Latest Results

Final Results for the year-ended 30 September 2017

A year of progress for the investment company which now has five companies within its portfolio

YOLO Leisure and Technology plc (AIM: YOLO), the AIM-quoted company focusing on opportunities in the technology and leisure sectors, announces its audited Final Results for the year-ended 30 September 2017.

During the period the Company continued its targeted investment strategy while crystallising gains for investors with management focused on creating further value by investing in existing and new opportunities.

Download
The full results are available to
download in PDF format.

Financial Highlights

  • Total comprehensive income for the year £726,153 (2016: Loss £621,530)
  • Unrealised gains on investments of £657,935 (2016: losses £372,758)
  • Realised gains on disposal of investments of £270,559 (2016: £Nil)
  • As at 30 September 2017 gross assets were £4,558,402 (2016: £1,283,888)
  • Net fair value investments held was £3,875,483 (2016: £1,127,262)
  • Total Net Assets of £4,514,025 (2016: £1,206,871), representing 1.02p per share (2016: 0.68p)
  • On 7 November 2016 the Company placed 254,000,000 shares at 1.0p each raising total gross funds of £2,540,000.  A further 8,400,000 fee shares were also issued at a price of 1.0p
  • Cash at the bank at the year-end was £619,939 (2016: £139,412)

Investment Highlights

  • TVPlayer's platform is growing at more than 15% per month.  In November 2017 there were 1 million monthly active users and 40,000 paying subscribers.  The company is currently raising additional funds for expansion, and expects its valuation to be significantly higher than the previous rounds
  • Simplestream is planning to open US office in Q2 2018 with a view to doubling revenues in the next two years
  • Gfinity has made significant progress this year including the launch of the Elite Series season two and partnership with Formula One.  The Company realised a gain of £148,707 by reducing holding in Gfinity
  • AudioBoom continues to make good progress towards monetising its content platform.  The Company increased stake in AudioBoom as part of funding round in March
  • Magic Media Works recently launched its second product, Electric Jukebox ROXI, in the UK and US markets.  The Company invested a further £500,000 as part of the £1.2m Pre-IPO Loan Notes issued by Magic Media Works.  The Pre-IPO Loan Notes will convert into ordinary shares in Magic Media Works at a 33% discount to the share price on an IPO.  From 1 December 2017 the Loan Notes start to accrue interest at 10% per annum

Post-period highlights

  • TVPlayer raised a further £2.2 million of financing in December 2017 and Yolo participated with a convertible loan of £50,000.  The company expects to raise further funds in early 2018 to upgrade the TVPlayer platform, licence new content and support subscriber growth through marketing.
  • Magic Media Works secured commitments of £1.46million from existing and new investors towards an intended £2 million new round of funding.

Simon Robinson, CEO of YOLO Leisure & Technology plc, said:

"Yolo is well positioned as an investment company to actively grow its portfolio in 2018.  Our purpose is to identify innovative businesses that meet our investment criteria and have significant potential to deliver value for our shareholders.  We recognise the progress made in each of our portfolio companies and we look forward to building on this momentum in the exciting year ahead.

"We would like to thank our shareholders and advisors for continuing to show support in the Board and its vision."

Annual Report and Accounts

The Company's Annual Report and Accounts for the year to 30 September 2017 will be posted to shareholders shortly.

 

Chairman's Statement

Introduction

It is my pleasure to present the annual report and financial statements for YOLO Leisure & Technology plc ("YOLO" or the "Company"), covering our financial year ended 30 September 2017. During this year we have continued to pursue our strategy as an investment company with the five companies within our portfolio.

Financial Review

Total comprehensive income for the year was £726,153 (2016: Loss £621,530), resulting from unrealised gains on investments of £657,935 (2016: losses £372,758) and realised gains on disposal of investments of £270,559 (2016: £Nil). Cash at the bank at the year-end was £619,939 (2016: £139,412).

During the year the Company placed 254,000,000 shares at 1.0p each raising total gross funds of £2,540,000. A further 8,400,000 fee shares were also issued at a price of 1.0p.

As at 30 September 2017 gross assets were £4,558,402 (2016:  £1,283,888) and the net fair value of investments held was £3,875,483 (2016: £1,127,262). Total net assets were £4,514,025 (2016:  £1,206,871) which represents 1.02 (2016: 0.68) pence per share.

