TIDMTBLD
RNS Number : 7865L
tinyBuild, Inc.
15 September 2021
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, TO OR FOR THE ACCOUNT OR BENEFIT OF US PERSONS, AS
DEFINED IN REGULATION S PROMULGATED UNDER THE US SECURITIES ACT OF
1933, AS AMED (THE "US SECURITIES ACT"), OR IN OR INTO THE UNITED
STATES, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND OR THE REPUBLIC OF
SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE,
PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018.
Upon the publication of this announcement via the Regulatory
Information Service, this inside information is now considered to
be in the public domain.
15 September 2021
tinyBuild, Inc
("tinyBuild" or the "Company")
Half year results
tinyBuild (AIM:TBLD), a leading video games publisher and
developer with global operations, is pleased to announce its
unaudited results for the 6 months ended 30 June 2021.
Financial highlights:
-- Revenue of $18.6m (H1 2020: $18.5m), in line with
expectations and reflecting a second-half weighted release
schedule.
-- Adj EBITDA(1) growth of 18% to $7.9m (H1 2020: $6.7m), with
margins increasing to 42% (H1 2020: 36%), as contribution to
revenues from own-IP increased to 78% of group revenue (67% in H1
20), supporting long-term margin expansion.
-- Adj. Operating Profit(2) increased 94% to $5.1m (H1 2020:
$2.6m), reflecting lower share-based payments
-- Adj. Cash Flow from Operations(2) was $3.8m, lower than the
previous year (H1 2020: $6.9m) due to timing differences in
payments to developers and tax payments
-- Net cash increased to $61.6m (Dec 2020: $26.3m), including
$50m gross proceeds following the successful listing on AIM
(1) Excludes expenses related to the IPO, share based
compensation expenses; includes amortisation of Development
costs
(2) Excludes expenses related to the IPO
Operational highlights:
-- Three new games published including first-party titles Cartel
Tycoon (early access), Mayhem in a Single Valley and Hello Engineer
(early access), growing tinyBuild's portfolio to over 40 games, in
addition to platform launches (Secret Neighbor on PS4 and iOS).
-- Strong back catalogue sales representing 91% of total
revenues, demonstrating the Company's ability to extend games' life
cycles, while adding new titles.
-- Three development studio acquihires We're Five Games (Totally
Reliable Delivery Service), Hungry Couch (Black Skylands) and
DogHelm (Streets of Rogue).
-- Successful admission to AIM, raising GBP36.2m ($50m) of gross
proceeds, to accelerate organic growth and support our M&A
strategy.
-- Henrique Olifiers was appointed as Non-Executive Chairman,
with Nick Van Dyk and Neil Catto appointed as Non-Executive
Directors.
Post-Period End
-- Acquihire of BadPixel, the studio behind successful shooter
Deadside, currently in early access, for a total consideration of
up to $17.1m (see separate announcement).
-- Acquihire of Animal (Rawmen) announced in August 2021, for a
total consideration of up to $10.2m.
-- Released Black Skylands (early access), plus release dates
announced for Potion Crafts (early access), Despot's Game (early
access) and Happy's Humber Burger Farm.
-- Secured a new credit facility of $25m (expiry September 2022) with Bank of America.
Outlook
-- The pipeline for coming years now stands at 29 titles,
including near launch games such as Potion Craft, Despot's Game and
Happy's Humble Burger Farm.
-- While tinyBuild reviews the impact of the pandemic, and the
fluid macroeconomic situation, early indicators of traction across
the pipeline, including KPIs for Hello Neighbor 2, are very
encouraging.
-- The Board remains confident the Company is on track to
deliver results at least in line with expectations, plus accretive
acquisitions.
Alex Nichiporchik, Chief Executive Officer of tinyBuild,
commented:
"We are really excited about tinyBuild's progress this year,
with major titles in our pipeline showing strong KPIs ahead of
launch. This includes new titles such as Tinykin and the widely
anticipated Hello Neighbor 2.
"Our successful listing on AIM earlier this year and the
additional expected $25m facility announced today, provide a
platform from which we can deliver our organic and M&A growth
ambitions. Our back catalogue has performed strongly, and we remain
focused on finding new games at different stages of development. We
are evaluating a number of M&A targets to help accelerate
growth.
"Our goal is to expand our position as a leading global
developer and publisher, focusing on IP ownership while creating
long-term scalable franchises across multiple media formats. To
date, 2021 has seen significant progress towards that ambition, and
we look to the future with confidence."
Enquiries :
tinyBuild, Inc investorrelations@tinybuild.com
Alex Nichiporchik - Chief Executive Officer
Luke Burtis - Chief Operating Officer
Antonio Jose Assenza - Chief Financial Officer
Giasone (Jaz) Salati - Head of M&A and IR
Zeus Capital (Nominated Adviser and Joint
Broker)
Nick Cowles, Richard Kauffer (Corporate Finance)
Benjamin Robertson (Equity Capital Markets) +44 (0)20 3829 5000
Berenberg (Joint Broker)
Ben Wright, Mark Whitmore, Alix Mecklenburg-Solodkoff,
Milo Bonser +44 (0)20 3207 7800
SEC Newgate (Financial PR) tinybuild@secnewgate.co.uk
Robin Tozer, Bob Huxford, Megan Kovach +44 (0)7540 106366
About tinyBuild:
Founded in 2013, tinyBuild (AIM: TBLD) is a leading premium
AA-rated and indie video games publisher and developer. tinyBuild
strategically secures access to IP and partners with developers to
establish a stable platform on which to build multi-game and
multimedia franchises. tinyBuild has a strong portfolio of over 40
titles, and its upcoming pipeline includes over 20 new titles
currently in development.
