TIDMLETS
RNS Number : 9739N
Let's Explore Group PLC
28 September 2023
28 September 2023
Let's Explore Group plc
("Let's Explore Group", the "Company" or the "Group")
Interim Results
Let's Explore Group plc (AIM:LETS), is pleased to announce its
unaudited interim results for the six months to 30 June 2023.
During the period, the Location Based Entertainment (LBE) and
Uvisan divisions were sold and there was a subsequent return of
cash to shareholders via a tender offer.
Highlights
-- Cash proceeds from the sale of LBE and Uvisan GBP18,964,000
(net of expenses and cash disposed with subsidiaries).
-- Profit of GBP15,115,000 on disposal of the LBE and Uvisan
divisions.
-- Profit after tax from total operations for the period
GBP14,060,000 (H1 2022: GBP491,000 loss).
-- Cash on hand at the reporting date GBP6,827,000.
-- Further cash of $1,250,000 due to be received in February
2024 in respect of loan note from the buyer of the LBE
business.
-- Share buyback programme returned GBP11,364,000 to shareholders
in the period (net of share option exercise proceeds
of GBP1,163,000).
-- Adjusted EBITDA loss from continuing operations GBP455,000
(H1 2022: GBP770,000).
Post period highlights
-- Launch of three new Let's Explore products: revamped
Let's Explore Oceans, Let's Explore Space and Let's Explore
Wildlife.
-- Orders received for circa 26,000 Vodiac units to be fulfilled
in Q4.
Change of Name of Nominated Adviser and Broker
The Company also announces that its Nominated Adviser and Joint
Broker has changed its name to Cavendish Securities plc following
completion of its own corporate merger.
Martin Higginson, Chief Executive Officer of Let's Explore
Group, commented:
"During the period, we delivered significant value to
shareholders through the sale of LBE and Uvisan businesses. The
return of GBP12.52m to shareholders left us with GBP6.8m of cash on
hand, plus a further $1.25m of cash due in February 2024. As such
the Group is well positioned for further investments as it seeks
value enhancing opportunities for shareholders."
Enquiries:
For further information please visit www. LetsExploreGroup.com ,
or contact:
Let's Explore Group plc Martin Higginson investors@l etsexplore.com
David Marks
Dan Wortley
Cavendish Securities plc Adrian Hadden Tel + 44 (0) 207 7397 890
(Nomad and Sole Broker) Charlie Combe
A lma Rebecca Sanders-Hewett letsexplore@almapr.co.uk
Financial PR adviser Sam Modlin
Kieran Breheny
Chairman's Statement
The Group entered the year with three divisions: Location Based
Entertainment (LBE), Home Based Entertainment (HBE) and Uvisan.
As previously announced on 2 February 2023 and 1 March 2023
respectively, we took the strategic decision to sell the LBE
business (including the Immotion trading name) to minimise risk for
shareholders and provide a significant liquidity event in highly
uncertain markets. We also sold the Uvisan business, leaving the
Group with HBE as its only remaining trading business.
The sale of these businesses brought in proceeds of
GBP18,964,000 net of costs and cash disposed of with these
businesses. Further cash of $1,250,000 (circa GBP1,000,000) in
respect of repayment of loan note from the buyer of the LBE
business is due to be received in February 2024.
Following completion of these sales, the Company set about
returning the majority of the sale proceeds to shareholders via a
tender offer process which concluded in June 2023 with a total of
GBP12,527,000 distributed (the net cash outflow being GBP11,364,000
when taking account of share option exercise proceeds).
With GBP6,827,000 cash on hand at the period end, plus the loan
note due to be repaid in February 2024, we believe the Company is
well positioned to capitalise upon opportunities in front of
it.
Chief Executive's Review
Whilst the sale of the LBE and Uvisan businesses left the group
with the HBE business as its only trading business at present, this
was never the long-term plan for the Group. As previously
announced, the Board's intention was to find a suitable opportunity
for the Group, which we would expect to become its principal
activity. I am pleased to report that we have identified an
acquisition target, full details of which will be provided in an
announcement to be released later today.
Home Based Entertainment (HBE)
The Group's HBE business comprises themed 'Immersive Learning'
Let's Explore products, as well as the affordable 'Vodiac' VR
headset, an affordable smartphone-powered VR headset and companion
app which provides the user with 75 different virtual reality
experiences across seven channels. These products retail to
consumers via a variety of channels including QVC, Amazon as well
as direct to consumer offering via Facebook and other social media
channels.
