This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014. Upon the publication of this announcement, this information is now considered to be in the public domain.
("Team17", the "Group" or the "Company")
Unaudited Final Results for the year ended
Record year underpinned by Team17's strong Games portfolio
Team17, a global games entertainment label, creative partner and developer of independent ("indie") premium video games, is pleased to announce its full year preliminary results for the year ended
2020 Headlines:
· More titles released than any previous year helping to deliver revenue growth of 34%
· Record
· Continued improvement in shareholder value with basic EPS growth of 32%
Financial highlights:
|
12 Months ended |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Growth |
|
|
|
|
|
|
Revenue |
|
|
|
|
34% |
Gross Profit |
|
|
|
|
33% |
Gross Profit Margin |
47% |
|
48% |
|
|
Profit Before Tax |
|
|
|
|
36% |
Adjusted EBITDA1 |
|
|
|
|
36% |
Operating Cash Conversion2 |
109% |
|
103% |
|
|
Cash and cash equivalents |
|
|
|
|
47% |
Basic Earnings per Share ("EPS") |
|
|
|
|
32% |
Diluted EPS |
|
|
|
|
30% |
Basic Adjusted EPS ("AEPS")3 |
|
|
|
|
34% |
Diluted AEPS3 |
|
|
|
|
33% |
Operational and strategic highlights:
● Strengthening portfolio with 12 titles launched in the year providing new revenue lines which included a record 10 new games released, supported by an increasing depth of back catalogue titles:
o Approaching 400 digital revenue lines delivered across the whole portfolio
o 2 titles launched on next-generation consoles, Worms Rumble and Overcooked! All You Can Eat
o Cross-play tech integration in Next Generation titles (forms the wrapper for releases in future years for online games using the Unreal and Unity engines)
● Solid underlying Back Catalogue performance making up 78% of revenues.
● First party IP reached 21% of revenues, supported by 2 first party titles launched in Q4.
● Seamless transition to remote working in early
● Continued investment in senior management and core infrastructure:
o CFO appointed and key hires made in
o
o Finance system upgrade initiated
● With the acquisition and integration of
● Overall headcount growth of 25% to 250
● In
Outlook:
● Team17 has a solid and diverse pipeline of launches for 2021 and beyond and is well positioned to continue to deliver on our growth plans
● The year has started well and the expansion of both major new consoles and distribution platforms underpins management's optimism about the future of gaming given its unique mixture of technology and entertainment
● The board continues to be mindful of any potential headwinds associated with a prolonged pandemic, including uncertain macro-economic and consumer environments alongside manufacturing and supply chain challenges
● However, the Company remains confident that its ever-growing and diverse portfolio and high-quality development and commercial teams will continue to underpin performance
● Team17 continues to review a healthy pipeline of potential M&A opportunities that could bring long term value to the Group
Debbie Bestwick MBE, Chief Executive Officer of Team17, commented:
"I am delighted that our
Team17 has been able to offer gamers a means of escapism and a way to interact with their friends and family more than ever before, even when they were unable to meet face to face. The ability to enjoy interactive entertainment between multiple households is something that is almost unique to gaming and we are pleased that our inclusive and family-oriented games have proven so popular.
2020 was a significant year for the gaming industry as a whole, as we saw the launch of both Sony and Microsoft's next-gen consoles. It is fantastic to see our titles being launched on both these platforms and that another generation of gamers will get to explore Team17's gaming universes. Incredibly, our Worms franchise is now twenty-five years old and in December we launched the franchise's newest title, Worms Rumble, on PlayStation 5. While we have all been delighted to see how well the game has taken to this new platform, I know many gamers, myself included, will fondly remember Worms' first iteration, developed for the Commodore Amiga and released in 1995.
2021 will be a very exciting and busy year for Team17, with more games signed to our label than any time in our history and new IP launches to look forward to including
Footnotes:
1Adjusted EBITDA is defined as operating profit adjusted to add back depreciation of property, plant and equipment, amortisation of brands and impairment of intangible assets (excluding capitalised development costs) and share based payment costs.
2Operating cash conversion is defined as cash generated from operating activities as per the statement of cash flows, divided by EBITDA.
3Adjusted earnings per share is calculated by dividing the adjusted profit after tax by the weighted average number of ordinary shares. This is adjusted for the effect of share options when calculating the diluted adjusted earnings per share (Note 5).
