Semper Fortis Esport - Half-year Report
RNS Number : 4486P
Semper Fortis Esports PLC
19 October 2021
 

 

19 October 2021

 

Semper Fortis Esports Plc
("Semper", the "Company")

 

 

Interim Results for the six months ended 31 July 2021

 

 

Semper Fortis Esports PLC (AQSE: SEMP), the esports company focused on establishing esports teams, forming brand and technology partnerships, and providing business to business advisory services, announces its unaudited half-yearly results for the six months ended 31 July 2021 and provides an update on significant post-period events.

 

 

FINANCIAL HIGHLIGHTS

·      The Company successfully listed on AQSE raising £2.55m gross proceeds

·      Loss before tax of £0.65m which included professional fees in relation to the AQSE listing; investment in Esports teams, and general operating costs

·      Cash at bank as of 31 July 2021 was £1.77m (£73,158 as of 31 January 2021)

 

OPERATIONAL HIGHLIGHTS (including post-period updates)

·      In May 2021 the Company announced that Mr Dominic Calvert-Lewin and Mr Harry Maguire had been appointed as brand ambassadors

·      The Semper team finished in 3rd position in its inaugural season in the 2020/21 Rocket League European Championship Series

·      Post period the Semper team was awarded a slot on the affiliate program with Psyonix (the developer and publisher of Rocket League) enabling the Company to provide digital Semper goods that end users may purchase from the Rocket League esports store

·      Post period the Company signed new players enabling the Company to compete and create content in four new games: FIFA, Fortnite, Hearthstone and Axie Infinity

 

 

Keith Harris, Chairman of Semper Fortis Esports, added: "We look forward to the new season in Rocket League and building on the previous successes of our SMPR team as well as increasing engagement with our followers and continuing to grow our overall audience reach through the combined platforms of Semper, its pro-players, content creators and Ambassadors which now amounts to 11.3 million."

 

For more information, please contact:

 

Semper Fortis Esports plc

via Square1 Consulting

 

Kevin Soltani, Chief Executive Officer

Jassem Osseiran, Chief Operating Officer

Max Deeley, Finance Director

 

https://semperfortisesports.com

 

 

Hybridan LLP - AQSE Corporate Adviser and Broker

  https://hybridan.com/

 

Claire Noyce, Managing Partner, Corporate Finance

Niall Pearson, Head of Corporate Broking & Sales

+44 203 764 2341

 


+44 203 764 2343

 

 

 

Square1 Consulting

+44 207 929 5599 

David Bick

+44 7831 381201 

 

Chairman's Statement

 

I am pleased to present our maiden set of interim results.

 

The first half of our current financial year has seen Semper make good progress with its strategy to establish esports teams, form brand and technology partnerships, and provide business to business advisory services.

On 26th April 2021 we successfully listed on AQSE raising gross proceeds of £2.55m by way of Placing and Subscription of new Ordinary Shares at an Issue price of 1 pence per Ordinary Share.

 

Esports Team

Our first esports team SMPR (formerly known as Top Blokes) competes in the Rocket League Championship Series ("RLCS X"), a Tier 2 professional international esports tournament, dedicated to the popular Rocket League game, which is published by Pysonix.

 

Rocket League involves competing teams using rocket-powered vehicles to hit a ball into the opposing team's goal, with points accruing during the course of a match. In 2020, Rocket League reached 100 million views on its Twitch channel (a figure which counts the total number of unique visitors to the stream) which signifies a considerable milestone for the growing esport.

 

Following a successful 2020/21 season in the Rocket League European Championship Series, our team finished in 3rd position in its inaugural season.

 

In the period we rebranded the team as "SMPR" bringing the team brand closer to the Company.  We believe this new identity appeals to our growing community and enhances the number of opportunities to bring in sponsors across the organisation.

During the summer of 2021 Archie Pickthall, a member of the SMPR team, competed for Team Great Britain in their Rocket League roster in the Intel World Open. The Intel World Open is an international event held between national teams ahead of the 2020 Summer Olympics and is supported by the International Olympic Committee. Team GB finished in 3rd place.

 

In July 2021 SMPR secured 1st place in the European bracket of the Gamers Without Borders Event which was an invitational charity tournament for the best gamers globally competing in community tournaments across a number of titles with a $10 million prize-fund going directly to COVID-19 vaccine distribution for those most in need. SMPR donated its allocated prize money of $200,000 to UNICEF which is leading the largest vaccine procurement and supply operation ever undertaken.

In the close season we have made improvements to our team with the signing of a new player Thibault Grzesiak, 20, who goes by the name Chausette. He joins with a significant digital footprint having started his career in 2015 and has a current following of c.100,000 across his social media accounts.

 

Post period the SMPR team was awarded a slot on the affiliate program with Psyonix (the developer and publisher of Rocket League). Psyonix operates an in-game store where end users may purchase items for use in the game. As part of the affiliate program the benefits to Semper will be digital SMPR goods that end users may purchase from the Esports store; Psyonix will make certain advertising inventory on its Twitch or other channels available to SMPR to sell or give away to third parties; and SMPR shall have the right to sell team sponsorships on digital goods that are offered for sale by Psyonix in the Esports store. SMPR will receive royalty payments based on a percentage of the Net Revenue received by Psyonix.

