TIDMADE
RNS Number : 3649U
ADDleisure PLC
23 June 2009
ADDleisure Plc / Epic: ADE.L / Index: AIM / Sector: Leisure
23 June 2009
ADDleisure Plc ('ADDleisure' or 'the Group')
Final Results for the 17 months ended 31 December 2008
ADDleisure Plc, the AIM traded company formed to develop products and services
in the health and wellness sector, announces its audited final results for the
17 months to 31 December 2008 in accordance with the Group's amended accounting
reference date, 31 December, which was enacted on 22 January 2009.
Overview
* Fitbug concept receiving strong private and public sector support - programmes
initiated by Primary Care Trusts (PCTs) and high profile multi-national
organisations producing encouraging results
* Acquisition of ClubRunner (Europe) Limited by Digital Plantations and subsequent
rebranding as Ez-Runner
* Ez-Runner awarded high profile contracts post period end including agreement to
supply its total business-wide software solution to all UK based Virgin Active
Health Clubs
* Financial performance:
* Revenue for 17 month period GBP2,835,000 (12 months to 31 July 2007:
GBP1,324,000)
* Pre-tax loss for 17 month period GBP5,999,000 (12 months to 31 July 2007:
GBP201,000)
* Cash position at 31 December 2008 was GBP871,000 (2007: GBP4,292,000)
* Group structure reorganised on 1 April 2009 with the joint venture companies
with Bupa, ADD Wellness Holdings Limited and Movers and Shapers Limited being
place into administration and Fitbug Limited being acquired from the
administrator
* Post reorganisation, the Group was loaned GBP800,000 by Bupa and GBP200,000 by
directors during May 2009 to strengthen balance sheet and accelerate development
of Fitbug and Ez-Runner
CHAIRMAN'S STATEMENT
The health and leisure industry remains an area of great opportunity and we have
used the period under review to develop our offering to meet the needs of our
customers more effectively, be they individual Fitbug owners or one of the large
organisations on our ever growing register of both public and private sector
clients at Fitbug and Ez-Runner. In tandem with the development of our products,
we have, post period, made significant strides in reducing overheads,
streamlining the ADDleisure business model and refining our marketing and sales
strategies. I am confident that the steps that we have put in place in recent
months will not only enable us to gain market share in the health and wellbeing
arena but also provide the Group with a stable financial foundation to build on
in the future.
In line with our strategy of streamlining the business and concentrating on our
main revenue generators, the Group underwent a restructuring process post period
end, resulting in the Group solely focussing on Fitbug, the online personal
health and well-being coach and Ez-Runner, the multi-lingual leisure management
software business. Despite the Directors continued belief that the Group's third
investment, Movers & Shapers Limited ('Movers & Shapers'), could offer
attractive growth prospects, it was agreed that, due to current weak consumer
confidence coupled with the funding required to get the concept to critical
mass, it was prudent to prioritise and concentrate on the development of the
Group's core activities of Fitbug and Ez-Runner.
Consequently, Movers & Shapers was put into administration at the beginning of
April 2009, together with ADDWellness Holdings Limited, the joint venture
between ADDleisure and Bupa which acted as the holding company for Movers &
Shapers and Fitbug Limited. Following the sale of Fitbug to ADDleisure, the
Company now owns 100% of Fitbug. This process has rationalised the organisation
of the Group and will provide us with a simpler and more coherent structure to
grow the business moving forward. Importantly, Bupa has maintained its support
of the Group and the development of Fitbug and Ez-Runner through its 28.9%
holding in ADDleisure, the parent company, and also through a loan of GBP800,000
in May 2009.
The development of both Fitbug and Ez-Runner continued over the period,
increasing their market presence and exposure in new and exciting arenas at the
same time as refining and improving their technological advantages. The
acquisition of ClubRunner (Europe) Limited ('ClubRunner'), by the then named
Digital Plantation and now rebranded as Ez-Runner, in October 2008, is already
bearing fruit. The agreement to supply a total business-wide software solution
to all UK based Virgin Active Health Clubs was a signal achievement for
Ez-Runner; justifying our commitment to investing in leading-edge technology in
tandem with the operational management to deliver quality services and support.
Fitbug has also made several exciting forays into new areas of operation with
programmes introduced by several Primary Care Trusts ('PCTs') in the fields of
patient, community and workplace health and also by several large international
corporations. The combination of private and public sector support for our
Fitbug concept reinforces our belief that a fit and healthy lifestyle is
increasingly being recognised by all groups of society and that we are ideally
positioned to capitalise on this. The Fitbug activity and nutrition balance
solution is increasingly being seen as a serious option in the current emphasis
on combating obesity.
The Group's financial results for the 17 months to 31 December 2008 show a
pre-tax loss of GBP5,999,000 (12 months to July 2007: loss of GBP201,000) which
includes an impairment loss of GBP1,820,000 on joint venture loans and
receivables, on revenue of GBP2,835,000 (12 months to July 2007: GBP1,324,000).
The Group's cash position at 31 December 2008 was GBP871,000 (2007:
GBP4,292,000).
We remain committed to developing our offering further over the next financial
year and believe that we are well positioned to do so following the loan of GBP1
million from Allan Fisher and David Turner (GBP200,000) and Bupa (GBP800,000),
which was received by 21 May 2009, thereby strengthening the balance sheet of
the Group and providing sufficient cash to continue operating. The cost saving
exercises that we have implemented post period are also beginning to deliver
financial rewards. With this taken into account, I believe that ADDleisure has
the potential to provide value for its shareholders as we strengthen our
position as an innovative provider of exciting products in the health and
wellness arena.
