Top Ten Holdings Plc News Announcement
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Top Ten Holdings PLC - Final Results
RNS Number:1256F
Top Ten Holdings PLC
26 June 2006
TOP TEN HOLDINGS PLC
Preliminary Results for 52 weeks ended 26 March 2006
Top Ten Holdings plc ('Top Ten' or the 'Group') is the third largest UK bingo
operator with 44 bingo clubs. It is pleased to announce record Preliminary
Results for the 52 weeks to 26 March 2006.
2006 2005 % change
Turnover (£m) 23.7 14.0 70.5%
Pre-tax profit (£m) 2.4 1.6 44.5%
Earnings per Share 7.94 7.13 11.4%
Key Points:
* Substantial increases in profitability and sales together with successful
integration of the twenty new clubs acquired in the period
* Continued strong cash generation with EBITDA of £4.8 m (2005 £2.6 m).
* Refurbishment programme delivering strongly increased returns
* Stronger management team following acquisitions
* Ongoing investment in new gaming formats and latest generation gaming
machines
26 June 2006
Commenting on the results Sir Aubrey Brocklebank, Chairman, said,
'We have had a very good year and the merits of our strategy for developing the
Group through acquisitions and investing in the clubs is clearly visible in
these results. Recently we attracted two unsolicited approaches which underline
our confidence that the full value of the Group remains to be seen. We have the
infrastructure and the management capability in place and are looking forward to
delivering continued growth in earnings per share and seeking further
acquisitions in the coming year.'
For Further Information:
Top Ten Holdings plc 01727 850793
Sir Aubrey Brocklebank, Chairman
Graham Kerr, Chief Executive
College Hill 020 7457 2020
Alex Walters
CHAIRMAN'S STATEMENT
Introduction
On behalf of your Board I am pleased to present the accounts for the 52 week
period ended 26th March 2006 which has been another year of substantial
progress.
This year has seen significant growth with the completion of four acquisitions
and an increase in the number of clubs in our estate from 24 to 44.
Results
The group achieved a pre-tax profit of £2,377,726 (2005 £1,644,730) an increase
of 44.5 per cent. on turnover of £23,687,848 (2005 £13,887,069) which is up 70.5
per cent.
These results reflect the effect of 9 months trading from the 13 Walkers clubs,
7 months from the Moreton club, 10 weeks from the three Apollo clubs and 7 weeks
from the 3 Bravo clubs - all of which were acquired during the year.
The tax charge of £680,198 includes deferred tax of £192,517.
Earnings per share grew 11.4 per cent to 7.94 pence compared to 7.13 pence per
share last year (after taking into account the 1 for 20 share consolidation).
Trading performance
In the period, refurbished clubs gave particularly encouraging performances. The
integration of the newly acquired businesses was successfully completed and has
provided the company with a stronger management team.
Turnover for comparable clubs has shown growth during the year despite the
disruption caused by major improvement work at 5 sites.
Acquisitions
In December we acquired Apollo Bingo for £11.1 million which has three clubs in
Rhyl, Caernarvon and Blackpool. In addition this included an option on a site in
Worksop which is part of a new retail/leisure park for which planning permission
has been applied. If this is successful it is intended to rationalise this with
our existing site in the same town.
To help fund this acquisition we placed 3,864,550 shares to raise £3,284,675.
Several directors of the Group subscribed 735,000 new shares as part of the
placing.
In February the Company acquired three freehold bingo clubs, trading under the
Bravo name, in Worksop, Leicester and Blackwood for a consideration of £1.85
million.
Bank Facilities
The acquisitions largely were funded by bank debt and your company now has Bank
facilities of £42.5 million of which some £30million is currently drawn down
with a further £12.5 million available for further acquisitions.
Club Refurbishments
In line with previous statements the clubs in Birmingham, Durham, Gateshead,
Moreton and Tonypandy have been refurbished during the period and have shown
improved performance.
Dividends
I am pleased to announce that the Board recommends a dividend of 1.45p per share
for the financial period ended 26th March 2006. This is a 20 per cent. increase
on 2005 (1.2p). and is line with our progressive dividend policy. This, subject
to shareholders' approval, will be paid as a final dividend to shareholders on
the register at Friday 7 July 2006 on Friday 25 August 2006.
Takeover Approaches
As previously announced, Top Ten received two unsolicited takeover approaches
during the period - neither of which reached a satisfactory conclusion.
There have been a number of high profile deals in the sector during the year,
usually involving Private Equity. This together with the two approaches
encourages your Board in its belief that this is a sound business with
significant growth prospects. We have not sought to solicit any further offers,
though any serious approaches will be given proper consideration.
Appointment of Investec
During the course of the period we appointed Investec as stockbrokers and
nominated advisers to the company. Investec have particular expertise in the
leisure sector and we look forward to working with them.
Outlook
Whilst the approaches referred to above have inevitably caused a distraction for
management we have kept our costs to a minimum and do not expect them to have a
material effect on the results.
