165824 Best of the Best Annual Report Cover_165824 Best of the Best Annual Report Cover 28/07/2015 16:45 Page 1
Annual Report
& Accounts 2015
Group Strategic Report,
Report of the Directors and
Consolidated Financial Statements
For The Year Ended 30 April 2015
for
BEST OF THE BEST PLC
BEST OF THE BEST PLC
Contents of the Consolidated Financial Statements
For The Year Ended 30 April 2015
Page
Company Information 1
Group Strategic Report 2
Corporate Governance Report 6
Directors Remuneration Report 9
Report of the Directors 11
Report of the Independent Auditors 14
Consolidated Statement of Profit or Loss 16
Consolidated Statement of Profit or Loss and Other Comprehensive Income 17
Consolidated Statement of Financial Position 18
Company Statement of Financial Position 19
Consolidated Statement of Changes in Equity 20
Company Statement of Changes in Equity 21
Consolidated Statement of Cash Flows 22
Company Statement of Cash Flows 23
Notes to the Statements of Cash Flows 24
Notes to the Consolidated Financial Statements 25
Notice of Annual General Meeting 44
BEST OF THE BEST PLC
Company Information
For The Year Ended 30 April 2015
DIRECTORS:
W S Hindmarch
R C E Garton
M W Hindmarch
C Hargrave
SECRETARY:
Prism Cosec Limited
REGISTERED OFFICE:
Unit 2 Plato Place
72/74 St Dionis Rd
London
SW6 4TU
REGISTERED NUMBER:
03755182
AUDITORS:
BANKERS:
NOMINATED ADVISORS:
SOLICITORS:
Wilkins Kennedy LLP
Chartered Accountants
& Statutory Auditor
Bridge House
London Bridge
London
SE1 9QR
Barclays Bank Plc
93 Baker Street
London
W1A 4SD
Panmure Gordon (UK) Limited
One New Change
London
EC4M 9AF
Pinsent Masons LLP
30 Crown Place
Earl Street
London
EC2A 4ES
1
BEST OF THE BEST PLC
Group Strategic Report
For The Year Ended 30 April 2015
The Directors present their Strategic Report of the Company and the Group for the year ended 30 April 2015.
Key Highlights
• Revenue up 25.7% to £8.8 million (2014: £7.0 million)
• Profit before tax increased to £0.81 million (2014: £0.45 million)
• Net Assets of £2.09 million, of which cash balances total £1.91 million
• Online revenues increased by 57.5% to £5.0 million (2014: £3.19 million) – representing 57.3% of
total revenue
• Successful move to a weekly car competition (previously one every two weeks)
• Special dividend of 14.5 pence per share amounting to approximately £1.32 million, pursuant to a
court approved capital reduction, paid to shareholders on 19 December 2014
• Recommended dividend of 1.2 pence (2014: 1.1 pence)
CHIEF EXECUTIVE’S STATEMENT
I am pleased to announce an encouraging set of preliminary results with increasing revenues and profits. This
has been a positive year for the business as we have increasingly become an online business.
We spent much of the year gradually increasing our online marketing investment, as we tested multiple
online marketing channels to recruit online players to help us to scale the business. It is our intention to
further increase our marketing investment in the current financial year.
Our significant move to operating a weekly car competition (previously once every two weeks), with a
guaranteed winner, has been well received by existing customers as well as aiding the acquisition and
conversion of new customers, both at airports and online.
Results
Revenue for the twelve months ended 30 April 2015 increased by 25.7 per cent to £8.8 million (2014:
£7.0 million) and profit before tax rose to £0.81 million (2014: £0.45 million).
The Group generated £1.32 million of operating cash flow in the period. Net assets at 30 April 2015 stood
at £2.09 million (2014: £2.87 million) and principally comprise cash of £1.91 million, our stock of cars on
display which are held at a net realisable value of £0.50 million, and our 970 year leasehold office properties
valued at £0.95 million.
As previously announced a 14.5 pence special dividend amounting to approximately £1.32 million, was paid
to shareholders on 19 December 2014 pursuant to a court approved capital reduction.
Following a recent VAT decision at the First-tier Tribunal concerning a company with similar activities in
our sector, the Company has submitted a protective claim to recover overpaid VAT amounting to
£2.20 million (exclusive of professional fees and expenses). At present this VAT litigation has not been
concluded. It is therefore not certain that the Company will receive any repayment from HM Revenue &
Customs. We will update shareholders as this matter progresses.
2
BEST OF THE BEST PLC
Group Strategic Report (continued)
For The Year Ended 30 April 2015
Dividend
The Board is recommending a final dividend of 1.2 pence per share (2014: 1.1 pence) for the full year ending
30 April 2015 subject to shareholder approval at the Annual General Meeting on 23 September 2015. The
final dividend will be paid on 16 October 2015 to shareholders on the register on 25 September 2015.
New Player Acquisition
The Company has a multi channel approach to acquiring new players. One of the key channels for this is our
airport and shopping centre locations. The locations build strong brand awareness as well as providing
significant opportunities for player acquisition.
The Company is currently operating from 8 airport sites and 2 shopping centre sites. Our airport locations
are at Gatwick North, Gatwick South, Birmingham, Manchester Terminals 1 and 2, Edinburgh, Copenhagen
and Dublin’s Terminal 2. Our shopping centre sites are both in London at the Westfield shopping centres in
Shepherd’s Bush and Stratford. These locations have traded steadily throughout the year and initiatives have
been undertaken to ensure we are recruiting as many new players as possible from these sites.
During this year we will be continuing to invest in these locations to improve the experience and audio visual
capabilities. We are installing 4G enabled screens to enable us to quickly disseminate our weekly winner
videos, which we have learned are very powerful for acquiring new customers.
Our Indian franchise, which is now trading under the Best of the Best brand from Hyderabad airport,
continues to trade well with sites in Mumbai and Delhi under negotiation. The royalty-based agreement
allows them to leverage our systems and software, as well as our marketing and operating experience.
Moving to a weekly competition has increased both the participation and contribution of regular customers,
but has also facilitated the recruitment of new customers, particularly online. Customers acquired online now
exceed the number of players who convert to play online, having first entered at a physical site. The
frequency of winners, increased marketing spend, and the positive publicity surrounding the filming and
associated public relations activity have combined to make our competitions more appealing to both new and
existing customers.
Our website has been incrementally improved throughout the year, whilst our mobile (iOS and android)
applications and mobile optimized website have also been launched in beta. During the coming year we will
be investing in a full rebuild of our website and IT operating systems, last undertaken in 2009. We anticipate
this rebuild facilitating the launch of new functionality, whilst ensuring that we operate from a modern IT
platform which will enable us to evolve and develop at sufficient pace. As part of this development, there
will be a renewed focus on loyalty, retention and community to reward our regular customers over the
shortened competition lifecycle.
Social marketing continues to be a powerful channel for the business, both in terms of customer service and
credibility, but also player acquisition. Our Facebook page now has over 120,000 followers, with many of
them very active and www.botb.com recorded an average of over 130,000 unique visitors per month. Activity
on all social channels is expected to be scaled up this year with increased marketing spend across the
spectrum.
We look forward to the continued growth in player acquisition, through our airport and shopping centre
locations, and through our increased focus on online channels.
3
BEST OF THE BEST PLC
Group Strategic Report (continued)
For The Year Ended 30 April 2015
Outlook
Best of the Best has increased revenues and profits, is cash generative and is supported by a robust balance
sheet. In the current financial year, the Board will focus on executing an increased multi channel digital
marketing plan, whilst ensuring that this strategy provides a suitable return on investment.
I believe the business is well positioned for the remainder of the financial year, and I look forward to
updating shareholders on further progress in due course.
KEY PERFORMANCE INDICATOR
The Company’s key performance indicator is revenue which as discussed in the Chief Executive’s statement
has increased from £7.0 million in 2014 to £8.8 million in 2015. Due to the nature of the business, the Board
maintains that comparative sales revenue figures are an appropriate indication of the Company’s
performance.
RISKS AND UNCERTAINTIES
Financial Risk Management
The Group’s operations expose it to a variety of financial risks that include the effects of changes in liquidity
risk, interest risk and credit risk.
Credit Risk
The Group has a relatively low exposure to credit risk due to the nature of its sales. However the Group
employs various procedures to ensure that all sales are collected promptly and accurately.
Liquidity Risk
The Group actively maintains sufficient cash balances to ensure that the Group has available funds for
operations. The Group finances its operations principally from equity and cash reserves.
Interest Rate Cash Flow Risk
During the year the Group had both interest bearing asset and interest bearing liabilities. Interest bearing
assets include cash balances, all of which earn interest at a variable rate.
Non-Financial Risk Management
The Directors regularly review the non-financial risks which the Group is exposed to and the following have
been identified as key risk factors:
Renewal of Site Contracts
The Group continues to explore opening further sites and to diversity between operators. Efforts are made to
diversify revenue streams by increasing online sales and acquiring customers through non-airport channels.
Geo-political Risk
The Group’s operations within airport terminals which is largely dependent on passenger footfall, exposes
the Group to both the political and geological risks affecting the aviation and travel industries. To mitigate
the Group’s exposure to these risks the Company seeks to diversify its airport sites beyond the United
Kingdom, to grow its online business and to develop non-airport trading sites.
4
BEST OF THE BEST PLC
Group Strategic Report (continued)
For The Year Ended 30 April 2015
Management and Key Personnel
The success of the Company to a significant extent is dependent on the Executive Directors and other senior
managers. To mitigate the risk of losing such personnel the company endeavours to ensure that they are fairly
remunerated and well incentivised.
Information Technology
The Group relies heavily on its IT systems and software for its day to day operation. The Group has in place
contracts with third party suppliers to ensure the levels of service delivered are adequate and that its data and
customers’ data is protected.
ON BEHALF OF THE BOARD:
....................................................
W S Hindmarch
Director
10 June 2015
5
BEST OF THE BEST PLC
Corporate Governance Report
For The Year Ended 30 April 2015
PRINCIPLES OF CORPORATE GOVERNANCE
The policy of the Board is to manage the affairs of the Company in accordance with the principles underlying
the UK Corporate Governance Code.
