RNS Number:1499I
Top Ten Holdings PLC
21 November 2007
TOP TEN HOLDINGS PLC
Condensed Consolidated Interim Financial statements for the period ended 30
September 2007
Top Ten Holdings plc, is the third largest UK bingo operator with 38 bingo clubs
predominantly in the Midlands and North West of England, and in Wales.
Key Points
* Results impacted by anticipated turmoil resulting from the effects of
the smoking ban and introduction of the Gambling Act.
* Following a review in 2006 the Board put in place a strategy to limit
the effect of the smoking ban and to dispose of marginal clubs: two clubs sold
at #320,000 over book value resulting in a higher quality estate.
* The group remains profitable and cash generative. Pre-tax profits
were #381,000 (2006: #846,000); EPS 1.21p (2006: 2.27p).
* Net assets increased to #23.7 million (2006: #21.6 million).
* Top Ten echoes lobby for removal of double taxation of bingo industry.
* Further strategic review underway focussing on medium and long term
value.
* Current trading: remaining unpredictable with difficult market
conditions to persist through the second half. Cost reduction programme to feed
through in the first half of 2008.
21 November 2007
Commenting on the results Sir Aubrey Brocklebank, Chairman, said,
"Despite our considerable preparation for the smoking ban and introduction of
the Gambling Act our business has still felt the impact that the combination of
this unprecedented change has caused. Our strategy to dispose of our most
marginal clubs will leave the group better positioned to ride out challenging
market conditions.
We continue to review our business and to implement actions to maximise value
for shareholders in the medium and long term."
For Further Information:
Top Ten Holdings plc 01727 850793
Sir Aubrey Brocklebank, Chairman
Graham Kerr, Chief Executive
College Hill 020 7457 2020
Matthew Smallwood
Chairman's Statement
Introduction
The period of 26 weeks ending 30th September 2007 has been one of unprecedented
turmoil in the Bingo Industry. In Wales the Smoking Ban came into force on
April 2nd and on July 1st in England. In addition full deregulation and
enactment of the Gambling Act came into force on September 1st. Whilst we
commenced planning and taking action to mitigate the effects of the smoking ban
and the changes implemented by the Gambling Act last year, the combination of
the smoking ban and of the elimination of "Section 21" gaming machines has, as
anticipated and previously consistently cautioned, had an adverse effect on the
Company's trading.
In 2006, in anticipation of a challenging period for the industry, the Board
reviewed the estate, evaluated which clubs were marginal in the event of a
reduction in volumes and began a disposal process. Since this programme began 5
units have been sold above book value and enabled the Group's debt to be
reduced. The process is continuing and on completion of the disposal programme
the Company will have fewer, but better quality, units to face the challenges of
today's marketplace.
Results
Operating profits declined to #1.4m (2006: #2.1m). Pre-tax profits were
#380,088 (2006: #846,307) after taking into account exceptional items which
comprised predominantly profits on sale of clubs and reorganisation costs. EPS
before exceptional items was 0.87p and 1.21p after exceptional items. (2006:
3.08p and 2.27p). Net asset value was #23.7 million (2006: #21.6 million).
The interim report is lengthier than in previous years due to the requirement
for the Company to report under International Financial Reporting Standards ("
IFRS") from 27th March 2006 and have required the restatement of results from
prior periods. The adjustments between UK GAAP and IFRS are detailed at note 6.
Capital Expenditure
We have continued to upgrade the estate where a significant financial benefit
can be realised from further investment. During the period capital expenditure
of #1.4m was made, including the major refurbishment of Mansfield, one of the
company's largest sites.
Corporate Strategy
Because of the exceptional changes to the bingo industry, the board of directors
has initiated a further review focused on the Company's longer term financial
structure, including the banking relationship, in order to improve shareholder
value. Various actions and initiatives have been commenced both in advance of
and since the Smoking Ban with the principal focus of reducing overheads at head
office and at site level and reducing the Group's level of debt.
