TIDMBIDS
RNS Number : 3825W
Bidstack Group PLC
18 August 2020
Certain information contained within this Announcement is deemed
by the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon
publication of this Announcement, this information is considered to
be in the public domain.
18 August 2020
Bidstack Group Plc
("Bidstack" or the "Company")
Interim Results for the six months ended 30 June 2020
Further strategic progress made and momentum accelerating
Bidstack Group plc (AIM: BIDS.L), the native in-game advertising
group, announces its unaudited Interim Results for the six months
ended 30 June 2020. The Interim Results for the period ended 30
June 2020 will be published on the Company's website -
www.bidstackgroup.com today.
Financial Highlights
-- Revenue of GBP0.3m (period ended 30 June 2019: GBP0.03m);
-- Period end cash balance of GBP5.9m (period ended 30 June 2019: GBP6.0m);
-- Loss per share has increased to 1.18 pence (period ended 30
June 2019: loss of 0.83 pence per share);
-- Oversubscribed placing of 142.5 million shares at 4 pence per
share to raise GBP5.7m (before expenses) for the Company completed
on 10 June 2020.
Operational Highlights
-- Advertising campaigns attracted from the United States, mainland Europe and the UK;
-- Initial small spend campaigns run for brands including
Activision Blizzard, Audi, BBC, Football Index, JBL, MG Motors,
Penguin Random House, Shell, Subway, Unilever, Vodafone, VW and
Warner Music;
-- Appointment of Andrew House, former Group CEO of Sony
Interactive Entertainment, to the Advisory Committee;
-- Programmatic media buying agreement with Gfinity plc (AIM:
GFIN) and Venatus Media to sell advertising space on Gfinity's web
platforms;
-- Bidstack's proprietary technology used to insert the message
"Stay Home Save Lives" in Codemasters' Dirt Rally 2.0. video
game;
-- Lumen Research Study commissioned by Bidstack demonstrated
the value of in-game advertising and how it affects brand
perception and recall when benchmarked against other advertising
channels;
-- Exclusive agreement with Codemasters, to deliver native
in-game advertising for DIRT 5 (TM) scheduled for launch in October
2020 on the next generation Xbox Series X and PlayStation(R)5;
-- First multi-device in-game advertising platform to be awarded
the Internet Advertising Bureau's ("IAB") Gold Standard
Certification;
-- Expanded from 49 employees on 31 December 2019 to 62 at 30 June 2020.
James Draper , Chief Executive, said:
"We have continued to make further progress towards our goal of
becoming a leading platform to deliver in-game advertising and
remain at the forefront of the creation of in-game advertising as a
new advertising category.
"This includes progress on the demand side, where we are now
experiencing advertising customers moving beyond initial test
spends, as well as the supply side where we continue to work with
and engage a number of the world's largest video games developers
and publishers. The award of the IAB's Gold Standard certificate
1.1 opens additional opportunities to become involved with
additional international advertising agencies.
"Following our oversubscribed placing in June 2020, Bidstack has
a healthy cash position and is making material progress in its
approach to building a strong foundation on which to grow and
create value for shareholders. As announced on 28 May 2020, the
Board continues to expect revenues for 2020 to be very
significantly second half weighted and in line with market
expectations for the full year."
-ends-
For further information, please contact:
Bidstack Group Plc
James Draper, CEO via Buchanan
SPARK Advisory Partners Limited
(Nomad)
Mark Brady/Neil Baldwin/James
Keeshan +44 (0) 203 368 3550
Stifel Nicholas Europe Limited
(Broker)
Fred Walsh +44 (0) 20 7710 7600
Buchanan Communications Limited
Chris Lane / Stephanie Watson
/ Kim van Beeck +44 (0) 20 7466 5000
bidstack@buchanan.uk.com
Chairman's Statement
Business Review
The first half of 2020 has seen Bidstack continue to progress
towards its goal of becoming a leading platform to deliver in-game
advertising and the Company remains at the forefront of the
creation of in-game advertising as a new advertising category. As
previously stated, this evolution comes with many technical,
regulatory and commercial hurdles.
