TIDMGILD
RNS Number : 0594A
Guild Esports PLC
31 January 2022
Press release
31 January 2022
Guild Esports PLC
("Guild Esports", "Guild", or "the Company")
Annual Results
Guild Esports PLC, a UK-based owner and developer of esports
teams (LSE: GILD, OTCQB: GULDF), is pleased to announce its audited
full-year results from 1 October 2020 to 30 September 2021. All
figures are in GBPmillions (GBPm).
Highlights
-- Raised GBP20m before expenses via a flotation on the London
Stock Exchange on 2 October 2020 to scale the business from
start-up phase to full commercial operations
-- Established a strong global fan base with a network audience
of more than 14.6 million and an owned audience exceeding 1 million
(2020: 25,000)
-- Signed sponsorship deals with world-class consumer brands
Subway, Samsung and HyperX with a total combined contracted revenue
of GBP3.9m over the lifetime of the deals
-- Created five professional esports teams including an
all-female roster for Valorant, comprising a total player count of
19
-- Won two major trophies in Fortnite and one in Rocket League tournaments
-- In May 2021 launched the Guild Academy, the world's most
advanced online portal to nurture budding pro-stars and create a
sustainable pool of talent for the Company
-- Annual revenues increased to GBP1.9m (2020: GBPnil)
reflecting significant contribution from sponsorship income in the
second half despite termination of a large contract by Guild
-- Pre-tax loss of GBP8.8m (2020: GBP2.7m), reflecting major
investment across the business to drive long-term growth
-- Adjusted cash* amounted to GBP11.2m as at financial year end
Post-Period Highlights
-- Signed a GBP4.5m three-year sponsorship deal with BitStamp in
January 2022, the largest contract to date, and 25% more than the
contract terminated by Guild in October 2021 which BitStamp
replaces
-- Launched Apex Legends Team, the Company's sixth pro-team, to
compete in the free-to-play shooter that has a 100 million
worldwide audience, bringing the roster count to 22 players
-- Won fourth major trophy at a prestigious Fortnite tournament in November
-- Shares listed on the USA's OTC market to broaden investor base in North America
-- Signed 10-year lease for Guild Academy and headquarters in
London's Shoreditch, which is expected to become a significant
commercial asset
Outlook
-- Robust pipeline of potential sponsors with several deals at advanced stages of negotiations
-- Confidence in delivering strong growth in sponsorship
revenues with total contracted revenues of GBP8.4m to date and a
current annualised run rate at GBP3.1m for the year ending 30
September 2022
-- Expanding roster of top players means Guild is
well-positioned to achieve high rankings in tournaments and
increase its fan-following further
-- Network audience continues to grow rapidly and on track to broadly double again this year
*Calculated as cash at bank, less trade creditors, accruals and
other taxation, add trade debtors, accrued revenue and VAT
recoverable
Commenting on the results, Guild's Chief Executive Officer, Kal
Hourd, said: "We've made good progress amid challenging trading
conditions in our first full year of operations as a publicly
listed company.
Our network audience and fan base has grown exponentially,
making us the fastest growing esports team organisation in Europe.
The major investment made across the business to scale up our
activities has enabled us to establish a strong foundation for
long-term revenue growth and resulted in three global sponsorship
deals.
We have entered the new year with strong momentum and recently
clinched our fourth and largest sponsorship deal to date. With
Guild performing well operationally, I am confident that the hard
work and investment made thus far will translate into significant
improvements in revenue and value creation and I look forward to
the future with great confidence."
The annual report and accounts will be available for download
from the Company's website (www.guildesports.com) later today.
For further information please contact:
Guild Esports
Kal Hourd via Tancredi +44 207 887
Chief Executive 7633
Neil Thapar
Investor Relations
+44 7876 455 323
-------------------------
Tennyson Securities
-------------------------
Corporate Broker
Peter Krens +44 207 186 9030
-------------------------
Zeus Capital
-------------------------
Corporate Broker
Benjamin Robertson +44 203 829 5000
-------------------------
Tancredi Intelligent Communication
Media Relations
-------------------------
Salamander Davoudi
Emma Valgimigli +44 7957 549 906
Helen Humphrey +44 7727 180 873
guild@tancredigroup.com +44 7449 226 720
-------------------------
About Guild Esports:
Guild Esports PLC is a global fan-focused team organisation and
lifestyle brand that fields professional players in gaming
competitions under the Guild banner. Our in-house training academy
aims to attract and nurture the best esports talent, and our goal
is to provide the ultimate entertainment experience alongside a
distinctive lifestyle brand authentic to the esports community
worldwide. Guild is led by an experienced management team of
esports veterans and co-owned by David Beckham. The Company is
headquartered in the UK and its shares are listed on the main
market of the London Stock Exchange (ticker: GILD) and on the OTCQB
Venture Market in the United States (ticker: GULDF). Please visit
www.guildesports.com for more information.
Chairman's statement
I am pleased to report Guild's maiden full year results since
its flotation on the London Stock Exchange on 2 October 2020. The
period under review saw Guild rapidly scale from start-up phase to
full commercial operations as part of its growth strategy to become
one of the world's leading esports team organisations in the next
few years.
Despite the challenges of building a new business amid a global
pandemic, good progress was made across the business to fulfil that
vision.
The Company generated revenues of GBP1.9m (2020: GBPnil) as it
benefitted from first-time contributions from sponsorship deals
signed earlier in the year. The loss before tax increased to
GBP8.8m (2020: GBP2.7m) which reflects a major investment in
operational infrastructure, esports teams, the Guild Academy,
content creation and the development of Guild merchandising. This
investment is fundamental to Guild's business model and long-term
strategy. It enabled the Company to deliver exponential growth in
its fan base and total audience network in 2021, making it the
fastest growing esports teams organisation in Europe.
Our growing audience of young and hard-to-reach consumers is a
powerful magnet for global brands and sponsors as evidenced by the
quality of the sponsorship deals signed with Subway, Samsung and
Hyper X during the year, followed by BitStamp, a leading
cryptocurrency exchange, in January 2022. I am proud that we have
gained the trust of such marque brands as our sponsorship partners
in a relatively short time.