Enquiries:
Debbie Bestwick MBE, Chief Executive Officer
|
via
|
|
+44 (0)161 250 3577 |
Berenberg (Broker)
|
+44 (0)20 3207 7800 |
|
+44 (0)20 7390 0238 |
About Team17
Team17 is a leading games entertainment label and creative partner for independent ("indie") developers, focused on the premium, rather than free to play market, and creating games for the PC, console, mobile and tablet gaming markets.
Alongside developing the Company's own games in house ("first party IP"), Team17 also partners with independent developers across the globe to add value to their games in all areas of development and production and in bringing them to market across multiple platforms for fixed percentage royalties ("third party IP").
Since foundation in 1990, the Company has launched over 100 games, including the iconic Worms, Overcooked! and Escapists franchises, Yooka-Laylee, Yoku's Island Express, My Time at Portia, Hell Let Loose, Blasphemous, Golf With Your Friends, Neon Abyss and Moving Out making Team17 one of the most prolific developers and diverse partners of games for the indie market.
Visit www.team17.com for more info.
Chair and Chief Executive's Review
Introduction
We are delighted to report a sixth consecutive record performance year. Supported by our
Pleasingly, we launched 2 existing titles on new platforms and released a record 10 new game titles in 2020 which included 7 new game releases and 3 new games set in existing gaming universes. We continued to build on our existing franchises with additional 34 downloadable content packs ("DLC") delivered across 15 titles, further enhancing their lifecycles and encouraging continued player interaction.
Across the year, 78% of the Company's revenues came from our strong and diverse back catalogue portfolio, partly as a result of Covid related lockdowns which provided an opportunity for gamers globally to explore our diverse mix of content. This contributed to a significantly better than expected performance in FY2020 with new releases in total for the year accounting for 22% of sales. Our portfolio model came into its own in 2020 and underpins our low risk business model that we believe in so strongly.
2020 Launches
As referenced above, we continued to strengthen our IP portfolio with record title releases during the year working alongside development teams globally:
· Moving Out - physics-based moving simulator (
· Golf with Your Friends (console*) - multiplayer mini golf game (Blacklight Interactive,
·
· Crown Trick - role-playing game with turn-based combat (
· Going Under - satirical dungeon crawler (
· Ageless - time altering puzzle platformer (
· Neon Abyss - dungeon-based action-platformer (Veewoo Games,
· Hammerting - dwarf mining simulator (
· The Survivalists - island survival in The Escapists universe (own-IP,
· Overcooked! All You Can Eat - boosted Overcooked bundle for next-gen (Ghost Town Games,
· Worms Rumble - real-time, cross-platform Worms title (own-IP,
· Monster Sanctuary (console*) - monster collecting and turn-based combat (
* existing games launched on to new platforms
As a result of both the strength of our portfolio model and the successful launch of new titles in 2020, we are delighted to report revenues of
The Company's portfolio continues to grow and now comprises nearly 400 digital revenue lines ("DRL"), compared to just over 300 DRL this time last year. The expansion of our DRL across our genre and platform agnostic portfolio continues to underpin the Company's growth and mitigates the risks associated with over-dependence on any one title or specific distribution platform.
The Company's core business model has remained focused, robust and is central to our ongoing success. Therefore, we will continue to focus on our key priorities:
· Growing our strong portfolio of titles, including additional paid and free DLC;
· Harnessing new technology and platforms;
· Capitalising on the strength of the Games Label model and our unique Greenlight process that identifies and contracts new IP;
· Evaluating selective M&A opportunities; and
· Continuing to invest in our people and infrastructure, while identifying new creative and commercial talent
Covid
Over the course of the pandemic and continuing into 2021, the safety and wellbeing of our
2021 Pipeline
Continuing on from 2020, with one of our most ambitious pipelines delivered not just in the number of game launches and updates but technically as a remote work force, our fiscal 2021 pipeline is no less ambitious. We have a solid and diverse pipeline of new IP to look forward to including:
Industry recognition
The quality of Team17's business, management and games has continued to be recognised within the video game industry throughout 2020 with many awards and nominations but call out to:
· Team17 named Indie Publisher of the Year at MCV Develop Awards
· Blasphemous won Game of the Year, Best Art, Best Game Design, Best PC Game, and Best Console Game at Gamelab
· Moving Out awarded Game of the Year Award at Australian Game Developer Awards
· Team17 named
· Team17 and Worms inducted into
· Greak: Memories of Azur won the Award for the Best Upcoming Game for PC/Consoles as well as Best Graphic Art at VJMX Awards
·
Market overview
In 2020, the video games market saw an unprecedented period of growth, accelerated by the significant increase in demand for at home entertainment during the Covid pandemic.