Electronic Communications
The Directors wish to utilise the new provisions of the Companies Act 2006 to
allow them to send notices, documents and information electronically, thereby
reducing printing and postage costs. Resolution 7 is being proposed as a special
resolution at the Annual General Meeting to adopt new articles of association of
the Company which will authorise the Company, subject to certain conditions, to
send notices, documents and information by making them available on the
Company's website to those shareholders who are deemed to have consented to
receiving such notices, documents and information in this way.
I would like to take this opportunity to thank our shareholders for their
support, and the ADDleisure team for their hard work, determination and loyalty.
Allan Fisher
Chairman
22 June 2009
OPERATIONS REVIEW
Fitbug Limited ('Fitbug')
Fitbug, which offers online health and well-being coaching services, continues
to develop and expand its offering to an ever growing audience, currently 22,000
members, mainly focussing on the corporate wellness and health insurance
sectors, with increasing effort being placed on the public health arena. In the
past 17 months Fitbug has invested more in enhancing its core technology and
also piloting its offering with various large multi-national corporates and
progressing a number of other initiatives.
The quality of Fitbug's offering and the potential benefits of its services have
been highlighted by the signing of various agreements with high profile
organisations in a number of differing sectors, ranging from workplace health,
to fitness operators, government and public sector healthcare providers.
Significantly, the Fitbug concept has been trialled as part of a corporate
health initiative by a major supermarket group for a staff health programme and
employed across thirty countries by a leading global energy company with
extremely encouraging results. In addition, in June 2008, Fitbug extended its
original three year agreement with PruHealth, a leading private medical
insurance company for a further five years taking the agreement to 2013.
Another important facet of the Company's ongoing strategy is the involvement of
PCTs and local authorities, where results from various initiatives have proved
particularly exciting and led to further adoption.Chronically ill patients
suffering from obesity related conditions, including diabetes and heart disease,
used Fitbug as part of a weight management programme over a 12 month duration.
The findings from the patients taking part in the pilot were extremely positive,
with many individuals seeing dramatic improvements in their conditions. Since
these findings, Fitbug has expanded its efforts in this sector and has recently
been awarded contracts within other PCTs including Wolverhampton, Lambeth and
County Durham. Programmes in this sector centre on weight management, exercise
referral and workplace health.
The Fitbug team remains dedicated to improving and increasing the functionality
of the service, and in line with this, a new model 'Bug', supported by a new
online platform, is due to be launched during the 2009 financial year. Both new
components will increase functionality and improve usability, plus the new
architecture will allow Fitbug to meet the demands of the market for the
foreseeable future and expand in line with future expectations.
Ez-Runner Limited (formerly Digital Plantation Limited) ('Ez-Runner')
This has been a transformational year for Ez-Runner, formerly known as Digital
Plantation Limited. The newly named Ez-Runner continues to grow and build its
market presence in intelligent management software business. Ez-Runner has
developed end-to-end intelligent web-based resource management systems, designed
to improve efficiency and maximise yield through integrated booking, POS and
stock control, membership, communications, reporting and this unique and
innovative offering is increasingly being recognised as an essential tool for
many companies operating within the health and leisure sectors.
The re-branding of Digital Plantation Limited was adopted following the
acquisition of ClubRunner (Europe) Limited ('ClubRunner'), a leading leisure
management software provider, in October 2008. Specialists in health club
management software, ClubRunner provided IT solutions across the leisure
industry including the hotel, health and fitness, play and golf markets, which
complemented the Company's range of proprietary intelligent booking software
specialising in the day and destination spa markets. The Board of ADDleisure saw
considerable synergies between the two companies and that a merger of the two
companies would significantly strengthen their capabilities of attracting major
new corporate clients in both the UK and internationally.
The combination of innovative software and established trading records brought
together in the merger has already resulted in a major new agreement with Virgin
Active Health UK Clubs ('Virgin Active'). This agreement, signed post period
end, saw Virgin Active adopt the latest developments from Ez-Runner's in-house
development and deployment teams to provide one central and online platform for
its operations. Its principal aim is to improve efficiency through standardising
the membership system used throughout Virgin Active's estate in the UK, reducing
the total number of systems and enabling common membership policies and business
processes to be adopted. Additionally, Ez-Runner has installed its software in
the David Lloyd Spas and is in ongoing negotiations with various other potential
clients.
Movers and Shapers Limited ('Movers & Shapers')
Movers & Shapers, the Company's former third investment, was designed to deliver
a simple but comprehensive approach to health and well-being for consumers all
encompassed within convenient high street studios. Progress was made rolling out
the Movers & Shapers studios over the period, with numbers in the UK increasing
from an initial two stores in Stanmore and Vauxhall in January 2008, to five in
July 2008 with the opening of the West Hampstead, Marble Arch and
Stratford-upon-Avon stores. The Company operated nine high street studios by
January 2009, following the opening of stores in Barnes, Winchester, Muswell
Hill and Loughton, Essex.
Whilst the Board was keen to progress the roll-out of stores to more locations,
weak consumer confidence coupled with difficulties in raising bank finance to
fund capital expenditure led to the Board taking the difficult decision to put
Movers & Shapers into administration at the beginning of April 2009. Of the nine
Movers & Shapers stores that the Company developed, six, along with certain
business assets of Movers & Shapers, were sold with the three remaining stores
closing at the time of the announcement.