Disposals
During the period, Top Ten sold two small, poorly-performing bingo clubs for
#551,000. The sales proceeds generated a surplus of #320,000 profit over book
value. Further property sales are expected prior to the current financial year
end.
Management Changes
Norman Weston and Alan Weston have announced that they will be retiring as
executive Directors after many years with the company and I am pleased to report
that they have agreed to remain as non-executive directors so that we may
continue to benefit from their years of experience. Richard Simons has
indicated his intention to retire as a non-executive director and we would wish
to thank him for his contribution during the last five years.
Allen Walsh and Gary Bennett, currently executive directors of Top Ten Bingo
Limited (our subsidiary trading company), will be appointed to the main board.
The contents of this announcement include the full disclosures required under
Schedule 2, Para (g) of the AIM Rules.
Allen Walsh (57) is currently, or has been in the past five years, a director of
the following companies:
Top Ten Bingo Limited, Westvale Leisure Limited, Walker Holdings (UK) Limited,
Walker Group Limited, Walker Leisure (UK) Limited, Walker Property Management
Limited.
Gary Bennett (34) is currently, or has been in the past five years, a director
of the following companies:
Top Ten Bingo Limited, Walker Property Management Limited.
VAT
At industry level, the taxation regime continues to require bingo clubs to pay
both VAT and Gross Profit Tax ("GPT") on revenues, whereas harder gambling
formats pay only GPT. It is perverse that our more socially responsible
business should be taxed more highly and prevented from using the same fruit
machines as the rest of the gaming industry. The legality of the present VAT
regime is being challenged. We have submitted claims for VAT already paid
amounting to #5.4m. Whilst it is unlikely that this will be resolved in the
short term the Treasury has had several meetings with the industry trade
association which is lobbying for a managed resolution of this gross inequity.
A separate claim for VAT repayment, in respect of the unequal tax treatment of
fruit machine income, was submitted last year following a judgment by the
European Court of Justice. This claim amounts to #2.6 million and will be
concluded when the current industry test case is resolved.
Current Trading and Prospects
As outlined in the trading statement of 15th October 2007 average customer
spending levels and club admissions remain very unpredictable and it is
difficult to discern any clear trends. We continue to implement actions across
the estate and individually within certain units to generate sales and to
mitigate the effects of the smoking ban and Gambling Act.
The outlook for the current financial year is for difficult market conditions to
persist and trading at depressed levels will remain until the effects of the
current cost reduction programme begin to feed through in 2008. Should the
current trading conditions persist the Board anticipates that the second half of
the year will be marginally profitable and consequently it is unlikely that we
will pay a dividend in the New Year as we had previously hoped.
Sir Aubrey Brocklebank
Chairman
21st November 2007
Condensed consolidated interim income statement (unaudited)
26 weeks to 26 weeks to
30 September Non-recurring 26 weeks to 30 24 September 53 weeks to
2007 September 2007 2006 1 April
(restated) 2007
(restated)
# # # # #
Continuing operations
Revenue 13,654,381 - 13,654,381 14,690,201 30,579,375
Cost of sales (2,180,831) - (2,180,831) (2,264,353) (4,922,294)
Gross profit 11,473,550 - 11,473,530 12,425,848 25,657,081
Distribution costs (9,092,307) - (9,092,307) (9,113,410) (18,493,903)
Administrative expenses (1,014,245) - (1,014,245) (1,247,465) (2,295,999)
Other operating income - 290,209 290,209 - 194,302
Other operating expenses - (202,025) (202,025) (206,129) (359,683)
Operating profit 1,366,998 88,184 1,455,182 1,858,844 4,701,798
Finance costs (1,073,923) - (1,073,923) (1,012,537) (2,108,679)
Profit before tax 293,075 88,184 381,259 846,307 2,593,119
Taxation (71,499) - (71,499) (270,297) (808,573)
Profit for the period 221,576 88,184 309,760 576,010 1,784,546
Profit for the period 221,576 88,184 309,760 576,010 1,784,546
attributable to ordinary
shareholders
Earnings per share:
Basic and diluted 1.21p 2.27p 7.02p
earnings per share
There is no material difference between basic and diluted EPS.
