CHAIRMAN'S STATEMENT

Introduction

I am pleased to report that the Company has had a very active 6 months.

As a reminder it is worth noting that the comparatives in the Consolidated Statement of Comprehensive Income refers to trading businesses of the former Pentagon Protection PLC. As reported in the annual report, these former businesses were disposed under a CVA arrangement on 17 July 2014.

The investment period for our interim six months ending March 2015 has been another solid one for YOLO Leisure and Technology PLC on our journey to establish ourselves as an investment company under AIM Rule 15.

During the period the Company made 3 investments totalling £1,167,639 into three exciting, innovative and disruptive businesses, all well positioned for growth in their sectors, namely; Gfinity Plc (eSports), Simplestream Ltd (live streaming of television channels and video streams to multi device) and AudioBoom Plc (digital platform reinventing radio), and raised funds of £576,000 before costs by a placing of 32,000,000 shares at 1.8p each.  The Company continues to actively look for further investment opportunities in pursuit of its investment strategy.

Financial review

The Board has been very selective in the transactions made and our growing investment portfolio now consists of businesses with strong technology and content themes, all consistent with YOLO's investment criteria and spirit.

The current portfolio of investments consists of:

Gfinity Plc - Gfinity is an electronic sports ("eSports") business that provides a hub for a rapidly expanding community that plays a range of electronic games such as Call of Duty, League of Legends, FIFA 2015, Halo and Starcraft.  Gfinity was established in September 2012 and was listed on AIM on 22 December 2014. It has established a popular on-line brand, gfinity.net, where gamers can compete, socialise and enjoy a wide range of content relating to electronic games on a proprietary technology platform. This platform enables Gfinity to run a regular roster of on-line competitions, leagues and ladders with the opportunity for gamers to win substantial prize money and/or pit their skills against professional and widely-followed "star" players.

Simplestream Limited - is an over the top television (OTT) broadcast streaming business that is well positioned for growth in this dynamic sector.  The company serves both consumers directly and media broadcast companies.  Our investment is accelerating the expansion of Simplestream's multi-device video streaming platform both in the UK and internationally through the development of their B2C TVPlayer product, and their B2B Media Manager product that works with Broadcasters and Content providers to stream their services and content.

AudioBoom Group Plc - AudioBoom works with some of the biggest names in sports and media such as NFL, Premier League and BBC. The AudioBoom platform allows partners and users to bring non-music content to millions of listeners worldwide via the website, embedded players, apps, Facebook and Twitter.

In December 2014 3.35m warrants were exercised at a price of 1.3p and in January 2015 the Company completed a placing of 32m ordinary 1p shares for gross proceeds of £576,000 and issued warrants for 8m shares at an exercise price of 1.8p.

Post balance sheet events

Warrants for 389,423 and 961,538 were exercised at price of 1.3p in April and May respectively.

On 6 May 2015 the Company received confirmation from AIM that it had substantially implemented its investing policy under Rule 15.

On 19 May 2015 the Company held its AGM at which all resolutions were approved including a resolution giving Directors authority to issue up to 200m new shares.

YOLO Leisure and Technology will continue to invest wisely in disruptive businesses that demonstrate significant growth potential, provide rich and engaging user experiences and utilise technology. YOLO is very well positioned to capitalise on the foundations laid and the opportunities that lie ahead and we look forward to updating Shareholders of our intentions and investment of funds in the near future.

Simon Robinson
Chairman

26 June 2015

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