** E N D S **
For further information visit www.addleisure.com or contact:
+---------------------------+----------------------------+------------------+
| Mike Mills | ADDleisure Plc | Tel: 020 7449 |
| | | 1000 |
+---------------------------+----------------------------+------------------+
| Mark Percy | Seymour Pierce | Tel: 020 7107 |
| | | 8000 |
+---------------------------+----------------------------+------------------+
| Susie Callear | St Brides Media & Finance | Tel: 020 7236 |
| | Ltd | 1177 |
+---------------------------+----------------------------+------------------+
Consolidated Income Statement
For the 17 months ended 31 December 2008
+----------------+--------+----------+---------+
| | Notes | 17 | 12 |
| | | months | months |
| | | December | July |
| | | 31 | 31 |
+----------------+--------+----------+---------+
| | | 2008 | 2007 |
+----------------+--------+----------+---------+
| | | GBP'000 | GBP'000 |
+----------------+--------+----------+---------+
| | | | |
+----------------+--------+----------+---------+
| Revenue | | 2,835 | 1,324 |
+----------------+--------+----------+---------+
| Cost | | (677) | (413) |
| of | | | |
| sales | | | |
+----------------+--------+----------+---------+
| | | _____ | _____ |
+----------------+--------+----------+---------+
| | | | |
+----------------+--------+----------+---------+
| Gross | | 2,158 | 911 |
| profit | | | |
+----------------+--------+----------+---------+
| | | | |
+----------------+--------+----------+---------+
| Other | | - | 1,942 |
| income: | | | |
| Gain on | | | |
| disposal | | | |
| of | | | |
| subsidiaries | | | |
| to joint | | | |
| venture | | | |
+----------------+--------+----------+---------+
| Operating | | (8,384) | (3,057) |
| and | | | |
| administrative | | | |
| expenses | | | |
+----------------+--------+----------+---------+
| | | _____ | _____ |
+----------------+--------+----------+---------+
| | | | |
+----------------+--------+----------+---------+
| Loss | | (6,226) | (204) |
| from | | | |
| operations | | | |
+----------------+--------+----------+---------+
| | | | |
+----------------+--------+----------+---------+
| Finance | | 300 | 12 |
| income | | | |
+----------------+--------+----------+---------+
| Finance | | (73) | (9) |
| expense | | | |
+----------------+--------+----------+---------+
| | | _____ | _____ |
+----------------+--------+----------+---------+
| | | | |
+----------------+--------+----------+---------+
| Loss | | (5,999) | (201) |
| before | | | |
| tax | | | |
+----------------+--------+----------+---------+
| Income | 5 | 46 | 34 |
| tax | | | |
| credit | | | |
+----------------+--------+----------+---------+
| | | _____ | _____ |
+----------------+--------+----------+---------+
| | | | |
+----------------+--------+----------+---------+
| Loss | | (5,953) | (167) |
| for | | | |
| the | | | |
| period/year | | | |
+----------------+--------+----------+---------+
| | | _____ | _____ |
+----------------+--------+----------+---------+
| Attributable | | | |
| to: | | | |
+----------------+--------+----------+---------+
| - | | (5,317) | 285 |
| (Loss)/profit | | | |
| applicable to | | | |
| the parent's | | | |
| interest in | | | |
| the group | | | |
+----------------+--------+----------+---------+
| - | | (636) | (452) |
| Losses | | | |
| in the | | | |
| subsidiaries | | | |
| applicable | | | |
| to the | | | |
| minority | | | |
| interests in | | | |
| excess of | | | |
| the | | | |
| minorities' | | | |
| interests in | | | |
| the equity | | | |
| of those | | | |
| subsidiaries | | | |
+----------------+--------+----------+---------+
| | | _____ | _____ |
+----------------+--------+----------+---------+
| | | | |
+----------------+--------+----------+---------+
| Losses | | (5,953) | (167) |
| attributable | | | |
| to the | | | |
| equity | | | |
| holders of | | | |
| the parent | | | |
+----------------+--------+----------+---------+
| | | _____ | _____ |
+----------------+--------+----------+---------+
| | | | |
+----------------+--------+----------+---------+
| Basic | 4 | (2.9) | (0.1) |
| and | | | |
| diluted | | | |
| loss | | | |
| per | | | |
| share | | | |
| in | | | |
| pence | | | |
+----------------+--------+----------+---------+
| | | _____ | _____ |
+----------------+--------+----------+---------+
All amounts relate to continuing activities.
Consolidated Statement of Changes in Equity
For the 17 months ended 31 December 2008
+-----------------------------------------------------------------------+-----
---------+---------------+----------------+--------------+------------------+--
=----------+
|
| Share capital | Share premium | Merger reserve | Excess of | Retained
deficit | Total equity |
|
| | | | Minority
| | |
|
| | | |
interest in | | |
|
| | |
| losses over | | |
|
| |
| | their equity | | |
|
|
| | | interest in | |
|
| |
| | | subsidiaries |
|
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
|
| GBP000 | GBP000 | GBP000 | GBP000 |
GBP000 | GBP000
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
| 1 August 2006
| 606 | 1,575 | 757 | (340) |
(1,377) | 1,221
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
| Loss and total recognised income and expense for the year
| - | - | - | (452) |
285 | (167)
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
| Issue of shares for cash
| 345 | 2,935 | - | - |
- | 3,280
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
| Share issue costs
| - | (63) | - | - |
- | (63)
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
| Issue of shares to acquire minority interest
| 62 | - | 562 | 386 |
- | 1,010
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
| Share-based payment
| - | - | - | - |
87 | 87
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
|
| | | | |
|
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
| 31 July 2007
| 1,013 | 4,447 | 1,319 | (406) |
(1,005) | 5,368
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
| Loss and total recognised income and expense for the period
| - | - | - | (636) |
(5,317) | (5,953)
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
--------------+
| Adjustment to minority interest due to change in percentage
ownership | | | | 244 |
(244) | -
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
| Issue of shares for cash
| 30 | 255 | - | - |
- | 285
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
| Exercise of warrants
| 5 | 47 | - | - |
- | 52
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
| Share-based payment
| - | - | - | - |
130 | 130
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
|
| | | | |
|
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
| 31 December 2008
| 1,048 | 4,749 | 1,319 | (798) |
(6,436) | (118)
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
=-------------+
|
| | | | |
|
|