The impact of discontinued operations is immaterial.
Condensed consolidated interim balance sheet (unaudited)
30 September 24 September 1 April
2007 2006 2007
(restated) (restated)
# # #
ASSETS
Non-current assets
Goodwill 16,499,737 16,557,844 16,499,737
Other intangible assets 100,340 - 85,165
Property, plant and equipment 36,646,378 35,563,311 36,553,495
Other financial assets 912,000 22,000 461,000
54,158,455 53,143,155 53,599,397
Current assets
Inventory 479,799 417,950 488,399
Trade and other receivables 1,596,911 2,160,274 749,732
Cash and cash equivalents 1,172,258 2,038,589 1,645,253
3,248,968 4,616,813 2,883,384
Total assets 57,407,423 57,759,968 56,482,781
LIABILITIES
Current liabilities
Trade and other payables (2,297,220) (2,616,262) (1,807,442)
Bank overdrafts and loans - (1,500,000) -
Obligations under finance leases (915,040) (504,924) (618,671)
Current taxation (829,051) (1,044,773) (1,319,193)
(4,041,311) (5,665,959) (3,745,306)
Non-current liabilities
Bank loans (28,728,271) (29,500,000) (28,326,152)
Obligations under finance leases (328,491) (634,543) (608,635)
Deferred taxation (561,321) (367,897) (561,321)
Total non-current liabilities (29,618,083) (30,502,440) (29,496,110)
Total liabilities (33,659,394) (36,168,399) (33,241,416)
Net assets 23,748,029 21,591,569 23,241,365
EQUITY
Equity attributable to equity holders of the parent
Share capital 5,101,151 5,101,147 5,101,151
Share premium account 8,878,606 8,878,606 8,878,606
Share options reserve 12,583 9,339 11,623
Other reserve 912,000 22,000 461,000
Profit and loss account 8,843,689 7,580,477 8,788,985
Total equity 23,748,029 21,591,569 23,241,365
Condensed
consolidated statement of changes in equity
Share Share Share Other Retained Total
Capital Premium Options Reserves Profits Equity
Reserve
# # # # #
Balance at 27 March 2006 5,064,923 8,711,247 7,053 (429,000) 7,371,668 20,725,891
Profit for the period - - - - 576,010 576,010
Changes in fair value of cash
flow hedges - - - 451,000 - 451,000
Total recognised income and 5,064,923 8,711,247 7,053 22,000 7,947,678 21,752,901
expense for the period
Shares issued during period 36,224 167,359 - - - 203,583
Dividend - - - - (367,228) (367,228)
Share Option charge - - 2,286 - - 2,286
Balance at 24 September 2006 5,101,147 8,878,606 9,339 22,000 7,580,450 21,591,542
Share Share Share Other Retained Total
Capital Premium Options Reserves Profits Equity
Reserve
# # # # # #
Balance at 2 April 2007 5,101,151 8,878,606 11,624 461,000 8,788,985 23,241,366
Profit for the period - - - - 309,760 309,760
Changes in fair value of cash
flow hedge - - - 451,000 - 451,000
Total recognised income and 5,101,151 8,878,606 11,624 912,000 9,098,745 24,002,126
expense for the period
Dividend - - - - (255,056) (255,056)
Share Option charge - - 959 - - 959
Balance at 30 September 2007 5,101,151 8,878,606 12,583 912,000 8,843,689 23,748,029
Condensed consolidated interim cash flow statement (unaudited)
26 weeks to 30 26 weeks to 53 weeks to
September 2007 24 September 1 April
2006 2007
# # #
Cash flows from operating activities
Profit after taxation 1,455,182 1,858,844 4,699,414
Adjustments for:
Share based payment 960 2,288 4,571
Depreciation of property, plant and equipment 937,333 833,659 1,588,126
Profit on sale of property, plant and equipment (290,209) 6,086 (194,302)
Decrease/(increase) in inventories 8,601 1,759 (64,921)
Decrease/(increase) in trade and other receivables (847,179) (1,460,697) 177,052
Increase in trade payables 242,078 697,235 121,558
Cash generated from operations 1,506,766 1,939,174 6,331,498
Interest paid (1,074,560) (1,013,312) (2,126,029)
Taxation paid (313,947) (211,265) (640,563)
Net cash inflow from operating activities 118,259 714,597 3,564,906
Cash flows from investing activities
Interest received 636 775 17,349
Investment in intangible assets (15,175) (85,165) -
