Latest Results

Final Results for the year ended 30 September 2016

YOLO (AIM:YOLO), the AIM listed company investing in leisure and technology, today announces its audited final results for the year ended 30 September 2016.

The audited Report and Accounts for the year ended 30 September 2016 is being sent to shareholders today and will also be available on the Company's website: www.yoloplc.com.  Shareholders are also being sent a notice of AGM to be held at Third Floor, New Liverpool House, 15 Eldon Street, London, EC2M 7LD at 11.00 a.m. on 20 April 2017.

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CHAIRMAN'S STATEMENT

Introduction

I am pleased to present our Annual Report for YOLO Leisure & Technology plc ("YOLO" or the "Company"), covering the financial year ended 30 September 2016. During this year we have continued to fulfil our strategy with the four companies we are now invested into, with TVPlayer Ltd and Simplestream Ltd having split to become separate and accountable entities.

Each of the businesses are pioneering innovators in their sectors with strong content and technology platforms with the capability to scale and create value for customers and shareholders.

Financial Review

During the year the Company completed a placing of 40,000,000 shares raising gross funds of £600,000 for further investment and working capital.

Simplestream Limited and TVPlayer Limited

The Company made its first investment of £550,000 into Simplestream Ltd on 28 January 2015, for 5.1% of the company. This was followed up this year on the 29 of January 2016 when the Company made a further investment of £257,384 through convertible loan notes ("Loan Notes") bearing an interest of 8% which were repayable on or before 16 July 2018.

On the 18 August 2016, Simplestream Ltd demerged its B2C business TVPlayer Ltd, creating two separate limited companies with focussed strategies and accountable management. As a result of the conversion and a further direct investment round led by A&E Television Network LLC ("A&E" - 50% owned by Disney and Hearst Media) into TVPlayer YOLO had a holding of 6.78% in Simplestream and 4.66% in TVPlayer.

YOLO's investment has been into two innovative TV technology platforms, namely Simplestream and TVPlayer, both of which are undergoing growth in a market where user behaviour is transforming the way content is distributed and consumed.  These types of services, which deliver television content over the internet, are called Over The Top ("OTT") services. Such is the demand for watching television online, OTT services are forecast to grow to $54 billion by 2029 (source: Markets & Markets - OTT Market Report 2014-2019), with over $1 billion forecast to be generated each year in the UK.  The growth of OTT viewing is fueled by the continued growth of smartphone, tablet and so called "streaming stick" sales.

Simplestream is a leading and profitable B2B provider of video services including live streaming, automated catch-up and live-to-Video On Demand ("VOD") solutions through its proprietary Media Manager platform. Simplestream provides broadcasters and rights owners with a Technology Services Ecosystem with a full range of multi-platform TV and video distribution including; live streaming, real-time highlights clipping, catch-up, social syndication and subscription management services. 

Simplestream's technology platform provides for multi-channel and multi-territory content delivery for premium live-streaming, catch-up and automated live-to-VOD into mobiles, tablets, and a large variety of other media platforms such as Amazon Fire, AppleTV, SmartTV's, YouView, Freesat, Freeview, and other connected devices.

TVPlayer is a leading next generation B2C Over-The-Top ("OTT") TV platform with 2.8 million downloads and up to 1 million regular monthly active users. TVPlayer critically is a fully-licensed platform having entered into multi-year content licensing agreements with the leading free-to-air and subscription television broadcasters.  It streams 60 free to air and 24 Plus channels of the UK's most popular TV channels to desktop, mobiles, tablet, Apple TV, Amazon Fire TV, Samsung Smart TV and various set-top-boxes. 

TVPlayer generates revenue through two business models; firstly an ad-supported free to air TVPlayer service and secondly a paid subscription service with TVPlayer Plus, offering premium channels in the UK without a contract, providing 24 additional premium channels for a monthly fee of £5.99 with additional up sell services.  

A+E Television Networks LLC, a $20 billion mass media global media JV company between Disney and Hearst Media, sees great opportunities for the business.  Both TV Player and Simplestream businesses are well positioned to capitalise on the growth and user opportunities within the UK and International markets.

GFinity Plc

YOLO holds a total of 2,143,023 shares in GFinity Plc ("GFinity") which, as at 31 August 2016, represented 1.36% of the company (source: GFinity plc website, shares in issue),

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. 

In the year to 30 June 2016, GFinity continued to invest in the business in line with its stated strategy to build its reputation with game publishers, prospective sponsors and the wider eSports community to cement its position as a leader within the eSports industry. This has been achieved through the development of both physical assets, such as the eSports Arena in the UK, and digital assets to host and stream eSports competitions online. Collectively these assets, together with the expertise of the GFinity team, mean that the Company is uniquely positioned to provide an end-to-end eSports solution both to game publishers and other partners looking to access the growing audience of eSports enthusiasts.

The growth reflects widening acknowledgement of GFinity's capability, across a broad range of games and platforms. Events during the year have been staged across PC, console and mobile devices. Clients, meanwhile, have included game publishers, platform providers, brands from within the industry and also increasingly consumer brands looking for a way to reach the core eSports audience of young affluent males, who they find it increasingly difficult to reach via other channels.