As a result of this positive tailwind, the overall market grew4 19.6% 2020 vs 2019 to
With the launch of next-generation consoles in
(4 market data sourced from NewZoo Global Games Market Data
Outlook
Team17 has a solid pipeline of launches for 2021 and beyond coupled with a strengthening Greenlight process continually adding further IP and strengthening our offering to 3rd party partners with our unique development tools and resources. The Company is therefore well positioned to continue to deliver on our growth plans.
The expansion of both major consoles and distribution platforms underpins management's optimism about the future of gaming given its unique mixture of technology and entertainment.
Whilst gaming has proven to be extremely resilient, the board continues to be mindful of any potential headwinds associated with a prolonged pandemic, including uncertain macro-economic and consumer environments alongside manufacturing and supply chain challenges facing next generation and existing hardware. We expect these to be in part ongoing and key considerations in 2021.
We would like to take this opportunity to thank our
With a solid pipeline of launches for 2021 and beyond, Team17 is well positioned to continue to deliver underlying growth and support the long-term prospects aligned with our ambitious strategic plans. The acquisition in early January of IP rights and assets for Golf With Your Friends is a clear indication of our strategic intent and desire to grow our IP base, expanding our portfolio and franchise footprint.
The Group continues to focus on retaining cash generated from operations to further invest in the business and its growth plans and the Directors do not propose a dividend at this time.
We are confident that our ever-growing portfolio and high quality development and commercial resources place Team17 in a strong position and will continue to underpin the Group's future performance.
Debbie Bestwick MBE
Chief Executive Officer Non-Executive Chair
Chief Financial Officer's Review
Performance overview
2020 was undoubtedly an exceptional year with the Covid pandemic impacting individuals and businesses across the globe. Overall we reported record revenues with higher than expected back catalogue sales alongside the launch of 12 titles with 2 existing titles released on new platforms and a record 10 new titles launched during the year (2019: 7) resulting in new releases representing 22% of revenues in the period (2019: 29%). Overall, the Group's revenues grew 34% to another record level of
Gross profit grew by 33% to
With a growing pipeline of titles in production combined with more internal IP, development costs capitalised in the period have increased by 134% to
Amortisation charges have risen primarily due to the increase in number of titles launched in the period. Team17's amortisation policy means that the majority of the capitalised development costs for a title are written off in the 12 months after the title is launched. Charges will vary year to year in accordance with the timing and quantity of titles launched alongside the level of development costs capitalised.
In
Administration costs grew by 23% to
In line with the increased number of game launches in the period, there were increased marketing costs, however other commercial costs associated with global gaming events were reduced as a direct result of Covid restrictions. In addition, there were relatively small overhead costs associated with the
The resulting operating profit for the period was
The business continues to remain debt free (with the exception of the lease liabilities included under IFRS 16); with global interest rates remaining extremely low, bank interest generated net finance income of
Adjusted EBITDA was
The effective tax rate after Video Games Tax Relief (VGTR) and adjustments made to prior years is 16% (2019: 13%).