The Board of Directors is accountable to shareholders for the good corporate performance of the Group. The
principles of Corporate Governance and a code of best practice are set out in the UK Corporate Governance
Code (the Code). Under the rules of AIM, the Group is not required to comply in full with the Code nor to
state whether it derogates from it. The Board considers that full compliance with the Code is not appropriate
at this stage as, due to the size of the business, full compliance would be both unwieldy and costly. This
statement sets out how the principles of the Code have been applied having regard to the size and nature of
the Group.
BOARD STRUCTURE AND OPERATION
The Chief Executive of the Group is William Hindmarch. He is heavily involved in the day to day running
of the Group. In total the Board comprises a Chief Executive, one further Executive Director, Rupert Garton,
and two Non-Executive Directors, Colin Hargrave and Michael Hindmarch. Colin Hargrave is an
independent Non-Executive Director. It is considered that this gives the necessary mix of industry specific
and broad business experience necessary for the effective governance of the Group.
There are certain matters specifically reserved to the Board for its decision. Board meetings are held on a
regular basis and effectively no decision of any consequence is made other than by the Board. Directors also
have ongoing contact on a variety of issues between formal meetings. All Directors participate in the key
areas of decision making, including the appointment of new Directors. A schedule of regular matters to be
addressed by the Board and its Committees is agreed on an annual basis.
The Board is responsible to shareholders for the proper management of the Group. A statement of Directors’
responsibilities in respect of the accounts is set out on page 13. The Non-Executive Directors have a
particular responsibility to ensure that the strategies proposed by the Executive Directors are fully
considered.
To enable the Board to discharge its duties, all Directors have full and timely access to all relevant
information. The Board is supported in its work by Board Committees which are responsible for a variety of
tasks delegated by the Board.
All Directors have access to the Company Secretary. There is no agreed formal procedure for the Directors
to take independent professional advice at the Group’s expense.
All Directors submit themselves for re-election at the annual general meeting at regular intervals. The
Non-Executive Directors are appointed under fixed term contracts of no more than one year.
The Directors who served during the year and a brief biography of each, is set out below.
William Hindmarch, Age 41 – Chief Executive
William graduated from the University of Durham in 1996 and joined Kleinwort Benson as a graduate
trainee. He founded the business in 1999. He has been the Chief Executive for 12 years.
Rupert Garton, Age 40 – Commercial Director
Rupert graduated from the University of Durham in 1997 and joined JP Morgan as a graduate trainee.
He moved to Dresdner Kleinwort Wasserstein to take up a position in the equity capital markets division and
then spent a further four years in Dresdner Kleinwort Wasserstein’s corporate finance division, working in
London, Milan and Johannesburg.
In 2003, he left to do an MBA at the Oxford Said Business School, before joining a specialist retailer as
Commercial Director. He joined the Group in January 2006.
6
BEST OF THE BEST PLC
Corporate Governance Report (continued)
For The Year Ended 30 April 2015
BOARD STRUCTURE AND OPERATION (CONTINUED)
Michael Hindmarch, Age 75 – Non-Executive Chairman
Michael qualified as a Polymer Technologist at the National College of Rubber and Plastics Technology,
London. He founded Plantpak (Plastics) Ltd, a horticultural plastics company in 1970. In 1985 he reversed
Plantpak into Falcon Industries Plc, a listed conglomerate, becoming Chairman and CEO. Since 1990 he has
acted as an independent business consultant to a number of companies. Michael served as High Sheriff of
Essex 2010/2011 and is a Deputy Lieutenant of the County.
Colin Hargrave, Aged 62 – Non-Executive Director
Colin has spent all his working life in the retail, leisure and travel industries having started his career with
the Burton Group. From 1991 to 1997 Colin worked for the Early Learning Centre, a division of John
Menzies plc. Reporting to the CEO as International Development Manager he was responsible for expanding
ELC into 13 new overseas markets through franchising, joint ventures and wholesaling.
From 1997 until he left in 2008 he worked for BAA Plc, more recently taken into private ownership. His role
prior to leaving was Managing Director of UK Retail where he was responsible for sales in excess of
£2.3 billion and a profit contribution c £650 million from the seven UK airports BAA owned.
The Board has established the following committees, which each have written terms of reference, to deal
with specific aspects of the Group’s affairs.
AUDIT COMMITTEE
The Audit Committee comprises of Colin Hargrave (Chairman of the committee) and Michael Hindmarch.
Meetings are also generally attended by the Group’s Executive Directors, and the external auditors.
The remit of the committee is to review:
– the appointment and performance of the external auditors;
– remuneration for both audit and non-audit work and nature and scope of the audit with the external
auditors;
– the interim and final financial report and accounts;
– the external auditors’ management letter and management’s responses;
– the systems of risk management and internal controls;
– operating, financial and accounting practices; and
– related recommendations to the Board.
REMUNERATION COMMITTEE
The Remuneration Committee comprising of Michael Hindmarch (Chairman of the committee) and Colin
Hargrave is responsible for making recommendations to the Board on the Group’s framework of Executive
remuneration and its cost. The Committee determines the contract terms, remuneration and other benefits for
each of the Executive Directors. The Board itself determines the remuneration of the Non-Executive
Directors. The report on Directors’ remuneration is set out on pages 9 and 10.
7
BEST OF THE BEST PLC
Corporate Governance Report (continued)
For The Year Ended 30 April 2015
NOMINATION COMMITTEE
There is no separate nomination committee at the moment due to the size of the Board. All Directors
participate in the appointment of new Directors.
BOARD MEETING ATTENDANCE
Directors’ attendance at Board meetings is shown below.
No. of Board
meetings attended
William Hindmarch 6/6
Rupert Garton 6/6
Michael Hindmarch 5/6
Colin Hargrave 6/6
INTERNAL FINANCIAL CONTROL
The Board acknowledges its responsibility for establishing and monitoring the Group’s systems of internal
control. Although no system of internal control can provide absolute assurance against material misstatement
or loss, the Group’s systems are designed to provide the Directors with reasonable assurance that problems
are identified on a timely basis and dealt with appropriately.
The Group maintains a comprehensive process of financial reporting. The annual budget is reviewed and
approved before being formally adopted. Other key procedures that have been established and which are
designed to provide effective control are as follows:
Management structure – The Board meets regularly to discuss all issues affecting the Group.
Investment appraisal – The Group has a clearly defined framework for investment appraisal and approval is
required by the Board where appropriate.
The Board regularly reviews the effectiveness of the systems of internal control and considers the major
business risks and the control environment. No significant deficiencies have come to light during the period
and no weakness in internal financial control have resulted in any material losses, contingencies which would
require disclosure as recommended by the guidance for Directors on reporting on internal financial control.
The Board considers that in light of the control environment described above, there is no current requirement
for a separate internal audit function.
RELATIONS WITH SHAREHOLDERS
The Chief Executive is the Group’s principal spokesperson with investors, fund managers, the press and
other interested parties. At the annual general meeting, private investors are given the opportunity to question
the Board.
This year’s Annual General Meeting will be held on 23 September 2015. Notice of the Annual General
Meeting is set out at the back of this document.
GOING CONCERN
The Directors confirm that they are satisfied that the Company and Group has adequate resources to continue
in business for the foreseeable future. For this reason, they continue to adopt the going concern basis in
preparing the financial statements.
8
BEST OF THE BEST PLC
Directors’ Remuneration Report
For The Year Ended 30 April 2015
REMUNERATION COMMITTEE
The Company’s Remuneration Committee is constituted in accordance with the recommendations of the UK
Corporate Governance Code. The members of the Committee are Michael Hindmarch (Chairman of the
Committee) and Colin Hargrave.
Details of the remuneration of each Director are set out below.
No Director plays a part in any discussion about his own remuneration.
Executive remuneration packages are prudently designed to attract, motivate and retain Directors of high
calibre, who are needed to drive and maintain the Group’s position as a market leader and to reward them
for enhancing value to the shareholder.
REMUNERATION POLICY
SHARE OPTIONS
Certain Directors have options granted to them under the terms of the approved and unapproved share option
schemes which are open to other qualifying employees. The reason for the schemes is to incentivise and
retain the Directors and key personnel and enable them to benefit from the increased market capitalisation
of the Group. The exercise of options under the scheme is based upon the satisfaction of conditions relating
to the share price. The conditions vary from grant to grant.
As at 30 April 2015, two of the Directors, Rupert Garton and Colin Hargrave, held options. Details and
conditions of these options can be found on page 11.
PENSION ARRANGEMENTS
During the year, the Group provided £48,000 (2014: £48,000) in respect of Executive Director pension
payments. At the year end, £nil (2014: £nil) was outstanding and owing to the scheme.
DIRECTORS’ CONTRACTS
It is the Group’s policy that Executive Directors should have contracts with an indefinite term providing for
a maximum of six months notice. In the event of early termination, the Directors’ contracts provide for
compensation, where appropriate, up to a maximum of basic salary for the notice period.
NON-EXECUTIVE DIRECTORS
The fees of Non-Executive Directors are determined by the Board as a whole having regard to the
commitment of time required and the level of fees in similar companies.
Non-Executive Directors are engaged on renewable fixed term contracts not exceeding one year.
9
BEST OF THE BEST PLC
Directors’ Remuneration Report (continued)
For The Year Ended 30 April 2015
30 April 30 April
Benefits Fees paid to 2015 2014
in kind Salary Bonus Pension third parties Total Total
£ £ £ £ £ £ £
Rupert Garton 19,103 122,084 65,000 24,000 – 230,187 217,150
William Hindmarch 4,301 125,000 65,000 24,000 – 218,301 203,647
Michael Hindmarch – – – – 12,000 12,000 12,000
Colin Hargrave 1,730 20,000 – – – 21,730 19,613
Aggregate emoluments disclosed above do not include any amounts for the value of options to acquire
ordinary shares in the Group held by the Directors. No share options were granted to Directors during the
year. As at 30 April 2015, 954,528 options over shares granted to the Directors in previous years, were
outstanding. Share options have been granted on both an approved and unapproved basis.
APPROVAL
The report was approved by the Board of Directors and authorised for issue on 10 June 2015 and signed on
its behalf by:
....................................................
M W Hindmarch
Chairman
10
BEST OF THE BEST PLC
Report of the Directors
For The Year Ended 30 April 2015
The Directors present their report with the financial statements of the Company and the Group for the year
ended 30 April 2015.