I am pleased to report that disruption to the business caused by
the COVID-19 pandemic has largely been contained from an
operational point of view. Our staff have worked tremendously well,
and their performance and dedication has been outstanding.
Advertising
The Company has made material progress on the demand-side of the
business in the first half and we are now seeing advertisers moving
beyond initial test spends. Advertisers are now proposing
significantly larger advertising campaigns as they become
comfortable with the new medium of in-game advertising.
Bidstack has also started our own network of certified partner
agencies in Europe, Africa and South America, which now extends to
nine companies.
Video Games Strategy
Our supply-side strategy continues to be focussed on working
with a number of the world's largest video games developers and
publishers to incorporate our software into their games. These
ongoing commercial and technical discussions with some of the major
players in the video games industry, who have and continue to
publish highly successful "household name" titles, are extensive
and complex and require significant amounts of due diligence. The
Board believes this strategy will establish Bidstack as one of the
leaders in this part of the advertising industry.
Our strategy has had some successes to date as, during the
period, we ran our first campaign in a well-known sports game from
a global leader in digital interactive entertainment. We have also
been actively selling advertising into a title from a leading
creator, publisher and distributor of interactive entertainment and
services.
Technical Developments
Our proprietary AdConsole, the platform that enables games
publishers and advertisers to access real time data on the
performance of their games, is being regularly updated and
developed in line with customer and commercial requirements.
We continue to make progress for the next generation of consoles
expected to be launched in late 2020. In addition, we are working
hard on the streaming platforms which the Directors believe are
likely to be major players in the future of high fidelity gaming
and to capture the extensive secondary viewing market.
Industry Developments
Our work with the Internet Advertising Bureau ("IAB"), the UK
industry trade body which sets technical standards and best
practices for the digital advertising industry, to create a
recognised advertising category for "native in-game advertising"
remains important as it will, eventually, allow programmatic
advertisers to access in-game advertising on a self-serve basis in
the same way they currently access display and video inventory.
The award of the IAB's Gold Standard certificate 1.1 is
important for Bidstack as it opens additional opportunities with
global agency holding groups. Bidstack is the first multi-device
in-game advertising platform to be awarded the IAB Gold Standard
Certification.
Financial Developments
The Company's significantly oversubscribed placing, the results
of which were announced on 5 June 2020, raised gross proceeds of
GBP5.7m for the Company leaving Bidstack in a healthy cash position
to continue to pursue its business plans.
Advisory Committee
In February 2020 we were delighted to welcome Andrew House to
Bidstack's Advisory Committee following his impressive career at
Sony. As the former CEO of Sony Interactive Entertainment before
leading as Group CEO, one of Andrew's career highlights was the
record breaking launch of PlayStation 4 in 2013.
The members of Bidstack's Advisory Committee and Board comprise
an impressive list of key players in the computer games and
advertising industries. The Company will seek to add further high
calibre members to the Advisory Committee and the Board with
appropriate skills and experience to advance Bidstack's growth
prospects.
Future Prospects
The Board believes that the addressable market for video game
advertising is currently going through a period of substantial
change which is likely to continue over the next three to five
years. We are confident that Bidstack is well placed to take
advantage of these changes with new console launches, the growth of
cloud-gaming and e-sports, coupled with legislative restrictions
affecting targeting via app and web-based advertising. We believe
these developments should all work in Bidstack's favour as we
believe that Bidstack is currently the only player in the industry
with an end-to-end proprietary and fully programmatic in-game
advertising platform.
As a result of the COVID-19 environment, the video games
industry has been experiencing record numbers of daily active users
and hours played and Bidstack has experienc ed high levels of
inbound demand from advertising agencies and others . However,
Bidstack's strategy of continuing to work with some of the world's
largest video games developers and publishers will take time to
come to fruition. Nevertheless, the Board remains confident that
the Company's strategy for creating a sound footing on which to
grow the business and create future value for shareholders is
robust.