+-----------------------------------------------------------------------+--
------------+---------------+----------------+--------------+------------------
--------------+
Consolidated Balance Sheet
As at 31 December 2008
+----------------------+----------+----------+----------+
| | | As at 31 | As at 31 |
| | | December | July |
+----------------------+----------+----------+----------+
| | | 2008 | 2007 |
+----------------------+----------+----------+----------+
| | | GBP'000 | GBP'000 |
+----------------------+----------+----------+----------+
| Assets | | | |
+----------------------+----------+----------+----------+
| Non-current | | | |
| assets | | | |
+----------------------+----------+----------+----------+
| Property, | | 131 | 97 |
| plant and | | | |
| equipment | | | |
+----------------------+----------+----------+----------+
| Intangible | | 928 | 670 |
| assets | | | |
+----------------------+----------+----------+----------+
| Trade | | - | 568 |
| and | | | |
| other | | | |
| receivables | | | |
+----------------------+----------+----------+----------+
| | | _____ | _____ |
+----------------------+----------+----------+----------+
| | | 1,059 | 1,335 |
+----------------------+----------+----------+----------+
| | | _____ | _____ |
+----------------------+----------+----------+----------+
| Current | | | |
| assets | | | |
+----------------------+----------+----------+----------+
| Inventories | | 58 | 20 |
+----------------------+----------+----------+----------+
| Trade | | 961 | 756 |
| and | | | |
| other | | | |
| receivables | | | |
+----------------------+----------+----------+----------+
| Cash and | | 880 | 4,292 |
| cash | | | |
| equivalents | | | |
+----------------------+----------+----------+----------+
| | | _____ | _____ |
+----------------------+----------+----------+----------+
| | | 1,899 | 5,068 |
+----------------------+----------+----------+----------+
| | | _____ | _____ |
+----------------------+----------+----------+----------+
| Total | | 2,958 | 6,403 |
| assets | | | |
+----------------------+----------+----------+----------+
| | | _____ | _____ |
+----------------------+----------+----------+----------+
| Liabilities | | | |
+----------------------+----------+----------+----------+
| Non-current | | | |
| liabilities | | | |
+----------------------+----------+----------+----------+
| Borrowings | | (161) | (296) |
+----------------------+----------+----------+----------+
| Contingent | | (666) | - |
| consideration | | | |
+----------------------+----------+----------+----------+
| | | _____ | _____ |
+----------------------+----------+----------+----------+
| | | (827) | (296) |
+----------------------+----------+----------+----------+
| Current | | | |
| liabilities | | | |
+----------------------+----------+----------+----------+
| Trade | | (2,099) | (721) |
| and | | | |
| other | | | |
| payables | | | |
+----------------------+----------+----------+----------+
| Borrowings | | (150) | (18) |
+----------------------+----------+----------+----------+
| | | _____ | _____ |
+----------------------+----------+----------+----------+
| | | (2,249) | (739) |
+----------------------+----------+----------+----------+
| | | _____ | _____ |
+----------------------+----------+----------+----------+
| Total | | (3,076) | (1,035) |
| liabilities | | | |
+----------------------+----------+----------+----------+
| | | ____ | ____ |
+----------------------+----------+----------+----------+
| Net | | (118) | 5,368 |
| (liabilities)/assets | | | |
+----------------------+----------+----------+----------+
| | | ____ | ____ |
+----------------------+----------+----------+----------+
| Capital | | | |
| and | | | |
| reserves | | | |
| attributable | | | |
| to equity | | | |
| holders of | | | |
| the company | | | |
+----------------------+----------+----------+----------+
| Share | | 1,048 | 1,013 |
| capital | | | |
+----------------------+----------+----------+----------+
| Share | | 4,749 | 4,447 |
| premium | | | |
+----------------------+----------+----------+----------+
| Merger | | 1,319 | 1,319 |
| reserve | | | |
+----------------------+----------+----------+----------+
| Excess | | (798) | (406) |
| of | | | |
| minorities | | | |
| interest | | | |
| in losses | | | |
| over their | | | |
| equity | | | |
| interest | | | |
| in | | | |
| subsidiaries | | | |
+----------------------+----------+----------+----------+
| Retained | | (6,436) | (1,005) |
| deficit | | | |
+----------------------+----------+----------+----------+
| | | _____ | _____ |
+----------------------+----------+----------+----------+
| Total | | (118) | 5,368 |
| equity | | | |
+----------------------+----------+----------+----------+
| | | _____ | _____ |
+----------------------+----------+----------+----------+
Consolidated Cash Flow Statement
For the 17 months to 31 December 2008
+-----------------------------------+-------+----------+--------------+--------------+
| Consolidated Cash Flow |
+------------------------------------------------------------------------------------+
| | | 17 months | 12 months |
| | | ended 31 | ended |
| | | December | 31July |
+-----------------------------------+------------------+--------------+--------------+
| | Notes | 2008 | 2007 |
+-----------------------------------+------------------+--------------+--------------+
| | | GBP'000 | GBP'000 |
+-----------------------------------+------------------+--------------+--------------+
| Cash flows from operating activities | | |
+------------------------------------------------------+--------------+--------------+
| Loss before taxation | (5,999) | (201) |
+------------------------------------------------------+--------------+--------------+
| Adjustments for: | | | |
+-----------------------------------+------------------+--------------+--------------+
| - Depreciation and amortisation | | 160 | 175 |
+-----------------------------------+------------------+--------------+--------------+
| - Impairment charge | | 1,118 | 396 |
+-----------------------------------+------------------+--------------+--------------+
| - Share-based payments | | 130 | 87 |
+-----------------------------------+------------------+--------------+--------------+
| - Finance income | | (300) | (12) |
+-----------------------------------+------------------+--------------+--------------+
| - Finance expense | | 73 | 9 |
+-----------------------------------+------------------+--------------+--------------+
| - Goodwill disposal | | - | 595 |
+-----------------------------------+------------------+--------------+--------------+
| - Gain on disposal of | | - | (1,942) |
| subsidiaries | | | |
+-----------------------------------+------------------+--------------+--------------+
| | | ____ | ____ |
+-----------------------------------+------------------+--------------+--------------+
