Preliminary Results
28 Febrero 2007 - 1:03AM
UK Regulatory
RNS Number:9927R
Betbrokers PLC
28 February 2007
Press Release 28 February 2007
Betbrokers plc
("Betbrokers" or "the Company")
Preliminary Results
Betbrokers plc, (AIM: BETB), the UK's first retail and wholesale brokerage and
clearing house for the sports betting industry, announces today the Preliminary
Results for its wholly owned operating subsidiary Betbroker Limited for the 12
months to 31 December 2006.
Highlights
- Commission revenues of over #1 million in the first full year of trading.
- Over 30,000 deals matching #28.5 million of betting transactions.
- During the year #0.375 million has been invested into the BrokerBet 2
bespoke trading software now fully implemented
- Successfully raised #2.5 million (before expenses) on Admission to AIM on
1 November 2006
- Net cash at year end #2.1 million (2005: #1.3 million)
Commenting on the Preliminary Results, Wayne Lochner, Chairman and Chief
Executive of Betbrokers plc, said: "2006 has been an exciting year for the
Company, a year of strong growth coupled with the successful IPO on AIM in
November.
"The sports betting industry is growing strongly with Betbrokers benefiting from
this and building on its first mover advantage by offering a unique proposition
that we believe will change the dynamics of the industry for the better.
"2007 will be another year of significant growth for Betbrokers and I am
confident that our innovative and targeted marketing activities will further
drive client acquisition. We have a firm strategy in place to take the Company
to the next stage of its development and look forward to sharing our future
success with shareholders."
- Ends -
For further information, please contact:
Betbrokers plc
Wayne Lochner, Chairman and Chief Executive Tel: +44 (0) 8448552100
wlochner@betbrokers.com www.betbrokers.com
HansonWesthouse
Tim Metcalfe Tel: +44(0) 20 7601 6100
tim.metcalfe@hansonwesthouse.com www.hansonwesthouse.com
Media enquiries:
Abchurch
Chris Lane / Franziska Bohnke Tel: +44 (0) 20 7398 7716
franziska.boehnke@abchurch-group.com www.abchurch-group.com
Chairman and CEO's statement
Business update
2006 was an exciting and dynamic year for Betbrokers, proving beyond any doubt
that there is a strong demand for our services. We have successfully
capitalised on this demand as demonstrated by our growing number of retail and
wholesale clients. The Company has achieved all of its objectives for 2006,
culminating in the successful flotation of Betbrokers plc on AIM in November.
Betbrokers has witnessed exponential growth in 2006. The Company now has over
100 bookmakers and exchanges using its services, many for hedging purposes,
whilst we have secured over 600 retail clients. All of these new customers are
now taking advantage of our single account clearing system and benefiting from
access to better prices and bigger volumes.
As envisaged in the original business plan, Betbrokers has instigated
significant change to the number and profile of its client base over the past 18
months. The planned improvements to our IT systems and in particular the
upgrade from BrokerBet 1 to BrokerBet 2 was completed successfully, thereby
maximising the opportunities and services to our clients. BrokerBet 2 runs real
time data on our markets and clients' accounts, which allows our clients to view
their single account activities and balances online, whilst at the same time
allowing our traders to see the real time value of their client's positions.
This empowers our traders to advise our clients on the current value of their
positions and what action they could potentially take to maximise their returns.
There have been countless occasions when the 'in running' prices of a given
event have moved to the point where profits have been taken by our clients on
bets which ultimately would have been lost on the final outcome of the event.
We have grown our client base steadily and carefully in order to ensure our
ability to always provide the best service to all our clients, both retail and
wholesale. We now have the critical mass, the IT systems, the relationships and
the experience to manage greater numbers of clients. To this end, we are
focused this year on client acquisition.
Markets
The gaming sector is constantly evolving. Markets throughout the world have
seen phenomenal growth in volumes with greater numbers of ex-financial traders
joining the growing ranks of professional traders now involved in the sports
betting industry. Betbrokers' services were designed to meet the demands of
this 'new' financial market and the needs of the professional traders, sports
bettors and bookmakers who operate within it. Betbrokers is well positioned to
benefit from these industry developments.
The UK Government and the European Parliament have continued to take positive
moves towards regulating and encouraging professional and responsible sports
betting and the UK is being established by the UK Government as a centre of
excellence. Our base in the UK places the Company in a prime position to take
advantage of this change.
Strategy
Our marketing is focussed on enhancing brand awareness and client acquisition.
We regularly sponsor industry events and horse races along with advertising and
advertorials, all of which are increasing brand awareness. At the same time our
client acquisition focuses on two main areas. Firstly, we have secured a
strategically important two-year advertising agreement with the leading industry
publication "The Racing Post". Under this agreement Betbrokers is able to place
prominent advertisements in the two centre slots of the newly created market
pages, which are laid out in the same style as the stock market pages of the
Financial Times. The placing of our advertisements positions us as a neutral
broker, providing access to the best prices through a single account.