Simplestream Limited

Simplestream is a leading and profitable Software as a Service ("SaaS") provider of online video services specialising in live streaming, automated catch-up and live-to-Video On Demand ("VOD") solutions through its proprietary cloud-based Media Manager platform. Simplestream provides broadcasters and rights owners with an end-to-end technology services eco-system, with a full range of multi-platform TV and video distribution products including; low latency online simulcasts of TV channels, real-time sports highlights clipping, broadcaster catch-up services, social video syndication and subscriber management services.

Simplestream's technology platform also provides multi-channel, multi-territory front-end templated applications for a complete range of connected devices including mobiles, tablets, connected TVs and fast growing over the top ("OTT") platforms such as Amazon Fire TV, Apple TV and Roku. In the UK, Simplestream's "Hybrid TV" solution is used by leading broadcasters to power "catchup" services on Freeview, Freesat, YouView and EETV.

Simplestream provides award winning products across a broad range of sport, entertainment and teleshopping customers, including A+E Networks, Sony, AMC Networks, Discovery, QVC, At The Races, Box Nation, Newscorp and MTG. As broadcasters look to make the transition from traditional satellite and cable delivery to internet based services, with large new contracts in the pipeline, Simplestream has great traction and strong potential for growth. The company is expected to open an office in North America in Q2 2018 as part of a rapid growth plan to double revenues in two years.

Yolo holds 9,943 shares in Simplestream, which represents 6.34% on a fully diluted basis.

TVPlayer Limited

TVPlayer is a complete next generation pay TV platform that now offers comparable functionality to traditional pay TV services (including live, catch-up, on demand, and Pay Per View).

TV Player is a fully licensed TV service enabling viewers in the United Kingdom to stream over 98 TV channels. The TV Broadcast platform offers a "TVPlayer Plus" branded 'no contract, cancel anytime' monthly or yearly subscription service which allows consumers access to an additional 34 premium television channels, with a great selection of catchup. TVPlayer is also ITV's official online partner for ITV Box Office, a pay-per-view service that includes the World Boxing Super Series.

The platform is growing at more than 15% per month. Since January 2014, TVPlayer has attracted over 11 million users onto its website and a further 4 million app downloads in the UK. In November 2017 there were 1 million monthly active users, 40,000 paying subscribers and a further 10,000 trial subscribers (80% of whom convert into paying subscribers).

The business generates revenue through ad supported free viewing that drives paid subscribers, with additional upsell services. TVPlayer will be the first platform in the UK to launch network personal video recording ("nPVR") functionality, enabling users to record, view and store their favourite shows in the cloud.

TVPlayer completed an investment expansion round for working capital on 28 February 2017 which was led by A&E Television Network LLC ("A&E" - a joint venture between Disney and Hearst Media). YOLO made a further investment of £85,896 in TVPlayer to ensure the Company maintained its existing holding.

The company is currently raising additional funds for expansion, and expects its valuation to be significantly higher than the previous rounds. A&E is a major strategic investor with a 24.94% holding, Yolo has a holding of 11,067 shares equating to 4.2% on a fully diluted basis and Beringea LLP holds 10.86%.

Gfinity Plc

Gfinity is an end-to-end esports (also known as competitive gaming) solution, founded in 2012. Gfinity has quickly established itself as one of the world's leading esports companies, capable of providing an end-to-end solution and with a strong reputation for quality across publishers, players and esports fans. It stages elite tournaments for the top players in the world, producing industry leading broadcasts and providing on-line competitions and content to engage the esports community.

Gfinity has made significant progress this year, with the launch of the Elite Series season two, partnership with Formula One, the launch of the Elite Series in Australia, new broadcasting partnerships with BT Sport, BBC Three and Eleven Sports and the acquisition of CEVO an American based provider of technology and services to the esports market.

At the start of the year, YOLO held a total of 2,143,023 shares in Gfinity Plc. The Company took the opportunity to realise some of the gains made on the investment over the last three years by the sale of 1,743,023 of the shares into the market at an average price of 25.6p realising a gain on the cost of investment of £148,707. YOLO held 400,000 shares in Gfinity at the year-end.

