2008 |
+---------------------------------+------+-----------+-----------+------------+
| |Note | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+------+-----------+-----------+------------+
| ASSETS | | | | |
+---------------------------------+------+-----------+-----------+------------+
| | | | | |
+---------------------------------+------+-----------+-----------+------------+
| Non-current assets | | | | |
+---------------------------------+------+-----------+-----------+------------+
| Property, plant and equipment | | 494 | 251 | 371 |
+---------------------------------+------+-----------+-----------+------------+
| Available for sale investments | 6 | 245 | - | - |
+---------------------------------+------+-----------+-----------+------------+
| Intangible assets | 7 | 16,300 | 13,375 | 11,950 |
+---------------------------------+------+-----------+-----------+------------+
| Other receivables | | 2,262 | 1,050 | 1,866 |
+---------------------------------+------+-----------+-----------+------------+
| | | 19,301 | 14,676 | 14,187 |
+---------------------------------+------+-----------+-----------+------------+
| | | | | |
+---------------------------------+------+-----------+-----------+------------+
| Current assets | | | | |
+---------------------------------+------+-----------+-----------+------------+
| Inventories | | 4,022 | 1,784 | 3,934 |
+---------------------------------+------+-----------+-----------+------------+
| Trade and other receivables | | 5,176 | 1,520 | 3,637 |
+---------------------------------+------+-----------+-----------+------------+
| Cash and cash equivalents | | 1,503 | 4,358 | 1,324 |
+---------------------------------+------+-----------+-----------+------------+
| | | 10,701 | 7,662 | 8,895 |
+---------------------------------+------+-----------+-----------+------------+
| Total assets | | 30,002 | 22,338 | 23,082 |
+---------------------------------+------+-----------+-----------+------------+
| | | | | |
+---------------------------------+------+-----------+-----------+------------+
| LIABILITIES | | | | |
+---------------------------------+------+-----------+-----------+------------+
| | | | | |
+---------------------------------+------+-----------+-----------+------------+
| Current liabilities | | | | |
+---------------------------------+------+-----------+-----------+------------+
| Trade and other payables | | 3,881 | 1,488 | 2,940 |
+---------------------------------+------+-----------+-----------+------------+
| Provisions | | - | 276 | - |
+---------------------------------+------+-----------+-----------+------------+
| Corporation Tax | | 283 | 1,779 | 233 |
+---------------------------------+------+-----------+-----------+------------+
| | | 4,164 | 3,543 | 3,173 |
+---------------------------------+------+-----------+-----------+------------+
| | | | | |
+---------------------------------+------+-----------+-----------+------------+
| Non-current liabilities | | | | |
+---------------------------------+------+-----------+-----------+------------+
| Deferred Tax | | 358 | - | 397 |
+---------------------------------+------+-----------+-----------+------------+
| | | 358 | - | 397 |
+---------------------------------+------+-----------+-----------+------------+
| Total liabilities | | 4,522 | 3,543 | 3,570 |
+---------------------------------+------+-----------+-----------+------------+
| | | | | |
+---------------------------------+------+-----------+-----------+------------+
| EQUITY | | | | |
+---------------------------------+------+-----------+-----------+------------+
| Share capital | 8 | 1,104 | 998 | 998 |
+---------------------------------+------+-----------+-----------+------------+
| Shares to be issued | 8 | 5,515 | 5,221 | 5,864 |
+---------------------------------+------+-----------+-----------+------------+
| Reserves | | 18,861 | 12,576 | 12,650 |
+---------------------------------+------+-----------+-----------+------------+
| Equity interests attributable | | 25,480 | 18,795 | 19,512 |
| to equity holders of the | | | | |
| company | | | | |
+---------------------------------+------+-----------+-----------+------------+
| Total equity and total | | 30,002 | 22,338 | 23,082 |
| liabilities | | | | |
+---------------------------------+------+-----------+-----------+------------+
| | | | | |
+---------------------------------+------+-----------+-----------+------------+
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 March 2009
+----------------------------------+--------+-----------+-----------+------------+
| | | Unaudited | Unaudited | Audited |
| | | Six | Six | Year |
| | | months | months | ended 30 |
| | | ended 31 | ended 31 | September |
| | | March | March | 2008 |
| | | 2009 | 2008 | |
+----------------------------------+--------+-----------+-----------+------------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------+--------+-----------+-----------+------------+
| | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Operating activities | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Profit for the period | | 462 | 284 | 436 |
+----------------------------------+--------+-----------+-----------+------------+
| Taxation | | 112 | 71 | 285 |
+----------------------------------+--------+-----------+-----------+------------+
| Finance net income | | (65) | (114) | (281) |
+----------------------------------+--------+-----------+-----------+------------+
| Loss on sale of property, plant | | - | - | 2 |
| and equipment | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Depreciation of property, plant | | 91 | 24 | 169 |