DIRECTORS
The Directors during the year and summaries of their experience are set out on pages 6 and 7.
The number of Ordinary Shares of the Company in which the Directors holding office on 30 April 2015 were
beneficially interested in were as follows:
30 April 2015 30 April 2014
Ordinary 5p shares
W S Hindmarch 5,016,851 5,016,851
R C E Garton 647,596 647,596
M W Hindmarch 944,722 944,722
C Hargrave 36,773 36,773
According to the register of Directors’ interests, no rights to subscribe for shares in or debentures of the
Company were granted to any of the Directors or their immediate families, or exercised by them, during the
financial year except as indicated below:
Outstanding Outstanding
at beginning Exercised at end of Exercise Date first Date of
of year Granted Forfeited in year year price £ exercisable expiry
R C E Garton 500,000 – – – 500,000 0.225 26/04/15 25/04/22
R C E Garton 154,528 – – – 154,528 0.210 21/09/15 20/09/22
R C E Garton 200,000 – – – 200,000 0.210 21/09/15 20/09/22
C Hargrave 90,000 – – – 90,000 0.225 26/04/15 25/04/22
C Hargrave 10,000 – – – 10,000 0.380 05/08/16 04/08/23
At the 30 April 2015 the market price of the Group’s shares was £0.91 (2014: £0.715). The maximum share
price during the year was £0.97 (2014: £0.985) and the minimum price was £0.58 (2014: £0.218).
As at 30 April 2015, 954,528 options over shares granted to the Directors in previous years, were
outstanding. Share options have been granted on both an approved and unapproved basis.
DIVIDENDS
During the year, the Group paid a final dividend equating to 1.1 pence per share as recommended in the
accounts to 30 April 2014; and a special dividend of 14.5 pence per share further to a court approved capital
reduction as detailed in a circular sent to shareholders on 21 October 2014.
The Board is recommending a final dividend of 1.2 pence per share (2014: 1.1 pence) for the full year ending
30 April 2015 subject to shareholder approval at the Annual General Meeting on 23 September 2015. A final
dividend is covered 5.91 times by earnings per share and will be paid on 16 October 2015 to shareholders
on the register on 25 September 2015.
The total distribution of dividends for the year ended 30 April 2015 will be £1,428,551.
AUTHORITY TO PURCHASE OWN SHARES
At the 2014 annual general meeting, the Group was authorised by shareholders to purchase up to 909,905 of
its own shares, representing approximately 10 per cent. of the total issued share capital. This authority will
expire at the forthcoming annual general meeting and a resolution to renew the authority for a further year
will be sought. No shares were purchased by the Company during the period.
11
BEST OF THE BEST PLC
Report of the Directors (continued)
For The Year Ended 30 April 2015
CAPITAL REDUCTION
On 13 November 2014, the Company convened a general meeting seeking shareholder approval for a capital
reduction in order to return surplus cash to shareholders. Following approval from shareholders, the capital
reduction became effective further to a court hearing on 3 December 2014 and a special dividend of 14.5
pence per share was paid to shareholders on 19 December 2014.
SUBSTANTIAL SHAREHOLDERS
As at 10 June 2015 the Company had been advised of the following notifiable interests (whether directly or
indirectly held) in its voting rights (other than Directors’ interests already disclosed).
Name Shareholding Percentage
Stancroft Trust Limited 782,647 8.60
Octopus Investment Management 366,369 4.03
Helium Rising Stars Fund 275,000 3.02
CHARITABLE CONTRIBUTIONS
During the year the Group did not make any charitable donations in excess of £200.
EVENTS SINCE THE END OF THE YEAR
No material subsequent events have occurred since the year end that require disclosure within the accounts.
DISCLOSURE IN THE STRATEGIC REPORT
The Directors have chosen (under S414(c) of the Companies Act 2006) to show Risks and Uncertainties
within the Group Strategic Report.
12
BEST OF THE BEST PLC
Report of the Directors (continued)
For The Year Ended 30 April 2015
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report and the financial statements in accordance
with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law
the Directors have elected to prepare the financial statements in accordance with International Financial
Reporting Standards as adopted by the European Union. Under company law the Directors must not approve
the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of
the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial
statements, the Directors are required to:
– select suitable accounting policies and then apply them consistently;
– make judgements and accounting estimates that are reasonable and prudent;
– state that the financial statements comply with IFRS;
– prepare the financial statements on the going concern basis unless it is inappropriate to presume that
the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain
the Company’s and the Group’s transactions and disclose with reasonable accuracy at any time the financial
position of the Company and the Group and enable them to ensure that the financial statements comply with
the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the
Group and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information
included on the company’s website.
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the Directors are aware, there is no relevant audit information (as defined by Section 418 of the
Companies Act 2006) of which the Group’s auditors are unaware, and each Director has taken all the steps
that he ought to have taken as a Director in order to make himself aware of any relevant audit information
and to establish that the Group’s auditors are aware of that information.
AUDITORS
The auditors, Wilkins Kennedy LLP, will be proposed for re-appointment at the forthcoming Annual General
Meeting.
ON BEHALF OF THE BOARD:
........................................................................
W S Hindmarch
Director
10 June 2015
13
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BEST OF THE BEST PLC
We have audited the financial statements of Best of the Best Plc for the year ended 30 April 2015 which
comprise the Consolidated Statement of Profit or Loss, the Consolidated Statement of Profit or Loss and
Other Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of
Financial Position, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in
Equity, the Consolidated Statement of Cash Flows, the Company Statement of Cash Flows and the related
notes. The financial reporting framework that has been applied in their preparation is applicable law and
International Financial Reporting Standards (IFRSs) as adopted by the European Union, and as regards the
parent company financial statements, as applied in accordance with the provisions of the Companies Act
2006.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of
the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s
members those matters we are required to state to them in a Report of the Auditors and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
company and the company’s members as a body, for our audit work, for this report, or for the opinions we
have formed.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
As explained more fully in the Statement of Directors’ Responsibilities, the directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view. Our
responsibility is to audit and express an opinion on the financial statements in accordance with applicable
law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with
the Auditing Practices Board’s Ethical Standards for Auditors.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient
to give reasonable assurance that the financial statements are free from material misstatement, whether
caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to
the group’s and the parent company’s circumstances and have been consistently applied and adequately
disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall
presentation of the financial statements. In addition, we read all the financial and non-financial information
in the Group Strategic Report and the Report of the Directors to identify material inconsistencies with the
audited financial statements and to identify any information that is apparently materially incorrect based on,
or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we
become aware of any apparent material misstatements or inconsistencies we consider the implications for
our report.
OPINION ON FINANCIAL STATEMENTS
In our opinion the financial statements:
– give a true and fair view of the state of the group’s and the parent company’s affairs as at 30 April
2015 and of the group’s profit for the year then ended;
– have been properly prepared in accordance with IFRSs as adopted by the European Union;
– the parent company financial statements have been properly prepared in accordance with IFRSs as
adopted by the European Union and as applied in accordance with the provisions of the Companies
Act 2006; and
– the financial statements have been prepared in accordance with the requirements of the Companies
Act 2006.
14
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BEST OF THE BEST PLC
OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion the information given in the Group Strategic Report and the Report of the Directors for the
financial year for which the financial statements are prepared is consistent with the financial statements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to
report to you if, in our opinion:
– adequate accounting records have not been kept by the parent company, or returns adequate for our
audit have not been received from branches not visited by us; or
– the parent company financial statements are not in agreement with the accounting records and returns;
or
– certain disclosures of directors’ remuneration specified by law are not made; or
– we have not received all the information and explanations we require for our audit.
Daniel Garside (Senior Statutory Auditor)
for and on behalf of Wilkins Kennedy LLP
Chartered Accountants
& Statutory Auditor
Bridge House
London Bridge
London
SE1 9QR
10 June 2015
15
BEST OF THE BEST PLC
Consolidated Statement of Profit or Loss
For The Year Ended 30 April 2015
2015 2014
Notes £ £
CONTINUING OPERATIONS
Revenue 2 8,798,380 7,000,374
Cost of sales (3,620,661) (2,393,134)
–––––––––– ––––––––––
GROSS PROFIT 5,177,719 4,607,240
Administrative expenses (4,371,926) (4,162,681)
–––––––––– ––––––––––
OPERATING PROFIT 805,793 444,559
Finance income 4 1,863 1,947
–––––––––– ––––––––––
PROFIT BEFORE INCOME TAX 5 807,656 446,506
Income tax 6 (162,978) (92,267)
–––––––––– ––––––––––
PROFIT FOR THE YEAR 644,678 354,239
–––––––––– ––––––––––
–––––––––– ––––––––––
Profit attributable to:
Owners of the parent 644,678 354,239
Earnings per share expressed in pence per share: 9
Basic 7.09 3.84
Diluted (2014 Restated) 6.56 3.59
–––––––––– ––––––––––
The notes form part of these financial statements
16
BEST OF THE BEST PLC
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For The Year Ended 30 April 2015
2015 2014
Restated
£ £
PROFIT FOR THE YEAR 644,678 354,239
OTHER COMPREHENSIVE INCOME – –
––––––––– –––––––––
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 644,678 354,239
––––––––– –––––––––
––––––––– –––––––––
Total comprehensive income attributable to:
Owners of the parent 644,678 354,239
The notes form part of these financial statements
17
BEST OF THE BEST PLC
Consolidated Statement of Financial Position
As at 30 April 2015
2015 2014
Notes £ £
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 10 1,053,475 1,048,739
Investments 11 70,000 –
Deferred tax 18 82,939 103,892
––––––––– –––––––––
1,206,414 1,152,631
––––––––– –––––––––
CURRENT ASSETS
Inventories 12 501,137 526,445
Trade and other receivables 13 265,865 361,504
Tax receivable 7,513 1,763
Cash and cash equivalents 14 1,906,910 2,244,227
––––––––– –––––––––
2,681,425 3,133,939
––––––––– –––––––––
TOTAL ASSETS 3,887,839 4,286,570
––––––––– –––––––––
EQUITY
SHAREHOLDERS’ EQUITY
Called up share capital 15 454,950 454,950
Share premium 16 – 1,782,622
Capital redemption reserve 16 196,601 196,601
Other reserves 16 147,810 147,810
Treasury shares 16 – (161,372)
Retained earnings 16 1,289,526 443,050
––––––––– –––––––––
TOTAL EQUITY 2,088,887 2,863,661
––––––––– –––––––––
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 17 1,594,206 1,287,493
Tax payable 204,746 135,416
––––––––– –––––––––
1,798,952 1,422,909
––––––––– –––––––––
TOTAL LIABILITIES 1,798,952 1,422,909
––––––––– –––––––––
TOTAL EQUITY AND LIABILITIES 3,887,839 4,286,570
––––––––– –––––––––
The financial statements were approved by the Board of Directors on 10 June 2015 and were signed on its
behalf by:
........................................................................