The Board continues to take a highly conservative view on
revenue prospects in its planning for the remainder of 2020 and
believes it is right to do so, particularly given the currently
unknown duration and impact of COVID-19 related restrictions on
movement and face to face meetings. In line with its strategy, for
the second half of 2020 Bidstack's focus remains on securing
significant commercial and technological deals with games
publishers and others that will position the Company well for
growth in the medium and longer term.
The Board continues to expect revenues for 2020 to be very
significantly second half weighted and in line with market
expectations for the year ending 31 December 2020.
Chief Executive's Statement and Trading Update
I am pleased with the Company's progress in the first half of
2020.
The COVID-19 pandemic caused some disruption to the business
during the first half, primarily due to a number of trade shows
having been cancelled and the economic consequences of the crisis.
This has clearly had an impact on the face to face meetings that
had been scheduled to take place during those events. Despite this,
the systems, procedures and technology we have put in place have
meant that our business has largely been able to proceed
operationally as normally as possible with our staff working
remotely.
As announced on the 7 April 2020, I am proud of the partnership
with Codemasters and the Department for Digital, Culture, Media and
Sport as we delivered the "Stay Home Save Lives" message within
DiRT Rally 2.0.
The disruption to the advertising industry has led to media
buyers turning away from traditional means of advertising and
focusing increasingly on emerging digital options. Bidstack's
platform is well-positioned to capitalise on the increase in demand
for our native in-game advertising inventory.
Over the first half of 2020 the levels of demand side interest
we experienced from media agencies and brands increased
significantly.
During the period, the Company received its first advertising
bookings from the US and has worked with and run campaigns for 11
major advertising agency groups. The recent award of the IAB's Gold
Standard certificate 1.1 has increased the scope of opportunities
available to Bidstack for inclusion in media planning by
international advertising agencies.
Although initial spends have been small, the Company has run
campaigns for many international brands including Activision
Blizzard, Audi, BBC, Football Index, JBL, MG Motors, Penguin Random
House, Shell, Subway, Unilever, Vodafone, VW and Warner Music.
Over the period, the levels of demand side interest we are
experiencing from media agencies and brands has increased
significantly and our experience is that customers are now
providing us with briefs which go beyond initial test spends and
the size and scope of proposed advertising campaigns has increased
substantially.
During the first half of 2020 the Company received its first
bookings from its own network of certified partner agencies in
Europe, Africa and South America, which now extends to nine
companies.
We are continuing progress with a range of content developers to
construct the depth of supply which will enable us to fully exploit
the demand we are starting to generate.
Discussions are ongoing with a number of the world's largest
video games developers and publishers to incorporate our software
into their games. These ongoing commercial discussions and the due
diligence we are undergoing, are far-reaching, multifaceted and
complex. However the Board believes this strategy will bear fruit
and will establish Bidstack as one of the leaders in this corner of
the advertising industry.
In summary, we are executing on our strategy which leverages our
talent and technology to bring our advertising partners the
best-in-market opportunities to reach gamers in a non-intrusive and
immersive way and are establishing a strong foundation with the
global agency holding groups which is further strengthened by our
IAB Gold Standard certification.
While our plan to become a leading platform to deliver in-game
advertising is a longer term ambition, together with the Board I
believe it is the right strategy to create future shareholder
value.
Consolidated statement of comprehensive income
for the six months ended 30 June 2020
Note
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Jun 2020 30 Jun 2019 31 Dec 2019
GBP GBP GBP
Revenue 274,079 26,692 140,391
Cost of sales (197,337) (20,286) (106,697)
Gross profit 76,742 6,406 33,694
Administrative expenses (3,244,889) (1,805,059) (5,353,375)
Operating loss before acquisition
related costs (3,168,147) (1,798,653) (5,319,681)
Transaction costs - - (44,833)
Operating loss (3,168,147) (1,798,653) (5,364,514)
Finance income 2,352 975 8,060
Finance costs (700) - (967)
Loss before taxation (3,166,495) (1,797,678) (5,357,421)
Taxation 50,493 - 148,141
Loss for the period (3,116,002) (1,797,678) (5,209,280)
Other comprehensive income
Total other comprehensive income - - -
Total comprehensive loss for
the period (3,116,002) (1,797,678) (5,209,280)
Loss per share - basic and diluted
(pence) 3 (1.18) (0.83) (2.26)
The above consolidated statement of profit and loss and other
comprehensive loss for the period relates to continuing operations
for the Group.