Purchase of Property, plant and equipment (732,349) (353,706) (1,095,871)
Proceeds from sale of Property, plant and equipment 599,589 29,933 675,960
Acquisition of subsidiary, net of cash acquired - (982,375) (1,100,281)
Net cash used in investing activities (147,299) (1,390,538) (1,502,843)
Cash flows from financing activities
Repayments of obligations under finance leases (591,018) (89,195) (546,683)
Proceeds from long-term borrowings 402,119 1,452,078 900,000
Repayments of borrowings - - (2,121,770)
Dividends paid to shareholders (255,056) (367,224) (367,228)
Net cash used in financing activities (443,955) 995,659 (2,135,681)
Net (decrease)/increase in cash and cash equivalents (472,995) 319,718 (73,618)
Cash and cash equivalents at beginning of period 1,645,253 1,718,871 1,718,871
Cash and cash equivalents at end of period 1,172,258 2,038,589 1,645,253
Notes to the condensed consolidated interim financial statements
1 General information
The financial information set out in this condensed interim report for the
twenty six weeks ended
30th September 2007 and the comparative figures for the twenty six weeks ended
24th September 2006. This financial information does not constitute statutory
accounts as defined in Section 240 of the Companies Act 1985. The Company's
statutory financial statements for the period ended 1st April 2007, prepared
under UK GAAP, received an unqualified audit report, did not contain statements
under section 237(2) of the Companies Act 1985 and have been filed with the
Registrar of Companies.
2 Basis of preparation
These interim consolidated financial statements of Top Ten Holdings plc are for
the twenty six weeks ended 30th September 2007. They have been prepared taking
into account the requirements of IAS 34, Interim Financial Reporting, and the
requirements of IFRS 1, First-time Adoption of IFRS, because they are part of
the period covered by the Company's first IFRS financial statements for the
period ended 30 March 2008. They do not include all of the information required
for full annual financial statements, and should be read in conjunction with the
consolidated financial statements of the Company for the period ended 1st April
2007. These condensed consolidated interim financial statements (the interim
financial statements) have been prepared in accordance with the accounting
policies set out below which are based on the recognition and measurement
principles of IFRS in issue as adopted by the European Union (EU) and are
effective at 30th March 2008 or are expected to be adopted and effective at 30th
March 2008, our first annual reporting date at which we are required to use IFRS
accounting standards adopted by the EU.
Top Ten Holding plc's consolidated financial statements were prepared in
accordance with applicable United Kingdom Generally Accepted Accounting
Principles (UK GAAP) until 1st April 2007. The date of transition was 27th
March 2006. UK GAAP differs in some areas from IFRS. In preparing Top Ten
Holdings plc's 2007 consolidated interim financial statements, management has
amended certain accounting, valuation and consolidation methods applied in the
UK GAAP financial statements to comply with IFRS. The comparative figures in
respect of 2006 were restated to reflect these adjustments.
Reconciliations and descriptions of the effect of the transition from UK GAAP to
IFRS on the Company's equity and its net income and cash flows are provided in
Note 6.
These consolidated interim financial statements have been prepared under the
historical cost convention, as modified by the revaluation of financial assets
and financial liabilities at fair value. The preparation of financial
statements requires the use of certain critical accounting estimates. It also
requires management to exercise judgement in the process of applying the
Company's accounting policies.