Guild is still at an early stage in its growth and also well
placed to benefit from long term industry fundamentals driving the
esports sector worldwide. In terms of market size, the electronic
games sector is larger than the Hollywood movie and music
industries combined, as well as one of the fastest growing leisure
and entertainment activities pursued by mainstream consumers. The
recent $69bn cash takeover bid by Microsoft for Activision reflects
how leading consumer facing technology giants see the industry's
long-term prospects.
Guild's own investment in the business in 2021 provides a solid
platform for long term growth and build media value necessary to
drive sponsorship revenue in the year ahead and beyond. Our new
business pipeline remains robust and we are at an advanced stage of
negotiations with multiple partners which provides great confidence
for Guild's prospects.
As a young teams organisation, Guild's fast growing audience of
keen and loyal fans is the life blood of the Company. Our expanding
roster of pro-players achieved notable success in several major
tournaments and their continued success is of great pride for all
Guild fans and supporters alike.
We are confident that we have laid the foundation to provide
tremendous value to our brand partners and as well as create
long-term shareholder value.
Our staff numbers have increased from just a handful to more
than 35 full-time staff at present and I commend all our employees,
players and partners for their hard work and dedication which has
positioned the Company for growth in the years ahead.
Mr D Lew
Non-Executive Chairman
......................
Operational review
Good progress was made in our first full year, with growth in
operations, esports, the launch of the Guild academy, and a growing
fanbase which generates the media value needed to attract brand
sponsors and generate revenue for the Company.
The esports sector grew by 14.5 per cent in 2021 and is now a
$1bn industry. The growth is expected to continue according to
Newzoo and is predicted to reach $1.6bn by 2024. Total viewing
audience is estimated to increase from more than 400 million to
approximately 650 million in the same period.
Sponsorship
Guild secured three sponsorships totalling contracted revenues
of GBP3.9m since its stock market debut with leading high-profile
brands in their respective industry sectors.
Hyper X, a leading gaming peripherals brand recently acquired by
HP Inc from Kingston Technologies, which has a long association
with the esports sector, became Guild's exclusive peripherals
partner in Jan 2021. As part of the two-year agreement, HyperX
products will be used by our pro-players, content-creators and
academy students as well as to fit out our London headquarters.
Subway, the world's largest submarine sandwich franchise signed
as a main sponsor March 2021, becoming Guild's Official
Quick-Service Restaurant Partner as well as an Official Academy
Partner of Guild Esports in more than 50 EMEA markets. The
agreement provides Subway marketing exposure on Guild's team
jersey, bespoke branded content, its London headquarters, and
player and content creator channels, along with exclusive esports
activations.
In June 2021, Guild signed with Samsung, world-leader in
transformative technologies, as its Official Display Partner. The
agreement provides best-in-class products for our players, content
creators, academy students and the London Headquarters and will
provide exposure for Samsung across Guild's digital and social
eco-system.
Together these sponsorship deals have laid a strong foundation
for growth in sponsorship revenues from this year following their
first-time contribution to revenues in the second half of 2021.
The Company's pipeline of new business from other potential
sponsors and advertisers has also strengthened significantly.
Discussions are currently at an advanced stage with several such
prospects. These potential sponsors are engaged in multiple
industries and have shown great interest in partnering with Guild
as we emerge as a leading esports brand and expand our audience in
a rapidly growing esports sector.
In October 2021, Guild announced the termination of a
sponsorship deal with a European Fintech company totalling GBP3.6m
over three years. Despite working with the brand for over a year
through their financial difficulties induced by Covid-19, Guild
took the decision to cancel the deal due to lack of certainty of
their launch date, and delay in contractual payments. Guild's
robust pipeline and growing interest from a range of other fintech
prospects gave comfort that a replacement would be secured
soon.
Although termination of the contract held back our revenue
growth in 2021 we bounced back with a substantially larger GBP4.5m
sponsorship deal with BitStamp in January 2022, which will start
making a significant contribution to revenues in the current year.
BitStamp is one of the world's longest established cryptocurrency
exchanges, and has also opened up potentially further opportunities
in the fintech sector. Taking this win into account, the total
contracted revenues at the date of this report is GBP8.4m.
Rapidly growing audience
Guild is building its endemic audience through the creation of
original content, signing of top-tier players and working with
influencers and content creators, with David Beckham's social posts
bringing in fans from different segments. Guild's fanbase and
social reach has grown significantly, with Guild's owned audience
making the Company the fastest growing esports organisation in
Europe in 2021.
Subscribed fans in 2021 exceeded 1.1 million, video views
surpassed 38.5 million, and social impressions of almost 500
million. With the Company's roster of players and content-creators,
Guild has a network audience with direct access to over 14.6
million fans (not including David Beckham's own followers) via
social media posts, an essential and attractive asset for potential
sponsors.
30 September 30 September
2021 2020
Sponsorships
Partnership revenues
- earned during the year GBP1.0m -
Contracted partnerships
- total contracted sponsorship GBP7.5m -
revenue to date*
Viewership
Guild fans
- Individuals who have opted into
Guild channels (e.g. YouTube, Instagram,
Twitter, Twitch etc.) 1.1m 25k
Guild network
- Individuals subscribed to the
network of Guild teams, influencers
and content creators 14.6m 0.5m
- Guild social reach on David Beckham's
channels 127.7m 123.0m
Social impressions
- Display of Guild content on individuals'
social feeds 472.7m 7.6m
Video views
- Views of videos on Guild channels 38.5m 0.6m
Viewership of Guild events
- Views of live Guild events (online) 1m+ 148k
*Subsequent to the year end, on 22 October 2021, Guild terminated
a GBP3.6m, three-year sponsorship deal with a European fintech company
following delays in the sponsor's launch and the payment of sums due
under the contract. On 18 January 2022, Guild signed a GBP4.5m, three-year
sponsorship deal with BitStamp - one of the world's longest-running
crypto exchanges. The total contracted revenues at the date of this
report is GBP8.4m.
This is in addition to brand exposure provided by media coverage
of Guild's teams competing in esports games and tournaments.
Guild's current games are widely covered by specialist media via
platforms such as Twitch and YouTube, where Rocket League and
Valorant saw over 100,000 concurrent viewers during peak matches.
There has been increasing coverage from mainstream media outlets
such as BBC Sport, who live-streamed a number of Guild's Rocket
League fixtures in January 2021.