As a sector, eSports continues to go from strength to strength. Leading industry analysts NewZoo report that the eSports audience has now risen to over 250 million globally. Major events are already filling arenas and attracting audiences that dwarf many conventional sports. A recent report by Newzoo forecasts that the eSports market will grow at a compound annual growth rate of 42% to over US$1.1bn by 2019. eSports Fans typically watch 41.8 hours of eSports content per month, which compares to a total of 23 hours per month for football, and major brands are starting to engage.  GFinity's Management continues to believe it has significant potential to grow rapidly over this time frame and believes that its strategy of continued investment in the capability and reputation of the business are the correct route to deliver long-term value to the shareholders.

The year to 30 June 2016 was one in which GFinity continued to deliver on its strategic objective to develop its operational capability and to build its reputation with the eSports audience and key partners within the industry.  Revenue for the financial year increased significantly from £0.56m to £1.45m as activity at the Company's eSports arena increased and the Company signed contracts with a number of leading video game publishers and eSports sponsors such as Microsoft, Gillette and FutHead.com.

Following the year-end, GFinity also successfully completed a placing to raise a further £3.7m, positioning the company in a strong cash position to accelerate its drive towards its strategic goals.

In 2016, GFinity staged 30 international events, achieved 480,000 registered users, 58.5 million views, 4.2 million sessions, 200,000 games played and 8.15 million Twitter impressions per month.  GFinity has strong potential for monetising commercial rights attached to broadcasts and events, with access to a wide range of ancillary revenue streams such as sponsorship, advertising, broadcast rights, pay per view, data, 3rd party events and promotions, Pay to Play, Ticketing, Betting, Fantasy and an Xbox App (Build Your Own Tournament).

AudioBoom Plc

YOLO holds 3,500,000 shares in AudioBoom Plc ("AudioBoom"), equating to 0.65% of the issued share capital.

AudioBoom is the leading spoken-word audio platform 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.

At 31 May 2016, the number of content channels was 8,115, an increase of over 55% on 12 months earlier (2015: 5,237). This improvement reflected not only the addition of new content partners but also the scale of those partners, with many establishing multiple channels for different genres and geographic regions.

Listens are the number of times users consume AudioBoom hosted content via embeddable content players on third party websites or apps. The number of listens is a key metric for the business, as it is the sole driver of advertising revenue. Total listens in the period under review was 222 million - an increase of 80% on the same period last year (H1 2015: 123 million). Total lifetime listens of AudioBoom content achieved since inception have now exceeded one billion.

The geographical split on listens is currently circa 70% USA, 11% UK, 5% Australia and 14% Rest of the World, reflecting the global appeal and the spread of content hosted.

AudioBoom has made further tangible progress in H1 2016, growing revenue, securing significant new content partners and further broadening its geographic distribution.  The momentum from H1 has continued into H2, which has started well, with the business securing significant advanced bookings for advertising revenue. Fill rates and CPMs (cost per thousand listens that advertisers pay) are expected to improve further in all the major territories and content verticals over the next few months and beyond. There have also been multiple technological upgrades to the AudioBoom platform scheduled for H2 2016, which should create increasingly large volumes of monetisable ad impressions.

Placing of shares

On 20 January 2016 the Company placed 40,000,000 shares at 1.5p and raised £600,000 before costs. As part of the placing the Company also issued 10,000,000 warrants to subscribe for new ordinary shares in the Company at 1.8p per share. The funds were used for investment and working capital.

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 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 that the Company will invest in 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 and leisure 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.  In parallel to this we remain positive in the prospects of each of our four current investment partners and recognise that Management are continuing to execute their strategic plan to monetise and engage their content and users and build on the impressive foundations that have been laid.

Post Year End 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.

Also on the same date 9,800,000 director warrants at exercise price of 1.3p were awarded to Simon Robinson.

Further investments post the financial 15/16 year end

On 5 November 2016, the Company completed an investment in Magic Media Works Ltd ("Magic Media Works") by investing £1.4m through a convertible loan note in Magic Media Works ("Loan Notes").  The Loan Notes bear interest at a rate of 10% per annum from 1 March 2017 and are repayable on or before 31 December 2018. The Loan Notes are secured by a first ranking debenture over the assets of Magic Media Works and are convertible into approximately 41.2% of the ordinary share capital of Magic Media Works on a fully diluted basis.

Magic Media Works has developed a number of subscription-free music streaming products and services which allow users to access ad-free music content without the requirement for account registration, passwords, software downloads or pairing of third party streaming devices.

Magic Media Works has entered into licensing agreements with the world's major record labels, including Universal Music Group, Sony Music Group and Warner Music Group and major independents including Merlin Music and also the major music publishers, allowing users to access millions of albums and over 29 million music tracks ad-free. Streamed music content is accessed via the Electric Jukebox product, a proprietary streaming device developed by Magic Media Works. 

With a potential addressable consumer market of some 800 million users worldwide (Source IFPI), Magic Media Works is currently the world's only dedicated music streaming developer of consumer music streaming players and services that provide on-demand ad-free access to a wide ranging music catalogue without the need for either a user account, application download or a monthly subscription.