Notes to the condensed consolidated interim financial statements (continued)
3 Summary of significant accounting policies
The accounting policies used in the interim statement are consistent with those
used in the financial statements for the 53 weeks ended 1 April 2007, subject to
the adoption of IAS 38 Intangible Assets and IAS 39 Financial Instruments:
Measurement and Recognition following the introduction of IFRS.
Key accounting policies are summarised below:
a Basis of Consolidation
(i) Subsidiaries
Subsidiaries are entities over which the Company has power to control the
financial and operating policies so as to obtain benefits from its activities.
Investments in subsidiary undertakings are accounted for using the purchase
method of accounting. The cost of an acquisition is measured as the fair value
of the assets given, equity instruments issued and liabilities incurred or
assumed at the date of exchange, plus costs directly attributable to the
acquisition. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured initially at their
fair values at the acquisition date. The excess of the cost of acquisition over
the fair value of the Company's share of the identifiable net assets acquired is
recorded as goodwill. If the cost of acquisition is less than the fair value of
the Company's share of the net assets of the subsidiary acquired, the difference
is recognised directly in the income statement.
b Revenue Recognition
Revenue results from the operation of bingo clubs, snooker clubs, and amusement
arcades. Bingo revenue is recorded as the customer stake, less applicable
gaming duties, cash prizes and VAT. Revenues from the sale of food and
beverages are recorded net of VAT.
c Goodwill
All business combinations are accounted for by applying the purchase method.
Goodwill represents amounts arising on acquisition of subsidiaries, joint
ventures and associates. In respect of business acquisitions goodwill
represents the difference between the cost of acquisition and the fair value of
the net identifiable assets acquired. Goodwill is allocated to cash generating
units and is tested annually for impairment at a consistent time each year.
Goodwill is stated at cost or deemed cost less any accumulated impairment
losses.
d Internally-generated Intangible Assets - Research and Development
Expenditure
Expenditure on research activities is recognised as an expense in the period in
which it is incurred. An internally-generated intangible asset arising is
recognised only if all of the following conditions are met:
- an asset is created that can be identified;
- it is probable that the asset created will generate future economic
benefits; and
- the development cost of the asset can be measured reliably.
Notes to the condensed consolidated interim financial statements (continued)
d Internally-generated Intangible Assets - Research and Development
Expenditure (continued)
Internally-generated intangible assets are amortised on a straight-line basis
over their useful lives. Where no internally-generated intangible asset can be
recognised, development expenditure is recognised as an expense in the period in
which it is incurred.
e Property, Plant and Equipment
Property, plant and equipment are stated at cost, net of depreciation and any
provisions for impairment.
The gain or loss arising on the disposal of an asset is determined as the
difference between the disposal proceeds and the carrying amount of the asset
and is recognised in the income statement. The gain or loss arising from the
sale of held for sale assets is included in "other income" or "other expense" in
the income statement.
Depreciation is calculated to write off the cost of the assets less estimated
residual value in over their expected useful lives. Depreciation is provided at
the following rates:
Freehold property 2% straight line
Leasehold property Over life of lease
Plant, property and equipment 12.5% - 20% reducing balance
Motor vehicles 25% reducing balance
The carrying values of property, plant and equipment are reviewed for impairment
when there is an indication that they may be impaired.
f Derivative Financial Instruments
Derivative financial instruments are measured initially at fair value and
comprise interest rate swaps.
These derivative financial instruments are designated as cash flow hedges in
line with the Company's treasury policy. The portion of the gain or loss on the
hedging instrument that is determined to be an effective hedge, is defined by
IAS 39 "Financial Instruments: Recognition and Measurement", is recognised in
equity, with any ineffective portion recognised in the consolidated income
statement. When hedged cash flows result in the recognition of a non financial
asset or liability, the associated gains or losses previously recognised in
equity are included in the initial measurement of the asset or liability. For
all other cash flow hedges, the gains or losses that are recognised in equity
are transferred to the income statement in the same period in which the hedged
cash flows affect the income statement.