Expansion of teams continues at pace
Our esports audience is expanding partly due to the step-up in
recruitment of outstanding professional players. The total roster
of talent has increased from four in September 2020, to 22 players
currently. They are organised in teams specialising in five major
games franchises (FIFA, Fortnite, Rocket League, Apex Legends and
Valorant) and compete in tournaments for trophies and prize
money.
Guild has also started a programme to manage and drive players'
social channels and digital content creation, expanding the reach
of Guild and further increasing its fanbase. The Company is
considering expansion into new games and new markets, giving access
to larger audiences and partnership opportunities.
Our expansion into Fortnite with four esports athletes has given
us Europe's number 1 roster with a significant social following,
and a track record of wins and trophies in global competitions. Our
FIFA roster, with the addition of Argentinian player Nico, places
our duo among the top ranks globally. Our Valorant roster has now
qualified for the EMEA Challengers league after a roster
restructuring and is on track to becoming a global powerhouse in
2022. In Rocket League, our squad continues to develop, and with
the growth in the title globally, it is an area of focus for the
Company in the short term. Winning is important for the growth of
the Company, and with our approach to player development, we are
confident in adding more trophies to the current four we hold.
In the year to 30 September 2021, Guild teams contributed
GBP0.72m in prize money wins to revenues, before players' share of
winnings.
Merchandising
The first ranges of Guild-branded apparel went on sale on the
Company's website in November 2020. A second line of products went
on sale in May 2021. Sales volumes, as expected, were modest as
these are still early days for the Company's merchandising
operations.
In terms of apparel, we have been making strategic decisions on
releasing products that assist with the progression of brand
conversations. An example of this is the team jersey where we now
have a product for our players to wear while playing, and brands
can see the physical product that will display their logos.
Our strategy in 2022 is to launch additional product lines to
our now larger and growing fanbase, and look to partner with
existing brands and distribution networks to introduce products
that not only appeal to those looking for fanwear, but also those
that are passionate about fashion and culture.
The Guild Academy
A key element to Guild is with the vision to find and nurture
new talent by adopting the proven academy system pioneered by
Premier League football clubs such as Manchester United. On launch,
the Academy saw rapid uptake with over 3,000 sign-ups and
engagement from all across the world. Alongside the learning
platform, the Guild Academy Tournaments running each week have
thousands of unique players, with the final tournament of 2021,
Apex Legends, oversubscribed days before it started.
The focus for 2022 is growing the Academy in two areas. One is
focusing on providing added value to the casual gamer, and the
other is identifying and developing aspiring professionals through
the player development system. In terms of player development and
platform growth, we continue to improve by taking key learnings
from last year to develop the product with gamification and
collaboration front of mind.
Complementing the Academy learning is pro player and
content-creator driven workshops, using Guild's extensive roster of
influencers to provide one-of-a-kind experiences to students.
The second element is with schools and colleges, where we are
seeing strong appetite for esports engagement resulting in
partnering with five colleges in January 2022. Guild aims to be the
largest provider of school-based learning for esports through
2022.
Outlook
Significant progress has been made to execute Guild's growth
strategy, and the Company is well positioned to attract more brand
partners in 2022.
Earlier this month the Company's largest single sponsorship
contract, a three-year GBP4.5m sponsorship with BitStamp was
signed, providing a head start for the current year. In addition,
the pipeline of potential sponsors remains robust with several
deals at advanced stages of negotiations.
This provides the Company with confidence in adding significant
sponsorship revenues to the current annualised revenue run rate at
GBP3.1m for the year ending 30 September 2022, based on total
contracted sponsorship revenues of GBP8.4m to date.
An expanding roster of top players means Guild is also
well-positioned to achieve high rankings in tournaments and drive
its fan base. Guild's network audience continues to grow rapidly
and on track to broadly double again this year. As a result, the
Company looks to the future with great confidence.
Kal Hourd
Chief Executive
..............................
INDEPENT AUDITOR'S REPORT
The Company's auditor has reported on the accounts and their
audit report is unqualified. The independent auditor's report is
set out in full in the Annual Report and Financial Statements,
available on the Company's website.
DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Annual Report
and the financial statements in accordance with applicable law and
regulations.
Company law requires the directors to prepare financial
statements for each financial period. Under that law the directors
have prepared the Company financial statements in accordance with
International Financial Reporting Standards in conformity with the
requirements of the Companies Act 2006. Under company law the
directors must not approve the financial statements unless they are
satisfied that they give a true and fair view of the state of
affairs of the Company and of the profit and loss of the Company
for that period.
In preparing these financial statements, the directors are
required to:
-- Select suitable accounting policies and then apply them consistently;
-- Make judgements and accounting estimates that are reasonable and prudent;
-- State whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the financial statements; and
-- Prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the company's
transactions and disclose with reasonable accuracy at any time the
financial position of the company and company and enable them to
ensure that the financial statements comply with the Companies Act
2006. They are also responsible for safeguarding the assets of the
company and company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
INCOME STATEMENT
FOR THE YEARED 30 SEPTEMBER 2021
Year Period
ended ended
30 September 30 September
2021 2020
Notes GBP GBP
Revenue 3 1,901,557 -
Cost of sales (802,361) -
Gross profit 1,099,196 -
Operating and administrative
expenses (9,925,280) (2,727,324)
Operating loss 5 (8,826,084) (2,727,324)
Interest received 8 10,151 129
Loss before taxation (8,815,933) (2,727,195)
Taxation 9 - -
Loss and total comprehensive
income for the year/period (8,815,933) (2,727,195)
Earnings per share attributable
to equity owners 10
Basic and diluted earnings per
share (pence) (1.70) (1.70)
The income statement has been prepared on the basis that all operations
are continuing operations.
There are no recognised gains or losses other than those passing
through the income statement.
STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2021
2021 2020
Notes GBP GBP
Non-current assets
Intangible assets 12 49,879 36,001
Property, plant and equipment 13 29,597 4,342
79,476 40,343
Current assets
Trade and other receivables 14 3,542,983 2,065,626
Cash and cash equivalents 10,071,655 2,517,734
13,614,638 4,583,360
Total assets 13,694,114 4,623,703
Current liabilities
Trade and other payables 16 837,051 2,092,720
Deferred revenue 17 783,288 -
1,620,339 2,092,720
Net current assets 11,994,299 2,490,640
Total liabilities 1,620,339 2,092,720
Net assets 12,073,775 2,530,983
Equity
Share capital 19 518,617 264,617
Share premium 19 22,642,717 4,880,511
Share-based payment reserve 419,003 113,050
Retained earnings (11,506,562) (2,727,195)
Total equity 12,073,775 2,530,983
The financial statements were approved by the board of directors
and authorised for issue on 28 January 2022 and are signed on its
behalf by:
Mr J Savage
Finance Director
Company Registration No. 12187837
STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 30 SEPTEMBER 2021
Share capital Share Share-based Retained Total
premium payment earnings
account reserve
Notes GBP GBP GBP GBP GBP
Balance at 3 September
2019 - - - - -
Period ended 30
September
2020:
Loss and total
comprehensive
income for the period - - - (2,727,195) (2,727,195)
Issue of share capital 19 264,617 5,034,923 - - 5,299,540
Share-based payments - - 113,050 - 113,050
Share issue costs - (154,412) - - (154,412)
Balance at 30
September
2020 264,617 4,880,511 113,050 (2,727,195) 2,530,983
Year ended 30
September
2021:
Loss and total
comprehensive
income - - - (8,815,933) (8,815,933)
Issue of share capital 19 254,000 19,836,000 - - 20,090,000
Share-based payments - - 342,519 - 342,519
Other movements for exercised
and lapsed warrants - - (36,566) 36,566 -
Share issue costs - (2,073,794) - - (2,073,794)
Balance at 30 September 2021 518,617 22,642,717 419,003 (11,506,562) 12,073,775
STATEMENT OF CASH FLOWS
FOR THE YEARED 30 SEPTEMBER 2021
2021 2020
Notes GBP GBP GBP GBP
Cash flows from operating activities
Cash absorbed by operations 25 (10,686,474) (2,439,079)
Net cash outflow from operating
activities (10,686,474) (2,439,079)
Investing activities
Purchase of intangible assets (34,903) (39,078)
Purchase of property, plant and
equipment (33,313) (4,466)
Interest received 10,151 129
Net cash used in investing
activities (58,065) (43,415)
Financing activities
Proceeds from issue of shares
(net of issue costs) 18,298,460 5,000,228
Net cash generated from financing
activities 18,298,460 5,000,228
Net increase in cash and cash
equivalents 7,553,921 2,517,734
Cash and cash equivalents at beginning
of year 2,517,734 -
Cash and cash equivalents
at end of year 10,071,655 2,517,734
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARED 30 SEPTEMBER 2021
1. Accounting policies
Company information
Guild Esports PLC is a public limited company incorporated in
England and Wales and domiciled in the United Kingdom. The
registered office is Craven House, 16 Northumberland Avenue,
London, WC2N 5AP. The Company's principal activities and nature of
its operations are disclosed in the Directors' Report.
1.1 Basis of preparation
The financial statements have been prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006 and with those parts of the
Companies Act 2006 applicable to companies reporting under IFRS,
except as otherwise stated.
The financial statements are prepared in sterling, which is the
functional currency of the Company. Monetary amounts in these
financial statements are rounded to the nearest GBP.
The financial statements have been prepared under the historical
cost convention. The principal accounting policies adopted are set
out below.
The Company has adopted the applicable amendments to standards
effective for accounting periods commencing on 1 October 2020. The
nature and effect of these changes as a result of the adoption of
these amended standards did not have an impact on the financial
statements of the Company and, hence, have not been disclosed. The
Company has not early adopted any standards, interpretations or
amendments that have been issued but are not yet effective.
1.2 Going concern
The preparation of financial statements requires an assessment
on the validity of the going concern assumption.
The directors have a reasonable expectation that the Company has
adequate cash resources to continue in operational existence for a
period of at least one year from the date of approval of these
financial statements. The Company, therefore, has adopted the going
concern basis in preparing its financial statements.
The directors have reviewed the ongoing situation with Covid-19
and do not consider its effects to have a material impact on the
Company's going concern. The directors note that esports
tournaments which would have normally taken place in a physical
location, have been adapted to take place virtually, in light of
the practical restrictions enforced by regulations. Whilst this has
hindered merchandise sales during the year, and live events where
Guild can interact with the community, its fanbase has continued to
grow. The Company looks forward to working alongside gaming
developers as physical events begin to take place again, with
limited restrictions.
1.3 Reporting period
The Company was incorporated on 3 September 2019. The figures in
these financial statements represent the 12-month period ended 30
September 2021. Comparative figures presented in these financial
statements are for the period from 3 September 2019 to 30 September
2020 and are therefore not entirely comparable.
1.4 Revenue
Revenue is measured based on the consideration specified in a
contract with a customer and excludes amounts collected on behalf
of third parties. The company recognises revenue when it transfers
control of a product or service to a customer.
When cash inflows are deferred and represent a financing
arrangement, the fair value of the consideration is the present
value of the future receipts. The difference between the fair value
of the consideration and the nominal amount received is recognised
as interest income.
Sale of goods
Revenue is recognised when the significant risks and rewards of
ownership have been transferred to the customer, recovery of the
consideration is probable, the associated costs and possible return
of goods can be estimated reliably, there is no continuing
management involvement with the goods and the amount of revenue can
be measured reliably. Revenue is measured net of returns, trade
discounts and volume rebates.
Royalties
The Company receives royalties from in-game digital products
branded with the Guild logo. The rights to the digital products are
held by the game developers, and Guild is not deemed to be the
principal in such transactions. Therefore, the revenue recognised
from the sale of these digital products is the net amount of
commission earned by the Company.
Prize money
The Company operates esports teams in several game titles which
each have multiple tournaments with varying amounts of prize pools.
The Company recognises total prize winnings as revenue at the point
that its esports teams' placing is confirmed in a tournament. Prize
pool amounts payable to the Company's esports teams as part of the
players' contracts are shown in cost of sales.
Long-term partnership contracts
The Company enters into partnership deals which provide rights
over services and assets operated and owned by Guild. Contracts may
include both fixed-price and variable-price services. Revenue from
providing services is recognised in the accounting period in which
the services are rendered. For fixed-price contracts, revenue is
recognised based on the actual service provided to the end of the
reporting period as a proportion of the total services to be
provided, because the customer receives and uses the benefits
simultaneously. This is determined based on actual services
provided relative to the total expected services expected as part
of the contract. The rights over services and assets are subject to
minimum monthly commitments and as such, these fixed-price
contracts accrue materially evenly over the life of the
contract.