Consolidated statement of financial position
as at 30 June 2020
Note Unaudited Unaudited Audited
30 Jun 2020 30 Jun 31 Dec
2019 2019
ASSETS GBP GBP GBP
Non-current assets
Right of use asset 21,369 - 26,710
Intangible assets 290,141 39,306 310,960
Property, plant and equipment 23,795 19,879 22,377
Total non-current assets 335,305 59,185 360,047
Current assets
Trade and other receivables 862,660 717,316 533,207
Cash and cash equivalents 5,917,381 6,004,616 3,148,540
Total current assets 6,780,041 6,721,932 3,681,747
Total assets 7,115,346 6,781,117 4,041,794
EQUITY AND LIABILITIES
Equity
Share capital 4 6,229,259 5,508,307 5,516,759
Share premium account 27,977,197 23,170,484 23,283,880
Share-based payment reserve 1,035,638 497,166 734,365
Merger relief reserve 6,508,673 6,213,021 6,508,673
Reverse acquisition reserve (23,320,632) (23,320,632) (23,320,632)
Warrant reserve 71,480 71,480 71,480
Accumulated losses (12,299,727) (5,772,123) (9,183,725)
Total equity 6,201,888 6,367,703 3,610,800
Non - Current liabilities
Lease liability 15,790 - 8,300
Total non -current liabilities 15,790 - 8,300
Current liabilities
Trade and other payables 897,014 413,414 406,672
Lease liability 654 - 16,022
Total current liabilities 897,668 413,414 422,694
Total equity and liabilities 7,115,346 6,781,117 4,041,794
The interim financial report was approved by the Board of
Directors on 17 August 2020 and signed on its behalf by:
Donald Stewart
Chairman of Bidstack Group Plc
Consolidated statement of changes in equity
for the six months ended 30 June 2020
Share-based Merger Reverse
Share Share payment relief acquisition Warrant Accumulated Total
capital premium reserve reserve reserve reserve losses equity
GBP GBP GBP GBP GBP GBP GBP GBP
Balance as at
1 January
2020 5,516,759 23,283,880 734,365 6,508,673 (23,320,632) 71,480 (9,183,725) 3,610,800
Comprehensive
income for the
period
Loss and total
comprehensive
income for
the
year - - - - - - (3,116,002) (3,116,002)
----------- ------------ ----------- --------- -------------- -------- ------------ -----------
Total
comprehensive
expense - - - - - - (3,116,002) (3,116,002)
----------- ------------ ----------- --------- -------------- -------- ------------ -----------
Transactions
with
owners
Issue of
shares 712,500 4,987,500 - - - - - 5,700,000
Costs of
raising
equity - (294,183) - - - - - (294,183)
Share-based
payments - - 301,273 - - - - 301,273
----------- ------------ ----------- --------- -------------- -------- ------------
Total
transaction
with owners 712,500 4,693,317 301,273 - - - - 5,707,090
Balance as at
30 June 2020 6,229,259 27,977,197 1,035,638 6,508,673 (23,320,632) 71,480 (12,299,727) 6,201,888
----------- ------------ ----------- --------- -------------- -------- ------------ -----------
Consolidated statement of changes in equity
for the six months ended 30 June 2019
Share-based Merger Reverse
Share Share payment relief acquisition Warrant Accumulated Total
capital premium reserve reserve reserve reserve losses equity
GBP GBP GBP GBP GBP GBP GBP GBP
Balance as at 1
January
2019 5,286,429 18,000,247 258,060 6,213,021 (23,320,632) 71,480 (3,974,445) 2,534,160
Comprehensive
income
for the period
Loss and total
comprehensive
income for the
year - - - - - - (1,797,678) (1,797,678)
--------- ---------- ----------- --------- -------------- -------- ----------- -----------
Total
comprehensive
expense - - - - - - (1,797,678) (1,797,678)
--------- ---------- ----------- --------- -------------- -------- ----------- -----------
Transactions with
owners
Issue of shares 221,878 5,428,153 - - - - - 5,650,031
Costs of raising
equity - (257,916) - - - - - (257,916)
Share-based
payments - - 239,106 - - - - 239,106
--------- ---------- ----------- --------- -------------- -------- -----------
Total transaction
with owners 221,878 5,170,237 239,106 - - - - 5,631,221
Balance as at 30
June
2019 5,508,307 23,170,484 497,166 6,213,021 (23,320,632) 71,480 (5,772,123) 6,367,703