The HBE business is predominantly a Q4 focused business, with
the first half of the year being about investment into the
development and planning of new products.
As expected, HBE revenue was modest in the period at GBP62,000
(H1 2022: GBP103,000) reflecting the seasonality of the business.
This revenue was primarily generated through the sale of 6,000
units of the Vodiac product. HBE cost of sales of GBP139,000
included a GBP32,000 write-off in respect of materials previously
purchased which are now obsolete due to the redesign of the Let's
Explore product range. This produced a gross loss of GBP77,000 from
HBE in the period (H1 2022: GBP65,000), and a divisional adjusted
EBITDA loss of GBP175,000 (H1 2022: GBP151,000).
As announced earlier in the year, the Group has developed three
new Let's Explore products: a revamped 'Let's Explore Oceans'
offering as well as 'Let's Explore Space' and 'Let's Explore
Wildlife' which are two completely new products, all focused on
delivering a comprehensive immersive learning experience.
Each pack comes complete with the new improved
smartphone-powered VR headset, a range of VR experiences, a
holographic cube which unlocks a selection of in-app augmented
reality experiences, a full-colour hardback fact book, a sticker
book, a giant poster, and an interactive model. The Group has
produced a total of 22,500 units in conjunction with a respected
publisher on a profit-sharing basis for an initial test of these
new products and, subject to the results in Q4, the intention is to
expand the product range as well as the territories in which they
are sold over the coming year.
The RRP of each pack will be GBP99, or $125. Sales will be
focused around the busy Q4 period and will, as in previous years,
be offered via either a direct sale, or through Amazon both in the
UK and USA.
Following technical improvements in the Vodiac offering, and a
successful TV airing in August 2023 on QVC USA, during which some
4,000 Vodiac headsets were sold, the Group has received additional
orders worth over $330,000 for circa 26,000 Vodiac units. These
will predominantly be sold through QVC USA, and UK, as well as two
tests on QVC Canada, and Australia, all to be fulfilled in Q4.
Financial review
Overall profit after tax for the period was GBP14,060,000. The
results of LBE and Uvisan are included within discontinued
operations in the period as they were in the published full year
2022 results. The 2022 interim figures have been restated for
comparison purposes.
The split between continuing and discontinued activities is
summarised below:
Continuing Discontinued Total
Operations Operations Operations
GBP'000 GBP'000 GBP'000
Revenue 62 1,626 1,688
Cost of sales (139) (924) (1,063)
--------------- --------------- ---------------
Gross profit (77) 702 625
Other income 129 - 129
Admin expenses(*) (507) (390) (897)
--------------- --------------- ---------------
Adjusted EBITDA(**) (455) 312 (143)
Amortisation (86) (39) (125)
Depreciation (10) (173) (183)
Impairment - (459) (459)
Loss on disposal of assets - (3) (3)
Gain on disposal of subsidiaries - 15,115 15,115
Share based payments (332) - (332)
One-off costs (418) (23) (441)
Finance costs (1) (4) (5)
Finance income 189 - 189
Taxation (4) (8) (12)
------------- ----------------- ----------------
Profit/(loss) for the
period (1,117) 15,177 14,060
------------- ----------------- ----------------
(*) Administrative expenses exclude depreciation, amortisation,
impairment, gains/losses on disposal, share based payments and
one-off costs.
(**) Adjusted EBITDA is a non-GAAP metric.
Adjusted EBITDA loss from continuing operations (comprising HBE
and head office costs) in the period was GBP455,000 (H1 2022:
GBP770,000).
The Company has been able to mitigate its head office costs in
the period through income of GBP129,000 received for the provision
of transitional finance and other services to the disposed
subsidiaries (recognised in other income).
The Company also received GBP189,000 finance income in the
period on its cash deposits and the accrued loan note interest
payable by the buyer of the LBE business.
The Group recorded a profit of GBP15,115,000 on the sale of the
LBE and Uvisan subsidiaries and, as a result of the UK Substantial
Shareholding Exemption (SSE) legislation applying to the disposals,
no tax is expected to be payable on this gain.
The cash proceeds of the disposals net of deal costs and cash
disposed with the entities were GBP18,964,000. This excludes the
repayment of the $1,250,000 loan note (plus interest at 6% per
annum) to be received from the buyers of the LBE business on 28
February 2024. Repayment of the loan note is subject to adjustments
for any warranty claims made under the LBE business sale and
purchase agreement. The board is not aware presently of any
information which would result in any other than full repayment of
the loan notes being received.