1.5 Intangible assets other than goodwill
Intangible assets acquired separately from a business are
recognised at cost and are subsequently measured at cost less
accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or
valuation of assets less their residual values over their useful
lives. Website costs are amortised on a 33% per annum,
straight-line basis.
1.6 Property, plant and equipment
Property, plant and equipment are initially measured at cost and
subsequently measured at cost or valuation, net of depreciation and
any impairment losses.
Depreciation is recognised so as to write off the cost or
valuation of assets less their residual values over their useful
lives on the following bases:
Office equipment 33% straight-line per annum
The gain or loss arising on the disposal of an asset is
determined as the difference between the sale proceeds and the
carrying value of the asset, and is recognised in the income
statement.
1.7 Impairment of tangible and intangible assets
At each reporting end date, the Company reviews the carrying
amounts of its tangible and intangible assets to determine whether
there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent
of the impairment loss (if any). Where it is not possible to
estimate the recoverable amount of an individual asset, the Company
estimates the recoverable amount of the cash-generating unit to
which the asset belongs.
Intangible assets with indefinite useful lives and intangible
assets not yet available for use are tested for impairment
annually, and whenever there is an indication that the asset may be
impaired.
If the recoverable amount of an asset (or cash-generating unit)
is estimated to be less than its carrying amount, the carrying
amount of the asset (or cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognised immediately in
profit or loss, unless the relevant asset is carried at a revalued
amount, in which case the impairment loss is treated as a
revaluation decrease.
Where an impairment loss subsequently reverses, the carrying
amount of the asset (or cash-generating unit) is increased to the
revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised
for the asset (or cash-generating unit) in prior years. A reversal
of an impairment loss is recognised immediately in profit or loss,
unless the relevant asset is carried at a revalued amount, in which
case the reversal of the impairment loss is treated as a
revaluation increase.
1.8 Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and
demand deposits with banks and other financial institutions, that
are readily convertible into known amounts of cash and which are
subject to an insignificant risk of changes in value. The Company
monitors both short-term and long-term credit ratings of the
financial institutions it banks with. During the period, the
Company banked with NatWest Group Plc which has a high rating from
Fitch Ratings Inc, being 'F1' short-term and 'A' long-term.
1.9 Financial assets
Financial assets are recognised in the Company's statement of
financial position when the Company becomes party to the
contractual provisions of the instrument. Financial assets are
classified into specified categories, depending on the nature and
purpose of the financial assets.
At initial recognition, financial assets classified as fair
value through profit and loss are measured at fair value and any
transaction costs are recognised in profit or loss. Financial
assets not classified as fair value through profit and loss are
initially measured at fair value plus transaction costs.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of
financial assets is not met, a financial asset is classified as
measured at fair value through profit or loss. Financial assets
measured at fair value through profit or loss are recognized
initially at fair value and any transaction costs are recognised in
profit or loss when incurred. A gain or loss on a financial asset
measured at fair value through profit or loss is recognised in
profit or loss, and is included within finance income or finance
costs in the statement of income for the reporting period in which
it arises.
Financial assets held at amortised cost
Financial instruments are classified as financial assets
measured at amortised cost where the objective is to hold these
assets in order to collect contractual cash flows, and the
contractual cash flows are solely payments of principal and
interest. They arise principally from the provision of goods and
services to customers (eg trade receivables). They are initially
recognised at fair value plus transaction costs directly
attributable to their acquisition or issue, and are subsequently
carried at amortised cost using the effective interest rate method,
less provision for impairment where necessary.
Financial assets at fair value through other comprehensive
income
Debt instruments are classified as financial assets measured at
fair value through other comprehensive income where the financial
assets are held within the Company's business model whose objective
is achieved by both collecting contractual cash flows and selling
financial assets, and the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other
comprehensive income is recognised initially at fair value plus
transaction costs directly attributable to the asset. After initial
recognition, each asset is measured at fair value, with changes in
fair value included in other comprehensive income. Accumulated
gains or losses recognised through other comprehensive income are
directly transferred to profit or loss when the debt instrument is
derecognised.
Impairment of financial assets
Financial assets, other than those measured at fair value
through profit or loss, are assessed for indicators of impairment
at each reporting end date.
Financial assets are impaired where there is objective evidence
that, as a result of one or more events that occurred after the
initial recognition of the financial asset, the estimated future
cash flows of the investment have been affected.
Derecognition of financial assets
Financial assets are derecognised only when the contractual
rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and
rewards of ownership to another entity.
1.10 Financial liabilities
The Company recognises financial debt when the Company becomes a
party to the contractual provisions of the instruments. Financial
liabilities are classified as either 'financial liabilities at fair
value through profit or loss' or 'other financial liabilities'.
Financial liabilities at fair value through profit or loss
Financial liabilities are classified as measured at fair value
through profit or loss when the financial liability is held for
trading. A financial liability is classified as held for trading
if:
-- it has been incurred principally for the purpose of selling
or repurchasing it in the near term, or
-- on initial recognition it is part of a portfolio of
identified financial instruments that the Company manages together
and has a recent actual pattern of short-term profit taking, or
-- it is a derivative that is not a financial guarantee contract
or a designated and effective hedging instrument.
Financial liabilities at fair value through profit or loss are
stated at fair value with any gains or losses arising on
remeasurement recognised in profit or loss.
Other financial liabilities
Other financial liabilities, including trade payables and other
short-term monetary liabilities, are initially measured at fair
value net of transaction costs directly attributable to the
issuance of the financial liability. They are subsequently measured
at amortised cost using the effective interest method. For the
purposes of each financial liability, interest expense includes
initial transaction costs and any premium payable on redemption, as
well as any interest or coupon payable while the liability is
outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the
Company's obligations are discharged, cancelled, or they
expire.
1.11 Equity and reserves
The share capital reserve represents the nominal value of equity
shares. The share premium reserve is the amount subscribed for
share capital in excess of nominal value. Ordinary shares are
classified as equity. Incremental costs directly attributable to
the issue of new shares or options are shown in equity as a
deduction from the proceeds. Share based payments relating to
incentive schemes or advisor warrants have been recognised at their
fair value at grant within the share based payment reserve in line
with IFRS2. The retained earnings reserve represents the cumulative
net gains and losses and other transactions with equity holders not
recognised elsewhere.
