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 2019.
These results are available to
view and download in PDF format
During the period the Company continued its targeted investment strategy with management focused on creating value by investing in existing and new opportunities.
Annual Report and Accounts
The Company's Annual Report and Accounts for the year to 30 September 2019 will be posted to shareholders shortly.
The announcement contains information which, prior to its disclosure, was inside information for the purposes of the Market Abuse Regulation.
I am pleased to present the annual report and financial statements for YOLO Leisure and Technology plc ("YOLO" or the "Company"), for the financial year ended 30 September 2019.
Technology is at the foundation of our investment criteria. We invest in businesses that develop purpose-built technology and operational expertise with potential to scale and generate positive returns for shareholders. We back founders that have a dedicated passion and competency for creating and engineering premium customer experiences through technology, content and product innovation.
As an investment business we evaluate a significant pipeline of potential investment opportunities based on the principles of our stated investment criteria. Before investing, the board always diligently evaluates the opportunities and takes valued input from key shareholders and our investor partners on the value potential of the investment opportunities.
As a board we take active positions within our investment companies so that we can partner and proactively support our investee founders and boards, in their strategy and business plan execution, thereby seeking to grow and optimise our investments for shareholders. As an investment business, we are dependent on the investee companies successfully executing their business plans and managing a positive exit for our investment and investors, which sometimes take longer than initially envisaged.
The board has evaluated a number of options to maintain positive momentum and capitalise on new opportunities in the market that we believe are in the best interests of shareholders.
On 2 October 2019, we announced that the board had conducted a review of the Company's investment strategy and that the board had decided that, in the light of the current market conditions and pipeline opportunities, within the scope of its current investment strategy it should give particular focus to technology opportunities in the fields of big data, machine learning, telematics and the internet of things (IoT).
Total comprehensive loss for the year was £731,784 (2018: loss £1,105,214). Unrealised loss on investments were £52,930 (2018: loss £841,489) and impairment loss of on investments were £446,973nil (2018: £nil). Cash at the bank at the year-end was £242,415 (2018: £270,524).
As at 30 September 2019, gross assets were £2,995,972 (2018: £3,441,504) and the net fair value of investments held was £2,684,091 (2018: £3,083,995). Total net assets were £2,968,527 (2018: £3,408,811) which represents 5.69 (2018: 7.72) pence per share.
Simplestream is a leading provider of software as a service (SaaS) based video streaming solutions. The company is a market leader for its Live2VOD and Hybrid TV solutions, during the year launched its Sports Video Platform and also provides Cloud TV and Telco TV solutions. Clients include: News Corporation (Ball Ball); A&E Networks; AMC Networks; Nova TV Sony Traceplay; QVC TV; Box Nation; Little Dot Studios and At The Races amongst others.
Simplestream's cloud based Media Manager platform 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 frontend 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 now delivers services across Europe, the US, Africa and the Far East with further international expansion planned for 2019. New partners signed up during the year include Vubiquity for Africa, Latin America, USA and Asia, Ideal Systems for Asia, Europe Broadcaster Union) for Europe, Draco for Middle East and Vista as reseller in USA.
In September 2019 Simplestream built an 'accessible' video platform and responsive website for Channel 4, specifically for its online coverage for Para Sports and the Tokyo 2020 Paralympics. This went live in early September and successfully provided video on demand and live action services for the World Para Swimming Championships on 9 September 2019.
In November 2018 Simplestream launched its Sport Video Platform. The new platform includes low latency streaming, live event management, automated generation of video highlights and data integrations for real-time match, league and player stats, plus immersive HTML5 based applications that can sit across any device. The Sports Video Platform comes with AVOD/SVOD and PPV models out of the box, so that any league, channel or federation can now generate revenue whilst at the same time learn about their customers through valuable, real time return path data - something that traditional methods of TV delivery are unable to deliver.
Yolo holds 9,943 (2018: 9,943) shares in Simplestream, which represents 6.34% (2018: 6.34%) on a fully diluted basis.