Outlook
We are excited by the launch of the new Let's Explore range
ready for the peak gifting season. The mix of virtual reality,
augmented reality, interactive models and traditional books has
allowed us to create a range of immersive learning products.
With a strong balance sheet, we are optimistic about the
potential the Group has to deliver shareholder value, both through
the HBE business and acquisition opportunities.
LET'S EXPLORE GROUP PLC
CONSOLIDATED INCOME STATEMENT
for the six months ended 30 June 2023
Restated(*)
Notes Unaudited Unaudited Audited
Six months Six months 12 months
to to to
30 June 30 June 31 December
2023 2022 2022
Continuing operations GBP'000 GBP'000 GBP'000
Revenue 62 103 796
Cost of sales (139) (168) (865)
_______ _______ _______
Gross loss (77) (65) (69)
Other income 5 129 - -
Administrative expenses (1,353) (858) (1,848)
_______ _______ _______
Operating loss (1,301) (923) (1,917)
Memorandum:
Adjusted EBITDA (455) (770) (1,582)
Amortisation (86) (76) (168)
Depreciation (10) - (1)
Share based payments (332) (72) (133)
Transaction costs 6 (418) (5) (33)
______ ______ ______
Operating loss (1,301) (923) (1,917)
-------------------------------------- ------ ----------- ------------ -------------
Finance costs (1) (15) (11)
Finance income 189 - -
______ ______ ______
Loss before taxation (1,113) (938) (1,928)
Tax (charge)/credit (4) - -
______ ______ ______
Loss for the period from continuing
operations
operations (1,117) (938) (1,928)
Discontinued operations
Profit after tax from discontinued
operations 4 15,177 447 1,267
________ ______ ______
Profit/(loss) for the period 14,060 (491) (661)
======== ======== ========
Other comprehensive income
/ (expense) for the period
Profit/(loss) on translation
of subsidiaries (285) (51) 129
Cumulative translation differences 155 - -
transferred to the income statement
on disposal of subsidiaries
________ ______ ______
Total comprehensive expense
for the period 13,930 (542) (532)
======== ======== ========
(*) The results for the six months ended 30 June 2022 have been
restated for consistency with the 30 June 2023 and 31 December 2022
results (refer to note 2).
LET'S EXPLORE GROUP PLC
CONSOLIDATED INCOME STATEMENT (CONTINUED)
for the six months ended 30 June 2023
Restated
Notes Unaudited Unaudited Audited
Six months Six months 12 months
to to to
30 June 30 June 2022 31 December
2023 2022
Earnings/(loss) per share 7 GBP0.01 GBP0.01 GBP0.01
From continuing and discontinued
operations
Basic EPS 3.50 (0.12) (0.16)
Diluted EPS 3.50 (0.12) (0.16)
From continuing operations
Basic EPS (0.28) (0.23) (0.46)
Diluted EPS (0.28) (0.23) (0.46)
From discontinued operations
Basic EPS 3.78 0.11 0.30
Diluted EPS 3.78 0.11 0.30
(*) The results for the six months ended 30 June 2022 have been
restated for consistency with the 30 June 2023 and 31 December 2022
results (refer to note 2).
LET'S EXPLORE GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2023
(Unaudited)
Foreign Capital Retained
Share Share exchange redemption (deficit)/ Total
capital premium reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January
2022 166 20,556 (36) - (14,966) 5,720
Loss for the period (restated)(*) - - - - (491) (491)
Currency translation
of overseas subsidiary - - 180 - - 180
Share based payment expense - - - - 72 72
_____ _____ _____ _____ _____ _____
Balance at 30 June 2022
(restated)(*) 166 20,556 144 - (15,385) 5,481
_____ _____ _____ _____ _____ _____
Loss for the period - - - - (170) (170)
Share based payment expense - - - - 61 61
Currency translation
of overseas subsidiary - - (51) - - (51)
_____ _____ _____ _____ _____ _____
Balance at 31 December
2022 166 20,556 93 - (15,494) 5,321
_____ _____ _____ _____ _____ _____
Profit for the period - - - - 14,060 14,060
Currency translation
of overseas subsidiary - - (285) - - (285)
Cumulative translation
differences transferred
to the income statement
on disposal of subsidiaries - - 155 - - 155
Issue of new shares 19 1,159 - - - 1,178
Reduction in share premium - (20,572) - - 20,572 -
Buyback and cancellation
of shares (109) - - 109 (12,527) (12,527)
Share based payment expense - - - - 332 332
_____ _____ _____ _____ _____ _____
Balance at 30 June 2023 76 1,143 (37) 109 6,943 8,234
_____ _____ _____ _____ _____ _____
(*) The results for the six months ended 30 June 2022 have been
restated for consistency with the 30 June 2023 and 31 December 2022
results (refer to note 2).