1.12 Financial risk management
Equity instruments issued by the Company are recorded at the
proceeds received, net of transaction costs. Dividends payable on
equity instruments are recognised as liabilities once they are no
longer at the discretion of the Company. Incremental costs directly
attributable to the issue of new shares or options are shown in
equity as a deduction, net of tax, from the proceeds.
Financial risk factors
The Company's activities expose it to a variety of financial
risks: market risk (price risk), credit risk and liquidity risk.
The Company's overall risk management programme seeks to minimise
potential adverse effects on the Company's financial performance.
The Company has no borrowings but is exposed to market risk in
terms of foreign exchange risk. Risk management is undertaken by
the board of directors.
Market risk - price risk
The Company is exposed to price risk primarily for the costs of
operating in the Esports industry.
Credit risk
Credit risk arises from outstanding receivables. Management does
not expect any losses from non-performance of these receivables.
The amount of exposure to any individual counter party is subject
to a limit, which is assessed by the board. The Company considers
the credit ratings of banks in which it holds funds in order.
Liquidity risk
Liquidity risk arises from the Company's management of working
capital. It is the risk that the Company will encounter difficulty
in meeting its financial obligations as they fall due. Controls
over expenditure are carefully managed, in order to maintain its
cash reserves.
Capital risk management
The Company's objectives when managing capital is to safeguard
the Company's ability to continue as a going concern, in order to
provide returns for shareholders and benefits for other
stakeholders, and to maintain an optimal capital structure. The
Company has no borrowings. In order to maintain or adjust the
capital structure, the Company may adjust the amount of dividends
paid to shareholders, return capital to shareholders or issue new
shares. The Company monitors capital on the basis of the total
equity held by the Company.
1.13 Taxation
The tax expense/credit represents the sum of the tax currently
payable/receivable and deferred tax.
Current tax
The tax currently payable/receivable is based on taxable
profit/loss for the year. Taxable profit/loss differs from net
profit/loss as reported in the income statement because it excludes
items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or
deductible. The Company's asset or liability for current tax is
calculated using tax rates that have been enacted or substantively
enacted by the reporting end date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profit, and is accounted for using the
balance sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which
deductible temporary differences can be utilised. Such assets and
liabilities are not recognised if the temporary difference arises
from goodwill or from the initial recognition of other assets and
liabilities in a transaction that affects neither the tax profit
nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each
reporting end date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow
all or part of the asset to be recovered. Deferred tax is
calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised.
Deferred tax is charged or credited in the income statement, except
when it relates to items charged or credited directly to equity, in
which case the deferred tax is also dealt with in equity. Deferred
tax assets and liabilities are offset when the Company has a
legally enforceable right to offset current tax assets and
liabilities and the deferred tax assets and liabilities relate to
taxes levied by the same tax authority.
1.14 Retirement benefits
Payments to defined contribution retirement benefit schemes are
charged as an expense as they fall due.
1.15 Share-based payments
Equity-settled share-based payments are measured at fair value
at the date of grant by reference to the fair value of the equity
instruments granted using the Black-Scholes option pricing model.
The fair value determined at the grant date is expensed on a
straight-line basis over the vesting period, based on the estimate
of shares that will eventually vest. A corresponding adjustment is
made to equity.
When the terms and conditions of equity-settled share-based
payments at the time they were granted are subsequently modified,
the fair value of the share-based payment under the original terms
and conditions and under the modified terms and conditions are both
determined at the date of the modification. Any excess of the
modified fair value over the original fair value is recognised over
the remaining vesting period in addition to the grant date fair
value of the original share-based payment. The share-based payment
expense is not adjusted if the modified fair value is less than the
original fair value.
Cancellations or settlements (including those resulting from
employee redundancies) are treated as an acceleration of vesting
and the amount that would have been recognised over the remaining
vesting period is recognised immediately.
1.16 Foreign exchange
Transactions in currencies other than pounds sterling are
recorded at the rates of exchange prevailing at the dates of the
transactions. At each reporting end date, monetary assets and
liabilities that are denominated in foreign currencies are
retranslated at the rates prevailing on the reporting end date.
Gains and losses arising on translation in the period are included
in profit or loss.
2 Critical accounting estimates and judgements
In the application of the Company's accounting policies, the
directors are required to make judgements, estimates and
assumptions about the carrying amount of assets and liabilities
that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised, if the revision
affects only that period, or in the period of the revision and
future periods if the revision affects both current and future
periods.
During the year, the Company issued warrants. The directors have
applied the Black-Scholes pricing model to assess the costs
associated with the share-based payments. The Black-Scholes model
is dependent upon several inputs where the directors must exercise
their judgement, specifically: risk-free investment rate; expected
share price volatility at the time of the grant; and expected level
of redemption. The assumptions applied by the directors, and the
associated costs recognised in the financial statements are
outlined in these financial statements.
3 Revenue
The Company derives revenue from various sources, including
revenue from contracts with customers. These revenue sources
involve the transfer of goods and/or services over time and at a
point in time in the following major product lines and geographical
regions.