The Government has announced that it will introduce a smoking ban in all public
places which is likely to come into force in late 2007. Similar bans have been
introduced in Ireland and recently in Scotland. We have been closely monitoring
how trade has been affected there. Whilst we must wait to see the exact wording
of the law we believe that we have a number of strategies which will reduce any
negative impact on our trading.
The proposed changes to the gaming legislation should, in the opinion of the
board, have a beneficial effect on the performance of the Company.
We have trialled new forms of electronic bingo which have been most encouraging
and we expect to start a roll out initially in selected clubs throughout the
forthcoming year. To date we have adopted a cautious approach to internet Bingo
but I am pleased to report that following extensive research it is now intended
to offer a Top Ten Internet Bingo site.
We have recently invested substantial sums in the latest generation of Gaming
Machines and, with the success of the acquisition and integration of twenty new
clubs during the year, your Board looks forward to continued growth in Earnings
per Share and continues to seek further acquisition opportunities.
Sir Aubrey Brocklebank
Chairman
TOP TEN HOLDINGS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE 52 WEEKS ENDED 26 MARCH 2006
52 Weeks 52 Weeks
ended ended
26 March 27 March
2006 2005
(restated)
£ £
Turnover
Continuing operations 15,324,275 13,887,069
Acquisitions 8,363,573 -
---------- ----------
Turnover 23,687,848 13,887,069
Cost of sales (3,581,895) (1,797,356)
---------- ----------
Gross profit 20,105,953 12,089,713
Distribution costs (14,792,166) (9,135,369)
Administrative expenses (1,883,057) (1,332,938)
Other operating income 53,485 36,235
---------- ----------
Operating profit 3,484,215 1,657,641
Continuing operations 2,272,912 1,657,641
Acquisitions 1,211,303 -
---------- ----------
3,484,215 1,657,641
Profit on sale of 145,022 281,092
property
---------- ----------
Profit on ordinary 3,629,237 1,938,733
activities before
interest
Other interest
receivable and similar 2,222 9,087
income
Interest payable and (1,253,733) (303,090)
similar charges
---------- ----------
Profit on ordinary 2,377,726 1,644,730
activities before
taxation
Tax on profit on (680,198) (285,557)
ordinary activities
---------- ----------
Profit on ordinary 1,697,528 1,359,173
activities after
taxation
Dividends (228,781) (190,651)
---------- ----------
Retained profit for the 1,468,747 1,168,522
period
========== ==========
There are no recognised gains and losses other than those passing through the
profit and loss account.
TOP TEN HOLDINGS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT (CONTINUED)
FOR THE 52 WEEKS ENDED 26 MARCH 2006
52 Weeks 52 Weeks
ended ended
26 March 27 March
2006 2005
Earnings per share 7.94p * 7.13p
There is no material difference between basic and diluted earnings per share.
* The comparative figure has been restated to take account of the share
consolidation during
the period.
TOP TEN HOLDINGS PLC
BALANCE SHEETS
AS AT 26 MARCH 2006
Group Company
2006 2005 2006 2005
Notes £ £ £ £
(restated) (restated)
Fixed assets
Intangible
assets 11 16,171,890 10,335,025 - -
Tangible 12 35,802,997 8,069,846 - -
assets
Investments 13 - - 26,496,408 9,411,497
---------- ---------- ---------- ----------
51,974,887 18,404,871 26,496,408 9,411,497
---------- ---------- ---------- ----------
Current assets
Stocks 14 419,708 194,164 - -
Debtors 15 923,744 314,512 32,079,263 6,199,287
Cash at bank
and in hand 1,718,871 1,039,861 249,914 5,962
---------- ---------- ---------- ----------
3,062,323 1,548,537 32,329,177 6,205,249
Creditors:
amounts
falling due
within one
year 16 (4,789,685) (1,850,948) (14,124,621) (453,870)
---------- ---------- ---------- ----------
Net current
assets/(liabilities) (1,727,362) (302,411) 18,204,556 5,751,379
---------- ---------- ---------- ----------
Total assets
less current
liabilities 50,247,525 18,102,460 44,700,964 15,162,876
Creditors:
amounts
falling due
after more
than one year 17 (28,724,739) (3,827,227) (28,047,922) (3,714,143)
Provisions for
liabilities
and charges 18 (367,895) (40,779) - -
---------- ---------- ---------- ----------
21,154,891 14,234,454 16,653,042 11,448,733
========== ========== ========== ==========
Capital and reserves
Called up
share capital 20 5,064,923 3,813,013 5,064,923 3,813,013
Share premium
account 21 8,711,247 4,511,467 8,711,247 4,511,467
Profit and
loss account 21 7,378,721 5,909,974 2,876,872 3,124,253
---------- ---------- ---------- ----------
Shareholders'
funds - equity
interests 22 21,154,891 14,234,454 16,653,042 11,448,733
========== ========== ========== ==========
The financial statements were approved by the board on 23 June 2006.