Headquartered in Seattle, Washington, USA, the Company has key
operations worldwide, with employees, contractors or partners in
multiple locations across five continents. tinyBuild's geographic
diversity enables it to source high-potential IP, cost-effective
development resources and a loyal customer base through innovative
grassroots marketing.
tinyBuild was admitted to AIM, a market operated by the London
Stock Exchange, in March 2021.
For further information, visit: www.tinybuildinvestors.com .
OPERATIONAL REVIEW
2021 has seen the progressive lifting of Covid restrictions
across a number of countries. In contrast with general expectations
that video games sales would be negatively impacted by the lifting
of restrictions, the Board is pleased to confirm that catalogue
titles are performing strongly, alongside new game launches. Sales
are progressing at least in line with expectations for the
financial year 2021.
tinyBuild continues to benefit from platform competition and is
also well-positioned to work with subscription services. Revenues
from deals with distribution partners were above management
expectations and gave the Company greater visibility of future
revenue growth, while helping de-risk the development process for
new games.
As anticipated, the release schedule for 2021 is weighted
towards the second half of the year (e.g. Potion Craft and Despot's
Game). As a result, back catalogue contribution to total revenue in
the first six months of the year increased to 91%. The share of
revenues from own-IP also increased to 78% in H1 2021.
Current portfolio and pipeline
Since the beginning of the year, tinyBuild published four new
games (including Black Skylands in July) and added new platforms
for two games already in the portfolio:
-- Cartel Tycoon (early access) - a survival business sim
inspired by the eighties narco trade. Expand and conquer, fight off
rival cartels and evade the authorities
-- Mayhem in Single Valley (PC only) - a puzzle-loaded action
adventure where you have to prevent the end of the world while
keeping everyone from finding out it was all your fault
-- Hello Engineer (early access on Stadia) - a multiplayer
machinery-building construction game set in the sandbox world of a
mysterious amusement park, but beware of the Neighbor
-- Black Skylands (early access) - a skypunk Open World
action-adventure. Build your skyship and explore the open world,
fight factions of pirates and monsters, and claim territories.
-- Totally Reliable Delivery Service (Steam) - a ragdoll physics
simulation about terrible package delivery couriers
-- Secret Neighbor (PS4, iOS and Switch) - a Multiplayer Social
Suspense Game where a group of intruders try to rescue their friend
from the Neighbor's creepy basement
We have recently announced, or we are close to announcing a
release date for:
-- Potion Craft (early access on Steam) - an alchemist simulator
that was the number one trending game in the February Steam Game
Festival
-- Despot's Game (early access on Steam) - a rogue-like game
with turbocharged battles and a top 10 trending game in the
February Steam Game Festival
-- Happy's Humble Burger Farm (Steam and consoles) - a first
person adventure horror cooking game, a sequel to the award-winning
burger simulation
-- Trash Sailors (Steam and consoles) - a hand-drawn sailing
simulator with co-op up to 4 players. Create the trashiest sailing
team in history, fight with monsters and trash
-- Undungeon - an Action/RPG game driven by intense real-time
combat and an immensely rich science fiction story.
Finally, we announced three new titles:
-- Tinykin - an innovative 3D puzzle platformer where astronaut
Milo uses hundreds of tinykin and their unique powers to go back to
his home planet - and back to normal size.
-- SpiderHeck - a physics-based brawler that's easy to pick up
but difficult to master. Duel to the death or choose to team up and
hold back swarms of savage enemies.
-- BookWalker - a thief with an ability to dive into books is
forced to use his powers to track and steal the likes of Thor's
Hammer and the Excalibur to save his brother.
tinyBuild had 23 games in the pipeline at the end of 2020. So
far, in 2021, the Company has signed an additional ten new games,
increasing the total number of new games under development to 29,
after accounting for the four new titles already launched in 2021.
Five of these new games will be developed in Eastern Europe and
Russia, four in the United States and one in New Zealand.
Acquisitions
Since the beginning of the year, we have made five acquisitions.
We acquihired two studios in January and February 2021: We're Five
Games, the Minneapolis developer of Totally Reliable Delivery
Service and the Russia based developer of Black Skylands year,
Hungry Couch.
In June, we acquihired DogHelm, the studio behind Streets of
Rogue, the highest-rated title in tinyBuild's portfolio according
to Steam users. In August, we announced the acquihire of Animal,
following a two-year partnership to develop a new game, Rawmen.
Today, we are pleased to announce the acquihire of Bad Pixel,
the development studio behind the very popular open world game
Deadside. Bad Pixel is based in Russia with five developers
currently.
People
As part of its effort to secure talent at a competitive cost,
the Company continued to hire staff (both employees and independent
contractors) in strategic geographies.
tinyBuild aims to offer employees the best working conditions in
the industry. For example, the Company has implemented clear
policies against crunching, the industry practice by which
developers overwork to meet specific targets. In June, tinyBuild
also gifted one extra week of holiday to all direct employees in a
gesture of appreciation for everybody's hard work.
As a result, tinyBuild enjoys one of the lowest levels of staff
turnover, low single-digit, compared to an estimated 15.5% across
the industry ( Wired ).