AudioBoom Plc

AudioBoom is one of the world's leading spoken-word audio or podcasting platforms for hosting, distributing and monetising content that enables the creation, broadcast and syndication of audio content across multiple networks and geographies. AudioBoom works with its partners to monetise their audio via live in-reads, the dynamic insertion of pre and post roll audio adverts and video ads. The platform enables partners to deliver their content to millions of listeners worldwide via embedded (in websites) players, mobile applications, Facebook and Twitter integrations.

AudioBoom continues to make rapid progress towards monetising its content platform and announced a funding round of £4m on 21 March 2017. Yolo took the opportunity to invest a further £46,260 and acquire 1,840,000 shares to increase the holding to 5,340,000 shares, which represents 0.57% of the issued share capital.

Magic Media Works Ltd

Magic Media Works is a music entertainment technology business. The company's mission is to bring families together, through shared Music Entertainment Experiences, making every home a Connected Home.

The Electric Jukebox ROXI, the company's second product, recently launched both in the UK and US markets and offers five music entertainment experiences in one music entertainment hub including unlimited music streaming, Karaoke-style singing, global radio access, an ambient Sound Machine and its music trivia game, Name That Tune. The company has global rights agreements with the major labels; Universal Music Group, Sony Music Group, Warner Music Group and major independents including Merlin Music, providing customers with one year's access to a premium music catalogue of over 29 million music tracks.

In addition to effortless media discovery and consumption, ROXI's vision is to create experiences that bring people together around music, and support activity beyond simply listening to music, with a clearly differentiated software and hardware offering. Electric Jukebox ROXI has built a multi-territory media platform with localisation available for language, search, catalogue and playlist curation.

The company is focused on continually improving engagement with its consumers through further enhancement and refinement of user experience and facilitating integration in third party home ecosystems to ensure that ever more people can access and enjoy the product. Electric Jukebox ROXI has also launched its consumer media campaign across digital, social and traditional TV to build awareness and sales. In Q1 2018 the focus will move to increasing the addressable market by broadening the product range and price points with new hardware content configurations which are currently in development but not yet publicly announced. Magic Media Works also continues to progress its intellectual property protection programme, including applications for patents, trademarks and registered design rights.

On 5 November 2016, the Company completed an investment in Magic Media Works Ltd by investing £1.4m through a convertible loan note in Magic Media Works ("Loan Notes") bearing interest at a rate of 10% per annum from 1 March 2017 and were repayable on or before 31 December 2018.

On 5 June 2017 YOLO converted its Loan Notes into 41.42% of the Magic Media Works shares on a fully diluted basis, and invested a further £500,000 as part of the £1.2m Pre-IPO Loan Notes ("Pre-IPO Loan Notes") issued by Magic Media Works Ltd.

The Pre-IPO Loan Notes will convert into ordinary shares in Magic Media Works at a 33% discount to the share price on an initial public offer and start to accrue interest at 10% per annum from 1 December 2017. The Pre-IPO Loan Notes are repayable on 1 December 2019.

At year-end YOLO held 2,673,662 shares which is 41.83% of the issued share capital.

Placing of shares

On 7 November 2016, the Company completed a placing of 254,000,000 shares at a price of 1.0p raising total gross funds of £2,540,000. A further 8,400,000 fee shares were issued at a price of 1.0p. Under the terms of the placing each placee also received one warrant for every five shares subscribed for, exercisable at 1.3p per share.

Post year end investment in TVPlayer and restructuring of Magic Media

TVPlayer - has raised a further £2.2 million of financing in December 2017, and YOLO has participated with a Convertible Loan of £50,000. TVPlayer expects to raise a further round in early 2018, with funds used to upgrade additional functionality on the TVPlayer platform, to license new content and to support the subscriber growth through marketing.

Magic Media Works has secured commitments of £1.46 million from existing and new investors towards an intended £2 million new round of financing.

Henrik Holmark, previously the CFO of Pandora Jewellery, has invested £650,000 in this fund raise and will join the Magic board as a non-executive director.

YOLO took the strategic decision not to invest additional capital into Magic Media. Further, as the largest shareholder in Magic, YOLO agreed to release some of its shares in Magic and its anti-dilution rights to acquire additional shares in Magic to new investors for nominal consideration in order to assist Magic in completing the fund raise and so help it to achieve its goals and potential. The board of Magic confirmed to YOLO that the provision of this support by YOLO has been instrumental in allowing Magic to move forward to the successful completion of this funding round.