LET'S EXPLORE GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2023
Restated(*)
Unaudited Unaudited Audited
Notes 30 June 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 8 152 1,595 3
Intangible assets 9 159 3,252 214
______ ______ ______
Total non-current assets 311 4,847 217
Current assets
Inventories 47 145 67
Trade and other receivables 10 1,594 966 786
Contract assets 17 530 2
Cash and cash equivalents 6,827 418 51
______ ______ ______
Total current assets 8,485 2,059 906
Assets held for sale - 157 6,362
______ ______ ______
Total assets 8,796 7,063 7,485
______ ______ ______
LIABILITIES
Current liabilities
Trade and other payables 11 (529) (1,184) (786)
Finance leases - (61) -
Loans (10) (98) (45)
Contract liabilities - (20) (7)
_______ _______ _______
Total current liabilities (539) (1,363) (838)
Non-current liabilities
Loans (23) (162) (28)
Lease liabilities - - -
_______ _______ _______
Total non-current liabilities (23) (162) (28)
Liabilities associated with
assets held for sale - (57) (1,298)
______ ______ ______
Total liabilities (562) (1,582) (2,164)
______ _______ _______
NET ASSETS 8,234 5,481 5,321
======== ======== ========
CAPITAL AND RESERVES
ATTRIBUTABLE TO EQUITY HOLDERS
OF THE PARENT
Share capital 12 76 166 166
Share premium account 13 1,143 20,556 20,556
Foreign exchange reserve 13 (37) 144 93
Capital redemption reserve 13 109 - -
Retained earnings 13 6,943 (15,385) (15,494)
_______ _______ _______
TOTAL EQUITY 8,234 5,481 5,321
======== ======== ========
(*) The results for the six months ended 30 June 2022 have been
restated for consistency with the 30 June 2023 and 31 December 2022
results (refer to note 2).
LET'S EXPLORE GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 June 2023
Restated(*)
Unaudited Unaudited Audited
Six months Six months 12 months
to to to
30 June 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
OPERATING ACTIVITIES
Loss before tax from continuing
operations (1,113) (938) (1,928)
Loss before tax from discontinued
operations 15,185 451 1,297
Adjustments for:
Amortisation 125 304 601
Depreciation 183 501 1,036
Impairment - 26 176
Loss/(gain) on disposal of non-current
assets 3 (8) (19)
Gain on disposal of subsidiary (15,115) - -
undertakings
Share based payments 332 72 133
Net foreign exchange differences (285) 100 37
Finance costs 5 15 37
Finance income (189) - (1)
Taxation (paid)/refunded (12) (3) 14
_____ ____ _ _____
Operating profit/(loss) before
changes in working capital and
provisions (881) 520 1,383
(Increase)/decrease in inventories 36 (124) (11)
(Increase)/decrease in receivables
and contract assets (603) 321 (46)
Increase/(decrease) in payables
and contract liabilities (427) (120) 278
_____ _____ _____
Net cash flows from / (used
in) operating activities (1,875) 597 1,604
_____ _____ _____
INVESTING ACTIVITIES
Purchase of property, plant and
equipment (266) (859) (1,797)
Purchase of intangible assets (100) (274) (510)
Proceeds from sale of property,
plant and equipment - 9 24
Proceeds from sale of subsidiary 20,321 - -
undertakings
Cash disposed on sale of subsidiary (354) - -
undertakings
_____ _____ _____
Net cash flows from investing
activities 19,601 (1,124) (2,283)
FINANCING ACTIVITIES
Finance costs (5) (15) (37)
Finance income 189 - 1
New loans and finance leases - 101 328
Loan repayments (42) (152) (204)
Finance lease repayments (21) (124) (218)
Foreign exchange on retranslation
of financing - 36 39
Issue of ordinary shares 1,178 - -
Share buybacks (12,527) - -
_____ _____ _____
Net cash flows from financing
activities (11,228) (154) (91)
INCREASE/(DECREASE) IN CASH
AND CASH EQUIVALENTS 6,498 (681) (770)
_____ _____ _____
Cash and cash equivalents brought
forward 329 1,099 1,099
_____ _____ _____
CASH AND CASH EQUIVALENTS CARRIED
FORWARD 6,827 418 329
_____ _____ _____
(*) The results for the six months ended 30 June 2022 have been
restated for consistency with the 30 June 2023 and 31 December 2022
results (refer to note 2).