Statement of Financial Position
Team17 remains highly cash generative with an operating cash conversion of 109% (2019: 103%). Cash generated from operations increased to
Intangible assets are reviewed for indicators of impairment every six months. As at
Trade and other receivables has increased by
Share Issues
During the year Team17 announced separate share issues, firstly in
The Group continues to manage a Deferred Bonus Share Plan for its senior management as well as an All Employee Share Incentive Plan ("SIP"). Team17 runs an employee SIP with matching shares and this continues to be well supported with 44% of all employees as shareholders making monthly contributions. These are both funded from the
Events After the Reporting Date
On 21 January, Team17 announced the acquisition of all rights and assets for Golf With Your Friends, an existing third party title to become a fully owned IP for a total consideration of
Chief Financial Officer
Unaudited Consolidated Statement of Comprehensive Income
|
|
|
Unaudited Year ended 31 December 2020
|
Audited Year ended 31 December 2019 |
|
Note |
|
£'000 |
£'000 |
|
|
|
|
|
Revenue |
3 |
|
82,969 |
61,794 |
|
|
|
|
|
Cost of sales |
|
|
(43,823) |
(32,257) |
Gross profit |
|
|
39,146 |
29,537 |
|
|
|
|
|
Administrative expenses |
|
|
(12,979) |
(10,581) |
Operating profit |
|
|
26,167 |
18,956 |
|
|
|
|
|
Finance income |
|
|
112 |
232 |
Finance cost |
|
|
(43) |
(18) |
Profit before tax |
|
|
26,236 |
19,170 |
|
|
|
|
|
Taxation |
|
|
(4,292) |
(2,551) |
Profit and total comprehensive income attributable to shareholders |
|
|
21,944 |
16,619 |
|
|
|
|
|
Basic earnings per share |
5 |
|
|
|
Diluted earnings per share |
5 |
|
|
|
Basic adjusted earnings per share |
5 |
|
|
|
Diluted adjusted earnings per share |
5 |
|
|
|
Unaudited Consolidated Statement of Financial Position
|
|
|
Unaudited |
Audited |
|
Note |
|
£'000 |
£'000 |
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Intangible fixed assets |
6 |
|
42,921 |
39,925 |
Property, plant and equipment |
|
|
1,353 |
1,478 |
Right-of-use asset |
|
|
1,378 |
1,513 |
Deferred tax |
|
|
- |
248 |
|
|
|
45,652 |
43,164 |
Current assets |
|
|
|
|
Trade and other receivables |
|
|
16,430 |
11,487 |
Tax receivables |
|
|
670 |
- |
Cash and cash equivalents |
|
|
61,470 |
41,853 |
|
|
|
78,570 |
53,340 |
Total assets |
|
|
124,222 |
96,504 |
EQUITY AND LIABILITIES |
|
|
|
|
Non-current liabilities |
|
|
|
|
Lease liabilities |
|
|
1,320 |
1,464 |
Provisions |
|
|
76 |
26 |
Deferred tax liabilities |
|
|
2,126 |
3,007 |
Total non-current liabilities |
|
|
3,522 |
4,497 |
Current liabilities |
|
|
|
|
Trade and other payables |
|
|
17,206 |
11,736 |
Lease liabilities |
|
|
145 |
122 |
Total current liabilities |
|
|
17,351 |
11,858 |
Total liabilities |
|
|
20,873 |
16,355 |
Equity |
|
|
|
|
Share capital |
|
|
1,315 |
1,313 |
Share premium |
|
|
44,084 |
44,084 |
Merger reserve |
|
|
(153,822) |
(153,822) |
Other reserve |
|
|
159,296 |
158,864 |
Retained earnings |
|
|
52,476 |
29,710 |
Total equity |
|
|
103,349 |
80,149 |
Total equity and liabilities |
|
|
124,222 |
96,504 |
Unaudited Consolidated Statement of Changes in Equity
|
|
Share capital |
Share premium |
Merger reserve |
Other reserves |
Retained earnings |
Total |
Year to |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at |
|
1,313 |
44,084 |
(153,822) |
158,864 |
12,170 |
62,609 |
Share based compensation |
|
- |
- |
- |
- |
921 |
921 |
Total transactions with owners |
|
- |
- |
- |
- |
921 |
921 |
Profit and total comprehensive income for the year |
|
- |
- |
- |
- |
16,619 |
16,619 |
Balance at |
|
1,313 |
44,084 |
(153,822) |
158,864 |
29,710 |
80,149 |
Year to |
|
|
|
|
|
||
Balance at |
|
1,313 |
44,084 |
(153,822) |
158,864 |
29,710 |
80,149 |
Share based compensation |
|
- |
- |
- |
- |
822 |
822 |
Issue of shares on exercise of options |
|
1 |
- |
- |
- |
- |
1 |
Issue of shares on acquisition of subsidiary |
7 |
1 |
- |
- |
432 |
- |
433 |
Total transactions with owners |
|
2 |
- |
- |
432 |
822 |
1,256 |
Profit and total comprehensive income for the year |
|
- |
- |
- |
- |
21,944 |
21,944 |
Balance at |
|
1,315 |
44,084 |
(153,822) |
159,296 |
52,476 |