Position and strategy
tinyBuild is well-positioned with a strong pipeline of new
titles and a proven ability to attract, screen and market
high-quality game franchises. Our low-risk M&A strategy
continues to help us increase our IP portfolio, and our multimedia
franchise model allows us to extend the life of our IP, maximising
our return on investment.
Our medium-term strategy is to expand our position as a leading
global video games developer and publisher, focussing on IP
ownership while creating long-term scalable franchises across
multiple media formats. 2021 has seen significant progress towards
that ambition, and I would like to thank all of our shareholders
for their support.
Alex Nichiporchik
Chief Executive Officer
15 September 2021
FINANCIAL REVIEW
On 9 March 2021, tinyBuild raised $50m (GBP36.2m) in gross
proceeds, which is being used to accelerate organic growth and
support the M&A strategy. Adjusted EBITDA for the six months
ended June 2021 was marginally ahead of expectations, and the
Company closed three acquihires in the period.
Revenue
In the six months to June 2021, tinyBuild revenues were $18.6m,
slightly ahead of the previous year (H1 2020: $18.5m), reflecting a
release schedule skewed towards the second half and the success of
Totally Reliable Delivery Service, which was first released on 1
April 2020. Back catalogue performed strongly in the first half,
with new platform launches of Secret Neighbor driving revenues
across the wider Hello Neighbor franchise. Revenue from events,
primarily DevGAMM, fell slightly as a result of the global
pandemic.
Adjusted EBITDA and Operating Profit
Adjusted EBITDA is presented net of amortisation of development
costs, excluding share-based compensation expenses and exceptional
costs (e.g. IPO), giving a clear picture of the business
progression. Adjusted EBITDA grew 18% to $7.9m in H1 of 2021, with
margin expanding to 42% (H1 2020: 36%) as a result of higher share
of revenues from own-IP (78% in H1 2021 vs 67% in H1 2020) and back
catalogue (91% in H1 2021).
Operating profit for H1 2021 was $0.7m (H1 2020: $2.6m).
Excluding the $4.4m one-off IPO costs, Adjusted Operating Profit
increased over 90% to $5.1m due to higher margins and lower charges
relating to share-based compensation ($2.2m in H1 2021 vs $3.6m in
H1 2020).
Interest income and taxation
Interest income was immaterial in H12021, and taxation charges
were $1.0m, lower than $1.6m in H1 2020 due to timing differences
that will reverse in the second half of the year.
Exceptional Costs Relating to the AIM Listing
In H1 2021, tinyBuild incurred one-off costs ($4.4m) related to
the IPO on the London Stock Exchange's AIM market, including
expenses related to audit and legal fees ($3m).
Financial Position
In H1 of 2021, the net cash position increased from $26.3m, as
of December 2020, to $61.6m, with the majority of the increase
being driven by the AIM float, where tinyBuild raised $50m in gross
proceeds.
Cash Flow
Adjusted cash flows from operating activities decreased from
$6.9m to $3.8m in H1 2021, (-$0.6m including exceptional costs
relating to the IPO) mainly due to timing of payments to developers
and tax, which will reverse in the second half of the year.
Software development costs, mainly consisting of developer
salaries, advances, localisation and porting, increased from $2.4m
to $5.6m, reflecting the increase in investment for upcoming
pipeline releases.
Events after the reporting date
In August 2021, tinyBuild announced the acquihire of Animal, for
a total consideration up to a max of $10.2 million, split
approximately 30%-70% between cash and newly issued tinyBuild
shares, including upfront and deferred payments over the next three
financial years.
In September 2021, we announced the acquihire of Bad Pixel, the
development studio behind the very popular open-world game
Deadside, for a total consideration of up to $17.1m, including
upfront and deferred payments over the next three financial years.
The deal will be marginally accretive in 2021, a year of
investments, with greater potential for return in the following
years (please see separate press release published today).
tinyBuild secured a new credit facility of $25m (expiry
September 2022) on favourable terms with Bank of America. The new
credit facility has been designed to expand tinyBuild's financial
capacity in the event of larger M&A deals while having minimal
impact on P&L and cash flow if not used.
Antonio Jose Assenza
Chief Financial Officer
15 September 2021
TINYBUILD INC.
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
6 months 6 months Year ended
Note ended 30 ended 30 31 December
June 2021 June 2020 2020
Unaudited Audited Audited
--------- ---------- -------------- --------------
$'000 $'000 $'000
--------- ---------- -------------- --------------
Revenue 4 18,626 18,510 37,648
--------- ---------- -------------- --------------
Cost of sales (5,449) (8,635) (15,120)
--------- ---------- -------------- --------------
Gross profit 13,177 9,875 22,528
--------- ---------- -------------- --------------
Administrative expenses:
--------- ---------- -------------- --------------
- General administrative expenses (5,920) (3,690) (8,714)
--------- ---------- -------------- --------------
- Share-based payment expenses (2,159) (3,561) (5,845)
--------- ---------- -------------- --------------
- IPO transaction costs 5 (4,409) - (467)
--------- ---------- -------------- --------------
Total administrative expenses (12,488) (7,251) (15,026)
--------- ---------- -------------- --------------
Other operating income - - 162
--------- ---------- -------------- --------------
Operating profit 689 2,624 7,664
--------- ---------- -------------- --------------
Finance costs (9) (11) (21)
--------- ---------- -------------- --------------
Finance income 4 55 57
--------- ---------- -------------- --------------
Profit before tax 684 2,668 7,700
--------- ---------- -------------- --------------
Income tax expense (981) (1,599) (2,752)
--------- ---------- -------------- --------------
(Loss)/profit and total comprehensive
income for the year (297) 1,069 4,948
--------- ---------- -------------- --------------
Attributable to:
--------- ---------- -------------- --------------
Owners of the parent company (225) 1,063 4,942
--------- ---------- -------------- --------------
Non-controlling interests (72) 6 6
--------- ---------- -------------- --------------
(297) 1,069 4,948
--------- ---------- -------------- --------------
Earnings per share ($) 6 (0.001) 0.006 0.028
--------- ---------- -------------- --------------
Diluted earnings per share ($) 6 (0.001) 0.006 0.027
--------- ---------- -------------- --------------
Adjusted EBITDA 7 7,905 6,705 15,275
--------- ---------- -------------- --------------
TINYBUILD INC.