LET'S EXPLORE GROUP PLC
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 30 June 2023
1 Corporate information
The interim consolidated financial statements of the Group for
the period ended 30 June 2023 were authorised for issue in
accordance with a resolution of the directors on 27 September 2023.
Let's Explore Group plc ("the Company") is a Public Limited Company
quoted on AIM, incorporated in England and Wales. The interim
consolidated financial statements do not comprise statutory
accounts within the meaning of section 434 of the Companies Act
2006.
2 Statement of accounting policies
2.1 Basis of preparation
The interim consolidated financial statements of the Group for
the six months ended 30 June 2023 have been prepared in accordance
with the UK-adopted International Accounting Standard 34 Interim
Financial Reporting.
The entities consolidated in the interim financial statements of
the Group for the six months to 30 June 2023 comprise the Company
and its subsidiaries (together referred to as "the Group").
The interim consolidated financial statements do not include all
the information and disclosures required in the annual financial
statements and should be read in conjunction with the Group's
annual audited consolidated financial statements for the year ended
31 December 2022.
The directors are satisfied that, at the time of approving the
interim consolidated financial statements, it is appropriate to
adopt a going concern basis in accordance with the recognition and
measurement criteria of International Financial Reporting Standards
("IFRS") as adopted by the European Union.
In reaching this conclusion, the directors considered the
financial position of the Group and prepared forecasts and
projections for the next 12 months, taking into account reasonably
possible changes in trading performance and capital expenditure
requirements .
The financial statements do not include any adjustments that
would result from the going concern basis of preparation being
inappropriate.
2.2 Accounting policies
The principal accounting policies adopted in the preparation of
these interim statements are consistent with those applied in the
preparation of the Group's annual consolidated financial statements
for the year ended 31 December 2022 other than the Group has
adopted amended financial standards effective as of 1 January 2023.
None of the amendments adopted on 1 January 2023 have had a
material impact on the interim statements of the Group.
The preparation of these consolidated interim financial
statements requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and
the reported amounts of assets and liabilities, income and expense.
Actual results may differ from these estimates in preparing these
consolidated interim financial statements.
Discontinued operations
On 2 February 2023, the Company announced that it had completed
the sale of the Uvisan division for cash consideration of
GBP100,000.
On 1 March 2023, the Company announced the completion of the
sale of the Location Based Entertainment (LBE) virtual
reality division for consideration of $25,119,739. The sale
proceeds were comprised of cash paid at completion of $23,869,739
and a loan note of $1,250,000 repayable 12 months following
completion, subject to any price adjustments under the terms of the
sale and purchase agreement.
The LBE and Uvisan results have been separated from those of
continuing operations and are shown as discontinued operations
within the consolidated income statement. Comparative periods
within the consolidated income statement have been restated
accordingly. Further information on discontinued operations is
contained in note 4.
2 Statement of accounting policies (continued)
Restatement of prior period comparative figures for the six
months to 30 June 2022
The prior period comparative figures for the six months to 30
June 2022 have been restated for consistency with the current
reporting period.
When the results for the six months to 30 June 2022 were
originally released, the Home Based Entertainment (HBE) and Uvisan
divisions were recognised in discontinued operations and assets
held for sale. An impairment charge of GBP155,000 against the net
realisable value of the HBE business was recognised in the accounts
at the time, assessed against the expected sale proceeds had the
disposal taken place.
The comparative figures for the six months to 30 June 2022 have
been restated to recognise the LBE and Uvisan businesses in
discontinued operations. The Uvisan business is included in assets
held for sale as the decision to discontinue that division was made
prior to 30 June 2022.
The restated figures no longer include HBE in assets held for
sale and the directors are of the opinion that impairment of the
division's net assets would not be appropriate at the time if the
division was held as a continuing operation.
A reconciliation of the restated comparative figures to the
original published figures shows below:
Six months
to
30 June 2022
GBP'000
Loss after tax from total operations
originally reported (646)
Reversal of impairment of HBE
assets held for sale 155
_____
Restated Loss after tax from
total operations (491)
_____
3 Segmental information
The Group's primary reporting format for segmental information
is business segments which reflect the management reporting
structure in the Group. The information for discontinued segments
is aggregated and shown as a separate segment.