Gfinity is a world-leading esports solutions provider. It focuses on designing, developing and delivering esports solutions for e-games publishers, rights holders and brands. It has contracts and partnership arrangements with EA Games, Microsoft, FIFA, Formula 1 and Indycar.
It currently accesses 20 million gamers per month on its platforms and two brands Gfinity Sports and Real Sports 101.
On 15 July 2019, the Company announced the successful completion of a fund raise of £2.25m
Yolo holds 400,000 (2018: 400,000) shares in Gfinity which represents 0.08% (2018: 0.10%) on a fully diluted basis.
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 completed a fundraise of £2.8m during the year and continues to grow its top line revenue.
Yolo holds 53,400 (2018: 53,400) shares in AudioBoom which represents 0.38% (2018: 0.45%) on a fully diluted basis.
Magic Media Works Ltd
Magic Media Works ("Magic Media") 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.
ROXI, which launched in the UK and US markets in late 2017, is an easy way for friends and families to enjoy music together, with a two minute set-up, tens of millions of songs pre-loaded, voice search and many unique bonus entertainment features, all in one competitively-priced music entertainment hub.
Offering unlimited music, karaoke-style singing, global radio access, an ambient sound machine and ROXI's unique music trivia game, Name That Tune, ROXI is highly differentiated and popular with its target market of older, family consumers. 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. ROXI has built a multi-territory media platform with localisation available for language, search, catalogue and playlist curation.
During the year 2018, Magic Media developed and test launched its new TV infomercial shows across mainstream TV in the UK and the USA, in partnership with specialist infomercial content providers, to enable a scaling of the business in these markets.
Magic Media completed a further fundraise of £0.9m on 5 December 2018 to enable it to launch its Christmas 2018 TV campaign for the ROXI home music entertainment product which was broadcast on ITV2, ITV3, ITVBe, Film4, SyFy, GOLD, National Geographic, 5Select, 5USA, Fox and Talking Pictures.
The largest investor in the round was private investor and Saracens Rugby Club owner Nigel Wray, who is also the largest investor in YOLO. Magic Media´s founder CEO Rob Lewis, Henrik Holmark (the previous CFO of Pandora Jewellery) and Endeavour Ventures also participated directly in the round.
As part of this round YOLO and the majority of other loan note holders agreed to extend the longstop date for repayment to 19 November 2023, and to waive their rights to the historic and future interest payments due on the loan notes.
During 2019 Magic Media has continued to develop the product and test various marketing channels with its infomercials, raise funds. Magic Media has raised £2.5m during the year including £1m from Mr Ron Dennis who will also become an advisor to the board.
YOLO holds 1,646,682 shares which represents 7.4% (2018: 15.8%) of the fully diluted share capital. YOLO also holds £500,000 of convertible loan notes.
On 5 February 2019 it was announced that the Company had invested £100,000 to acquire a 3.41% equity interest in Sparkledun Limited ("Sparkledun"). Sparkledun through its trading subsidiary, Fast to Fibre Limited ("Fast to Fibre"), has rights to exploit and has further developed a technology solution utilising a unique patented process for the extraction of the inner core of telecoms and power cables, allowing the insertion of fibre optic without the need for excavation or other disruptive techniques. The Fast to Fibre commercial proposition is to reduce the cost of fibre optic deployment particularly in difficult to access areas such as urban and city centres, thereby increasing the pace of adoption in line with government targets around the world to provide ultra-fast internet access. Fast to Fibre has successfully completed several trials in a variety of different geographical locations and complex situations and is now progressing a number of major commercial opportunities.
On 3 October 2019 it was announced that TVPlayer had been placed in administration. The board had previously announced that its investment in TVPlayer had been written down to zero in the light of that company's inability to raise further funds or to identify a buyer.
TVPlayer was spun out of our investee company, Simplestream Limited. Accordingly, YOLO's holding of TVPlayer equity shares was not acquired for an additional cash subscription. YOLO's only cash investment in TVPlayer was its subscription for £50,000 of convertible loan notes.