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION
30 June 2021 31 December
2020
Unaudited Audited
---- -------------------- -------------------
ASSETS Note $'000 $'000
---- -------------------- -------------------
Non-current assets
---- -------------------- -------------------
Intangible assets 8 21,933 15,141
---- -------------------- -------------------
Property, plant and equipment:
---- -------------------- -------------------
- owned assets 87 87
---- -------------------- -------------------
- right-of-use assets 573 673
---- -------------------- -------------------
Trade and other receivables 16 16
---- -------------------- -------------------
Total non-current assets 22,609 15,917
---- -------------------- -------------------
Current assets
---- -------------------- -------------------
Trade and other receivables 7,926 4,999
---- -------------------- -------------------
Cash and cash equivalents 61,642 26,313
---- -------------------- -------------------
Total current assets 69,568 31,312
---- -------------------- -------------------
TOTAL ASSETS 92,177 47,229
---- -------------------- -------------------
EQUITY AND LIABILITIES
Equity
---- -------------------- -------------------
Share capital 10 202 1
---- -------------------- -------------------
Share premium 60,877 18,674
---- -------------------- -------------------
Warrant reserve 1,920 -
---- -------------------- -------------------
Retained earnings 21,853 19,919
---- -------------------- -------------------
Equity attributable to owners of the
parent company 84,852 38,594
---- -------------------- -------------------
Non-controlling interest 90 162
---- -------------------- -------------------
Total equity 84,942 38,756
---- -------------------- -------------------
LIABILITIES
---- -------------------- -------------------
Non-current liabilities
---- -------------------- -------------------
Trade and other payables 50 -
---- -------------------- -------------------
Lease liabilities 356 442
---- -------------------- -------------------
Deferred tax liabilities 1,663 1,663
---- -------------------- -------------------
Total non-current liabilities 2,069 2,105
---- -------------------- -------------------
Current liabilities
---- -------------------- -------------------
Borrowings - 13
---- -------------------- -------------------
Trade and other payables 3,355 3,496
---- -------------------- -------------------
Contract liabilities 1,625 2,675
---- -------------------- -------------------
Lease liabilities 186 184
---- -------------------- -------------------
Total current liabilities 5,166 6,368
---- -------------------- -------------------
Total liabilities 7,235 8,473
---- -------------------- -------------------
TOTAL EQUITY AND LIABILITIES 92,177 47,229
---- -------------------- -------------------
TINYBUILD INC.
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY
Note Share Share Warrant Retained Total equity Non-controlling Total
capital premium reserve earnings attributable interest equity
to owners
of the parent
$'000 $'000 $'000 $'000 $'000 $'000 $'000
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Balance at 1
January
2020 1 18,674 - 9,132 27,807 156 27,963
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Profit and
total
comprehensive
income for
the period - - - 1,063 1,063 6 1,069
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Transactions
with owners
in their
capacity as
owners:
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Share-based
payments - - - 3,561 3,561 - 3,561
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Total
transactions
with
owners - - - 3,561 3,561 - 3,561
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Balance at 30
June 2020 1 18,674 - 13,756 32,431 162 32,593
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Share Share Warrant Retained Total equity Non-controlling Total
capital premium reserve earnings attributable interest equity
to owners
of the parent
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
$'000 $'000 $'000 $'000 $'000 $'000 $'000
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Balance at 1
January
2021 1 18,674 - 19,919 38,594 162 38,756
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Loss and total
comprehensive
expense for
the year - - - (225) (225) (72) (297)
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Transactions
with owners
in their
capacity as
owners:
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Share split 10 178 (178) - - - - -
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Issue of
shares, net
of
transaction
costs 10 22 44,147 - - 44,169 - 44,169
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Issue of
shares on
exercise
of options 10 1 154 - - 155 - 155
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Issue of
warrants 10 - (1,920) 1,920 - - - -
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Share-based
payments - - - 2,159 2,159 - 2,159
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Total
transactions
with
owners 201 42,203 1,920 2,159 46,483 - 46,483
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
Balance at 30
June 2021 202 60,877 1,920 21,853 84,852 90 84,942
---- ------------------- ------------------ --------------------- -------------------- ---------------------- -------------------- ------------------
TINYBUILD INC.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
6 months 6 months Year ended
ended 30 ended 30 31 December
June 2021 June 2020 2020
Unaudited Audited Audited
---- ---------- ------------- ------------
Note $'000 $'000 $'000
---- ---------- ------------- ------------
Cash flows from operating activities
---- ---------- ------------- ------------
Cash generated from operations 11 (566) 6,883 16,470
---- ---------- ------------- ------------
Net cash generated by operating activities (566) 6,883 16,470
---- ---------- ------------- ------------
Cash flows from investing activities
---- ---------- ------------- ------------
Software development (5,636) (2,443) (6,549)
---- ---------- ------------- ------------
Purchase of intellectual property (2,089) (180) (570)
---- ---------- ------------- ------------
Purchase of property, plant and equipment - (5) (24)
---- ---------- ------------- ------------
Net cash used in investing activities (7,725) (2,628) (7,143)
---- ---------- ------------- ------------
Cash flows from financing activities
---- ---------- ------------- ------------
Proceeds from borrowings - 175 175
---- ---------- ------------- ------------
Repayment of borrowings (13) - -
---- ---------- ------------- ------------
Proceeds from issuance of ordinary shares, 43,570 - -
net of issuance costs
---- ---------- ------------- ------------
Proceeds on exercise of share options 154 - -
---- ---------- ------------- ------------
Payment of principal portion of lease
liabilities (91) (107) (198)
---- ---------- ------------- ------------
Net cash generated by/(used in) financing
activities 43,620 68 (23)
---- ---------- ------------- ------------
Cash and cash equivalents
---- ---------- ------------- ------------
Net increase in the year 35,329 4,323 9,304
---- ---------- ------------- ------------
At beginning of period 26,313 17,009 17,009
---- ---------- ------------- ------------
At end of period 61,642 21,332 26,313
---- ---------- ------------- ------------
Non-cash investing activities
The Group purchased the intellectual property rights to four
video games, for consideration which included non-cash
consideration of $599,000 (see note 8).