Six months to 30 June 2023
Home Total
Based Head Continuing Discontinued Total
Entertainment Office Operations Operations Operations
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 62 - 62 1,626 1,688
Cost of sales (139) - (139) (924) (1,063)
---------------- ---------------- --------------- --------------- ---------------
Gross profit (77) - (77) 702 625
Other income - 129 129 - 129
Admin expenses* (98) (409) (507) (390) (897)
---------------- ---------------- --------------- --------------- ---------------
Adjusted EBITDA** (175) (280) (455) 312 (143)
Amortisation (84) (2) (86) (39) (125)
Depreciation (1) (9) (10) (173) (183)
Loss on disposal of
assets - - - (3) (3)
Gain on disposal of
subsidiaries - - - 15,115 15,115
Share based payments - (332) (332) - (332)
One-off costs - (418) (418) (23) (441)
Finance costs - (1) (1) (4) (5)
Finance income - 189 189 - 189
Taxation (4) - (4) (8) (12)
---------------- ---------------- ------------- ----------------- ----------------
Profit/(loss) for
the period (264) (853) (1,117) 15,177 14,060
---------------- ---------------- ------------- ----------------- ----------------
----------------- ----------------- ---------------- ------------------ -----------------
The segments included within discontinued operations were the
Location Based Entertainment (LBE) VR and Uvisan businesses.
*Administrative expenses exclude depreciation, amortisation,
impairment, gains/losses on disposal, share based payments and
one-off costs.
**Adjusted EBITDA is a non-GAAP metric.
3 Segment information (continued)
Geographical disclosures
The geographical breakdown of the Group's revenue, assets and
net tangible capital expenditure is as follows.
External revenue Location of assets Net tangible capital
by location of expenditure by
customer location
of assets
Restated Restated Restated
30 30 31 30 30 31 30 30 31
June June Dec June June Dec June June Dec
2023 2022 2022 2023 2022 2022 2023 2022 2022
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
UK 59 36 396 8,763 4,199 1,062 159 51 3
USA & Canada 3 67 400 33 2,682 61 - 792 -
Australia - - - - 5 - - 6 -
Rest of Europe - - - - 15 - - - -
Middle East - - - - 5 - - - -
Assets held
for sale - - - - 157 6,362 - 10 1,794
_____ _____ _____ _____ _____ _____ _____ _____ _____
Total 62 103 796 8,796 7,063 7,485 159 859 1,797
_____ _____ _____ _____ _____ _____ _____ _____ _____
The Group had certain customers whose revenue individually
represented 10% or more of the Group's total revenue. For the six
months ended 30 June 2023, one customer accounted for 94% of total
revenue.
4 Discontinued operations
The Location Based Entertainment (LBE) and Uvisan businesses
were sold during the six months to 30 June 2023. The results for
these businesses have been excluded from the continuing results of
the Group for the period ended 30 June 2023. The results for the
periods ended 30 June 2022 and 31 December 2022 have been restated
to exclude the results of these businesses from the continuing
operations of the Group in those periods.
Summary income statement
The results for LBE and Uvisan included in the income statement
as discontinued operations are as follows:
Restated
Unaudited Unaudited Audited
Total Total Total
Six months Six months 12 months
LBE Uvisan to to to
30 June 30 June 31 Dec
2023 2022 2022
Discontinued operations GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 1,532 94 1,626 4,749 10,781
Cost of sales (886) (38) (924) (2,550) (5,696)
Other income - - - 26 39
Admin expenses* (367) (23) (390) (1,020) (2,167)
---------------- ---------------- --------------- --------------- ---------------
Adjusted EBITDA** 279 33 312 1,205 2,957
Amortisation (37) (2) (39) (228) (433)
Depreciation (172) (1) (173) (501) (1,035)
Impairment - - - (26) (175)
Gain on disposal
of assets (3) - (3) 8 19
One-off costs - (23) (23) (7) (12)
Finance costs (4) - (4) - (25)
Finance income - - - - 1
Taxation (8) - (8) (3) (30)
---------------- ---------------- ------------- ------------- ----------------
Profit from discontinued
operations before
disposal of
subsidiaries 55 7 62 448 1,267
---------------- ---------------- ------------- ------------- ----------------
Gain on disposal
of subsidiaries 15,073 42 15,115 - -
---------------- ---------------- ------------- ------------- ----------------
Profit from discontinued
operations 15,128 49 15,177 448 1,267
---------------- ---------------- ------------- ------------- ----------------
*Administrative expenses exclude depreciation, amortisation,
impairment, gains/losses on disposal, share based payments and
one-off costs.
