Interim Results
22 Septiembre 2003 - 2:01AM
UK Regulatory
RNS Number:9974P
TradingSports Exchange Systems PLC
22 September 2003
For Immediate Release Monday 22 September 2003
TradingSports Exchange Systems plc
Interim Results for the Period
TradingSports Exchange Systems plc ("TradingSports" or "the Group"), the
provider of person-to-person ("P2P") betting exchange software listed on the
Alternative Investment Market ("AIM"), today announces its maiden interim
results since the Group's successful flotation in May this year. The
consolidated interim financial information for TradingSports presents the
unaudited results of TradingSports Exchange Systems plc from 3 February 2003,
date of incorporation, and of TradingSports Limited from 19 May 2003, date of
acquisition, to 30 June 2003.
Highlights for the period:
* Successful, over-subscribed flotation in May 2003 raising #4m before
expenses
* On a pro forma basis, turnover for the interim period was #91,000
* Four contracts signed during the period including Betfanatic, WITEuro
Sportsbook and Costa Rican International Sportsbook (CRIS), consolidating
TradingSports' position as one of the leading providers of P2P betting exchange
software
* 8 contracts now live including the launch of a 5-year exclusive
contract with Las Palmas, as announced today, with a further two large
sportsbooks expected to be live by year end
Commenting on the interim results, Joe Tighe, Chairman and Chief Executive of
TradingSports, said:
"As of today, TradingSports has now signed some of the largest online bookmakers
in the world on exclusive 5 year contracts. During the interim period, we
floated on AIM and raised the capital required to take the Group on to the next
phase of its development. Our key strategy of using our clients' brands for
leveraging the rapidly developing person-to-person betting market is continuing
to bear fruit, as demonstrated by the launch of another significant player in
online gaming announced today. Our growth since the period end and the
continued negotiations with some of the largest gaming brands in the world
provides the Board with confidence for the future."
For further information:
TradingSports Exchange Systems plc Tel: 020 8780 6000
Joe Tighe, Chairman and Chief Executive
Ken Mulvany, Director of Investor Relations
Buchanan Communications Tel: 020 7466 5000
Bobby Morse / James Strong
Background Information
TradingSports, which floated on the London Stock Exchange's AIM in May this year
raising #4m at 115p per share, enables its customers to enter the P2P betting
market without the substantial investment of building, developing and
maintaining their own P2P exchange systems. Aimed at the business-to-business
market, TradingSports acts as an aggregator of liquidity from different sports
betting companies, enabling them to benefit from TradingSports' global pool of
P2P bettors.
CHIEF EXECUTIVE'S REVIEW
TradingSports has seen a considerable increase in activity levels from our
existing business and we are very encouraged by both the size and quality of the
client base we have established, notably the recently announced launches of
Costa Rican International Sportsbook, Betfanatic and WIT Euro, all of which were
on schedule.
The principal focus of the business over the period has been business
development and the implementation of existing contracts, as well as educating
our clients on the rapidly emerging person-to-person betting market. During the
interim period, our fee earning client base consisted of signed contracts with
eight sportsbooks including those mentioned above.
The consolidated interim financial information for TradingSports presents the
unaudited results of TradingSports Exchange Systems plc from 3 February 2003,
date of incorporation, and of TradingSports Limited from 19 May 2003, date of
acquisition, to 30 June 2003.
On a pro-forma basis, Group turnover was #91,000 during this period, which was
largely driven by our growing business in the Caribbean region. The turnover
growth we have enjoyed has been achieved through increasing market share, which
we believe is a significant endorsement of our business model and strategy. We
believe that our aggregated liquidity model affords us further opportunities to
increase our market share, as there remains considerable opportunity for
worldwide expansion.
Strategy
Our strategy is to continue to focus on business development and implementation
within our key markets. The Group is still at an early stage in its
development, the growth in our turnover and the improvement in our financial
performance support the Board's belief that this is an excellent opportunity to
build a rapidly growing business-to-business exchange service.
The creation of an exchange serving several large sportsbooks simultaneously
requires technology that is far more advanced than that found on individual
gambling sites in terms of scalability, reliability and security. During this
period we have enhanced our technology platform with a new redundant system at a
second hosting facility and delivered new features and functionality to our
market leading technology platform.