During the period, the Group granted 1,511,448 warrants to
subscribe for ordinary shares (see note 10) These warrants had a
fair value at grant date of $1,919,540.
TINYBUILD INC.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
FOR THE SIX MONTH PERIODED 30 JUNE 2021
1 GENERAL INFORMATION
TinyBuild Inc. ("the Company") is a public company limited by
shares, and is registered, domiciled and incorporated in Delaware,
USA. The address of the registered office is 127 Bellevue Way SE,
Suite 200, Bellevue, WA 98004, United States. On 9 March 2021, the
Company's shares were listed on the Alternative Investment Market
of the London Stock Exchange ("AIM").
The Group ("the Group") consists of TinyBuild Inc. and all of
its subsidiaries. The Group's principal activity is that of an
indie video game publisher and developer.
The board of Directors approved this interim financial
information on 15 September 2021.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These condensed, consolidated financial statements for the
interim half-year reporting period ended 30 June 2021 have been
prepared in accordance with IAS 34 'Interim Financial Reporting'.
These interim financial statements do not constitute full financial
statements and do not include all the notes of the type normally
included in annual financial statements. Accordingly, these
financial statements are to be read in conjunction with the annual
report for the year ended 31 December 2020.
The annual financial statements of the Group are prepared in
accordance with International Financial Reporting Standards
("IFRS") as issued by the International Accounting Standards Board
("IASB"). The Annual Report and Financial Statements for 2020 have
been issued and are available on the Group's investor relations'
website:
https://www.tinybuildinvestors.com/documents-and-presentations.
The Group has applied the same accounting policies and methods
of computation in its interim consolidated
financial statements as in its 31 December 2020 annual financial
statements, except for those that relate to new standards and
interpretations effective for the first time for periods beginning
on (or after) 1 January 2021 and will be adopted in the 2021
financial statements. There are deemed to be no new and amended
standards and/or interpretations that will apply for the first time
in the next annual financial statements that are expected to have a
material impact on the Group.
Tax charged within the 6 months ended 30 June 2021 has been
calculated by applying the effective rate of tax which is expected
to apply to the Group for the year ending 31 December 2021 as
required by IAS 34 'Interim Financial Reporting'.
The financial statements have been prepared on the historical
cost basis except for, where disclosed in the accounting policies,
certain financial instruments that are measured at fair value. The
financial statements are prepared in US Dollars, which is the
functional currency and presentational currency of the Company and
all entities within the Group. Monetary amounts in these financial
statements are rounded to the nearest thousand US Dollars
(US$'000).
3 SEGMENTAL REPORTING
IFRS 8 Operating Segments requires that operating segments be
identified on the basis of internal reporting and decision-making.
The Group identifies operating segments based on internal
management reporting that is regularly reported to and reviewed by
the Board of directors, which is identified as the chief operating
decision maker. Management information is reported as one operating
segment, being revenue from self-published franchises and other
revenue streams such as royalties, licensing, development and
events.
Whilst the chief operating decision maker considers there to be
only one segment, the Company's portfolio of games is split between
those based on IP owned by the Group and IP owned by a third party
and hence to aid the readers understanding of our results, the
split of revenue from these two categories is shown below.
TINYBUILD INC.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(CONTINUED)
FOR THE SIX MONTH PERIODED 30 JUNE 2021
3 SEGMENTAL REPORTING (CONTINUED)
Game and merchandise royalties 6 months ended 6 months ended Year ended
30 June 2021 30 June 2020 31 December
2020
Unaudited Audited Audited
-------------- -------------- ------------
$'000 $'000 $'000
-------------- -------------- ------------
Owned IP 14,100 12,242 24,683
-------------- -------------- ------------
Third-party IP 4,050 4,874 9,239
-------------- -------------- ------------
_ _
-------------- -------------- ------------
18,150 17,116 33,922
-------------- -------------- ------------
Five customers were responsible for approximately 80% of the
Group's revenues (30 June 2020: four - 73%, 31 December 2020: five
- 81%).