| Cash flows from operating activities before changes | (4,818) | (893) |
| in working capital and provisions | | |
+------------------------------------------------------+--------------+--------------+
| (Increase)/decrease in | | (38) | 48 |
| inventories | | | |
+-----------------------------------+------------------+--------------+--------------+
| Decrease/(increase) in trade and | | 671 | (784) |
| other receivables | | | |
+-----------------------------------+------------------+--------------+--------------+
| Increase in trade and other | | 989 | 363 |
| payables | | | |
+-----------------------------------+------------------+--------------+--------------+
| | | ____ | ____ |
+-----------------------------------+------------------+--------------+--------------+
| Cash flow from operating | | (3,196) | (1,266) |
| activities | | | |
+-----------------------------------+------------------+--------------+--------------+
| | | | |
+-----------------------------------+------------------+--------------+--------------+
| Corporation tax credit received | | 46 | 34 |
+-----------------------------------+------------------+--------------+--------------+
| | | ____ | _____ |
+-----------------------------------+------------------+--------------+--------------+
| Net cash used in operations | (3,150) | (1,232) |
+------------------------------------------------------+--------------+--------------+
| | | ____ | _____ |
+-----------------------------------+------------------+--------------+--------------+
| Cash flow from investing | | | |
| activities | | | |
+-----------------------------------+------------------+--------------+--------------+
| Purchase of property, plant and | | (593) | (110) |
| equipment | | | |
+-----------------------------------+------------------+--------------+--------------+
| Acquisition of subsidiary | | (583) | - |
+-----------------------------------+------------------+--------------+--------------+
| Cash acquired from acquisition of | | 293 | - |
| subsidiary | | | |
+-----------------------------------+------------------+--------------+--------------+
| Development costs | | - | (28) |
+-----------------------------------+------------------+--------------+--------------+
| Finance income | | 300 | 12 |
+-----------------------------------+------------------+--------------+--------------+
| | | ____ | _____ |
+-----------------------------------+------------------+--------------+--------------+
| Net cash used in investing activities | (583) | (126) |
+------------------------------------------------------+--------------+--------------+
| | | ____ | _____ |
+-----------------------------------+------------------+--------------+--------------+
| Cash flow from financing | | | |
| activities | | | |
+-----------------------------------+------------------+--------------+--------------+
| Issue of ordinary shares for cash | | 337 | 3,280 |
+-----------------------------------+------------------+--------------+--------------+
| Share issue costs | | - | (64) |
+-----------------------------------+------------------+--------------+--------------+
| Cash acquired through joint | | - | 1,835 |
| venture issuing shares for cash | | | |
+-----------------------------------+------------------+--------------+--------------+
| Loan proceeds | | - | 125 |
+-----------------------------------+------------------+--------------+--------------+
| Loan repayment | | - | (200) |
+-----------------------------------+------------------+--------------+--------------+
| Capital repayments of finance | | (7) | (26) |
| lease obligations | | | |
+-----------------------------------+------------------+--------------+--------------+
| Finance expense | | (18) | (5) |
+-----------------------------------+------------------+--------------+--------------+
| | | ____ | _____ |
+-----------------------------------+------------------+--------------+--------------+
| Net cash generated from financing | | 312 | 4,945 |
| activities | | | |
+-------------------------------------------+----------+--------------+--------------+
| | ____ | _____ |
+------------------------------------------------------+--------------+--------------+
| Net decrease in cash and cash equivalents | | (3,421) | 3,587 |
+-------------------------------------------+----------+--------------+--------------+
| Cash and cash equivalents at beginning of | | 4,292 | 705 |
| period/year | | | |
+-------------------------------------------+----------+--------------+--------------+
| | ____ | ____ |
+------------------------------------------------------+--------------+--------------+
| Cash and cash equivalents at end of | | 871 | 4,292 |
| period/year | | | |
+-------------------------------------------+----------+--------------+--------------+
| | ____ | ____ |
+-----------------------------------+-------+----------+--------------+--------------+
Notes to the Consolidated Financial Statements
For the 17 months to 31 December 2008
+----+--------------------+
| 1. | General |
| | Information |
+----+--------------------+
ADDleisure Plc ('the Company'), its subsidiaries and joint ventures (together
'the Group') develops products and services in the health and leisure sectors
and has its main centre of operation in the UK.
The Company is a public limited company which is listed on the AIM market of the
London Stock Exchange and is incorporated and domiciled in the UK. The address
of the registered office is Unit 10 Utopia Village, 7 Chalcot Road, London NW1
8LH.
+----+--------------------------------------------------------+
| 2. | Annual Accounts & Notice of Annual General Meeting |
+----+--------------------------------------------------------+
The abridged financial information set out herein has been extracted from
financial statements approved by the directors on 22 June 2009, and which will
be delivered to the Registrar of Companies following the Company's annual
general meeting. The auditors have reported on these accounts and their report
was unqualified and did not include references to any matters to which the
auditors drew attention by way of emphasis without qualifying their reports and
did not contain statements under the Companies Act 1985, s 237 (2) or (3).
The financial information does not constitute statutory accounts as defined in
section 240 of the Companies Act 1985 and has been prepared on the basis of the
accounting policies set out in the financial statement for the year ended 31
December 2008. The Annual Report and Financial Statement will be posted to
shareholders shortly and thereafter will be available from the Company's
registered office, and from the Company's website, www.addleisure.com.
The Annual General Meeting will be held at 10 a.m. on Wednesday 29 July 2009 at
the Company's registered address, 10, Utopia Village, 7 Chalcot Road, London NW1
8LH.