Notes to the condensed consolidated interim financial statements (continued)
4 Earnings per share
The calculation of basic earnings per share is based on a profit for the period
of #309,760 (2006: #576,010) and on 25,505,751 (2006: 25,368,202) ordinary
shares, being the weighted average number of ordinary shares in issue during the
period.
During the period under review, the company has recorded exceptional disposal
profits of #290,209 (2006: #nil) and exceptional costs of #202,025 (2006:
#206,129) relating to site closures and reorganisation costs. The net pre-tax
profit before this exceptional item ("adjusted profit") is #221,576 (2006:
#782,139). The adjusted profit per share, based on 25,505,751 ordinary shares,
being the weighted average number of ordinary shares in issue during the period,
is 0.08p (2006: 3.08p).
The profit attributable to ordinary shareholders and the weighted average number
of ordinary shares for the purpose of calculating the diluted earnings per share
are identical to those used for the basic earnings per share. Similarly, the
adjusted profit attributable to ordinary shareholders and the weighted average
number of ordinary shares for the purposes of calculating the diluted adjusted
earnings per share are identical to those used for the adjusted earnings per
share.
5 Dividends
During the period the proposed dividend of 1p per share (#255,056) was approved
at the Annual General Meeting on 29th August 2007 and was subsequently paid.
The Directors do not foresee payment of a further 1p per share in February 2008
as was originally indicated in the financial statements to 1st April 2007.
6 Explanation of transition to IFRS
As stated in the Basis of Preparation, these are the Company's first condensed
consolidated interim financial statements for part of the period covered by the
first IFRS annual consolidated financial statements prepared in accordance with
IFRS. An explanation of how the transition from UK GAAP to IFRS has affected
the Company's financial position, financial performance and cash flows is set
out below. The following reconciliations provide a quantification of the effect
of the transition to IFRS.
IFRS 1 permits companies adopting IFRS for the first time to take certain
exemptions from the full requirements of IFRS in the transition period. These
interim financial statements have been prepared on the basis of taking the
following exemptions:
- business combinations prior to 27th March 2006, the Company's date
of transition to IFRS, have not been restated to comply with IFRS 3 "Business
Combinations"
Notes to the condensed consolidated interim financial statements (continued)
6.1 Transition statement at 27th March 2006
UK GAAP IAS 39 IFRS
# # #
Non-current assets
Goodwill 16,171,890 - 16,171,890
Property, plant and equipment 35,802,997 - 35,802,997
51,974,887 - 51,974,887
Current assets
Inventory 419,708 - 419,708
Trade and other receivables 923,744 - 923,744
Cash and cash equivalents 1,718,871 - 1,718,871
3,062,323 - 3,062,323
Total assets 55,037,210 - 55,037,210
Current liabilities
Trade and other payables (1,821,173) - (1,821,173)
Short-term borrowings (1,500,000) - (1,500,000)
Obligations under finance leases (344,885) - (344,885)
Current tax payable (1,123,627) - (1,123,627)
(4,789,685) - (4,789,685)
Non-current liabilities
Bank loans (28,047,922) - (28,047,922)
Obligations under finance leases (676,817) - (676,817)
Deferred tax (367,895) - (367,895)
Other financial liabilities - (429,000) (429,000)
(29,092,634) (429,000) (29,521,634)
Net assets 21,154,891 (429,000) 20,725,891
Equity
Share capital 5,064,923 - 5,064,923
Share premium account 8,711,247 - 8,711,247
Share options reserve 7,053 - 7,053
Other reserve - (429,000) (429,000)
Profit and loss account 7,371,668 - 7,371,668
Total equity 21,154,891 (429,000) 20,725,891
Notes to the condensed consolidated interim financial statements (continued)
6.2 Transition statement at 24th September 2006
UK GAAP IAS 39 IFRS
# # #
Non-current assets
Goodwill 16,557,844 - 16,557,844
Property, plant and equipment 36,563,311 - 36,563,311