W S Hindmarch
Director
The notes form part of these financial statements
18
BEST OF THE BEST PLC
Company Statement of Financial Position
As at 30 April 2015
2015 2014
Notes £ £
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 10 1,053,475 1,048,739
Investments 11 82,585 12,585
Deferred tax 18 82,939 103,892
––––––––– –––––––––
1,218,999 1,165,216
––––––––– –––––––––
CURRENT ASSETS
Inventories 12 501,137 526,445
Trade and other receivables 13 212,028 296,679
Cash and cash equivalents 14 1,870,677 2,120,219
––––––––– –––––––––
2,583,842 2,943,343
––––––––– –––––––––
TOTAL ASSETS 3,802,841 4,108,559
––––––––– –––––––––
EQUITY
SHAREHOLDERS’ EQUITY
Called up share capital 15 454,950 454,950
Share premium 16 – 1,782,622
Capital redemption reserve 16 196,601 196,601
Other reserves 16 147,810 147,810
Treasury shares 16 – (161,372)
Retained earnings 16 1,165,617 45,284
––––––––– –––––––––
TOTAL EQUITY 1,964,978 2,465,895
––––––––– –––––––––
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 17 1,649,519 1,565,067
Tax payable 188,344 77,597
––––––––– –––––––––
1,837,863 1,642,664
––––––––– –––––––––
TOTAL LIABILITIES 1,837,863 1,642,664
––––––––– –––––––––
TOTAL EQUITY AND LIABILITIES 3,802,841 4,108,559
––––––––– –––––––––
The financial statements were approved by the Board of Directors on 10 June 2015 and were signed on its
behalf by:
........................................................................
W S Hindmarch
Director
The notes form part of these financial statements
19
BEST OF THE BEST PLC
Consolidated Statement of Changes in Equity
For The Year Ended 30 April 2015
Called up
share Retained Share
capital earnings premium
£ £ £
Balance at 1 May 2013 468,602 182,532 1,782,622
Changes in equity
Issue of share capital (13,652) – –
Dividends – (93,721) –
Total comprehensive income – 354,239 –
––––––––– ––––––––– –––––––––
Balance at 30 April 2014 454,950 443,050 1,782,622
––––––––– ––––––––– –––––––––
Changes in equity
Issue of share capital – – (1,782,622)
Dividends – (1,419,452) –
Total comprehensive income – 2,265,928 –
––––––––– ––––––––– –––––––––
Balance at 30 April 2015 454,950 1,289,526 –
––––––––– ––––––––– –––––––––
Capital
redemption Other Treasury Total
reserve reserves shares equity
£ £ £ £
Balance at 1 May 2013 182,949 147,810 – 2,764,515
Changes in equity
Issue of share capital – – – (13,652)
Dividends – – – (93,721)
Total comprehensive income 13,652 – (161,372) 206,519
––––––––– ––––––––– ––––––––– –––––––––
Balance at 30 April 2014 196,601 147,810 (161,372) 2,863,661
––––––––– ––––––––– ––––––––– –––––––––
Changes in equity
Issue of share capital – – – (1,782,622)
Dividends – – – (1,419,452)
Total comprehensive income – – 161,372 2,427,300
––––––––– ––––––––– ––––––––– –––––––––
Balance at 30 April 2015 196,601 147,810 – 2,088,887
––––––––– ––––––––– ––––––––– –––––––––
The notes form part of these financial statements
20
BEST OF THE BEST PLC
Company Statement of Changes in Equity
For The Year Ended 30 April 2015
Called up
share Retained Share
capital earnings premium
£ £ £
Balance at 1 May 2013 468,602 (67,727) 1,782,622
Changes in equity
Issue of share capital (13,652) – –
Dividends – (93,721) –
Total comprehensive income – 206,732 –
––––––––– ––––––––– –––––––––
Balance at 30 April 2014 454,950 45,284 1,782,622
––––––––– ––––––––– –––––––––
Changes in equity
Issue of share capital – – (1,782,622)
Dividends – (1,419,452) –
Total comprehensive income – 2,539,785 –
––––––––– ––––––––– –––––––––
Balance at 30 April 2015 454,950 1,165,617 –
––––––––– ––––––––– –––––––––
Capital
redemption Other Treasury Total
reserve reserves shares equity
£ £ £ £
Balance at 1 May 2013 182,949 147,810 – 2,514,256
Changes in equity
Issue of share capital – – – (13,652)
Dividends – – – (93,721)
Total comprehensive income 13,652 – (161,372) 59,012
––––––––– ––––––––– ––––––––– –––––––––
Balance at 30 April 2014 196,601 147,810 (161,372) 2,465,895
––––––––– ––––––––– ––––––––– –––––––––
Changes in equity
Issue of share capital – – – (1,782,622)
Dividends – – – (1,419,452)
Total comprehensive income – – 161,372 2,701,157
––––––––– ––––––––– ––––––––– –––––––––
Balance at 30 April 2015 196,601 147,810 – 1,964,978
––––––––– ––––––––– ––––––––– –––––––––
The notes form part of these financial statements
21
BEST OF THE BEST PLC
Consolidated Statement of Cash Flows
For The Year Ended 30 April 2015
2015 2014
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 1,323,481 968,539
Tax paid (78,445) 97,810
––––––––– –––––––––
Net cash from operating activities 1,245,036 1,066,349
––––––––– –––––––––
Cash flows from investing activities
Purchase of tangible fixed assets (94,764) (542,440)
Purchase of fixed asset investments (70,000) –
Sale of tangible fixed assets – 26,462
Interest received 1,863 1,947
––––––––– –––––––––
Net cash from investing activities (162,901) (514,031)
––––––––– –––––––––
Cash flows from financing activities
Share buyback – (161,372)
Equity dividends paid (1,419,452) (93,721)
––––––––– –––––––––
Net cash from financing activities (1,419,452) (255,093)
––––––––– –––––––––
(Decrease)/increase in cash and cash equivalents (337,317) 297,225
Cash and cash equivalents at beginning of year 2 2,244,227 1,947,002
––––––––– –––––––––
Cash and cash equivalents at end of year 2 1,906,910 2,244,227
––––––––– –––––––––
The notes form part of these financial statements
22
BEST OF THE BEST PLC
Company Statement of Cash Flows
For The Year Ended 30 April 2015
2015 2014
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 975,933 955,196
Tax paid (12,374) 112,905
––––––––– –––––––––
Net cash from operating activities 963,559 1,068,101
––––––––– –––––––––
Cash flows from investing activities
Purchase of tangible fixed assets (94,764) (542,440)
Purchase of fixed asset investments (70,000) –
Sale of tangible fixed assets – 26,462
Interest received 1,863 1,947
Dividends received 369,252 –
––––––––– –––––––––
Net cash from investing activities 206,351 (514,031)
––––––––– –––––––––
Cash flows from financing activities
Share buyback – (161,372)
Equity dividends paid (1,419,452) (93,721)
––––––––– –––––––––
Net cash from financing activities (1,419,452) (255,093)
––––––––– –––––––––
(Decrease)/increase in cash and cash equivalents (249,542) 298,977
Cash and cash equivalents at beginning of year 2 2,120,219 1,821,242
––––––––– –––––––––
Cash and cash equivalents at end of year 2 1,870,677 2,120,219
––––––––– –––––––––
The notes form part of these financial statements
23
BEST OF THE BEST PLC
Notes to the Statements of Cash Flows
For The Year Ended 30 April 2015
1. RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH
GENERATED FROM OPERATIONS
Group
2015 2014
£ £
Profit before income tax 807,656 446,506
Depreciation charges 90,028 189,396
Loss on disposal of fixed assets – 14,353
Finance income (1,863) (1,947)
––––––––– –––––––––
895,821 648,308
Decrease/(increase) in inventories 25,308 (23,964)
Decrease/(increase) in trade and other receivables 95,639 (78,511)
Increase in trade and other payables 306,713 422,706
––––––––– –––––––––
Cash generated from operations 1,323,481 968,539
––––––––– –––––––––
Company
2015 2014
£ £
Profit before income tax 1,062,609 258,757
Depreciation charges 90,028 189,396
Loss on disposal of fixed assets – 14,353
Finance income (371,115) (1,947)
––––––––– –––––––––
781,522 460,559
Decrease/(increase) in inventories 25,308 (23,964)
Decrease/(increase) in trade and other receivables 84,651 (91,161)
Increase in trade and other payables 84,452 609,762
––––––––– –––––––––
Cash generated from operations 975,933 955,196
––––––––– –––––––––
2. CASH AND CASH EQUIVALENTS
The amounts disclosed on the Statements of Cash Flows in respect of cash and cash equivalents are
in respect of these Statement of Financial Position amounts:
Group
Company
Year ended 30 April 2015
30 April 2015 1 May 2014 30 April 2015 1 May 2014
£ £ £ £
Cash and cash equivalents 1,906,910 2,244,227 1,870,677 2,120,219
––––––––– ––––––––– ––––––––– –––––––––
Year ended 30 April 2014
30 April 2014 1 May 2013 30 April 2014 1 May 2013
£ £ £ £
Cash and cash equivalents 2,244,227 1,947,002 2,120,219 1,821,242
––––––––– ––––––––– ––––––––– –––––––––
The notes form part of these financial statements
24
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements
For The Year Ended 30 April 2015
1. ACCOUNTING POLICIES
Basis of preparation
These financial statements have been prepared in accordance with International Financial Reporting
Standards and IFRIC interpretations and with those parts of the Companies Act 2006 applicable to
companies reporting under IFRS. The financial statements have been prepared under the historical
cost convention.