103,349 |
Unaudited Consolidated Statement of Cash Flows
|
|
|
Unaudited Year ended 31 December 2020 |
Audited Year ended |
|
Note |
|
£'000 |
£'000 |
Operating activities |
|
|
|
|
Profit before tax |
|
|
26,236 |
19,170 |
Adjustments for: |
|
|
|
|
Depreciation of property, plant and equipment |
|
|
404 |
355 |
Depreciation of right-of-use assets |
|
|
135 |
57 |
Amortisation of intangible fixed assets |
6 |
|
5,812 |
4,888 |
Share-based compensation |
|
|
822 |
921 |
Finance income |
|
|
(112) |
(232) |
Finance cost |
|
|
43 |
18 |
Loss on disposal |
|
|
24 |
29 |
Increase in trade and other receivables |
|
|
(4,908) |
(3,351) |
Increase in trade and other payables |
|
|
6,908 |
3,321 |
Increase/(Decrease) in provisions |
|
|
50 |
(113) |
Cash generated from operating activities |
|
|
35,414 |
25,063 |
Tax paid |
|
|
(7,125) |
(2,494) |
Net cash inflow from operating activities |
|
|
28,289 |
22,569 |
|
|
|
|
|
Cash flow from investing activities |
|
|
|
|
Acquisition of subsidiary (net of cash received) |
7 |
|
(813) |
- |
Purchase of property, plant and equipment |
|
|
(338) |
(1,265) |
Sale of property, plant and equipment |
|
|
43 |
43 |
Capitalised development costs |
6 |
|
(7,512) |
(3,215) |
Interest received |
|
|
112 |
232 |
Net cash from investing activities |
|
|
(8,508) |
(4,205) |
Cash flow from financing activities |
|
|
|
|
Interest paid |
|
|
(43) |
(17) |
Receipt of lease incentive |
|
|
- |
48 |
Repayment of lease liabilities |
|
|
(121) |
(54) |
Net cash from financing activities |
|
|
(164) |
(23) |
|
|
|
|
|
Net increase in cash and cash equivalents |
|
|
19,617 |
18,341 |
Cash and cash equivalents at beginning of period |
|
|
41,853 |
23,512 |
Cash and cash equivalents at end of period |
|
|
61,470 |
41,853 |
Notes to the Unaudited Consolidated Financial Statements
1. Nature of operations and general information
2. Basis of preparation
The preliminary results for the year ended
This financial information should be read in conjunction with the financial statements of
The Group's financial statements for the year ended
Accounting policies
The Group's principal accounting policies used in preparing this information are as stated on pages 31 to 37 of the prior year financial statements. There has been no significant change to any accounting policy from the date of the prior year financial statements.
3. Segmental information
Whilst the chief operating decision maker considers there to be only one segment, the Company's portfolio of games is split between those based on IP owned by the Group and IP owned by a third party and hence to aid the readers understanding of our results, the split of revenue from these two categories are shown below:
Revenue by first party/third party IP:
|
|
Unaudited Year ended |
Audited Year ended |
|
|
£'000 |
£'000 |
First party IP |
|
17,310 |
10,312 |
Third party IP |
|
65,659 |
51,482 |
|
|
82,969 |
61,794 |
4. Adjusted EBITDA
|
|
Unaudited Year ended |
Audited Year ended |
Profit attributable to shareholders |
|
21,944 |
16,619 |
Share based compensation |
|
1,662 |
921 |
Adjusted profit after tax |
|
23,606 |
17,540 |
Taxation |
|
4,292 |
2,551 |
Finance income |
|
(112) |
(232) |
Finance cost |
|
43 |
18 |
Amortisation of brands |
|
1,784 |
1,783 |
Depreciation |
|
535 |
412 |
Adjusted EBITDA |
|
30,148 |
22,072 |
5. Earnings per share
The calculation of the basic earnings per share is based on the profits attributable to the shareholders of
|
Unaudited Year ended 31 December 2020 |
Audited Year ended 31 December 2019 |
Profit attributable to shareholders £'000 |
21,944 |
16,619 |
Weighted average number of shares |
129,398,375 |
129,246,382 |
Weighted average diluted number of shares |
130,607,624 |
129,253,947 |
Basic earnings per share (pence) |
17.0 |
12.9 |
Diluted earnings per share (pence) |
16.8 |
12.9 |
The calculation of adjusted earnings per share is based on the profit attributable to shareholders as shown in the Statement of Comprehensive Income plus additional costs added back during the year as shown in note 4. The weighted average diluted number of shares includes share options considered to be dilutive under the treasury stock method as described above.