+----+--------------------------------------------------+
| 3. | Segmental Information |
+----+--------------------------------------------------+
The Group operates primarily within the UK and has 4 main business segments.
The segment results for the 17 months ended 31 December 2008 are as follows:
+----------------------+-----------+------------+------------+------------+---------+
| | | | | | 2008 |
+----------------------+-----------+------------+------------+------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------+-----------+------------+------------+------------+---------+
| | Fitbug | Movers & | Ez-Runner |Consulting | Total |
| | | Shapers | | | |
+----------------------+-----------+------------+------------+------------+---------+
| Revenue | 978 | 446 | 1,243 | 168 | 2,835 |
+----------------------+-----------+------------+------------+------------+---------+
| Segment results | (974) | (1,157) | (1,252) | 140 | (3,243) |
+----------------------+-----------+------------+------------+------------+---------+
| Unallocated | | | | | (2,983) |
| administrative | | | | | |
| expenses | | | | | |
+----------------------+-----------+------------+------------+------------+---------+
| Finance income | | | | | 300 |
+----------------------+-----------+------------+------------+------------+---------+
| Finance expense | | | | | (73) |
+----------------------+-----------+------------+------------+------------+---------+
| Loss before income | | | | | (5,999) |
| tax | | | | | |
+----------------------+-----------+------------+------------+------------+---------+
| Income tax | | | | | 46 |
+----------------------+-----------+------------+------------+------------+---------+
| Loss for the period | | | | | (5,953) |
+----------------------+-----------+------------+------------+------------+---------+
The segment results for the year ended 31 July 2007 are as follows:
+----------------+---------+---------+-----------+------------+---------+
| | | | | | 2007 |
+----------------+---------+---------+-----------+------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------+---------+---------+-----------+------------+---------+
| | Fitbug | Movers |Ez-Runner |Consulting | Total |
| | | & | | | |
| | |Shapers | | | |
+----------------+---------+---------+-----------+------------+---------+
| Revenue | 534 | 150 | 591 | 49 | 1,324 |
+----------------+---------+---------+-----------+------------+---------+
| Segment | (448) | (214) | (842) | 26 | (1,478) |
| results | | | | | |
+----------------+---------+---------+-----------+------------+---------+
| Unallocated | | | | | (668) |
| administrative | | | | | |
| expenses | | | | | |
+----------------+---------+---------+-----------+------------+---------+
| Gain | | | | | 1,942 |
| on | | | | | |
| disposal | | | | | |
| of | | | | | |
| subsidiaries | | | | | |
| to joint | | | | | |
| venture | | | | | |
+----------------+---------+---------+-----------+------------+---------+
| Finance | | | | | 12 |
| income | | | | | |
+----------------+---------+---------+-----------+------------+---------+
| Finance | | | | | (9) |
| expense | | | | | |
+----------------+---------+---------+-----------+------------+---------+
| Loss | | | | | (201) |
| before | | | | | |
| income | | | | | |
| tax | | | | | |
+----------------+---------+---------+-----------+------------+---------+
| Income | | | | | 34 |
| tax | | | | | |
+----------------+---------+---------+-----------+------------+---------+
| Loss | | | | | (167) |
| for | | | | | |
| the | | | | | |
| year | | | | | |
+----------------+---------+---------+-----------+------------+---------+
Other segment items included in the income statement are as follows:
+--------------+---------+---------+-----------+-------------+---------+
| | | | | | 2008 |
+--------------+---------+---------+-----------+-------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------+---------+---------+-----------+-------------+---------+
| | Fitbug | Movers |Ez-Runner | Unallocated | Total |
| | | & | | | |
| | |Shapers | | | |
+--------------+---------+---------+-----------+-------------+---------+
| Depreciation | 5 | 76 | 27 | 52 | 160 |
| | | | | | |
+--------------+---------+---------+-----------+-------------+---------+
| Amortisation | - | - | - | - | - |
| | | | | | |
+--------------+---------+---------+-----------+-------------+---------+
| Impairment | 322 | 750 | 46 | - | 1,118 |
| of | | | | | |
| intangible | | | | | |
| assets and | | | | | |
| property, | | | | | |
| plant and | | | | | |
| equipment | | | | | |
| (note 14) | | | | | |
+--------------+---------+---------+-----------+-------------+---------+
+--------------+---------+---------+-----------+-------------+---------+
| | | | | | 2007 |
+--------------+---------+---------+-----------+-------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------+---------+---------+-----------+-------------+---------+
| | Fitbug | Movers |Ez-Runner | Unallocated | Total |
| | | & | | | |
| | |Shapers | | | |
+--------------+---------+---------+-----------+-------------+---------+
| Depreciation | 4 | 10 | 3 | 40 | 57 |
| | | | | | |
+--------------+---------+---------+-----------+-------------+---------+
| Amortisation | 64 | - | 57 | - | 121 |
| | | | | | |
+--------------+---------+---------+-----------+-------------+---------+
| Impairment | - | - | 390 | - | 390 |
| of | | | | | |
| goodwill | | | | | |
+--------------+---------+---------+-----------+-------------+---------+
+----------+---------+---------+
| Analysis | 2008 | 2007 |
| of | | |
| revenue | | |
| by | | |
| category | | |
+----------+---------+---------+
| | GBP'000 | GBP'000 |
+----------+---------+---------+
| Sale | 2,185 | 1,224 |
| of | | |
| services | | |
+----------+---------+---------+
| Sale | 650 | 100 |
| of | | |
| goods | | |
+----------+---------+---------+
Segment assets consist primarily of property, plant and equipment, intangible
assets, inventories, trade and other receivables, and cash & cash equivalents.
Unallocated assets primarily comprise cash & cash equivalents, trade & other
receivables.
Segment liabilities comprise operating liabilities. Unallocated liabilities
comprise items such as trade & other payables, interest bearing loans & other
borrowings.