Following completion of this round of funding YOLO will remain a significant shareholder in Magic with a shareholding equal to 1,646,682 ordinary shares in Magic (representing 18.6 percent of the issued share capital of Magic, subject to the £2.0 million fundraise completing) and options over a further 95,000 ordinary shares.

Completion of the fundraise will enable Magic to start the New Year with a strengthened board, new product initiatives to roll out in both the US and UK territories and, crucially, new funding to help it to execute its development plans. The Board believes this decision to be in the best interests of shareholders.

Investment Strategy

Our vision is to be a successful and profitable investment company focussing on technology, travel leisure and media businesses. We will achieve this by identifying early stage or turnaround opportunities that require investment and or have the potential for a reverse takeover. We will invest into businesses with content and delivery capability that engage customers, monetise the user experience and have potential to scale.

The Company's Investing Policy is to invest into businesses which have some or all of the following characteristics:

  • strong management with a proven track record;
  • ready for investment without the need for material re-structuring by the Company;
  • generating positive cash flows or imminently likely to do so;
  • via an injection of new finances or specialist management, the Company can enhance the prospects and therefore the future value of the investment;
  • able to benefit from the Directors' existing network of contacts; and
  • the potential to deliver significant returns for the Company.

The Company will focus on opportunities in the technology, travel, leisure and media sectors.

Whilst the Directors will be principally focused on making an investment in private businesses, they would not rule out investment in listed businesses if this presents, in their judgment, the best opportunity for Shareholders.

The Company intends to be an active investor in situations where the Company can make a clear contribution to the progress and development of the investment. In respect of other, more substantial investment opportunities, the Directors expect that the Company will be more of a passive investor.

The Directors believe that their broad collective experience together with their extensive network of contacts will assist them in the identification, evaluation and funding of appropriate investment opportunities. When necessary, other external professionals will be engaged to assist in the due diligence on prospective targets and their management teams. The Directors will also consider appointing additional Directors with relevant experience if required.

There will be no limit on the number of projects into which the Company may invest, and the Company's financial resources may be invested in a number of propositions or in just one investment, which may be deemed to be a reverse takeover pursuant to Rule 14 of the AIM Rules. Where the Company builds a portfolio of related assets it is possible that there may be cross-holdings between such assets. The Company does not currently intend to fund any investments with debt or other borrowings but may do so if appropriate.

The Company's primary objective is that of securing for the Shareholders the best possible value consistent with achieving, over time, both capital growth and income for Shareholders through developing profitability coupled with dividend payments on a sustainable basis.

Outlook

We will continue to pursue and evaluate opportunities that meet our investment criteria.

The Board has evaluated a number of potential investments during the year and continues to look at opportunities in the technology, travel, leisure and media sectors and will only make investments in those projects that the Board believes has the potential to create value for shareholders.

I would like to thank our shareholders and advisors for continuing to show support in the Board and its vision.

 

Simon Robinson
Chairman
21 December 2017

 

Statement of Comprehensive Income
for the year ended 30 September 2017

    2017 2016
  Notes £ £
       
Revenue   - -
       
Cost of sales   - -
    ------------------ ------------------
Gross profit   - -
       
Other income 2 36,596 14,000
Administrative expenses   (272,662) (274,595)
Realised gain on disposal   270,559 -
Unrealised gains/(losses) on remeasurement to fair value 9 657,935 (372,758)
    ------------------ ------------------
OPERATING PROFIT / (LOSS) BEFORE FINANCING ACTIVITIES   692,428 (633,353)
       
       
Finance income 3 33,725 11,823
    ------------------ ------------------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE TAX 4 726,153 (621,530)
       
Tax charge 7 - -
    ------------------ ------------------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES AFTER TAX   726,153 (621,530)
    ------------------ ------------------
PROFIT/(LOSS) FOR THE YEAR ATTRIBUTABLE TO EQUITY      
SHAREHOLDERS   726,153 (621,530)
    ------------------ ------------------
TOTAL COMPREHENSIVE INCOME / (EXPENSES) ATTRIBUTABLE TO:      
Equity holders of the company   726,153 (621,530)
    ------------------- -------------------
       