--------- ---------- ----------- --------- -------------- -------- ----------- -----------
Unaudited Consolidated statement of changes in equity
for the year ended 31 December 2019
Share-based Merger Reverse
Share Share payment relief acquisition Warrant Accumulated Total
capital premium reserve reserve reserve reserve losses equity
GBP GBP GBP GBP GBP GBP GBP GBP
Balance as at 1
January
2019 5,286,429 18,000,247 258,060 6,213,021 (23,320,632) 71,480 (3,974,445) 2,534,160
Comprehensive
income
for the period
Loss and total
comprehensive
income for the
year - - - - - - (5,209,280) (5,209,280)
--------- ---------- ----------- --------- --------------- -------- ----------- -------------
Total
comprehensive
expense - - - - - - (5,209,280) (5,209,280)
--------- ---------- ----------- --------- --------------- -------- ----------- -------------
Transactions
with
owners
Issue of shares 225,982 5,541,549 - - - - - 5,767,531
Issue of
consideration
shares 4,348 - - 295,652 - - - 300,000
Costs of raising
equity - (257,916) - - - - - (257,916)
Share-based
payments - - 476,305 - - - - 476,305
--------- ---------- ----------- --------- --------------- -------- -----------
Total
transaction
with owners 230,330 5,283,633 476,305 295,652 - - - 6,285,920
Balance as at 31
December 2019 5,516,759 23,283,880 734,365 6,508,673 (23,320,632) 71,480 (9,183,725) 3,610,800
--------- ---------- ----------- --------- --------------- -------- ----------- -------------
Consolidated statement of cash flows
for the period ended 30 June 2020
Unaudited Unaudited Audited
6 months 6 Year ended
ended months ended 31 Dec
30 Jun 2020 30 Jun 2019 2019
GBP GBP GBP
Cash flows from operating activities
Loss before taxation (3,116,002) (1,797,678) (5,357,421)
Adjustments for:
Amortisation - Intangibles 26,818 4,906 18,859
Amortisation - Right of use asset 5,341 - 5,337
Depreciation 6,162 3,057 8,330
Equity settled share-based payments 301,273 239,106 476,305
Doubtful debts expense - - 325,200
Finance income (2,352) (975) (8,060)
Finance expense 700 - 967
------------ -------------
(2,778,060) (1,551,584) (4,530,483)
Changes in working capital
(Increase)/decrease in trade and
other receivables (329,453) 90,375 151,646
Increase/(decrease) in trade and
other payables 490,343 (26,268) (80,204)
------------ ------------- -----------
Cash (used in)/generated from operations (2,617,169) (1,487,477) (4,459,041)
Taxation received - - -
------------ -------------
Net cash used in operations (2,617,169) (1,487,477) (4,459,041)
Cash flow from investing activities
Investment in intangible assets (6,000) (370) (370)
Cash acquired with subsidiary - - 6,683
Investment in property, plant and
equipment (7,581) (7,183) (14,272)
------------ ------------- -----------
Net cash flow (used in)/ generated
from investing activities (13,581) (7,553) (7,959)
Cash flow from financing activities
Proceeds from issue of share capital 5,700,000 5,650,030 5,767,531
Cost of issue (294,183) (257,916) (257,916)
Principal paid on finance leases (7,878) - (7,725)
Interest received 2,352 975 8,060
Interest paid on lease liabilities (700) - (967)
------------ -------------
Net cash generated from financing
activities 5,399,591 5,393,089 5,508,983
Increase in cash and cash equivalents
in the period 2,768,841 3,898,059 1,041,983
Cash and cash equivalents at beginning
of period 3,148,540 2,106,557 2,106,557
Cash and cash equivalents at the end
of the period 5,917,381 6,004,616 3,148,540
------------ ------------- -----------
Notes to the unaudited consolidated interim financial report
1 Summary of significant accounting policies
Basis of preparation
The Company is a public limited company which is admitted to
trading on the AIM Market of the London Stock Exchange and is
incorporated and domiciled in the UK. The address of the registered
office is 201 Temple Chambers, 3-7 Temple Avenue, London, EC4Y 0DT.