2021 2020
GBP GBP
Revenue analysed by class of business
Sponsorship revenue- Over time 976,712 -
Sponsorship revenue- Point in time 28,008 -
Campaigns- Point in time 50,000 -
Prize winnings- Point in time 717,454 -
Other revenue- Point in time 129,383 -
1,901,557 -
2021 2020
GBP GBP
Revenue analysed by geographical market
UK 804,740 -
EMEA 380,155 -
USA 716,662 -
1,901,557 -
4 Expense analysis
Cost of sales 2021 2020
GBP GBP
Player prize money 665,336 -
Sponsorship direct costs 87,838 -
Other direct costs 49,187 -
Total cost of sales 802,361 -
Administrative expenses 2021 2020
GBP GBP
Directors fees and payments 870,234 247,157
Esports and content creator costs 1,645,531 246,439
Ambassador fees 2,333,048 1,359,287
Academy costs 671,978 -
Legal, professional and regulatory fees 894,471 620,408
Marketing, promotion and content production
costs 1,760,938 -
Staff and operations costs 1,659,732 134,587
Depreciation and amortisation 29,083 3,201
Share based payment charge 60,265 113,050
Total administrative expenses 9,925,280 2,724,129
5 Operating loss
2021 2020
GBP GBP
Operating loss for the year is stated after charging:
Exchange losses 10,348 -
Fees payable to the Company's auditor for
the audit of the financial statements 23,500 23,500
Fees payable to the Company's auditor for
work in respect of the IPO - 60,000
Depreciation of property, plant and equipment 8,058 124
Amortisation of intangible assets (included
within administrative expenses) 21,025 3,077
Share-based payments 60,265 113,050
==============
6 Employees
The average monthly number of persons (excluding directors) employed
by the company during the year was:
2021 2020
Number Number
Management 5 -
Operations 17 -
Total 22 -
Their aggregate remuneration comprised:
2021 2020
GBP GBP
Wages and salaries 1,372,616 -
Social security costs 151,574 -
Pension costs 15,770 -
1,539,960 -
Settlement and termination agreements during the period amounted
to GBP170,100 (2020: GBPnil), included within the totals above.
7 Directors' remuneration
2021 2020
GBP GBP
Remuneration for qualifying services 608,693 247,157
Amounts paid in respect of departure agreement 258,923 -
Company pension contributions to defined contribution
schemes 2,618 -
870,234 247,157
Remuneration disclosed above include the following
amounts paid to the highest-paid director:
Remuneration for qualifying services 158,693 58,157
During the year, the Company ceased using the servicers of Carleton
Curtis, leading to a payment of 52 weeks' notice and other benefits,
totalling GBP258,923.
8 Finance income
2021 2020
GBP GBP
Interest income
Bank deposits 10,151 129
Total interest income for financial assets that are not held
at fair value through profit or loss was GBP10,151.
9 Taxation
The charge/credit for the year can be reconciled to the loss per
the income statement as follows:
2021 2020
GBP GBP
Loss before taxation (8,815,933) (2,727,195)
Expected tax credit based on a corporation tax
rate of 19% (2020: 19%) (1,675,027) (518,167)
Effect of expenses not deductible in determining
taxable profit 38,815 57,562
Unutilised tax losses carried forward 1,630,086 440,036
Permanent capital allowances in excess of depreciation (5,324) (911)
Share-based payment charge 11,450 21,480
Taxation charge/credit for the year/period - -
The Company has tax losses of GBP10,885,738 (2020: GBP2,306,341)
available to be carried forward against trading profits arising
in future periods. At this time, a deferred tax asset has not
been recognised due to insufficient certainty over the level of
future profits to utilise against this amount.
10 Earnings per share
The basic earnings per share is calculated by dividing the loss
attributable to equity shareholders by the weighted average
number of shares in issue.
2021 2020
No. No.
Number of shares
Weighted average number of ordinary shares
for basic earnings per share 515,708,522 160,342,559
Earnings GBP GBP
Loss for the period from continued operations (8,815,933) (2,727,195)
Earnings for basic and diluted earnings per
share being net loss attributable to equity
shareholders of the Company for continued operations (8,815,933) (2,727,195)
Earnings per share for continuing operations
Basic and diluted earnings per share pence (1.70) (1.70)
Outstanding warrants are non-dilutive given the loss for the
period.
11 Share-based payments
The following warrants over ordinary shares have been granted
by the Company and are outstanding:
Options/warrants Grant date Expiry period Exercise Outstanding Exercisable
price at 30 September at 30
2021 September
2021
24 months from the
18 February first anniversary
Warrants 2020 of admission GBP0.01 3,250,000 3,250,000
13 March 36 months from the
Warrants 2020 first vesting date GBP0.01 75,000 50,000
30 March
Warrants 2020 36 months GBP0.01 1,000,000 1,000,000
Warrants 9 June 2020 36 months GBP0.01 250,000 250,000
36 months from the
Warrants 18 June 2020 first vesting date GBP0.06 1,666,666 1,666,666
Warrants 19 June 2020 5 years from issue GBP0.06 6,963,000 6,963,000
36 months from the
Warrants 29 June 2020 first vesting date GBP0.06 250,000 83,333
36 months from the
Warrants 7 July 2020 first vesting date GBP0.06 225,000 75,000
5 August
Warrants 2020 36 months GBP0.06 250,000 250,000
7 August 36 months from the
Warrants 2020 first vesting date GBP0.06 500,000 166,667
14 August 36 months from the
Warrants 2020 first vesting date GBP0.06 750,000 250,000
17 August 36 months from the
Warrants 2020 first vesting date GBP0.06 1,000,000 333,333
20 August 36 months from the
Warrants 2020 first vesting date GBP0.06 1,000,000 333,333
28 August 36 months from the
Warrants 2020 first vesting date GBP0.06 150,000 50,000
2 October
Warrants 2020 5 years from issue GBP0.104 20,584,694 20,584,694
37,914,360 35,306,026
11 Share-based payments
Number of options Weighted
and warrants average
exercise
price
2021 2021
No. GBP
Brought forward at 1 October
2020 26,163,000 0.04
Granted in the
period 20,584,694 0.104
Forfeited in the period - -
Exercised in the period (3,000,000) 0.01
Lapsed in the period (5,833,334) 0.04
Outstanding at 30 September
2021 37,914,360 0.08
Exercisable at 30 September
2021 35,306,026 0.08
The weighted average remaining contractual life of options and
warrants as at 30 September 2021 is 3.3 years.
If the exercisable shares had been exercised on 30 September 2021
this would have represented 6.37% of the enlarged share capital.
At the grant date, the fair value of the warrants issued have
been determined using the Black-Scholes option pricing model.
Volatility was calculated based on data from comparable esports
companies, with an appropriate discount applied due to being an
unlisted entity at the grant date, if applicable. Risk-free interest
has been based on UK Government Gilt rates. The Company intends
to introduce a share-based payment scheme for employees, whereby
options are granted between 75,000 and 250,000 shares at an exercise
price of GBP0.08, vesting over three years.