The Group has one right-of-use asset located overseas with a
carrying value of $39,881 (30 June 2020: $58,287, 31 December 2020:
$49,084). All other non-current assets are located in the US.
4 REVENUE 6 months 6 months Year ended
ended 30 ended 30 31 December
June 2021 June 2020 2020
Unaudited Audited Audited
An analysis of the Group's revenue $'000 $'000 $'000
is as follows:
Revenue analysed by class of business
Game and merchandise royalties 18,150 17,116 33,922
Development services 224 980 2,917
Events 252 414 809
18,626 18,510 37,648
5 IPO TRANSACTION COSTS 6 months ended 6 months ended Year ended
30 June 2021 30 June 2020 31 December
2020
Unaudited Audited Audited
-------------- -------------- ------------
$'000 $'000 $'000
-------------- -------------- ------------
IPO related costs 4,409 - 467
-------------- -------------- ------------
IPO transaction costs in the 6 months ended 30 June 2021 relate
to significant one-off costs, which have not been deducted from
equity, associated with the Group's admission onto AIM in March
2021. The costs comprise advisors' fees, stock exchange listing
fees and other IPO costs. Costs totalling $8,593,000 incurred in
association with the IPO which met IAS 32 definition of transaction
costs (being incremental and directly related to the issuance of
new equity instruments and which would have been avoided had the
instruments not been issued) have been deducted from share
premium.
TINYBUILD INC.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(CONTINUED)
FOR THE SIX MONTH PERIODED 30 JUNE 2021
6 EARNINGS PER SHARE
The Group reports basic and diluted earnings per common share. Basic
earnings per share is calculated by dividing the profit attributable
to common shareholders of the Company by the weighted average number
of common shares outstanding during the period.
Diluted earnings per share is determined by adjusting the profit attributable
to common shareholders by the weighted average number of common shares
outstanding, taking into account the effects of all potential dilutive
common shares, including options.
6 months 6 months ended Year ended
ended 30 30 June 2020 31 December
June 2021 2020
---------------------- -------------------- --------------------
Unaudited Audited Audited
---------------------- -------------------- --------------------
$'000 $'000 $'000
---------------------- -------------------- --------------------
Total comprehensive (loss)/income attributable
to the owners of the company (225) 1,063 4,942
---------------------- -------------------- --------------------
Weighted average number of shares 192,047,223 179,602,538 179,602,538
---------------------- -------------------- --------------------
Basic earnings per share ($) (0.001) 0.006 0.028
---------------------- -------------------- --------------------
6 months 6 months ended Year ended
ended 30 30 June 2020 31 December
June 2021 2020
Unaudited Audited Audited
--------------- -------------- ------------
$'000 $'000 $'000
--------------- -------------- ------------
Total comprehensive income attributable
to the owners of the company (225) 1,063 4,942
--------------- -------------- ------------
Weighted average number of shares 192,047,223 179,602,538 179,602,538
--------------- -------------- ------------
Dilutive effect of share options - 2,393,223 2,739,413
--------------- -------------- ------------
Weighted average number of diluted shares 192,047,223 181,995,761 182,341,950
--------------- -------------- ------------
Diluted earnings per share ($) (0.001) 0.006 0.027
--------------- -------------- ------------
Pursuant to IAS 33, options whose exercise price is higher than
the value of the Company's security were not taken into account in
determining the effect of dilutive instruments. The calculation of
diluted earnings per share does not assume conversion, exercise, or
other issue of potential ordinary shares that would have an
antidilutive effect on earnings per share.
The earnings per share disclosed for the 6 months ended 30 June
2020 and year ended 31 December 2020 have been adjusted for the
stock split occurring in 2021 (see note 10).
7 ADJUSTED EBITDA
The Directors of the Group have presented the performance
measure adjusted EBITDA as they monitor this performance measure at
a consolidated level and they believe this measure is relevant to
an understanding of the Group's financial performance. Adjusted
EBITDA is calculated by adjusting profit from continuing operations
to exclude the impact of taxation, net finance costs, share-based
payment expenses, depreciation, amortisation of purchased
intellectual property and IPO transaction costs. Adjusted EBITDA is
not a defined performance measure in IFRS. The Group's definition
of adjusted EBITDA may not be comparable with similarly titled
performance measures and disclosures by other entities.