The principal accounting policies adopted in the preparation of the consolidated financial statements
are set out below. The policies have been consistently applied to all the years presented, unless
otherwise stated.
The consolidated financial statements are presented in Pound Sterling.
The preparation of financial statements in compliance with adopted IFRS requires the use of certain
critical accounting estimates. It also requires Group management to exercise judgement in applying
the Group’s accounting policies. The areas where significant judgements and estimates have been
made in preparing the financial statements and their effect are disclosed in note 23.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and
entities controlled by the Company (its subsidiary undertakings). Where necessary adjustments are
made to the financial statements of the subsidiaries to bring their accounting policies in line with the
Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Changes in accounting policies
The following new standards, interpretations and amendments, are effective for annual periods
beginning on or after 1 May 2015 and the Group has chosen not to adopt early.
IFRS 2 (Amendment) Share-based Payment – Definitions of vesting conditions
IFRS 7 (Amendment) Financial Instruments Disclosure
IFRS 8 (Amendment) Operating Segments Disclosure
IFRS 9 Financial Instruments
IFRS 10 (Amendment) Consolidated Financial Statements
IFRS 14 Regulatory Deferral Accounts
IAS 1 (Amendment) Presentation of Financial Statements
IAS 16 (Amendment) Property, Plant and Equipment
IAS 27 (Amendment) Separate Financial Statements
None of the other new standards, interpretations and amendments, which are effective for periods
beginning after 1 May 2015 and which have not been adopted early, are expected to have a material
effect on the Group’s future financial statements.
25
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
1. ACCOUNTING POLICIES (CONTINUED)
Revenue recognition
Revenue represents the value of tickets sold in respect of weekly competitions. The Company’s
obligation to it’s client is discharged on sale of a ticket.
Property, plant and equipment
Depreciation is provided at the following annual rates in order to write off each asset over its
estimated useful life.
Long leasehold
Improvements to property
Fixtures and fittings
Motor vehicles
Computer equipment
Financial instruments
– not provided
– Not depreciated
– at varying rates on cost
– 25% on reducing balance
– at varying rates on cost
The Group’s financial instruments comprise cash together with various items such as trade and other
receivables and trade and other payables etc. that arise directly from its operations. The main purpose
of these financial instruments is to provide working capital.
Financial assets and financial liabilities are recognised on the Group’s balance sheet when the Group
has become a party to the contractual provisions of the instrument.
Trade receivables
Trade receivables do not carry any interest and are stated at their nominal value as reduced by
appropriate allowances for estimated irrecoverable amounts.
Financial liability and equity
Financial liabilities are classified according to the substance of the contractual arrangements entered
into. An equity instrument is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities.
Trade payables
Trade payables are not interest-bearing and are stated at their nominal value.
Equity instruments
Financial instruments issued by the Group are classified as equity only to the extent that they do not
meet the definition of a financial liability or financial asset.
Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.
The Group’s ordinary shares are classified as equity instruments.
Inventories
Inventories are valued at the lower of cost and net realisable value, after making due allowance for
obsolete and slow moving items.
26
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
1. ACCOUNTING POLICIES (CONTINUED)
Taxation
Current taxes are based on the results shown in the financial statements and are calculated according
to local tax rules, using tax rates enacted or substantially enacted by the balance sheet date.
The tax currently payable is based on the taxable profit for the year. Taxable profit/(loss) differs from
the net profit/(loss) reported in the Income Statement because it excludes items of income or expense
that are taxable or deductible in other years and it further excludes items that are never taxable or
deductible.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying
amounts of assets and liabilities in the financial statements and the corresponding tax bases used in
the computation of taxable profit and is accounted for using the balance sheet liability method.
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax
assets are recognised to the extent that it is probable that taxable profits will be available against which
deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the
temporary differences arise from the initial recognition (other than in a business combination) of other
assets or liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets are reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part
of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is
settled or the asset is realised. Deferred tax is charged or credited in the income statement, except
when it relates to items charged or credited directly to equity, in which case deferred tax is also dealt
with in equity.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling
at the statement of financial position date. Transactions in foreign currencies are translated into
sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into
account in arriving at the operating result.
Share based payment
The Group has applied the requirements of IFRS 2 to share option schemes allowing certain
employees within the Group to acquire shares of the company. For all grants of share options, the fair
value as at the date of grant is calculated using the Black-Scholes option pricing model, taking into
account the terms and conditions upon which the options were granted. The amount recognised as an
expense is adjusted to reflect the actual number of share options that are likely to vest, except where
forfeiture is only due to market-based conditions not achieving the threshold for vesting. The expense
is recognised over the vesting life of the option.
Pension contributions
The Company operates a money purchase pension scheme for certain employees. The cost of the
contribution is charged in the profit and loss account as incurred.
Accruals and deferred income
Accruals and deferred income includes the cost of prizes to be awarded to winners.
27
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
2. SEGMENTAL REPORTING
The directors consider that the primary reporting format is by business segment and that there is only
one such segment being that of competition operators. This disclosure has already been provided in
these financial statements.
All of the Group’s material operations are located in the United Kingdom.
3. EMPLOYEES AND DIRECTORS
2015 2014
Restated
£ £
Wages and salaries 2,833,769 2,687,561
Social security costs 267,108 231,818
Other pension costs 25,081 15,322
––––––––– –––––––––
3,125,958 2,934,701
––––––––– –––––––––
The average monthly number of employees during the year was as follows:
2015 2014
Sales 53 41
Administration 21 17
Management 2 2
––––––––– –––––––––
76 60
––––––––– –––––––––
2015 2014
£ £
Directors’ remuneration 482,218 452,410
––––––––– –––––––––
The number of directors to whom retirement benefits were accruing was as follows:
2015 2014
£ £
Money purchase schemes 2 2
––––––––– –––––––––
Information regarding the highest paid director is as follows:
2015 2014
£ £
Emoluments etc 230,187 217,150
––––––––– –––––––––
The Directors consider themselves to be the only key management personnel.
28
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
4. NET FINANCE INCOME
2015 2014
£ £
Finance income:
Deposit account interest 1,863 1,947
––––––––– –––––––––
5. PROFIT BEFORE INCOME TAX
The profit before income tax is stated after charging/(crediting):
2015 2014
£ £
Cost of inventories recognised as expense 3,620,661 2,393,134
Depreciation – owned assets 90,028 189,396
Loss on disposal of fixed assets – 14,353
Auditors’ remuneration 25,000 24,000
Auditors’ remuneration for non audit work 8,000 12,000
Foreign exchange differences (23,491) 13,876
––––––––– –––––––––
Amounts payable to the auditors and their associates in respect of both audit and non-audit services:
Year ended Year ended
30 April 2015 30 April 2014
£ £
Audit services
– Statutory audit 25,000 24,000
– Other services relating to such legislation 8,000 12,000
6. INCOME TAX
Analysis of tax expense
2015 2014
£ £
Current tax:
Tax 142,025 102,062
Deferred tax 20,953 (9,795)
––––––––– –––––––––
Total tax expense in consolidated statement of profit or loss 162,978 92,267
––––––––– –––––––––
29
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
6. INCOME TAX (CONTINUED)
Factors affecting the tax expense
The tax assessed for the year is lower (2014 – higher) than the standard rate of corporation tax in the
UK. The difference is explained below:
2015 2014
£ £
Profit on ordinary activities before income tax 807,656 446,506
––––––––– –––––––––
Profit on ordinary activities
multiplied by the standard rate of corporation tax
in the UK of 20.918% (2014 – 20%) 168,945 89,301
Effects of:
tax purposes
Capital allowances in excess of depreciation (21,914) 6,924
Loss/(Profit) on disposal of assets – 2,871
Tax on overseas group profit for the year (5,006) 2,966
Deferred taxation 20,953 (9,795)
––––––––– –––––––––
Tax expense 162,978 92,267
––––––––– –––––––––
7. PROFIT OF PARENT COMPANY
As permitted by Section 408 of the Companies Act 2006, the income statement of the parent company
is not presented as part of these financial statements. The parent company’s profit for the financial
year was £918,535 (2014 – £206,732).
8. DIVIDENDS
During the year, the Company paid a final dividend equating to 1.1 pence per share as recommended
in the accounts to 30 April 2014; and a special dividend of 14.5 pence per share further to a court
approved capital reduction as detailed in a circular sent to shareholders on 21 October 2014.
The Board is recommending a final dividend of 1.2 pence per share (2014: 1.1 pence) for the full year
ending 30 April 2015 subject to shareholder approval at the Annual General Meeting on 23 September
2015. A final dividend is covered 5.91 times by earnings per share and will be paid on 16 October
2015 to shareholders on the register on 25 September 2015.
The total distribution of dividends for the year ended 30 April 2015 will be £1,428,551.
30
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
9. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders
by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share is calculated using the weighted average number of shares adjusted to
assume the conversion of all dilutive potential ordinary shares. The Group has one category of dilutive
potential ordinary shares: share options. For the share options a calculation is done to determine the
number of shares that could have been acquired at fair value (determined as the average annual market
share price of the Group’s shares) based on the monetary value of the subscription rights attached to
outstanding share options. The number of shares calculated as above is compared with the number of
shares that would have been issued assuming the exercise of the share options.
Reconciliations are set out below.
2015
Weighted
average
number Per-share
Earnings of amount
£ shares pence
Basic EPS
Earnings attributable to ordinary shareholders 644,678 9,099,052 7.09
Effect of dilutive securities
Options – 727,677 –
–––––––– –––––––– ––––––––
Diluted EPS
Adjusted earnings 644,678 9,826,729 6.56
–––––––– –––––––– ––––––––
2014
Weighted
average
number Per-share
Earnings of amount
£ shares pence
Basic EPS
Earnings attributable to ordinary shareholders 354,239 9,217,961 3.84
Effect of dilutive securities
Options – 639,357 –
–––––––– –––––––– ––––––––
Diluted EPS
Adjusted earnings 354,239 9,857,318 3.59
–––––––– –––––––– ––––––––
The total number of options and warrants granted at 30 April 2015 of 1,106,528 would generate
£274,826 in cash if exercised. At 30 April 2015, 1,106,528 were priced above the mid-market closing
price of 72.542p per share and 1,106,528 options were outstanding of which 657,000 were
exercisable.