The registered number of the company is 04466195.
The consolidated interim financial report consolidates those of
the Company and its trading subsidiary, Bidstack Limited (together
the "Group"). The financial information presented in this interim
report have been prepared using accounting policies that are
expected to be applied in the preparation of the financial
statements for the year ending 31 December 2020.
These policies are in accordance with International Financial
Reporting Standards (IFRSs) and International Financial Reporting
Interpretation Committee (IFRIC) interpretations as endorsed by the
European Union ("IFRS-EU"), and those parts of the Companies Act
applicable to companies reporting under IFRS.
The interim results have been prepared on a going concern basis
which assumes that the Group will be able to continue trading for
the foreseeable future. Although an operating loss has been
reported for the reporting period and an operating loss is expected
to be incurred in the 12 months subsequent to the date of this
report, the Directors believe, having considered all available
information, including the cash resources currently available to
the Group and the Company's proven ability to raise further equity
funds from its supportive shareholder base, that the Group will
have sufficient funds to meet its expected committed and
contractual expenditure for the foreseeable future. Thus, the
Directors continue to adopt the going concern basis of accounting
in preparing the interim financial report for the period ended 30
June 2020.
2 Summary of significant accounting policies
The accounting policies applied by the Group in this
consolidated interim financial report are the same as those applied
by the Group in its consolidated financial statements as at and for
the year ended 31 December 2019.
The following is a list of other new and amended standards
which, at the time of writing, had been issued by the IASB and are
effective in the current period, but have no impact on the
consolidated interim financial report.
-- IAS 1 Presentation of Financial Statements and IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors
(Amendment - Definition of Material)
-- IFRS 3 Business Combinations (Amendment - Definition of Business)
-- Revised Conceptual Framework for Financial Reporting
-- Interest Rate Benchmark Reform (IBOR) reform Phase 1
(Amendments to IFRS 9, IAS 39 and IFRS 7)
The Group does not expect any other standards issued by the
IASB, but not yet effective, to have a material impact on the
group.
3 Loss per share
Basic and diluted loss per share
The calculation of basic and diluted loss per share is based
upon the loss of GBP3,116,002 (2019: loss of GBP1,797,678) and the
weighted average number of ordinary shares in issue for the year of
264,555,996 (2019: 216,898,755).
The loss incurred by the Group means that the effect of any
outstanding warrants and options would be considered anti-dilutive
and is ignored for the purposes of the loss per share
calculation.
4 Share capital and reserves
Allotted, called up and fully Ordinary Share capital
paid 0.5p shares
No. GBP
At 1 January 2019 198,807,631 5,286,429
Exercised warrants 4,863,116 24,315
Exercised options 333,334 1,667
Issue of shares 40,000,000 200,000
Issue of consideration shares 869,565 4,348
As at 31 December 2019 244,873,646 5,516,759
-------------------------------- ------------ -------------
Issue of shares 142,500,000 712,500
As at 30 June 2020 387,373,646 6,229,259
-------------------------------- ------------ -------------
All ordinary shares are equally eligible to receive dividends
and the repayment of capital and represent equal votes at meetings
of shareholders.
ENDS
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London Stock Exchange. RNS is approved by the Financial Conduct
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END
IR FFFFITLIDLII
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