TINYBUILD INC.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(CONTINUED)
FOR THE SIX MONTH PERIODED 30 JUNE 2021
7 ADJUSTED EBITDA (CONTINUED) 6 months 6 months Year ended
ended ended 31 December
30 June 2021 30 June 2020 2020
Unaudited Audited Audited
------------------- ------------- ------------
$'000 $'000 $'000
------------------- ------------- ------------
(Loss)/profit for the period (297) 1,069 4,948
------------------- ------------- ------------
Income tax expense 981 1,599 2,752
------------------- ------------- ------------
Finance costs 9 11 21
------------------- ------------- ------------
Finance income (4) (55) (57)
------------------- ------------- ------------
Share-based payment expenses 2,159 3,561 5,845
------------------- ------------- ------------
Amortisation of purchased intellectual
property 547 402 1,222
------------------- ------------- ------------
Depreciation of property, plant and equipment 101 118 239
------------------- ------------- ------------
IPO transaction costs 4,409 - 467
------------------- ------------- ------------
Other operating income - - (162)
------------------- ------------- ------------
Adjusted EBITDA 7,905 6,705 15,275
------------------- ------------- ------------
8 INTANGIBLE ASSETS Purchased Software development Total
intellectual costs
property
$'000 $'000 $'000
------------------ -------------------- -----------------
Cost:
------------------ -------------------- -----------------
As at 1 January 2020 5,600 10,578 16,178
------------------ -------------------- -----------------
Additions - internally generated - 6,549 6,549
------------------ -------------------- -----------------
Additions - separately acquired 570 - 570
------------------ -------------------- -----------------
As at 31 December 2020 6,170 17,127 23,297
------------------ -------------------- -----------------
Additions - internally generated - 5,636 5,636
------------------ -------------------- -----------------
Additions - separately acquired 2,688 - 2,688
------------------ -------------------- -----------------
Transfers 645 (645) -
------------------ -------------------- -----------------
As at 30 June 2021 9,503 22,118 31,621
------------------ -------------------- -----------------
Amortisation and impairment:
------------------ -------------------- -----------------
As at 1 January 2020 267 2,568 2,835
------------------ -------------------- -----------------
Amortisation charge for the year 819 4,502 5,321
------------------ -------------------- -----------------
As at 31 December 2020 1,086 7,070 8,156
------------------ -------------------- -----------------
Amortisation charge for the period 547 985 1,532
------------------ -------------------- -----------------
As at 30 June 2021 1,633 8,055 9,688
------------------ -------------------- -----------------
Carrying amount:
------------------ -------------------- -----------------
As at 30 June 2021 7,870 14,063 21,933
------------------ -------------------- -----------------
As at 31 December 2020 5,084 10,057 15,141
------------------ -------------------- -----------------
During the period, the Group purchased the intellectual property
rights to four video games for total consideration of $3,333,000,
including non-cash consideration of $599,000 and transfers from
software development costs of $645,000. Amortisation of purchased
intellectual property is recognised within general administrative
expense in the Statement of Comprehensive Income. Amortisation of
software development costs is recognised within cost of sales in
the Statement of Comprehensive Income.
TINYBUILD INC.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(CONTINUED)
FOR THE SIX MONTH PERIODED 30 JUNE 2021
9 SHARE-BASED PAYMENTS
The Group operates two share-based plans, the Equity Incentive
Plan and a Stock Restriction Agreement, which are detailed as
follows:
The Stock Restriction Agreement is a plan that provides for
grants of Restricted Stock Awards (RSA) for the founders of the
company. The awarded shares are made in the Company's ordinary
share capital. The fair value of the RSAs is estimated by using the
Black-Scholes valuation model on the date of grant, based on
certain assumptions, and is charged on a straight-line basis over
the required service period, normally two to three years. The fair
value of the 2017 grant is $8.98 per share and the 2019 grant is
$40.21 per share. The RSAs vest in instalments every three months
over the service period. Each instalment has been treated as a
separate share option grant because each instalment has a different
vesting period. This plan is equity-settled. The plan was fully
settled upon admission to trading. A reconciliation of RSAs is as
follows:
31 December
30 June 2020
2021
Opening RSA outstanding 191,220 367,730
RSA granted - -
RSA vested (191,220) (176,510)
Closing RSA outstanding - 191,220
Weighted average remaining contractual
life in years - 1.08
The company has an Equity Incentive Plan that provides for the
issuance of non-qualified stock options to officers and other
employees that have a contracted term of 10 years and generally
vest over four years. The stock options are granted on shares
issued by the company. A reconciliation of share option movements
is shown below:
Number Weighted Number Weighted Weighted
of options average of options average average
outstanding exercise exercisable exercise remaining
price ($) price ($) contractual
life (years)
At 31 December 2020 21,100 42.41 11,815 13.33 8.08
Adjust for stock split
(see note 10) 2,718,246 0.33
Granted during the period 692,756 1.59
Exercised during the
period (489,836) 0.07
At 30 June 2021 2,942,266 0.58 1,845,436 0.17 7.99
During the period covered by the financial statements, no
options expired or were forfeited. Options granted during the year
were valued using the Black-Scholes option-pricing model. The fair
value per option granted during the period covered by the financial
statements and the assumptions used in the calculation are as
follows:
TINYBUILD INC.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(CONTINUED)
FOR THE SIX MONTH PERIODED 30 JUNE 2021
9 SHARE-BASED PAYMENTS (CONTINUED)
Grant date
3 25 November
February 2020 15 October 17 April
2021 2020 2020
Share price at grant date $1.59 $1.59 $1.06 $0.33
Exercise price $1.59 $1.59 $1.06 $0.33
Option life 6.25 6.25 6.25 6.25
Expected volatility 60.00% 60.00% 60.00% 60.00%
Expected dividends 0.00% 0.00% 0.00% 0.00%
Discount rate 0.25% 0.25% 0.25% 0.25%
Weighted average fair value per
option $0.66 $0.66 $0.44 $0.14
Expected volatility is estimated based on the historic
volatility (based on the expected term) and the historical
volatility of comparable public peers over the same period. The
2020 grants have been adjusted to reflect the impact of the stock
split (see note 10).