Capital expenditure comprises additions to property, plant and equipment.
The segment assets and liabilities at 31 December 2008 and capital expenditure
for the period then ended are as follows:
+-------------+---------+---------+-----------+------------+---------+
| | | | | | 2008 |
+-------------+---------+---------+-----------+------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------+---------+---------+-----------+------------+---------+
| | Fitbug | Movers |Ez-Runner | Consulting | Total |
| | | & | | | |
| | |Shapers | | | |
+-------------+---------+---------+-----------+------------+---------+
| Total | 354 | 191 | 1,842 | 182 | 2,569 |
| assets | | | | | |
+-------------+---------+---------+-----------+------------+---------+
| Total | (458) | (418) | (1,513) | (8) | (2,397) |
| liabilities | | | | | |
+-------------+---------+---------+-----------+------------+---------+
| Capital | 5 | 498 | 18 | 65 | 586 |
| expenditure | | | | | |
+-------------+---------+---------+-----------+------------+---------+
Segment assets and liabilities are reconciled to entity assets and liabilities
as follows:
+--------------------+--------+-------------+
| | Assets | Liabilities |
+--------------------+--------+-------------+
| Segment | 2,569 | (2,397) |
| assets/liabilities | | |
+--------------------+--------+-------------+
| Unallocated | 389 | (679) |
| (cash, | | |
| borrowings, | | |
| etc): | | |
+--------------------+--------+-------------+
| Total | 2,958 | (3,076) |
+--------------------+--------+-------------+
The segment assets and liabilities at 31 July 2007 and capital expenditure for
the year then ended are as follows:
+-------------+---------+---------+-----------+------------+---------+
| | | | | | 2007 |
+-------------+---------+---------+-----------+------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------+---------+---------+-----------+------------+---------+
| | Fitbug | Movers |Ez-Runner | Consulting | Total |
| | | & | | | |
| | |Shapers | | | |
+-------------+---------+---------+-----------+------------+---------+
| Total | 1,031 | 427 | 334 | 77 | 1,869 |
| assets | | | | | |
+-------------+---------+---------+-----------+------------+---------+
| Liabilities | (142) | (57) | (485) | (19) | (703) |
+-------------+---------+---------+-----------+------------+---------+
| Capital | 38 | 94 | 6 | - | 138 |
| expenditure | | | | | |
+-------------+---------+---------+-----------+------------+---------+
Segment assets and liabilities are reconciled to entity assets and liabilities
as follows:
+--------------------+---------+-------------+
| | | 2007 |
+--------------------+---------+-------------+
| | Assets | Liabilities |
+--------------------+---------+-------------+
| | GBP'000 | GBP'000 |
+--------------------+---------+-------------+
| Segment | 1,869 | (703) |
| assets/liabilities | | |
+--------------------+---------+-------------+
| Unallocated | 4,534 | (332) |
| (cash, | | |
| borrowings, | | |
| etc): | | |
+--------------------+---------+-------------+
| Total | 6,403 | (1,035) |
+--------------------+---------+-------------+
+-----+--------------------------------------------------+
| 4. | Loss per share |
+-----+--------------------------------------------------+
Basic loss per share
The calculation of the basic loss per share is based on the loss attributable to
ordinary shareholders of the parent divided by the weighted average number of
shares in issue during the period. For diluted loss per share, the weighted
average number of ordinary shares in issue would be adjusted to reflect the
impact of conversion of dilutive potential ordinary shares. At 31 December 2008
there were 27,461,359 warrants and 11,251,414 share options which could be
potentially dilutive in the future, but as they are currently anti-dilutive,
they have been excluded from the following calculations.
Adjusted (loss)/earnings per share
The loss attributable to the equity holder of the parent has been increased by
the losses attributable to the shares owned by the minority interest that have
been re-allocated to the parent in accordance with IAS 27. An alternative
earnings per share has been calculated that shows the loss attributable to the
parent's percentage interest in the equity of the Group.
+-------------------------------------------------------------+----+----------------------+----+----+----------+
| | 17 months to | 12 | |
| | December 31 | months | |
| | | to July | |
| | | 31 | |
+------------------------------------------------------------------+----------------------+---------+----------+
| | 2008 | 2007 | |
+------------------------------------------------------------------+----------------------+---------+----------+
| | GBP000 | GBP000 | |
+------------------------------------------------------------------+----------------------+---------+----------+
| Loss for the period attributable to the equity holders of the | (5,953) | (167) | |
| parent | | | |
+------------------------------------------------------------------+----------------------+---------+----------+
| Add back the minoritys share of losses in subsidiaries that | 636 | 452 | |
| have been re-allocated to the equity holders of the parent | | | |
+------------------------------------------------------------------+----------------------+---------+----------+
| | _____ | _____ | |
+------------------------------------------------------------------+----------------------+---------+----------+
| Adjusted (loss)/profit for the period attributable to the equity | (5,317) | 285 | |
| holders of the parent | | | |
+------------------------------------------------------------------+----------------------+---------+----------+
| | ____ | ____ | |
+------------------------------------------------------------------+----------------------+---------+----------+
| Weighted average number of equity shares | 208,575,347 | 124,444,247 |
+-------------------------------------------------------------+--------------------------------+---------------+
| Basic and diluted loss per share in pence | (2.9) | (0.1) |
+-------------------------------------------------------------+--------------------------------+---------------+
| Adjusted basic and diluted (loss)/earnings per share in | (2.5) | 0.2 |
| pence | | |
+-------------------------------------------------------------+----+----------------------+----+----+----------+
As of 22 June 2009, no shares have been issued since 31 December 2008.