| and equipment | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Amortisation of intangible | | 203 | 215 | 447 |
| assets and impairment of | | | | |
| goodwill | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| (Increase) in inventories | | (88) | (1,026) | (3,176) |
+----------------------------------+--------+-----------+-----------+------------+
| (Increase) in trade and other | | (1,539) | (862) | (2,212) |
| receivables | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Increase/(decrease) in trade and | | 996 | (160) | 2,016 |
| other payables | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Share based payments | | 63 | 29 | 79 |
+----------------------------------+--------+-----------+-----------+------------+
| Foreign exchange loss/(gain) | | 200 | (36) | 171 |
+----------------------------------+--------+-----------+-----------+------------+
| | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| | | 435 | (1,575) | (2,064) |
+----------------------------------+--------+-----------+-----------+------------+
| Taxation paid | | (101) | - | (131) |
+----------------------------------+--------+-----------+-----------+------------+
| Net Interest received | | 65 | 114 | 281 |
+----------------------------------+--------+-----------+-----------+------------+
| | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Net cash inflow/(outflow) from | | 399 | (1,461) | (1,914) |
| operating activities | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Investing activities | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Purchase of property, plant and | | (213) | (224) | (479) |
| equipment | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Purchase of intangible assets | | (13) | (278) | (299) |
+----------------------------------+--------+-----------+-----------+------------+
| Purchase of subsidiary | | - | (1,671) | (2,226) |
| undertakings | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Purchase of investment (note 6) | | (176) | - | - |
+----------------------------------+--------+-----------+-----------+------------+
| Cash acquired with purchase of | | - | - | 331 |
| subsidiary undertakings | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Net cash outflow from investing | | (402) | (2,173) | (2,673) |
| activities | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Financing activities | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Issue of shares | | - | 8,000 | 8,000 |
+----------------------------------+--------+-----------+-----------+------------+
| Expenses paid in connection with | | - | (209) | (209) |
| share issues | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Repayment of loan notes | | - | - | (500) |
+----------------------------------+--------+-----------+-----------+------------+
| Repayment/ (Loan advanced) | | 182 | - | (1,581) |
| from/(to) supplier | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Net cash inflow from financing | | 182 | 7,791 | 5,710 |
| activities | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Increase in cash and cash | | 179 | 4,157 | 1,123 |
| equivalents | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Cash and cash equivalents | | 1,324 | 201 | 201 |
| brought forward | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| | | | | |
+----------------------------------+--------+-----------+-----------+------------+
| Cash and cash equivalents | | 1,503 | 4,358 | 1,324 |
| carried forward | | | | |
+----------------------------------+--------+-----------+-----------+------------+
NOTES TO THE INTERIM REPORT
FOR THE PERIOD ENDED 31 MARCH 2009
1. GENERAL INFORMATION
The information for the period ended 31 March 2009 does not constitute statutory
accounts as defined in Section 240 of the Companies Act 1985. The figures for
the year ended 30 September 2008 have been extracted from the 2008 statutory
financial statements prepared under International Financial Reporting Standards
(IFRS). The auditors' report on those accounts was unqualified and did not
contain a statement under section 237(2) or section 237(3) of the Companies Act
1985 and have been filed with the Registrar of Companies.
2. BASIS OF PREPARATION
These interim financial statements have been prepared in accordance with IAS 34,
"Interim Financial Reporting" and have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the EU. The
accounting policies are consistent with those followed in preparation of the
2008 Galleon Holdings annual report and accounts
3. Segmental analysis
+------------------------------------------+------------+------------+------------+
| | Unaudited | Unaudited | Audited |
| | 31 March | 31 March | 30 |
| | 2009 | 2008 | September |
| | | | 2008 |
+------------------------------------------+------------+------------+------------+
| | Revenue | Revenue | Revenue |
+------------------------------------------+------------+------------+------------+
| | GBP'000 | GBP000 | GBP'000 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Entertainment - | 10,157 | 1,113 | 6,244 |
| Digital/Interactive/Mobile | | | |
+------------------------------------------+------------+------------+------------+
| - Other | 910 | 4 | 805 |
+------------------------------------------+------------+------------+------------+
| Croco | 4,347 | 4,677 | 5,076 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| | 15,414 | 5,794 | 12,125 |
+------------------------------------------+------------+------------+------------+
4. TAXATION
The tax charge for the period ended 31 March 2009 arises in the UK and China
after allowing for tax losses brought forward.