Other financial assets - 22,000 22,000
53,121,155 22,000 53,143,155
Current assets
Inventory 417,950 - 417,950
Trade and other receivables 2,160,274 - 2,160,274
Cash and cash equivalents 2,038,589 - 2,038,589
4,616,813 - 4,616,813
Total assets 57,737,968 22,000 57,759,968
Current liabilities
Trade and other payables (2,616,262) - (2,616,262)
Short-term borrowings (1,500,000) - (1,500,000)
Obligations under finance leases (504,924) - (504,924)
Current tax payable (1,044,773) - (1,044,773)
(5,665,959) - (5,665,959)
Non-current liabilities
Bank loans (29,500,000) - (29,500,000)
Obligations under finance leases (634,543) - (634,543)
Deferred tax (367,897) - (367,897)
Other financial liabilities - - -
(30,502,440) - (30,502,440)
Net assets 21,569,569 22,000 21,591,569
Equity
Share capital 5,101,147 - 5,101,147
Share premium account 8,878,606 - 8,878,606
Share options reserve 9,339 - 9,339
Other reserve - 22,000 22,000
Profit and loss account 7,580,477 - 7,580,477
Total equity 21,569,569 22,000 21,591,569
Notes to the condensed consolidated interim financial statements (continued)
6.3 Transition statement at 1st April 2007
UK GAAP IAS 38 IAS 39 IFRS
# # # #
Non-current assets
Goodwill 16,499,737 - 16,499,737
Other intangible assets - 85,165 - 85,165
Property, plant and equipment 36,636,276 (82,781) - 36,553,495
Other financial assets - - 461,000 461,000
53,136,013 2,384 461,000 53,599,397
Current assets
Inventory 488,399 - - 488,399
Trade and other receivables 749,732 - - 749,732
Cash and cash equivalents 1,645,253 - - 1,645,253
2,883,384 - - 2,883,384
Total assets 56,019,397 2,384 461,000 56,482,781
Current liabilities
Trade and other payables (1,807,442) - - (1,807,442)
Short-term borrowings - - - -
Obligations under finance leases (618,671) - - (618,671)
Current tax payable (1,319,193) - - (1,319,193)
(3,745,306) - - (3,745,306)
Non-current liabilities
Bank loans (28,326,152) - - (28,326,152)
Obligations under finance leases (608,637) - - (608,637)
Deferred tax (561,321) - - (561,321)
Other financial liabilities - - - -
(29,496,110) - - (29,496,110)
Net assets 22,777,981 2,384 461,000 23,241,365
Equity
Share capital 5,101,151 - - 5,101,151
Share premium account 8,878,606 - - 8,878,606
Share options reserve 11,623 - - 11,623
Other reserve - - 461,000 461,000
Profit and loss account 8,786,601 2,384 - 8,788,985
Total equity 22,777,981 2,384 461,000 23,241,365
Notes to the condensed consolidated interim financial statements (continued)
6.4 Reconciliation of income
26 weeks to 24th September 2006
UK GAAP IAS 39 IFRS
# # #
Company revenue 14,690,201 - 14,690,201
Cost of sales (2,264,353) - (2,264,353)
Gross profit 12,425,848 - 12,425,848
Distribution costs (9,113,410) - (9,113,410)
Administrative expenses (1,247,465) - (1,247,465)
Other operating expenses (206,129) - (206,129)
Profit from operations 1,858,844 - 1,858,844
Finance cost (1,012,537) - (1,012,537)
Profit before tax 846,307 - 846,307
Taxation on ordinary activities (270,297) - (270,297)
Profit for the period 576,010 - 576,010
53 weeks to 1st April 2007
UK GAAP IAS 38 IAS 39 IFRS
# # # #
Company revenue 30,579,375 - - 30,579,375
Cost of sales (4,922,294) - - (4,922,294)
Gross profit 25,657,081 - - 25,657,081
Distribution costs (18,493,903) - - (18,493,903)
Administrative expenses (2,298,383) 2,384 - (2,295,999)
Profit from operations 4,864,795 2,384 - 4,867,179
Other operating income 194,302 - - 194,302
Other operating expenses (359,683) - - (359,683)
Finance cost (2,108,679) - - (2,108,679)
Profit before tax 2,590,735 2,384 - 2,593,119
Taxation on ordinary activities (808,573) - - (808,573)
Profit for the period 1,782,162 2,384 - 1,784,546
Notes to the condensed consolidated interim financial statements (continued)
6.5 Notes to the reconciliation
Up to and including the accounting period to 1st April 2007, the Company
prepared its consolidated financial statement in accordance with UK GAAP
(Generally Accepted Accounting Principles). With effect from 1st April 2007 it
is required to prepare its consolidated financial statements in accordance with
(IFRS) as adopted by the European Union.