10 SHARE CAPITAL 31 December
30 June 2021 2020
Unaudited Audited
------------ -----------
Number Number
------------ -----------
Class of share
------------ -----------
Ordinary shares of $0.001 each 201,744,118 1,059,052
------------ -----------
Series Seed preferred shares of $0.001
each - 125,755
------------ -----------
Series A preferred shares of $0.001
each - 198,560
------------ -----------
31 December
30 June 2021 2020
------------ -----------
Unaudited Audited
------------ -----------
$ $
------------ -----------
Class of share
------------ -----------
Ordinary shares of $0.001 each 201,744 1,059
------------ -----------
Series Seed preferred shares of $0.001
each - 126
------------ -----------
Series A preferred shares of $0.001
each - 199
------------ -----------
201,744 1,384
------------------------------------------------- ------------ -----------
On 26 February 2021, 324,315 preferred shares were converted
into 324,315 ordinary shares. The Company then completed a stock
split pursuant to which 1,383,367 ordinary shares of $0.001 each
were split into 179,597,639 shares of $0.001 each.
On 9 March 2021, the Company's shares were listed on the
Alternative Investment Market of the London Stock Exchange ("AIM").
A total of 21,438,985 new ordinary shares were issued in the
placing at the placing price of 169 pence per share. Share premium,
net of transaction costs, totalling $44,147,000 has been recognised
on the transaction.
During the period, 692,756 share options were issued to
employees and contractors at an exercise price of $1.59 per
share.
During the period, 489,836 share options were exercised at an
exercise price of $0.07 per share. Share premium totalling $34,000
has been recognised on the transaction.
TINYBUILD INC.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(CONTINUED)
FOR THE SIX MONTH PERIODED 30 JUNE 2021
10 SHARE CAPITAL (CONTINUED)
During the period, 51,454 shares were issued to the
Non-Executive Chairman at the placing price of 169 pence per share.
Share premium totalling $120,000 has been recognised on the
transaction.
During the period, 166,204 shares were issued as partial
consideration for the acquisition of intellectual property (see
note 8).
On 3 March 2021, the Company granted Zeus Capital 1,511,448
warrants to subscribe for ordinary shares. Each warrant confers the
right, exercisable only if the share price exceeds 253 pence per
share, to subscribe in cash for one ordinary share at the placing
price of 169 pence per share. The warrants are only exercisable
during the period from 9 September 2022 to 9 March 2031. The fair
value of this warrant instrument has been calculated using a
lattice model, giving a total fair value of $1,919,540. This amount
has been recognised within the warrant reserve with a corresponding
decrease in the share premium account.
11 CASH GENERATED FROM OPERATIONS 6 months Year ended
ended 6 months ended 31 December
30 June 2021 30 June 2020 2020
Unaudited Audited Audited
-------------------- -------------- ------------
$'000 $'000 $'000
-------------------- -------------- ------------
(Loss)/profit for the year (297) 1,069 4,948
-------------------- -------------- ------------
Adjustments for:
-------------------- -------------- ------------
Share-based payments 2,159 3,561 5,845
-------------------- -------------- ------------
Amortisation of intangible assets 1,532 2,580 5,321
-------------------- -------------- ------------
Depreciation of tangible fixed assets 101 118 239
-------------------- -------------- ------------
Foreign exchange (gains)/losses (2) - 5
-------------------- -------------- ------------
Finance costs 9 11 21
-------------------- -------------- ------------
Movements in working capital:
-------------------- -------------- ------------
(Increase)/decrease in receivables (2,927) (1,251) (1,299)
-------------------- -------------- ------------
Increase/(decrease) in payables (1,141) (55) 511
-------------------- -------------- ------------
Increase/(decrease) in deferred tax
liability - 850 879
-------------------- -------------- ------------
Cash (used in)/generated from operations (566) 6,883 16,470
-------------------- -------------- ------------
12 RELATED PARTY TRANSACTIONS
An analysis of key management personnel remuneration is set out
below:
Key management personnel remuneration 6 months Year ended
ended 6 months ended 31 December
30 June 2021 30 June 2020 2020
Unaudited Audited Audited
------------- --------------- ------------
$'000 $'000 $'000
------------- --------------- ------------
Aggregate emoluments 758 410 1,552
------------- --------------- ------------
Equity-settled share-based payments 2,001 5,789 5,801
------------- --------------- ------------
2,759 6,199 7,353
------------- --------------- ------------
TINYBUILD INC.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(CONTINUED)
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2021
12 RELATED PARTY TRANSACTIONS (CONTINUED)
Transactions with other related parties
The wife of the Company's CEO is a member and manager of DevGAMM
LLC and pursuant to an agreement tied to her continued service to
DevGAMM LLC, her membership interest in the company increased from
40% to 51% during the six month period ended 30 June 2021. The
results of DevGamm LLC are included in the consolidation on the
basis of control.
There were no other related party transactions during the period
which require disclosure.
13 SUBSEQUENT EVENTS
In August tinyBuild announced the acquihire of Animal, for a
total consideration up to a max of $10.2 million, split
approximately 30%-70% between cash and newly issued tinyBuild
shares, including upfront and deferred payments over the next three
financial years.
In September we announced the acquihire of Bad Pixel, the
development studio behind the very popular open world game
Deadside, for a total consideration of up to $17.1m, including
upfront and deferred payments over the next three financial
years.
tinyBuild secured a new credit facility of $25m (expiry
September 2022) on favorable terms with Bank of America. The new
credit facility has been designed to expand tinyBuild's financial
capacity in the event of larger M&A deals, while having minimal
impact on P&L and cash flow if not used.
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
IR DKQBDBBKBKCD
(END) Dow Jones Newswires
September 15, 2021 02:00 ET (06:00 GMT)
Tinybuild (LSE:TBLD)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Tinybuild (LSE:TBLD)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