12 Intangible assets
Website
costs
GBP
Cost
At 30 September 2020 39,078
Additions 34,903
At 30 September 2021 73,981
Amortisation and impairment
At 30 September 2020 3,077
Charge for the year 21,025
At 30 September 2021 24,102
Carrying amount
At 30 September 2021 49,879
At 30 September 2020 36,001
13 Property, plant and equipment
Office
equipment
GBP
Cost
At 30 September 2020 4,466
Additions 33,313
At 30 September 2021 37,779
Accumulated depreciation and impairment
At 30 September 2020 124
Charge for the year 8,058
At 30 September 2021 8,182
Carrying amount
At 30 September 2021 29,597
At 30 September 2020 4,342
14 Trade and other receivables
2021 2020
GBP GBP
Trade receivables 972,000 -
VAT recoverable 962,633 579,288
Other receivables 22,650 -
Prepayments 1,585,700 1,486,338
3,542,983 2,065,626
The directors consider that the carrying amount of trade and other
receivables is approximately equal to their fair value. No significant
receivable balances are impaired at the reporting date.
15 Financial instruments
2021 2020
GBP GBP
Financial assets measured
at amortised cost 11,043,655 2,517,734
Financial liabilities measured
at amortised cost 1,620,338 2,092,720
The directors consider the carrying amounts of financial instruments
in the financial statements approximate to their fair values.
16 Trade and other payables
2021 2020
GBP GBP
Trade payables 555,828 79,746
Accruals 146,527 227,974
Social security and other taxation 134,696 -
Other payables - 1,785,000
837,051 2,092,720
Other payables in 2020 relates to amounts paid in advance for
share capital issued post-period end.
17 Deferred revenue
2021 2020
GBP GBP
Arising from sponsorship income 783,288 -
All deferred revenues are expected to be recognised within 12
months from the reporting date.
18 Retirement benefit schemes
Defined contribution schemes
The Company operates a defined contribution pension scheme for
all qualifying employees. The assets of the scheme are held separately
from those of the Company in an independently administered fund.
The total costs charged to income in respect of defined contribution
plans is GBP18,388 (2020: GBPnil)
19 Share capital and premium
Number of Share capital Share premium Total
shares
No. GBP GBP GBP
At 1 October 2020 264,617,362 264,617 4,880,511 5,145,128
Issue of ordinary shares
(02/10/2020) 250,000,000 250,000 19,750,000 20,000,000
Issue of ordinary shares
(22/10/2020) 1,500,000 1,500 13,500 15,000
Issue of ordinary shares
(07/01/2021) 2,500,000 2,500 72,500 75,000
Share issue costs deducted
from share premium - - (2,073,794) (2,073,794)
At 30 September 2021 518,617,362 518,617 22,642,717 23,161,334
On 2 October 2020, in the Company's initial public offering,
250,000,000 ordinary shares were issued at GBP0.08 each (premium
of GBP0.079 per share). 4,000,000 ordinary shares have also been
issued which includes 3,000,000 on the exercise of Director warrants.
20 Operating lease commitments
Subsequent to the year end, the Company entered into a lease
for a 9,831 square foot building in a prime location in London's,
Shoreditch. The lease agreement is for ten years, which includes
a 26-month rent free period and has a five year break clause.
2021 2020
GBP GBP
Within one year - -
Between two and five years 1,900,000 -
In over five years - -
1,900,000 -
21 Financial commitments
In May 2020, the Company entered into an influencer agreement
with Footwork Productions Limited. Pursuant to this agreement,
Footwork will procure that David Beckham provides certain personal
services to the Company, including personal appearances and social
media posts. In addition Footwork will provide the Company with
a non-exclusive, non-transferable licence to use David Beckham's
name, voice, biography, image and likeness and signature to advertise
and promote the Company for a five-year term. In consideration
for these services the Company will pay Footwork an annual fee
equal to 15% of the net proceeds of all of the Company's merchandising
sales and 15% of all sponsorship revenue received in respect
of contracts entered into during the term. Such payments will
be subject to a minimum payment of GBP2,250,000 in the first
twelve-month period, and further annual minimum payments of GBP2,500,000
in the second year, GBP3,000,000 in the third year, GBP3,500,000
in the fourth year and GBP4,000,000 in the final year of the
term. Of these amounts, GBP10,500,000 is remaining as payable
over the next three years.
22 Events after the reporting date
In January 2022, the Company signed a new sponsorship deal with
BitStamp, one of the world's longest running crypto exchanges.
BitStamp will be given marketing rights and prominent exposure
across Guild's team jersey and digital content. The deal will
generate GBP4.5m in revenue for the Company over three years.
In December 2021, the Company entered into a lease for a 9,831
square foot building in a prime location in London's, Shoreditch.
The lease agreement is for ten years, which includes a 26-month
rent free period and has a five year break clause. When fully
operational, the building will be Guild's main headquarters,
featuring state-of-the-art spaces for Guild's pro teams, training
academy, event space, operations, and an entertainment hub. The
Guild headquarters is a major sponsorship asset.
23 Controlling party
The directors do not consider there to be an ultimate controlling
party.
24 Related-party transactions
During the period to 30 September 2021, Bad Moon Talent LLC,
a company for which Andrew Drake (non-executive director of Guild
Esports plc) is the CEO and 55% shareholder provided esports
consulting and talent agent services to the Company. The total
amount paid during the year was GBP37,475 and no amounts remained
payable at the year end.
During the period, Derek Lew and Andrew Drake (non-executive
directors of the Company) each exercised warrants of 1,500,000
ordinary shares at an exercise price of GBP0.01, on 22 October
2020 and 7 January 2021 respectively. The share price on these
dates was GBP0.07 and GBP0.06 respectively.
25 Cash absorbed by operations
2021 2020
GBP GBP
Loss for the year after tax (8,815,933) (2,727,195)
Adjustments for:
Investment income (10,151) (129)
Amortisation and impairment of intangible assets 21,025 3,077
Depreciation and impairment of property, plant
and equipment 8,058 124
Services settled by issue of shares - 144,900
Services settled by issue of warrants 60,265 113,050
Movements in working capital:
Increase in trade and other receivables (1,477,357) (2,065,626)
(Decrease)/increase in trade and other payables (1,255,669) 2,092,720
Increase in deferred revenue 783,288 -
Cash absorbed by operations (10,686,474) (2,439,079)
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR BMMRTMTJJBJT
(END) Dow Jones Newswires
January 31, 2022 01:59 ET (06:59 GMT)
Guild Esports (LSE:GILD)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Guild Esports (LSE:GILD)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