Current Trading & Prospects
During the period under review, TradingSports' key performance indicators
progressed well. The implementation of Costa Rican International Sportsbook, WIT
Euro and Betfanatic are complete. The group is also today announcing the launch
of Las Palmas Sportsbook. Las Palmas Sportsbook, a division of Horizon20,
signed a five year exclusive agreement, providing a TradingSports exchange
service as their marquee betting product. This rise in client numbers is
expected to provide the foundation for strong turnover growth in the months
ahead.
Whilst the underlying growth of the business in terms of client numbers, number
of bets placed, and overall revenue continues to rise, client marketing
campaigns and end-user education initiatives remain challenging areas. These
areas are being addressed through a series of concise training programmes
designed to assist our clients with their marketing endeavours and educate them
on how to use the exchange system most effectively.
The Group will continue to execute its strategy and the Board is confident that
the quality of both the client base and infrastructure, coupled with the
financial control we are exercising, provide us confidence for the future.
Joe Tighe
Chairman and CEO
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Notes Unaudited
period from
3 February to
30 June 2003
#
Turnover 25,077
Cost of Sales (12,884)
Gross profit 12,193
Administrative expenses (355,325)
Operating loss (343,132)
Reorganisation costs 2 (510,579)
Loss on ordinary activities before interest and taxation (853,711)
Interest receivable 9,234
Interest payable (1,611)
Loss on ordinary activities before taxation (846,088)
Tax on loss on ordinary activities -
Retained loss for the period (846,088)
Basic loss per share 3 (30.1p)
The Group had no recognised gains or losses other than those included in the
above profit and loss account.
CONSOLIDATED BALANCE SHEET
Unaudited
period from
3 February to
30 June 2003
#
Fixed assets
Tangible assets 1,212,824
Current assets
Debtors 239,353
Cash at bank and in hand 2,692,250
2,931,603
Creditors: amounts falling due within one year (904,073)
Net current assets 2,027,530
Net assets 3,240,354
Capital and reserves
Called up share capital 1,049,426
Share premium account 3,037,016
Profit and loss account (846,088)
Shareholders' funds 3,240,354
CONSOLIDATED CASH FLOW STATEMENT
Notes Unaudited
period from
3 February to
30 June 2003
#
Net cash outflow from operating activities (815,883)
Returns on investments and servicing of finance
Interest received 9,234
Interest paid (1,611)
Net cash inflow from returns on investment and servicing of finance 7,623
Capital expenditure
Payments to acquire tangible fixed assets (20,981)
Acquisitions and disposals
Acquisition of subsidiary (1)
Net cash acquired with subsidiary 136,651
Net cash inflow from acquisitions and disposals 136,650
Net cash outflow before financing (692,591)
Financing
Issue of ordinary share capital 3,384,841
Increase in cash 2,692,250
NOTES TO THE UNAUDITED INTERIM RESULTS
1 Basis of preparation of interim financial results
TradingSports Exchange Systems plc was incorporated on 3 February 2003. On 19
May 2003 the Company acquired the entire issued share capital of TradingSports
Holdings SAH from former shareholders of TradingSports Holdings SAH in return
for the issue of 7,016,000 shares. Subsequently the Company acquired the entire
issued share capital of TradingSports Limited from TradingSports Holdings SAH
for #1 (being the fair value thereof). After conclusion of the acquisition of
TradingSports Limited the Company disposed of its interest in TradingSports
Holdings SAH to an independent third party for an amount of #1 (being the fair
value thereof), leaving TradingSports Limited as the sole wholly owned
subsidiary of the Company.
The consolidated interim financial information for TradingSports
Exchange Systems plc presents the unaudited results of TradingSports Exchange
Systems plc from 3 February 2003, date of incorporation, and of TradingSports
Limited from 19 May 2003, date of acquisition, to 30 June 2003.
The results for the period ended 30 June 2003 are unaudited. The financial
information contained in this interim statement does not constitute statutory
accounts as defined in section 240 of the Companies Act 1985.
2 Reorganisation costs
These costs arose entirely as the result of the corporate transactions that took
place on 19 May 2003 as described in note 1 above and did not result in any cash
out flow.
3 Earnings per ordinary share
Basic earnings per share figures have been calculated based upon 10,494,261
shares in issue, being the weighted average number of ordinary shares in issue
during the period.
This information is provided by RNS
The company news service from the London Stock Exchange
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