31
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
10. PROPERTY, PLANT AND EQUIPMENT
Group
Improvements Fixtures
Long to and
leasehold property fittings
£ £ £
COST
At 1 May 2014 950,908 25,950 423,264
Additions 3,126 – 76,042
––––––––– ––––––––– –––––––––
At 30 April 2015 954,034 25,950 499,306
––––––––– ––––––––– –––––––––
DEPRECIATION
At 1 May 2014 – – 389,801
Charge for year – – 74,420
––––––––– ––––––––– –––––––––
At 30 April 2015 – – 464,221
––––––––– ––––––––– –––––––––
NET BOOK VALUE
At 30 April 2015 954,034 25,950 35,085
––––––––– ––––––––– –––––––––
Motor Computer
vehicles equipment Totals
£ £ £
COST
At 1 May 2014 72,775 169,408 1,642,305
Additions – 15,596 94,764
––––––––– ––––––––– –––––––––
At 30 April 2015 72,775 185,004 1,737,069
––––––––– ––––––––– –––––––––
DEPRECIATION
At 1 May 2014 42,613 161,152 593,566
Charge for year 7,541 8,067 90,028
––––––––– ––––––––– –––––––––
At 30 April 2015 50,154 169,219 683,594
––––––––– ––––––––– –––––––––
NET BOOK VALUE
At 30 April 2015 22,621 15,785 1,053,475
––––––––– ––––––––– –––––––––
32
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
10. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Group
Improvements Fixtures
Long to and
leasehold property fittings
£ £ £
COST
At 1 May 2013 437,800 25,950 602,753
Additions 513,108 – 16,614
Disposals – – (196,103)
––––––––– ––––––––– –––––––––
At 30 April 2014 950,908 25,950 423,264
––––––––– ––––––––– –––––––––
DEPRECIATION
At 1 May 2013 – – 413,875
Charge for year – – 136,908
Eliminated on disposal – – (160,982)
––––––––– ––––––––– –––––––––
At 30 April 2014 – – 389,801
––––––––– ––––––––– –––––––––
NET BOOK VALUE
At 30 April 2014 950,908 25,950 33,463
––––––––– ––––––––– –––––––––
Motor Computer
vehicles equipment Totals
£ £ £
COST
At 1 May 2013 70,203 490,506 1,627,212
Additions 2,572 10,146 542,440
Disposals – (331,244) (527,347)
––––––––– ––––––––– –––––––––
At 30 April 2014 72,775 169,408 1,642,305
––––––––– ––––––––– –––––––––
DEPRECIATION
At 1 May 2013 32,468 444,359 890,702
Charge for year 10,145 42,343 189,396
Eliminated on disposal – (325,550) (486,532)
––––––––– ––––––––– –––––––––
At 30 April 2014 42,613 161,152 593,566
––––––––– ––––––––– –––––––––
NET BOOK VALUE
At 30 April 2014 30,162 8,256 1,048,739
––––––––– ––––––––– –––––––––
No depreciation is provided on long leasehold land and buildings as in the opinion of the directors,
the market values are not materially different to their book values.
33
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
10. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Company
Improvements Fixtures
Long to and
leasehold property fittings
£ £ £
COST
At 1 May 2014 950,908 25,950 423,264
Additions 3,126 – 76,042
––––––––– ––––––––– –––––––––
At 30 April 2015 954,034 25,950 499,306
––––––––– ––––––––– –––––––––
DEPRECIATION
At 1 May 2014 – – 389,801
Charge for year – – 74,420
––––––––– ––––––––– –––––––––
At 30 April 2015 – – 464,221
––––––––– ––––––––– –––––––––
NET BOOK VALUE
At 30 April 2015 954,034 25,950 35,085
––––––––– ––––––––– –––––––––
Motor Computer
vehicles equipment Totals
£ £ £
COST
At 1 May 2014 72,775 169,408 1,642,305
Additions – 15,596 94,764
––––––––– ––––––––– –––––––––
At 30 April 2015 72,775 185,004 1,737,069
––––––––– ––––––––– –––––––––
DEPRECIATION
At 1 May 2014 42,613 161,152 593,566
Charge for year 7,541 8,067 90,028
––––––––– ––––––––– –––––––––
At 30 April 2015 50,154 169,219 683,594
––––––––– ––––––––– –––––––––
NET BOOK VALUE
At 30 April 2015 22,621 15,785 1,053,475
––––––––– ––––––––– –––––––––
34
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
10. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Company
Improvements Fixtures
Long to and
leasehold property fittings
£ £ £
COST
At 1 May 2013 437,800 25,950 602,753
Additions 513,108 – 16,614
Disposals – – (196,103)
––––––––– ––––––––– –––––––––
At 30 April 2014 950,908 25,950 423,264
––––––––– ––––––––– –––––––––
DEPRECIATION
At 1 May 2013 – – 413,875
Charge for year – – 136,908
Eliminated on disposal – – (160,982)
––––––––– ––––––––– –––––––––
At 30 April 2014 – – 389,801
––––––––– ––––––––– –––––––––
NET BOOK VALUE
At 30 April 2014 950,908 25,950 33,463
––––––––– ––––––––– –––––––––
Motor Computer
vehicles equipment Totals
£ £ £
COST
At 1 May 2013 70,203 490,506 1,627,212
Additions 2,572 10,146 542,440
Disposals – (331,244) (527,347)
––––––––– ––––––––– –––––––––
At 30 April 2014 72,775 169,408 1,642,305
––––––––– ––––––––– –––––––––
DEPRECIATION
At 1 May 2013 32,468 444,359 890,702
Charge for year 10,145 42,343 189,396
Eliminated on disposal – (325,550) (486,532)
––––––––– ––––––––– –––––––––
At 30 April 2014 42,613 161,152 593,566
––––––––– ––––––––– –––––––––
NET BOOK VALUE
At 30 April 2014 30,162 8,256 1,048,739
––––––––– ––––––––– –––––––––
35
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
11. INVESTMENTS
Group
Unlisted
investments
£
COST
Additions 70,000
–––––––––
At 30 April 2015 70,000
–––––––––
NET BOOK VALUE
At 30 April 2015 70,000
–––––––––
Company
Shares in
group Unlisted
undertakings investments Totals
£ £ £
COST
At 1 May 2014 12,585 – 12,585
Additions – 70,000 70,000
––––––––– ––––––––– –––––––––
At 30 April 2015 12,585 70,000 82,585
––––––––– ––––––––– –––––––––
NET BOOK VALUE
At 30 April 2015 12,585 70,000 82,585
––––––––– ––––––––– –––––––––
Shares in
group
undertakings
£
COST
At 1 May 2013
and 30 April 2014 12,585
–––––––––
NET BOOK VALUE
At 30 April 2014 12,585
–––––––––
36
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
11. INVESTMENTS (CONTINUED)
Company
The group or the company’s investments at the Statement of Financial Position date in the share
capital of companies include the following:
Subsidiaries
Best of the Best ApS
Country of incorporation: Denmark
Nature of business: Competition operator
%
Class of shares: holding
Ordinary 100.00
2015 2014
£ £
Aggregate capital and reserves 33,909 198,402
Profit for the year 30,507 97,437
––––––––– –––––––––
During the year Dividends of £195,000 (2014 – £nil) were paid from Best of the Best ApS to Best of
the Best PLC.
BOTB Ireland Limited
Country of incorporation: Republic of Ireland
Nature of business: Competition operator
%
Class of shares: holding
Ordinary 100.00
2015 2014
£ £
Aggregate capital and reserves 102,584 211,947
Profit for the year 64,889 50,069
––––––––– –––––––––
During the year Dividends of £174,252 (2014 – £nil) were paid from BOTB Ireland Limited to Best
of the Best PLC.
Other investments
During the year the company acquired options worth £70,000. These options allow the company to
purchase a 15% stake in Fortune Express Private Limited before 23 August 2017.
Fortune Express Private Limited is a company incorporated in India, trading as a franchise of Best of
the Best PLC. To date only seven months of trade have occurred.