Profit / (Loss ) per share (pence per share)      
Basic 8 0.18p (0.37)p
    ========= =========
Diluted   0.18p (0.37)p
    ========= =========
       

 

Statement of Financial Position
for the year ended 30 September 2017

        2017 2016
  Notes     £ £
ASSETS          
Non-current assets          
Investments 9     3,875,483 1,127,262
        -------------------- --------------------
        3,875,483 1,127,262
        -------------------- --------------------
Current assets          
Trade and other receivables 10     62,980 17,214
Cash and cash equivalents       619,939 139,412
        -------------------- --------------------
        682,919 156,626
        -------------------- --------------------
           
TOTAL ASSETS       4,558,402 1,283,888
        ========== ==========
EQUITY AND LIABILITIES          
Current liabilities          
Trade and other payables 11     44,377 77,016
        -------------------- --------------------
Total liabilities       44,377 77,016
        -------------------- --------------------
Equity          
Share capital 12     5,206,954 2,582,954
Share premium account       7,574,273 7,617,273
Retained earnings       (8,267,202) (8,993,355)
        --------------------- ---------------------
Total equity attributable to equity          
shareholders of the parent       4,514,025 1,206,872
        --------------------- ---------------------
TOTAL EQUITY AND LIABILITIES       4,558,402 1,283,888
        ========== ==========
           

The financial statements were approved and authorised for issue by the Board of Directors on 21 December 2017, and were signed below on its behalf by:

 

Simon Robinson
Director


Statement of Changes in Equity
for the year ended 30 September 2017

    Share    
  Share Premium Retained  
  capital Account Earnings Total
  £ £ £ £
         
At 1 October 2015 2,182,954 7,439,303 (8,371,825) 1,250,432
         
Total comprehensive        
expense for the year - - (621,530) (621,530)
         
Transactions with owners        
Shares issued 400,000 200,000 - 600,000
Cost of new issue - (22,030) - (22,030)
  ----------------- ------------------ -------------------- ------------------
At 1 October 2016 2,582,954 7,617,273 (8,993,355) 1,206,872
         
Total comprehensive        
income for the year - - 726,153 726,153
         
Transactions with owners        
Shares issued 2,624,000 - - 2,624,000
Cost of new issue - (43,000) - (43,000)
  ----------------- ------------------ -------------------- ------------------
At 30 September 2017 5,206,954 7,574,273 (8,267,202) 4,514,025
  ========= ========== =========== =========
         

Share capital

Represents the par value of shares in issue.

Share premium

Represents amounts subscribed for share capital in excess of its nominal value, net of directly attributable issue costs.

Retained earnings

Represents accumulated losses to date.



Statement of Cash Flows
for the year ended 30 September 2017

        2017 2016  
        £ £  
Operating activities            
Profit / (Loss) for the year       726,153 (621,530)  
Adjustments for:            
(Increase) in trade and other receivables       (45,766) (665)  
(Increase) / Decrease in trade and other payables       (32,639) 38,152  
Net finance cost / (income)       33,725 (11,823)  
Unrealised (gains) / losses on remeasurement to fair value       (657,935) 372,758  
Realised (gains) on disposal of investments       (270,559) -  
        ------------------- -------------------  
Net cash used in activities       (247,021) (223,108)  
        ------------------- ------------------  
Investing activities            
Payments to acquire investments       (2,265,087) (269,174)  
Receipts from disposal of investments       445,360 -  
Net finance income       (33,725) 11,823  
        ------------------- ---------------------  
Net cash (used in) investing activities       (1,853,452) (257,351)  
        ------------------- --------------------  
Financing activities            
Net proceeds from issue of shares       2,581,000 577,970  
        ------------------ ------------------  
Net cash generated from financing activities       2,581,000 577,970  
        ------------------- ---------------------  
             
Taxation       - -  
             
Net increase/(decrease) in cash and cash equivalents       480,527 97,511  
             
Cash and cash equivalents at the start of the year       139,412 41,901  
        ------------------ -------------------  
Cash and cash equivalents at the end of the year       619,939 139,412  
        ------------------ -------------------  
Cash and cash equivalents consists of:            
Cash and cash equivalents       619,939 139,412  
        ========= ==========  

 

Notes

The notes are available in the PDF download.

 

Page last up-dated: 22 December 2017