**Adjusted EBITDA is a non-GAAP metric.
4 Discontinued operations (continued)
Summary cash flow statement
The results for LBE and Uvisan included in the cash flow
statement are as follows:
Restated
Unaudited Unaudited Audited
Total Total Total
Six months Six months 12 months
LBE Uvisan to to to
30 June 30 June 31 Dec 2022
2023 2022
Discontinued operations GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Operating activities (44) 58 14 1,417 3,216
Investing activities 19,716 (29) 19,687 (1,187) (2,070)
Financing activities (27) - (27) (230) (105)
---------------- ---------------- ------------- ------------- ----------------
Net cash inflow/(outflow) 19,645 29 19,674 - 1,041
---------------- ---------------- ------------- ------------- ----------------
5 Other income
Restated
Unaudited Unaudited Audited
Six months Six months 12 months
to to to
30 June 2023 30 June 31 Dec
2022 2022
GBP'000 GBP'000 GBP'000
Continuing operations
Transitional services provided 129 - -
to disposed subsidiaries
---------------- ---------------- ----------------
129 - -
---------------- ---------------- ----------------
6 Transaction costs
Restated
Unaudited Unaudited Audited
Six months Six months 12 months
to to to
30 June 2023 30 June 31 Dec
2022 2022
GBP'000 GBP'000 GBP'000
Continuing operations
Costs related to the capital 225 - -
reduction and share buybacks
Bonuses awarded in relation 181 - -
to the LBE business sale
Costs relating to the LBE business
sale - - 13
Aborted project costs 12 5 20
---------------- ---------------- ----------------
418 5 33
---------------- ---------------- ----------------
7 Earnings per share
The calculation of the group basic and diluted loss per ordinary
share is based on the following data:
Restated
Unaudited Unaudited Audited
Six months Six months 12 months
to to to
30 June 30 June 31 Dec
2023 2022 2022
GBP'000 GBP'000 GBP'000
Profit attributable to shareholders
Continuing operations (1,117) (938) (1,928)
Discontinued operations 15,177 448 1,267
-------------------- -------------------- --------------------
Total profit attributable to
shareholders 14,060 (490) (661)
-------------------- -------------------- --------------------
Basic weighted average number
of shares 401,733,235 415,538,083 415,538,083
Diluted weighted average number
of shares 450,865,644 474,267,283 473,775,097
========= ============== ==============
=====
GBP0.01 GBP0.01 GBP0.01
Earnings per share
Basic earnings per share 3.50 (0.12) (0.16)
Diluted earnings per share 3.50 (0.12) (0.16)
========= ========= =========
Earnings per share from continuing
operations
Basic earnings per share from
continuing operations (0.28) (0.23) (0.46)
Diluted earnings per share from
continuing operations (0.28) (0.23) (0.46)
========= ========= =========
Earnings per share from discontinued
operations
Basic earnings per share from
continuing operations 3.78 0.11 0.30
Diluted earnings per share from
continuing operations 3.78 0.11 0.30
========= ========= =========
Earnings per ordinary share has been calculated using the
weighted average number of shares in issue during the period. The
weighted average number of equity shares in issue in the period to
30 June 2023 was 401,733,235.
8 Property, plant and equipment
Fixtures,
fittings Motor
and equipment vehicles Total
GBP'000 GBP'000 GBP'000
Cost
At 1 January 2023 3 - 3
Additions 3 156 159
_____ _____ _____
At 30 June 2023 6 156 162
_____ _____ _____
Depreciation
At 1 January 2023 - - -
Depreciation of owned
assets 1 9 10
_____ _____ _____
At 30 June 2023 1 9 10
_____ _____ _____
Net book value
30 June 2023 5 147 152
_____ _____ _____
31 December 2022 3 - 3
_____ _____ _____
The method of depreciation for each class of depreciable asset
is:
Fixtures, fittings and equipment - three years on a
straight-line basis
Motor vehicles - seven years on a straight-line basis
9 Intangible assets
Development Other intangible
costs assets Total
GBP'000 GBP'000 GBP'000
Cost
At 1 January 2023 454 29 483
Additions 36 1 37
Transfers - 7 7
Disposals - (14) (14)
_____ _____ _____
At 30 June 2023 490 23 513
_____ _____ _____
Amortisation
At 1 January 2023 255 14 269
Amortisation charge 78 8 86
Transfers - 5 5
Disposals - (6) (6)
_____ _____ _____
At 30 June 2023 333 21 354
_____ _____ _____
Net book value
30 June 2023 157 2 159
_____ _____ _____
31 December 2022 199 15 214
_____ _____ _____
Development costs are comprised of software, virtual reality and
augmented reality content. Development costs are amortised on a
straight-line basis over 3 years. No amortisation is charged
against projects which are still in development.