+----+-------------------------------------------------------------+
| 5. | Taxation |
+----+-------------------------------------------------------------+
+-------------+---------+---------+
| | 2008 | 2007 |
+-------------+---------+---------+
| | GBP'000 | GBP'000 |
+-------------+---------+---------+
| Current | - | - |
| tax on | | |
| losses | | |
| of the | | |
| period | | |
+-------------+---------+---------+
| Adjustment | (46) | (34) |
| in respect | | |
| of | | |
| previous | | |
| period | | |
+-------------+---------+---------+
| | ____ | ____ |
+-------------+---------+---------+
| Current | (46) | (34) |
| tax | | |
| credit | | |
+-------------+---------+---------+
| Deferred | - | - |
| tax | | |
+-------------+---------+---------+
| | ____ | ____ |
+-------------+---------+---------+
| Credit | (46) | (34) |
| for | | |
| the | | |
| period/year | | |
+-------------+---------+---------+
The tax assessed for the period differs from the applicable rate of corporation
tax in the UK. The differences are explained below:
+---------------+---------+---------+
| | 2008 | 2007 |
+---------------+---------+---------+
| | GBP'000 | GBP'000 |
+---------------+---------+---------+
| Loss | (5,999) | (201) |
| before | | |
| tax | | |
+---------------+---------+---------+
| | ____ | _____ |
+---------------+---------+---------+
| Loss at | (1,200) | (60) |
| the | | |
| applicable | | |
| rate of | | |
| corporation | | |
| tax in the | | |
| UK | | |
| operation | | |
| 2830% | | |
| (2007: 30%) | | |
+---------------+---------+---------+
| Effects | | |
| of: | | |
+---------------+---------+---------+
| Gain | - | (589) |
| not | | |
| taxable | | |
+---------------+---------+---------+
| Expenses | 32 | 35 |
| not | | |
| deductible | | |
| for tax | | |
| purposes | | |
+---------------+---------+---------+
| Research | (46) | (34) |
| and | | |
| development | | |
| tax credit | | |
| claim | | |
+---------------+---------+---------+
| Goodwill | 577 | 125 |
| amortisation | | |
| and | | |
| impairment | | |
+---------------+---------+---------+
| Tax | - | 264 |
| losses | | |
| disposed | | |
| with | | |
| subsidiaries | | |
+---------------+---------+---------+
| Tax | 554 | 225 |
| losses | | |
| carried | | |
| forward | | |
+---------------+---------+---------+
| Unwinding | 10 | - |
| of | | |
| contingent | | |
| consideration | | |
| discount | | |
+---------------+---------+---------+
| Depreciation | 27 | - |
| in excess of | | |
| capital | | |
| allowances | | |
+---------------+---------+---------+
| | ____ | ____ |
+---------------+---------+---------+
| Income | (46) | (34) |
| tax | | |
| credit | | |
| for | | |
| the | | |
| period | | |
+---------------+---------+---------+
Subject to the agreement of HM Revenue and Customs, the Group has tax losses of
approximately GBP4,170,000 (2007: GBP1,600,000) to carry forward against future
taxable profits. The Group has not recognised a deferred tax asset due to there
being insufficient evidence of short term recoverability.
+----+-------------------------------------------------------------+
| 6. | Post-balance sheet events |
+----+-------------------------------------------------------------+
On 1 April 2009, the Group announced a restructuring. ADD Wellness Holdings
Limited, the joint venture company with Bupa, and its wholly owned subsidiary,
Movers and Shapers Limited were placed into administration. On the same day
ADDLeisure plc purchased the entire share capital of Fitbug Limited from the ADD
Wellness administrator for GBP1 and the intercompany loan account from ADD
Wellness to Fitbug of GBP3,473,000 for GBP250,000.
At 31 March 2009 the provisional net liabilities of Fitbug were:
+---------------------------------+--------------+--------------+
| Fitbug Limited | GBP000 | GBP000 |
| Acquisition | | |
| | | |
+---------------------------------+--------------+--------------+
| Fair value of assets acquired | | |
+---------------------------------+--------------+--------------+
| | | |
+---------------------------------+--------------+--------------+
| Fixed assets | 128 | |
+---------------------------------+--------------+--------------+
| Inventories | 76 | |
+---------------------------------+--------------+--------------+
| Debtors | 442 | |
+---------------------------------+--------------+--------------+
| Bank deposits | 228 | |
+---------------------------------+--------------+--------------+
| Creditors | (4,886) | |
+---------------------------------+--------------+--------------+
| | | |
+---------------------------------+--------------+--------------+
| Net liabilities | | (4,012) |
+---------------------------------+--------------+--------------+
| | | |
+---------------------------------+--------------+--------------+
| | | |
+---------------------------------+--------------+--------------+
| Consideration paid | | |
+---------------------------------+--------------+--------------+
| Cash payments | | nil |
+---------------------------------+--------------+--------------+
| | | |
+---------------------------------+--------------+--------------+
| | | |
+---------------------------------+--------------+--------------+
| Excess of consideration paid | | (4,012) |
| over | | |
| net liabilities | | |
+---------------------------------+--------------+--------------+
| | | |
+---------------------------------+--------------+--------------+
Following the reconstruction of the Group on 1 April 2009 a loan of GBP1,000,000
was raised from Bupa, GBP800,000, and Allan Fisher and David Turner each loan
GBP100,000. The loan is for 3 years with interest at 5% above LIBOR and all
interest is to be rolled up until repayment of the loan in full or part.
The acquisition of ClubRunner was not completed until 31 March 2009 at which
time the consideration shares were issued. As a consequence, ADDleisure's
shareholding in Digital/Ez-Runner was: -
50.2% 1 August to 7 October 2008
66.9% 8 October to 31 March 2009
50.2% 1 April 2009 onwards
As a result of the above the value of minority interest is affected, moving to
33.1% for the period 8 October 2008 to 31 March 2009 and then reverting to 49.8%
with effect from 1 April 2009.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR ZGGZVFFGGLZM
Addleisure (LSE:ADE)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Addleisure (LSE:ADE)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