5. EARnINGS PER SHARE
+-------------------------------------------+------------+------------+------------+
| | Unaudited | Unaudited | Audited |
| | 31 March | 31 March | 30 |
| | 2009 | 2008 | September |
| | | | 2008 |
+-------------------------------------------+------------+------------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------------+------------+------------+------------+
| | | | |
+-------------------------------------------+------------+------------+------------+
| Profit for the period | 462 | 284 | 436 |
+-------------------------------------------+------------+------------+------------+
| | | | |
+-------------------------------------------+------------+------------+------------+
| | Number | Number | Number |
+-------------------------------------------+------------+------------+------------+
| Basic average weighted number of shares | 109,450 | 93,666 | 96,724 |
| in 000's | | | |
+-------------------------------------------+------------+------------+------------+
| Shares to be issued - deferred | 31,489 | - | 29,692 |
| consideration | | | |
+-------------------------------------------+------------+------------+------------+
| Share options | 3,586 | - | 871 |
+-------------------------------------------+------------+------------+------------+
| Dilutive average weighted number of | 144,525 | 93,666 | 127,287 |
| shares in 000's | | | |
+-------------------------------------------+------------+------------+------------+
| Basic earnings per share (pence) | 0.4p | 0.3p | 0.5p |
+-------------------------------------------+------------+------------+------------+
| Diluted earnings per share (pence) | 0.3p | 0.3p | 0.3p |
+-------------------------------------------+------------+------------+------------+
6. Avaialable for sale investments
On 23 January 2009, Galleon Holdings plc acquired a 19% interest in the share
capital of Dragonfruit Entertainment, a company registered in the US for a
consideration of GBP176,000 cash and 426,000 ordinary shares issued at 16.5
pence per share.
7. Intangible assets
+---------------------------------------------+-----------+-----------+------------+
| | Unaudited | Unaudited | Audited |
| | 31 March | 31 March | 30 |
| | 2009 | 2008 | September |
| | | | 2008 |
+---------------------------------------------+-----------+-----------+------------+
| | GBP'000 | GBP000 | GBP'000 |
+---------------------------------------------+-----------+-----------+------------+
| | | | |
+---------------------------------------------+-----------+-----------+------------+
| Goodwill | 13,694 | 10,169 | 9,154 |
+---------------------------------------------+-----------+-----------+------------+
| Other intangible assets | 2,606 | 3,206 | 2,796 |
+---------------------------------------------+-----------+-----------+------------+
| | | | |
+---------------------------------------------+-----------+-----------+------------+
| | 16,300 | 13,375 | 11,950 |
+---------------------------------------------+-----------+-----------+------------+
| | | | |
+---------------------------------------------+-----------+-----------+------------+
Goodwill has increased at 31 March 2009 as a result of providing for additional
consideration of GBP2.1m payable for Lushy based on management's estimates of
the final consideration payable. Goodwill has also increased as a result of
retranslating the goodwill of Lushy and Phoenix to their functional currency at
the balance sheet date exchange rates which has been reflected through the
profit and loss reserves in equity.
8. SHARE CAPITAL
+---------------------------------------------+-----------+-----------+------------+
| | Unaudited | Unaudited | Audited |
| | 31 March | 31 March | 30 |
| | 2009 | 2008 | September |
| | | | 2008 |
+---------------------------------------------+-----------+-----------+------------+
| | GBP'000 | GBP000 | GBP'000 |
+---------------------------------------------+-----------+-----------+------------+
| Authorised | | | |
+---------------------------------------------+-----------+-----------+------------+
| 275,000,000 ordinary shares of 1p each | 2,750 | 2,750 | 2,750 |
+---------------------------------------------+-----------+-----------+------------+
| | | | |
+---------------------------------------------+-----------+-----------+------------+
| Allotted, issued and fully paid | | | |
+---------------------------------------------+-----------+-----------+------------+
| 110,400,888 (31 March 2008: 99,794,113, 30 | 1,104 | 998 | 998 |
| September 2008: 99,794,113) ordinary shares | | | |
| of 1p | | | |
+---------------------------------------------+-----------+-----------+------------+
Allotments during the period
+---------------+------------+----------+------------------------------+--------+
| Date of | Number | Issue | Purpose | GBP000 |
| Allotment | | Price | | |
+---------------+------------+----------+------------------------------+--------+
| 13 October |10,180,775 | 24p | Acquisition of Lushy Assets | 2,454 |
| 2008 | | | Limited | |
+---------------+------------+----------+------------------------------+--------+
| 26 January | 426,000 | 16.5p | Investment in Dragonfruit | 70 |
| 2009 | | | Entertainment | |
+---------------+------------+----------+------------------------------+--------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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