|
Unaudited Year ended 31 December 2020 |
Audited Year ended 31 December 2019 |
Adjusted profit after tax £'000 |
23,606 |
17,540 |
Weighted average number of shares |
129,398,375 |
129,246,382 |
Weighted average diluted number of shares |
130,607,624 |
129,253,947 |
Basic adjusted earnings per share (pence) |
18.2 |
13.6 |
Diluted adjusted earnings per share (pence) |
18.1 |
13.6 |
6. Intangibles
|
Development costs |
Brands |
|
Total |
||
|
£'000 |
£'000 |
£'000 |
£'000 |
||
Cost |
|
|
|
|
||
At 1 January 2019 |
10,615 |
21,983 |
21,083 |
53,681 |
||
Additions |
3,215 |
- |
- |
3,215 |
||
At 31 December 2019 |
13,830 |
21,983 |
21,083 |
56,896 |
||
Additions |
7,512 |
- |
- |
7,512 |
||
Amounts arising on acquisitions |
- |
- |
1,296 |
1,296 |
||
At 31 December 2020 |
21,342 |
21,983 |
22,379 |
65,704 |
||
|
|
|
|
|
||
Accumulated amortisation |
|
|
|
|
||
At 1 January 2019 |
7,922 |
4,161 |
- |
12,083 |
||
Charge for the year |
3,105 |
1,783 |
- |
4,888 |
||
At 31 December 2019 |
11,027 |
5,944 |
- |
16,971 |
||
Charge for the year |
4,028 |
1,784 |
- |
5,812 |
||
At 31 December 2020 |
15,055 |
7,728 |
- |
22,783 |
||
|
|
|
|
|
||
Net carrying amount |
|
|
|
|
||
At 31 December 2020 |
6,287 |
14,255 |
22,379 |
42,921 |
||
|
|
|
|
|
||
At 31 December 2019 |
2,803 |
16,039 |
21,083 |
39,925 |
||
|
|
|
|
|
||
The Group tests for impairment every six months, or more frequently if there are indicators that goodwill might be impaired.
The recoverable amount of the cash generating unit ("CGU") at 31 December 2020 is determined from the fair value less costs of disposal of the underlying business units. The key assumption in calculating the fair value was the expected future cashflows at 31 December 2020. No impairment is considered necessary at 31 December 2020.
7. Acquisition of subsidiary
On 1 January 2020
|
£'000 |
Purchase consideration |
|
Cash consideration |
780 |
Deferred consideration |
150 |
Total cash consideration |
930 |
Shares issued in |
433 |
Total purchase consideration |
1,363 |
The assets and liabilities recognised as a result of the acquisition are as follows:
|
£'000 |
Cash and cash equivalents |
116 |
Property, plant and equipment |
8 |
Receivables |
58 |
Payables |
(115) |
Net identifiable assets acquired |
67 |
Add: |
1,296 |
|
1,363 |
The goodwill is attributable to Yippee Entertainment Limited's talented multi-award winning video game development team. It has been allocated to the sole segment of the business which is the production and publishing of video games. None of the goodwill is expected to be deductible for tax purposes.
Acquisition related costs of £108,000 are included in administrative expenses in the Statement of Comprehensive Income for the year ended 31 December 2019.
Financial performance of Yippee Entertainment Limited has not been disclosed as it was wholly immaterial to the year ended 31 December 2020 results.
Deferred consideration
The deferred consideration arrangement required the Group to pay the former owners of Yippee Entertainment Limited up to a maximum of £150,000 by 31 December 2020 with no minimum. The full amount of £150,000 was paid in December 2020.
Shares issued in
The shares were issued as part of the consideration for the acquisition of Yippee and therefore merger relief has been applied to the premium on the issue.
Trade and other receivables
The fair value of trade and other receivables at acquisition was £58,000 and the full amount was deemed to be collectible.
8. Post balance sheet events
On 4 January 2021 Team 17 Digital Limited acquired the Golf With Your Friends IP from Entertainment Holdings Pty Ltd a company incorporated in
The acquisition underlines part of the Company's strategy to make value enhancing acquisitions that will support the growth ambitions alongside organic growth and the Board expects this to be an ongoing part of the growth strategy.
At the time when these financial statements are authorized for issue, the Group had not yet completed the accounting for the acquisition and hence the fair values of assets acquired have not been disclosed.