The Company has adopted IFRS from 27th March 2006, the date of transition. The
first full set of audited financial statements prepared under IFRS will be for
the year ended 30th March 2008 and the first interim report prepared under IFRS
is for the twenty six weeks ended 30th September 2007.
The rules for transition to IFRS are set out in IFRS 1 "first time adoption of
international accounting standards". Advantage has been taken of not restating
business combinations undertaken prior to the date of transition. The only
acquisition subsequent to the transition to IFRS was the purchase of Lance
Leisure (Mexborough) Limited. No adjustments are necessary in respect of this
acquisition in relation to the transfer to IFRS.
Key Differences
The key reconciling items between IFRS to previous UK GAAP for the primary
financial statements arise from the adoption and first time application of the
following IFRS standards:
International Accounting Standard 38: Intangible Assets
The 2006 balance sheet and financial statements have now been adjusted to
reflect adoption of IFRS. Full details of the adjustments and the effect of the
adjustments on the financial statements of the Company are disclosed earlier in
this note. The major differences between our prior accounting practice and IFRS
have been in respect of the reclassification of certain fixed assets development
expenditure from Tangible fixed assets to Intangible fixed assets and the add
back of associated depreciation. In addition Goodwill is no longer amortised
over its useful economic life rather it is tested for impairment annually. As
the Goodwill of Top Ten Holdings plc was not previously amortised the change to
IFRS has no impact. The Intangible fixed assets at the transition date and at
27th March 2006, 24th September 2006, and 1st April 2007 and 30th September 2007
have been reviewed and no impairment has been identified.
Under UK GAAP the fair value of cash flow hedges that hedged exposure to cash
flows was recognised on an accruals basis.
International Accounting Standard 39: Financial Instruments: Recognition and
Measurement
Under IAS 39, "Financial Instruments: Recognition and Measurement" derivatives
are carried at a fair value and the portion of the gain or loss on the hedging
instrument that is determined to be an effective hedged is recognised in equity,
with any ineffective portion recognised in the consolidated income statement.
When hedged cash flows result in the recognition of a non financial asset or
liability the
Notes to the condensed consolidated interim financial statements (continued)
associated gains or losses previously recognised in equity are included in the
initial measurement of the asset or liability.
Accordingly the following have been recognised in the balance sheet at the
following dates:
- A financial liability of #429,000 at 27 March 2006
- A financial asset of #22,000 at 30 September 2006
- A financial asset of #461,000 at 1 April 2007
- A financial asset of #912,000 at 30 September 2007
Segmental Reporting
The Company has only one business segment, the operation of bingo clubs in
England and Wales.
7 Interim Statement
This interim statement is unaudited. The interim statement will be sent to
shareholders and will also be available from the investor relations section of
the Company's website at www.toptenbingo.com. Copies may be obtained from the
Company Secretary, Top Ten Holdings plc, Unit 8, Verulam Industrial Estate, 224
London Road, St Albans, Hertfordshire AL1 1JF.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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Top Ten (LSE:TTH)
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Top Ten (LSE:TTH)
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から 6 2023 まで 6 2024