Secondly, another route to securing clients is through our referral scheme which
is being launched shortly. Referrals have proved to be the most successful
method of client acquisition and we believe we can encourage this further with
the help of our ambassadors. We have further increased the number of our
ambassadors who now include Mike Catt, Phil Tuffnell and Barry McGuigan, in
addition to Alan Ball, Les Ferdinand, Paul Ince, Vinnie Jones, Laura Davies,
John Virgo, Lester Piggott and Nasser Hussein. Through their services we have
been able to recruit a growing number of sport personalities to our services.
Moreover, our referral scheme will offer our clients direct access to our
ambassadors as a reward for introducing clients to Betbrokers. We believe this
'money can't buy' incentive will prove very successful.
In addition, the international profile of our clients is growing and whilst we
will continue to focus on the UK we are making inroads into Asia, Russia and
Africa. In doing so, we are always sensitive to local laws and regulations.
A recent marketing trip to Russia has found that retail and wholesale clients
are facing the same challenges as our UK clients. There is a need for single
accounts and access to prices in larger amounts with wholesale clients seeking
additional access to prices for hedging and risk management. Our plans for
Russia are still in their early stages but it is very encouraging to see that
our services are in demand throughout the world. We will only enter new markets
once they have been successfully tested.
Outlook
The next stage of our development will be to offer an online service to our
clients who wish to place smaller bets. This service will allow retail clients
to place bets with wholesale clients offering the single account and better
prices to a broader range of clients. We envisage the launch of this service to
be in the third quarter of this year.
The focus for 2007 is to roll out our services to a greater number of clients
and expand geographically. We will then provide the next generation of services
to our clients in order to meet the growing demands of the global sports betting
industry which I believe will soon demonstrate the characteristics of
traditional financial markets.
Wayne Lochner
Chairman and CEO
28 February 2007
Betbroker Limited - Profit and Loss statement
For the Year Ended 31 December 2006
2006 2005
#000 #000
Revenue 1,064 37
Cost of Sales (302) (5)
Gross Profit 762 32
Administrative expenses (3,046) (920)
Operating Loss (2,284) (888)
Bank Interest Received 39 6
Loss before taxation (2,245) (882)
Taxation - -
Net loss for year (2,245) (882)
Losses brought forward (2,031) (1,149)
Losses carried forward (4,276) (2,031)
All of the results derive from continuing operations during the current and
previous year.
There were no recognised gains and losses in the current and previous year other
than those reported above.
Betbroker Limited- Balance Sheet
As at 31 December 2006
2006 2005
#000 #000
Assets 534 135
Current Assets 1,558 505
Cash and cash equivalents 2,155 1,304
Total current assets 3,713 1,809
Total assets 4,247 1,944
Current liabilities (1,545) (1,059)
Total current liabilities (1,545) (1,059)
Net assets 2,702 885
Capital & Reserves 2,702 885
Betbroker Limited - Cashflow statement
For the year ended 31 December 2006
2006 2005
#000 #000
Cash flows from operating activities
Operating Loss (2,284) (888)
Share based payments 612 50
Depreciation 78 13
Share capital financed by barter transaction of fair 393 103
value
Changes in trade and other receivables (1,175) (445)
Changes in trade and other payables 1,340 619
Net Cash flow from Operating Activities (1,036) (548)
Cash flow (used in)/from investing activities
Interest received 39 5
Purchase of tangible fixed assets (476) (142)
Net cash used (used in) /from investing activities (1,473) (685)
Cash flow from financing activities
Issue of share capital for cash 2,365 1,352
Cash received in advance of shares 362
Net increase/(decrease) in cash and cash equivalents 892 1,029
for the year
Cash and cash equivalents at beginning of year 1,264 235
Cash and cash equivalents at end of year 2,156 1,264
Note:
The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 December within the meaning of Section
240 of the Companies Act 1985. Those 2005 financial statements, which were
prepared under IFRS, have been reported on by the Company's auditors and
delivered to the Registrar of Companies. The report of the auditors was
unqualified within the meaning of Section 235 of the Companies Act 1985 and did
not contain statements under Section 237(2) or (3) of the Companies Act 1985.
These accounts were delivered to the Registrar of Companies following the Annual
General Meeting. The statutory accounts for 2006, which are currently being
prepared under International Financial Reporting Standards (IFRS) will be
finalised on the basis of the financial information presented by the directors
in this preliminary announcement and will be delivered to the Registrar of
Companies in due course. We do not expect there to be any material change to
these figures.
-Ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEIFUWSWSEFE
Betbrokers (LSE:BETB)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Betbrokers (LSE:BETB)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024