Magic Media Works has signed up a number of celebrities to assist in marketing Electric Jukebox, including Robbie Williams and his wife Ayda Field, Stephen Fry, Sheryl Crow, Alesha Dixon and Alexander Armstrong, all of whom have equity interests in the business.

Magic Media Works has successfully launched its first product, Electric Jukebox, in the UK in late November. The business is currently developing its next version of Electric Jukebox and evaluating international expansion into the USA and Europe.

Further to the demerger and investment by A&E in August 2016, TVPlayer completed an investment expansion round for working capital on 28 February 2017 which was led by A&E. YOLO made a further investment of £85,424 in TVPlayer to ensure the Company maintained its existing holding.

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 will 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
Date: 21 March 2017

 

Statement of Comprehensive Income
for the year ended 30 September 2016

2016 2015
Notes £ £
Revenue - -
Cost of sales - -
------------------ ------------------
Gross profit -
Other income 2 14,000 9,333
Administrative expenses (274,595) (287,651)
Unrealised (losses)/gains on remeasurement to fair value (372,758) 33,041
------------------ -------------------
OPERATING LOSS BEFORE FINANCING ACTIVITIES (633,353) (245,277)
Finance income 3 11,823 357
------------------ ------------------
LOSS ON ORDINARY ACTIVITIES BEFORE TAX 4 (621,530) (244,920)
Tax charge 7 - -
------------------ ------------------
LOSS ON ORDINARY ACTIVITIES AFTER TAX (621,530) (244,920)
------------------ ------------------
LOSS FOR THE YEAR ATTRIBUTABLE TO EQUITY
SHAREHOLDERS (621,530) (244,920)
------------------ ------------------
TOTAL COMPREHENSIVE EXPENSES ATTRIBUTABLE TO:
Equity holders of the company (621,530) (244,920)
------------------- ------------------
Loss per share (pence per share)
Basic 8 (0.37)p (0.19)p
========= =========
Diluted (0.37)p (0.19)p
========= =========

Statement of Financial Position
for the year ended 30 September 2016

2016 2015
    Notes £ £
ASSETS
Non-current assets
Investments   9 1,127,262 1,230,846
-------------------- --------------------
1,127,262 1,230,846
-------------------- --------------------
Current assets
Trade and other receivables   10 17,214 16,549
Cash and cash equivalents 139,412 41,901
-------------------- --------------------
156,626 58,450
-------------------- --------------------
TOTAL ASSETS 1,283,888 1,289,296
========== ==========
EQUITY AND LIABILITIES
Current liabilities
Trade and other payables   11 77,016 38,864
-------------------- --------------------
Total liabilities 77,016 38,864
-------------------- --------------------
Equity
Share capital   12 2,582,954 2,182,954
Share premium account 7,617,273 7,439,303
Retained earnings (8,993,355) (8,371,825)
--------------------- ---------------------
Total equity attributable to equity
shareholders of the parent 1,206,872 1,250,432
--------------------- ---------------------
TOTAL EQUITY AND LIABILITIES 1,283,888 1,289,296
========== ==========

 

 

Statement of Changes in Equity
for the year ended 30 September 2015

    Share    
  Share Premium Retained  
  capital Account Earnings Total
  £ £ £ £
         
At 1 October 2014 1,813,675 7,197,319 (8,126,905) 884,089
         
Total comprehensive        
expense for the year - - (244,920) (244,920)
         
Transactions with owners        
Shares issued 369,279 270,784 - 640,063
Cost of new issue - (28,800) - (28,800)
  ----------------- ------------------ -------------------- ------------------
At 1 October 2015 2,182,954 7,439,303 (8,371,825) 1,250,432
         
Total comprehensive        
expenses 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 30 September 2016 2,582,954 7,617,273 (8,993,355) 1,206,872
  ========= ========== =========== =========
         

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 2016

2016 2015
£ £
Operating activities
Loss for the year (621,530) (244,920)
Adjustments for:
Decrease/(Increase) in trade and other receivables (665) (8,952)
Decrease in trade and other payables 38,152 3,055
Net finance income (11,823) (357)
Unrealised losses/(gains) on remeasurement to fair value 372,758 (33,041)
------------------- -------------------
Net cash used in activities (223,108) (284,215)
------------------- ------------------
Investing activities
Payments to acquire investments (269,174) (1,197,805)
Interest received 11,823 357
------------------- ---------------------
Net cash (used in) (257,351) (1,197,448)
------------------- --------------------
Financing activities
Net proceeds from issue of shares 577,970 611,263
------------------ ------------------
Net cash generated from financing activities 577,970 611,263
------------------- ---------------------
Taxation - -
Net increase/(decrease) in cash and cash equivalents 97,511 (870,400)
Cash and cash equivalents at the start of the year 41,901 912,301
------------------ -------------------
Cash and cash equivalents at the end of the year 139,412 41,901
------------------ -------------------
Cash and cash equivalents consists of:
Cash and cash equivalents 139,412 41,901
========= ==========

 

Notes

The notes are available in the PDF download.

 

Page last up-dated: 22 March 2017