37
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
12. INVENTORIES
Group
Company
2015 2014 2015 2014
£ £ £ £
Finished goods 501,137 526,445 501,137 526,445
––––––––– ––––––––– ––––––––– –––––––––
13. TRADE AND OTHER RECEIVABLES
Group
Company
2015 2014 2015 2014
£ £ £ £
Current:
Other debtors 265,865 361,504 212,028 296,679
––––––––– ––––––––– ––––––––– –––––––––
14. CASH AND CASH EQUIVALENTS
Group
Company
2015 2014 2015 2014
£ £ £ £
Cash in hand 1,222 2,493 1,222 2,493
Bank accounts 1,905,688 2,241,734 1,869,455 2,117,726
––––––––– ––––––––– ––––––––– –––––––––
1,906,910 2,244,227 1,870,677 2,120,219
––––––––– ––––––––– ––––––––– –––––––––
15. CALLED UP SHARE CAPITAL
Allotted, issued and fully paid:
Nominal 2015 2014
Number: Class: value: £ £
9,099,052 Ordinary £0.05 454,950 454,950
–––––––– ––––––––
Capital Redemption
Nominal 2015 2014
Number: Class: value: £ £
3,932,028 Ordinary £0.05 196,601 196,601
–––––––– ––––––––
38
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
16. RESERVES
Group
Capital
Retained Share redemption
earnings premium reserve
£ £ £
At 1 May 2014 443,050 1,782,622 196,601
Profit for the year 644,678
Dividends (1,419,452)
Treasury shares (161,372) – –
Capital reduction 1,782,622 (1,782,622) –
––––––––– ––––––––– –––––––––
At 30 April 2015 1,289,526 – 196,601
––––––––– ––––––––– –––––––––
Group
Other Treasury
reserves shares Totals
£ £ £
At 1 May 2014 147,810 (161,372) 2,408,711
Profit for the year 644,678
Dividends (1,419,452)
Transfer of Treasury shares – 161,372 –
––––––––– ––––––––– –––––––––
At 30 April 2015 147,810 – 1,633,937
––––––––– ––––––––– –––––––––
Capital
Retained Share redemption
earnings premium reserve
£ £ £
At 1 May 2013 182,532 1,782,622 182,949
Profit for the year 354,239
Dividends (93,721)
Transfer to Capital Redemption – – 13,652
––––––––– ––––––––– –––––––––
At 30 April 2014 443,050 1,782,622 196,601
––––––––– ––––––––– –––––––––
Other Treasury
reserves shares Totals
£ £ £
At 1 May 2013 147,810 – 2,295,913
Profit for the year 354,239
Dividends (93,721)
Transfer of Treasury shares – (161,372) (147,720)
––––––––– ––––––––– –––––––––
At 30 April 2014 147,810 (161,372) 2,408,711
––––––––– ––––––––– –––––––––
39
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
16. RESERVES (CONTINUED)
Company
Capital
Retained Share redemption
earnings premium reserve
£ £ £
At 1 May 2014 45,284 1,782,622 196,601
Profit for the year 918,535
Dividends (1,419,452)
Transfer of Treasury shares (161,372) – –
Capital reduction 1,782,622 (1,782,622) –
––––––––– ––––––––– –––––––––
At 30 April 2015 1,165,617 – 196,601
––––––––– ––––––––– –––––––––
Company
Other Treasury
reserves shares Totals
£ £ £
At 1 May 2014 147,810 (161,372) 2,010,945
Profit for the year 918,535
Dividends (1,419,452)
Transfer of Treasury shares – 161,372 –
––––––––– ––––––––– –––––––––
At 30 April 2015 147,810 – 1,510,028
––––––––– ––––––––– –––––––––
Capital
Retained Share redemption
earnings premium reserve
£ £ £
At 1 May 2013 (67,727) 1,782,622 182,949
Profit for the year 206,732
Dividends (93,721)
Transfer to Capital Redemption – – 13,652
––––––––– ––––––––– –––––––––
At 30 April 2014 45,284 1,782,622 196,601
––––––––– ––––––––– –––––––––
Other Treasury
reserves shares Totals
£ £ £
At 1 May 2013 147,810 – 2,045,654
Profit for the year 206,732
Dividends (93,721)
Transfers – (161,372) (147,720)
––––––––– ––––––––– –––––––––
At 30 April 2014 147,810 (161,372) 2,010,945
––––––––– ––––––––– –––––––––
40
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
17. TRADE AND OTHER PAYABLES
Group
Company
2015 2014 2015 2014
£ £ £ £
Current:
Trade creditors 143,322 222,177 137,383 207,183
Amounts owed to group undertakings – – 157,322 380,041
Social security and other taxes 262,394 134,755 240,493 86,800
Other creditors 1,188,490 930,561 1,114,321 891,043
––––––––– ––––––––– ––––––––– –––––––––
1,594,206 1,287,493 1,649,519 1,565,067
––––––––– ––––––––– ––––––––– –––––––––
18. DEFERRED TAX
Deferred tax is calculated in full on temporary differences under the liability method using a tax rate
of 20% (2014: 20%). The reduction in the main rate of corporation tax to 20% was substantively
enacted in July 2013. This new rate has been applied to deferred tax balances which are expected to
reverse after 1 April 2015, the date on which that new rate becomes effective.
Group
2015 2014
£ £
Balance at 1 May (103,892) (94,097)
Recognised in profit and loss 20,953 (9,795)
––––––––– –––––––––
Balance at 30 April (82,939) (103,892)
––––––––– –––––––––
Company
2015 2014
£ £
Balance at 1 May (103,892) (94,097)
Movement in the year 20,953 (9,795)
––––––––– –––––––––
Balance at 30 April (82,939) (103,892)
––––––––– –––––––––
Deferred tax assets have been recognised in respect of accelerated capital allowances giving rise to
deferred tax assets where the directors believe it is probable that these assets will be recovered.
19. RELATED PARTY DISCLOSURES
M W Hindmarch is a Non-executive Director of Best of the Best Plc. During the year ended 30 April
2015 payments were made in respect of consultancy services received during the year from M W
Hindmarch. These payments totalled £12,000 for the year (2014: £12,000).
Various non-executive directors have been granted share options, details for which can be found in the
directors and remuneration reports.
20. EVENTS AFTER THE REPORTING PERIOD
No material subsequent events have occurred since the year end that require disclosure within the
accounts.
41
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
21. ULTIMATE CONTROLLING PARTY
The Company is under the ultimate control of Mr W S Hindmarch, the Chief Executive Director of
the Company, by virtue of his 55.14 per cent share ownership at the balance sheet date.
22. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS
Group
2015 2014
£ £
Profit for the financial year 644,678 354,239
Dividends (1,419,452) (93,721)
––––––––– –––––––––
(774,774) 260,518
Share buy back – (161,372)
––––––––– –––––––––
Net (reduction)/addition to shareholders’ funds (774,774) 99,146
Opening shareholders’ funds 2,863,661 2,764,515
––––––––– –––––––––
Closing shareholders’ funds 2,088,887 2,863,661
––––––––– –––––––––
Company
2015 2014
£ £
Profit for the financial year 918,535 206,732
Dividends (1,419,452) (93,721)
––––––––– –––––––––
(500,917) 113,011
Share buy back – (161,372)
––––––––– –––––––––
Net reduction of shareholders’ funds (500,917) (48,361)
Opening shareholders’ funds 2,465,895 2,514,256
––––––––– –––––––––
Closing shareholders’ funds 1,964,978 2,465,895
––––––––– –––––––––
23. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The group makes certain estimates and assumptions regarding the future. Estimates and judgements
are continually evaluated based on historical experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances. In the future, actual
expenditure may differ from these estimates and assumptions. The estimates and assumptions that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year are discussed below.
Revenue recognition
Revenue is recognised as the service is delivered. This is considered to be when the customer buys a
ticket on the basis that there is no further service to be delivered.
Impairment of assets
The Group is required to consider assets for impairment where such indications exist using value in
use calculations or fair value estimates. The use of these methods may require the estimation of future
cash flows and the choice of a discount rate in order to calculate the present value of the cash flows.
Actual outcomes may vary.
42
BEST OF THE BEST PLC
Notes to the Consolidated Financial Statements (continued)
For The Year Ended 30 April 2015
23. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
Useful lives of property, plant and equipment
Property, plant and equipment are depreciated over their useful lives. Useful lives are based on the
management’s estimates of the period that the assets will generate revenue, which are periodically
reviewed for continued appropriateness. Changes to estimates can result in variations in the carrying
value and amounts charged to the consolidated statement of comprehensive income in specific
periods.
24. SHARE BASED PAYMENTS
Details of the share options outstanding during the year are as follows:
The Group operates a share option scheme for certain directors and employees of the Group. Options
are exercisable at a price defined by the individual option agreement. The vesting period on each
option is three years. If the options remain unexercised during the specified period from the date of
grant, the options expire. Options are generally forfeited if the employee leaves the Group before the
options vest, however this is at the discretion of the board.
Weighted
Outstanding Granted Exercised Forfeited Outstanding Ave. grant
Grant at 1 May during the during the during the at 30 April and exercise
Date 2014 period period period 2015 Expiry Date price
26/04/2012 657,000 – – – 657,000 25/04/22 £0.225
21/09/2012 379,528 – – – 379,528 20/09/22 £0.210
05/08/2013 10,000 – – – 10,000 04/08/23 £0.380
19/03/2015 – 60,000 – – 60,000 18/03/25 £0.725
As at 30 April 2015 a total of 1,106,528 subscription rights had been issued to directors and
employees and remained outstanding. Members of the executive board hold share options as disclosed
in the directors and remuneration reports. Of these 1,106,528 issued options, 657,000 were
exercisable as at 30 April 2015.
During the year 60,000 options were granted at an exercise price of £0.725 per share. The fair value
of these options has been calculated at £0.17 per share using the Black-Scholes model. No charge has
been made in the accounts to 30 April 2015.
The inputs into the Black-Scholes model are as follows:
Weighted Average share price
Expected volatility
Expected life
Vesting periods
Risk-free rate
Expected dividends
Stated Above
38%
3 years
3 years
0.704%
1.6%
25. RESTATEMENTS
The 30/4/15 accounts contain restatements on comparatives for the following:
Diluted Earnings Per Share – 2014 Accounts did not allow for potential dilution. The amount stated
in 2014 of £3.84 should have been disclosed as £3.59.
Consolidated Statement of Profit or Loss and Other Comprehensive Income – 2014 Accounts included
a £161,372 reduction due to Treasury Share repurchase. This reduction should not have appeared in
the Consolidated Statement of Profit or Loss and Other Comprehensive Income.
Employees and Directors (Note 3) – 2014 did not disclose £15,322 of pension costs paid.
43
BEST OF THE BEST PLC
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the Annual General Meeting of Best of the Best PLC (the “Company”) will
be held at 2 Plato Place, 72/74 St. Dionis Road, London, SW6 4TU on Wednesday 23 September 2015
at 1.30 p.m. (the “Meeting”) for the following purposes:
ORDINARY BUSINESS
To consider and, if thought fit, to pass the following resolutions which will be proposed as ordinary
resolutions:
1. To receive the Company’s financial statements together with the reports thereon of the Directors and
auditors for the year ended 30 April 2015.
2. To declare a final dividend of 1.2 pence per ordinary share for the year ended 30 April 2015.
3. To re-appoint the auditors, Wilkins Kennedy, as auditors of the Company until the conclusion of the
next Annual General Meeting.
4. To authorise the Directors to set the auditors’ remuneration.
SPECIAL BUSINESS
To consider and, if thought fit, pass the following resolutions of which resolution 5 will be proposed as an
ordinary resolution and resolutions 6 and 7 will be proposed as special resolutions:
5. ORDINARY RESOLUTION
THAT (in substitution for all subsisting authorities) the Directors be and they are hereby generally and
unconditionally authorised pursuant to Section 551 of the Companies Act 2006 (the “Act”) to allot
shares in the Company, and to grant rights to subscribe for, or to convert any security into, shares in
the Company (“Rights”) up to an aggregate nominal amount of £151,650.87 for the period expiring
(unless previously renewed, varied or revoked by the Company in general meeting) on the conclusion
of the next Annual General Meeting of the Company after the passing of this resolution or 15 months
after the passing of this resolution (whichever is the earliest) but the Company may, before such
expiry, make an offer or agreement which would or might require shares to be allotted or Rights to be
granted after such expiry and the Directors may allot shares or grant Rights in pursuance of that offer
or agreement as if the authority conferred by this resolution had not expired.