On 5 February 2019, YOLO successfully raised £300,000 before costs by a placing of 8,000,000 new ordinary shares. Under the placing each placee received one warrant for every four placing shares. The warrants are exercisable at 5.00p per share at any time for a period of three years from the date of admission of the placing shares.
Post Year End Fund Raise
On 2 October 2019, YOLO raised £750,000 before costs by a placing of 30,000,000 new ordinary shares. Under the placing each placee received one warrant for every two placing shares subscribed. The warrants are exercisable at 6.00p per share at any time up to 31 October 2020. A further 2,500,000 warrants exercisable on the same terms were also issued in lieu of fees payable to an introducer.
£500,000 of the placing monies have been received and the balance of £250,000 is due to be paid to the Company on or before 31 December 2019. The associated 10,000,000 placing shares and warrants will be issued when that payment has been received.
Our vision is to be a successful and profitable investment company focusing on technology, travel, leisure and media sectors with a particular focus in the fields of big data, machine learning, telematics and the internet of things (IoT). 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.
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.
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.
The Board will continue to pursue and evaluate opportunities that meet the investment criteria.
I would like to thank our shareholders and advisors for sharing our vision and supporting the board.
Date: 2 December 2019
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2019
|Impairment loss on investments||(446,974)||-|
|Unrealised losses on remeasurement to fair value||9||(52,930)||(841,489)|
|OPERATING LOSS BEFORE FINANCING ACTIVITIES||(732,210)||(1,105,267)|
|LOSS BEFORE TAX||4||(731,784)||(1,105,214)|
|LOSS AFTER TAX||(731,784)||(1,105,214)|
|Loss per share (pence per share)|
STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 30 SEPTEMBER 2019
|Trade and other receivables||10||69,466||86,986|
|Cash and cash equivalents||242,415||270,524|
|EQUITY AND LIABILITIES|
|Trade and other payables||11||27,445||32,693|
|Share premium account||7,864,973||7,574,273|
|TOTAL EQUITY AND LIABILITIES||2,995,972||3,441,504|
The financial statements were approved and authorised for issue by the board of directors on 2 December 2019 and were signed below on its behalf by
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2019
|At 1 October 2017||5,206,954||7,574,273||(8,267,202)||4,514,025|
|income for the year||(1,105,214)||(1,105,214)|
|Transactions with owners|
|Cost of new issue||-||-||-||-|
|At 1 October 2018||5,206,954||7,574,273||(9,372,416)||3,408,811|
|expense for the year||-||-||-||-|
|Transactions with owners|
|Cost of new issue||-||(8,500)||-||(8,500)|
|At 30 September 2019||5,207,754||7,864,973||(10,104,200)||2,968,527|
Represents the par value of shares in issue.
Represents amounts subscribed for share capital in excess of its nominal value, net of directly attributable issue costs.
Represents accumulated losses to date.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
|Loss for the year||(731,784)||(1,105,214)|
|Decrease/(increase) in trade and other receivables||17,520||(24,006)|
|Decrease in trade and other payables||(5,249)||(11,684)|
|Net finance cost||426||53|
|Unrealised losses on remeasurement to fair value||52,930||841,489|
|Impairment of investments||446,974||-|
|Net cash used in activities||(219,183)||(299,362)|
|Payments to acquire investments||(100,000)||(50,000)|
|Net finance income||(426)||(53)|
|Net cash used in investing activities||(100,426)||(50,053)|
|Net proceeds from issue of shares||291,500||-|
|Net cash generated from financing activities||291,500||-|
|Net (decrease)/increase in cash and cash equivalents||(28,109)||(349,415)|
|Cash and cash equivalents at the start of the year||270,524||619,939|
|Cash and cash equivalents at the end of the year||242,415||270,524|
|Cash and cash equivalents consist of:|
|Cash and cash equivalents||242,415||270,524|
The Company had no debt in either period, therefore no debt net reconciliation has been presented.
The notes are available in the PDF download.
Page last up-dated: 3 December 2019