Other intangible assets comprise website development and
trademark costs. Website development costs are amortised over 3
years and trademark costs over 2 years.
Amortisation is charged to administrative costs in the
Consolidated Statement of Comprehensive income.
10 Trade and other receivables
Unaudited Unaudited Audited
30 June 30 June 31 Dec
2023 2022 2022
GBP'000 GBP'000 GBP'000
Trade receivables 81 422 403
Prepayments 103 435 304
Corporation tax - 23 -
Other receivables 1,410 86 79
---------------- ---------------- ----------------
1,594 966 786
---------------- ---------------- ----------------
11 Trade and other payables
Unaudited Unaudited Audited
30 June 30 June 31 Dec
2023 2022 2022
GBP'000 GBP'000 GBP'000
Trade payables 54 272 464
Accruals 173 575 288
Taxation and social security 296 176 31
Other payables 6 161 3
---------------- ---------------- ----------------
529 1,184 786
---------------- ---------------- ----------------
12 Share capital
Shares GBP'000
Ordinary shares of 0.040108663 pence
issued and fully paid up
As at 1 January 2023 415,538,083 166
Share options exercised at 2.5p per
share 47,125,978 19
Buyback and cancellation of shares
at 3.65p per share (34,941,026) (14)
Buyback and cancellation of shares
at 4.75p per share (236,873,162) (95)
------------------------------- -------------------
As at 30 June 2023 190,849,873 76
------------------------------- -------------------
13 Reserves
Full details of movements in reserves are set out in the
consolidated statement of changes in equity. The following
describes the nature and purpose of each reserve within owners'
equity:
Share premium: the amount subscribed for share capital in excess
of nominal value.
Foreign exchange reserve: reserve arising on translation of the
Group's overseas subsidiaries.
Capital redemption reserve: the nominal value of cancelled
ordinary shares.
Retained earnings: cumulative net gains and losses recognised in
the consolidated statement of comprehensive income.
14 Related party transactions
M J Higginson, a director of Let's Explore Group plc, is a
director and controlling shareholder of M Capital Investment
Properties Limited. Services to the value of GBP12,000 (year to 31
December 2022: GBP43,000) were invoiced in the period by M Capital
Investment Properties Limited to Let's Explore Group plc. At 30
June 2023, Let's Explore Group plc owed GBPNil (31 December 2022:
GBPNil) to M Capital Investment Properties Limited.
R Miller, a director of Let's Explore Group plc, is a director
of Robin Miller Consultants Ltd. In the period, services totalling
GBP19,000 (year to 31 December 2022: GBP16,000) were billed to
Let's Explore Group plc from Robin Miller Consultants Ltd. At 30
June 2023, GBPNil (31 December 2022: GBPNil) was owing from Let's
Explore Group plc to Robin Miller Consultants Ltd.
M J Higginson and D F G Wortley, both directors of Let's Explore
Group plc, are directors and shareholders in Huddled Group Limited.
Services to the value of GBP3,000 (year to 31 December 2022:
GBP279,000) were invoiced in the period by Huddled Group Limited to
Let's Explore Group plc. At 30 June 2023, the Group owed GBPNil (31
December 2021: GBP196,000) to Huddled Group Limited.
D Marks, a director of Let's Explore Group plc, was advanced a
loan in a prior period. Interest is currently charged on the loan
at 2% per annum. At 30 June 2023, D Marks owed GBP16,000 (31
December 2022: GBP16,000) inclusive of interest, to the Group.
D F G Wortley, a director of Let's Explore Group plc, was
advanced a loan in a prior period. Interest is currently charged on
the loan at 2% per annum. At 30 June 2023, D F G Wortley owed
GBP5,000 (31 December 2022: GBP5,000) inclusive of interest, to the
Group.
The key management personnel are considered to be the Board of
Directors. The total amounts paid to key management personnel
during the period was GBP580,000, which includes GBP160,000 paid in
bonuses for the successful completion of the sale of the LBE
business for $25.1m. The total amounts paid to key management
personnel during the year to 31 December 2022 was GBP942,000.
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END
IR FIFSEAFITFIV
(END) Dow Jones Newswires
September 28, 2023 02:01 ET (06:01 GMT)
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