6. SPECIAL RESOLUTION
THAT, subject to the passing of resolution 5, the Directors be and they are hereby empowered
pursuant to section 551 of the Act to allot equity securities (within the meaning of section 560 of the
Act) for cash pursuant to the authority conferred by resolution 5 as if section 561 of the Act did not
apply to the allotment. This power is limited to:
(a) the allotment of equity securities where such securities have been offered (whether by way of
a rights issue, open offer or otherwise) to holders of ordinary shares in the capital of the
Company made in proportion (as nearly as may be) to their existing holdings of ordinary shares
but subject to the Directors having a right to make such exclusions or other arrangements in
connection with the offering as they deem necessary or expedient:
(i) to deal with equity securities representing fractional entitlements; and
(ii) to deal with legal or practical problems under the laws of any territory or the
requirements of any regulatory body or stock exchange; and
44
(b) the allotment of equity securities for cash otherwise than pursuant to paragraph (a) up to an
aggregate nominal amount of £22,747.63 for the period expiring (unless previously renewed,
varied or revoked by the Company in general meeting) on the conclusion of the next Annual
General Meeting of the Company after the passing of this resolution or 15 months after the
passing of this resolution (whichever is the earliest) but the Company may, before such expiry,
make an offer or agreement which would or might require equity securities to be allotted after
such expiry and the Directors may allot equity securities in pursuance of that offer or
agreement as if the power conferred by this resolution had not expired.
7. SPECIAL RESOLUTION
THAT the Company be and is hereby generally and unconditionally authorised for the purposes of
section 701 of the Act to make market purchases (within the meaning of Section 693 of the Act) of
ordinary shares of 5 pence each in the Company provided that:
(a) the maximum number of ordinary shares which may be purchased is 909,905 representing
10 per cent. of the Company’s issued ordinary share capital as at 24 July 2015;
(b) the minimum price (exclusive of expenses) which may be paid for each ordinary share is
5 pence;
(c) the maximum price (exclusive of expenses) which may be paid for each ordinary share is an
amount equal to 105 per cent. of the average of the middle market quotations of an ordinary
share of the Company taken from the London Stock Exchange Daily Official List for the five
business days immediately preceding the day on which the share is contracted to be purchased;
(d) this authority shall expire at the conclusion of the next Annual General Meeting of the
Company after the passing of this resolution (unless previously renewed, varied or revoked by
the Company in general meeting); and
(e) the Company may, before such expiry, enter into one or more contracts to purchase ordinary
shares under which such purchases may be completed or executed wholly or partly after the
expiry of this authority and may make a purchase of ordinary shares in pursuance of any such
contract or contracts.
By Order of the Board
PRISM COSEC LIMITED
COMPANY SECRETARY
24 July 2015
REGISTERED OFFICE:
2 Plato Place
72-74 St. Dionis Road
London SW6 4TU
45
Notes:
(a) A member entitled to attend and vote is entitled to appoint one or more proxies, who need not be members of the Company, to
attend, speak and vote instead of him. To be valid, a Form of Proxy must be received, together with any power of attorney or
other authority under which it is executed (or a duly certified copy of such power or authority), by the Company’s registrar,
Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol BS99 6ZY not later than 48 hours before the time
fixed for the meeting. The completion and return of a Form of Proxy will not preclude a member from attending and voting at
the Meeting in person.
(b) Pursuant to regulation 41 of the Uncertificated Regulations 2001, the Company specifies that only those shareholders registered
on the register of members of the Company as at 6.00 p.m. on 21 September 2015 (being not more than 48 hours prior to the
time fixed for the Meeting) shall be entitled to attend and vote at the aforesaid Annual General Meeting in respect of the number
of shares registered in their name at that time or if the meeting is adjourned 48 hours before the time fixed for the adjourned
meeting (as the case may be). In each case, changes to entries on the register of members after such time shall be disregarded in
determining the rights of any person to attend or vote at the meeting.
(c) Each of the resolutions to be put to the meeting will be voted on by poll and not show of hands. A poll reflects the number of
voting rights exercisable by each member and so the Board considers it a more democratic method of voting. It is also in line
with recommendations made by the Shareholder Voting Working Group and Paul Myners in 2004. Members and Proxies will be
asked to complete a poll card to indicate how they wish to cast their votes. These cards will be collected at the end of the meeting.
The results of the poll will be published on the Company’s website and notified to the UK Listing Authority once the votes have
been counted and verified.
(d) Copies of all letters of appointment between the Company and its Non-Executive Directors are available for inspection at the
registered office of the Company during normal business hours, and will be available for inspection at 2 Plato Place, 72/74 St.
Dionis Road, London, SW6 4TU at least 15 minutes prior to the commencement of, and during the continuance of, the Annual
General Meeting.
(e) A member entitled to attend and vote at the meeting is entitled to appoint one or more proxies to exercise all or any of his rights
to attend and speak and vote at the meeting. A member may appoint more than one proxy provided each proxy is appointed to
exercise the rights attached to a different share or shares. If you appoint more than one proxy, then on each Form of Proxy you
must specify the number of shares for which each proxy is appointed.
(f) Any corporation which is a member can appoint one or more corporate representatives who may exercise on its behalf all of its
powers as a member provided that they do not do so in relation to the same shares.
(g) Explanatory notes in relation to the resolutions to be proposed at the Meeting are set out below.
46
BEST OF THE BEST PLC
EXPLANATORY NOTES TO THE RESOLUTIONS
RESOLUTION 1: REPORTS AND ACCOUNTS
The Directors are required to present to the meeting the audited accounts and the reports of the Directors and
the auditors for the financial year ended 30 April 2015.
RESOLUTION 2: DECLARATION OF DIVIDEND
Final dividends must be approved by shareholders but cannot exceed the amount recommended by the
Directors.
RESOLUTION 3: RE-APPOINTMENT OF AUDITORS
The Company is required to appoint auditors at each general meeting at which accounts are laid before the
Company, to hold office until the end of the next such meeting. This resolution proposes the re-appointment
of Wilkins Kennedy.
RESOLUTION 4: AUTHORITY TO SET THE AUDITORS’ REMUNERATION
In accordance with standard practice, this resolution gives authority to the Directors to determine the
remuneration to be paid to the auditors.
RESOLUTION 5: AUTHORITY TO ALLOT SHARES
Section 549 of the Companies Act 2006 provides, in relation to all companies, that the Directors may not
allot shares in the Company, or grant rights to subscribe for, or to convert any security into, shares in the
Company unless authorised to do so by the Company in general meeting or by its Articles of Association.
Accordingly, this resolution seeks renewal, for a further period expiring at the earlier of the close of the next
annual general meeting of the Company and fifteen months after the passing of the resolution, of the
authority previously granted to the Directors at the last annual general meeting of the Company. This
authority will relate to a total of 3,033,017 ordinary shares of 5 pence each, representing approximately one
third of the Company’s issued share capital as at the date of this Notice. While this resolution empowers the
Directors to allot shares they are required to effect any such allotment on a pre-emptive basis save to the
extent that they are otherwise authorised. Resolution 6 below contains a limited power to allot on a non
pre-emptive basis. The Directors have no present intention of allotting, or agreeing to allot, any shares
otherwise than in connection with employee share schemes, to the extent permitted by such schemes.
RESOLUTION 6: DIS-APPLICATION OF PRE-EMPTION RIGHTS
If the Directors wish to allot any shares of the Company for cash in accordance with the authority granted at
this year’s annual general meeting these must generally be offered first to shareholders in proportion to their
existing shareholdings. In certain circumstances, it may be in the interests of the Company for the Directors
to be able to allot some shares for cash without having to offer them first to existing shareholders. In line
with normal practice, this resolution, which will be proposed as a special resolution, seeks approval to renew
the current authority to exclude the statutory pre-emption rights for issues of shares having a maximum
aggregate nominal value of up to £22,747.63, representing 5 per cent. of the Company’s issued share capital
as at the date of this Notice. In addition, there are legal, regulatory and practical reasons why it may not
always be possible to issue new shares under a rights issue to some shareholders, particularly those resident
overseas. To cater for this, the resolution also permits the Directors to make appropriate exclusions or
arrangements to deal with such difficulties. This authority would be effective until the earlier of the
conclusion of the next annual general meeting of the Company and fifteen months after the passing of the
resolution. The Directors believe that obtaining this authority is in the best interests of shareholders as a
whole and recommend that shareholders vote in favour of this resolution.
47
RESOLUTION 7: PURCHASE OF OWN SHARES
The Directors believe that it is in the interests of the Company and its members to continue to have the
flexibility to purchase its own shares and this resolution seeks authority from members to do so.
The Directors intend only to exercise this authority where, after considering market conditions prevailing at
the time, they believe that the effect of such exercise would be to increase the earnings per share and be in
the best interests of shareholders generally. The effect of such purchases would either be to cancel the
number of shares in issue or the Directors may elect to hold them in treasury pursuant to the Companies
(Acquisition of Own Shares) (Treasury Shares) Regulations 2003 (the “Treasury Share Regulations”), which
came into force on 1 December 2003. The Treasury Share Regulations enable certain listed companies to
hold shares in treasury, as an alternative to cancelling them, following a purchase of own shares by a
company in accordance with the Companies Act 2006. Shares held in treasury may subsequently be
cancelled, sold for cash or used to satisfy share options and share awards under a company’s employee share
scheme. Once held in treasury, a company is not entitled to exercise any rights, including the right to attend
and vote at meetings in respect of the shares. Further, no dividend or other distribution of the company’s
assets may be made to the company in respect of the treasury shares. This resolution renews the authority
given at the Annual General Meeting held on 18 September 2014 and would be limited to 909,905 ordinary
shares, representing approximately 10 per cent. of the issued share capital at 24 July 2015. The Directors
intend to seek renewal of this power at each Annual General Meeting. As of 24 July 2015 there were options
outstanding over 1,106,528 shares, representing 12.2 per cent. of the Company’s issued share capital. If the
authority given by this resolution was to be fully used, this would represent 13.5 per cent. of the Company’s
issued share capital.
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Annual Report
& Accounts 2015