Sir A T Brocklebank J G Kerr
Director Director
TOP TEN HOLDINGS PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE 52 WEEKS ENDED 26 MARCH 2006
52 Weeks 52 Weeks
ended ended
26 March 27 March
2006 2005
£ £ £ £
Net cash inflow from operating 4,129,823 2,792,461
activities
Returns on investments
and servicing of
finance
Interest received 2,222 9,087
Interest paid (1,253,733) (303,090)
---------- ----------
Net cash outflow for
returns on investments (1,251,511) (294,003)
and
servicing of finance
Taxation paid (416,914) (295,495)
Capital expenditure and
financial investment
Payments to acquire (38,000) (274,481)
intangible assets
Payments to acquire (2,355,997) (2,382,415)
tangible assets
Receipts from sales of 310,764 321,084
tangible assets
---------- ----------
Net cash outflow for (2,083,233) (2,335,812)
capital expenditure
Acquisitions and
disposals
Purchase of subsidiary (18,258,229) -
undertaking
Net cash acquired with 144,688 -
subsidiary undertaking
---------- ----------
Net cash outflow for (18,113,541) -
acquisitions and
disposals
Equity dividends paid (228,781) (190,651)
---------- ----------
Net cash outflow
before management of (17,964,157) (323,500)
liquid
resources and
financing
Financing
Issue of ordinary 5,652,368 -
share capital
Cost of share issue (200,678) -
New long term bank 30,100,000 1,083,846
loan
Repayment of long term (4,237,474) (733,041)
bank loan
Arrangement fees (552,075) -
Vendor loans repaid on
acquisition of (7,880,661) -
subsidiary
Bank loans repaid on (3,910,591) -
acquisition of
subsidiary
Capital element of (327,722) (28,776)
hire purchase
contracts
---------- ----------
Net cash inflow from 18,643,167 322,029
financing
---------- ----------
Increase/(decrease) in 679,010 (1,471)
cash in the period
========== ==========
TOP TEN HOLDINGS PLC
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE 52 WEEKS ENDED 26 MARCH 2006
Reconciliation of operating profit to net cash inflow from
operating activities 2006 2005
£ £
Operating profit
including exceptional items 3,629,237 1,938,733
Depreciation, amortisation
and impairment charges of
intangible assets 1,119,001 636,954
Profit on disposal of
tangible assets (145,022) (281,092)
Decrease/(increase) in
stocks 28,357 (10,010)
(Increase)/decrease in
debtors (164,669) 147,791
(Decrease)/increase in
creditors within one
year (337,081) 360,085
Net cash inflow from ---------- ----------
operating activities 4,129,823 2,792,461
========== ==========
Analysis of net 28 March 2005 Cash flow Other non-cash 26 March 2006
debt changes
£ £ £ £
Net cash:
Cash at bank
and in hand 1,039,861 679,010 - 1,718,871
---------- ---------- ---------- ----------
Finance leases (168,426) (327,722) (525,554) (1,021,702)
Debts falling
due within one
year (436,664) (1,063,336) - (1,500,000)
Debts falling
due after one
year (3,714,143) (24,885,857) - (28,600,000)
---------- ---------- ---------- ----------
(4,319,233) (26,276,915) (525,554) (31,121,702)
---------- ---------- ---------- ----------
Net debt (3,279,372) (25,597,905) (525,554) (29,402,831)
========== ========== ========== ==========
Reconciliation of net cash flow to movement in
net debt 2006 2005
£ £
Increase/(decrease) in cash
in the period 679,010 (1,471)
Cash inflow from increase
in debt and lease financing (26,802,469) (490,775)
---------- ----------
Movement in net debt in
the period (26,123,459) (492,246)
Opening net debt (3,279,372) (2,787,126)
---------- ----------
Closing net debt (29,402,831) (3,279,372)
========== ==========
1. Turnover
Revenue results from the operation of bingo clubs, snooker clubs and amusement
arcades. Bingo revenue is recorded as the customer stake, less applicable
gaming duties, cash prizes and VAT. Revenues from the sale of food and beverages
are recorded net of VAT.
2. Basic and diluted earnings per share
Basic and diluted earnings per ordinary share have been calculated using the
weighted average number of shares in issue during the financial period. The
weighted average number of equity shares in issue was 21,369,612 (2005 -
19,065,414) and the profit after tax was £1,697,528 (2005 - £1,359,173). Nil
(2005 - 68,368) potential ordinary shares have been treated as dilutive.
The comparative figures have been restated to take account of the share
consolidation during the period.
3. Financial Statements
The announcement set out above does not constitute a full financial statement of
the company's affairs for the 52 weeks ended 26 March 2006. The company's
auditors have reported on the full accounts for the said year and have
accompanied them with an unqualified report. The accounts have yet to be
delivered to the Registrar of Companies. The annual report and accounts will be
available from the Company Secretary, Top Ten Holdings Plc, Unit 8, Verulam
Industrial Estate, 224 London Road, St Albans, Herts AL1 1JF.
This information is provided by RNS
The company news service from the London Stock Exchange
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