 

We look forward to next season, which commences this month, with increasing confidence.

 

Post period the Company has secured players to compete in two new Esports - FIFA and Hearthstone, as well as a player who competes in the play to earn crypto game, Axie Infinity.

 

FIFA is a football video game published by EA sports.

 

Up until this year, FIFA was a 1v1 based game, where players competed individually, either representing themselves individually, an Esports organisation, or a professional football club. This upcoming season there will be the addition of 2v2. We are excited to develop a SMPR FIFA team with the obvious synergies with the Company's ambassadors Mr Dominic Calvert-Lewin and Mr Harry Maguire.

 

Hearthstone is a free-to-play online digital collectible card game developed and published by Blizzard Entertainment. Originally subtitled Heroes of Warcraft, Hearthstone builds upon the existing lore of the Warcraft series by using the same elements, characters, and relics. As of May 2021, Hearthstone was the sixth most popular game on the online platform Twitch based on 12.39 billion all-time number of views.

 

Axie Infinity is a video game run on a blockchain with customisable fantasy creatures that you can breed, raise, train to battle and trade for profit. It is one of the most popular Ethereum-based NFT projects with approaching 2 million daily active users. These users are encouraged to raise engagement of the platform by earning rewards through tokens which can be bought and sold on cryptocurrency exchanges. The game allows players to monetise their gameplay and capitalise on various NFT trades.

 

Ambassadors

In May 2021 we were delighted to announce that Mr Dominic Calvert-Lewin of Everton Football Club and the national England team and Mr Harry Maguire captain of Manchester United Football Club and the England team had been appointed as brand ambassadors to the Company.

 

As part of Semper Fortis Esports, the brand ambassadors will interact with online audiences via digital platforms and bring their wealth of experience in traditional sports to an organisation in esports.

 

Post period we have also engaged with two semi-professional Fortnite players who concentrate on content creation. Fortnite is the second most popular game on Twitch with 25.5 billion all-time views. However, it is an expensive game to compete in professionally with a high ranking player therefore the Company has decided initially to gain exposure around this game by engaging the two content creators who bring with them a social following of c.550,000.

 

Expansion of Audience 

During the period Semper appointed an award-winning digital agency with the aim to accelerate growth in audience and engagement in order to help the company manage, build and monetise its digital presence.

 

I am pleased to report our online followers on Tik Tok, Instagram, Twitch, Twitter, YouTube, Facebook, and LinkedIn have grown as follows:

 

-       7,400 number of followers as at 31 July 2021

-       124,000 number of followers as at 30th September 2021

 

Our overall audience reach through the combined platforms of Semper, its pro-players, content creators and Ambassadors now amounts to 11.3 million.

 

In the coming months we hope to use our growing audience to attract sponsors and form brand partnerships.

 

 

 

 

INCOME STATEMENT AND STATEMENT OF COMPRENSIVE INCOME

 

 

 

Unaudited

Audited

 

 

Six months ended

Period

ended

 

Note

31 July 2021

31 January 2021

 

 

 

 

 

 

£

£

Revenue

 

-

-

 

 

 

 

Operating and administrative expenses

3

(651,287)

(626,173)

Loss before income tax

 

(651,287)

(626,173)

 

 

 

 

Income tax

 

-

-

 

 

 

 

Loss for the period and total comprehensive loss

 

(651,287)

(626,173)

 

 

 

 

Earnings per share attributable to equity owners

 

 

 

Basic and diluted earnings per share

4

(0.002)

(0.01)

 

 

 

 

 

STATEMENT OF FINANCIAL POSITION

 

 

 

Unaudited

As at

31 July

2021

Audited

As at

31 January 2021

 

Note

£

£

ASSETS

 

 

 

Current assets

 

 

 

Other receivables

 

73,214

57,345

Cash and cash equivalents

 

1,770,442

73,158

Total assets

 

1,843,656

130,503

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

Equity attributable to owners

 

 

 

Share capital

6

76,550

50,500

Share premium

6

2,562,410

-

Other reserves

 

1,989

-

Retained earnings

 

(1,007,961)

(356,674)

 

 

 

 

 

 

1,632,988

(306,174)

Current liabilities

 

 

 

Trade and other payables

 

210,668

436,677

 

 

 

 

Total equity and liabilities

 

1,843,656

130,503

 

 

 

 

 

 

 

STATEMENT OF CHANGES IN EQUITY

 

 

 

Share

capital

 

Share

premium

 

Other reserves

 

Retained

earnings

 

Total

 

 

£

 

£

 

£

 

£

 

£

 

 

 

 

 

 

 

 

 

 

 

At 01 February 2021

 

50,500

 

-

 

-

 

(356,674)

 

(306,174)

Issue of ordinary shares

 

26,050

 

2,562,410

 

-

 

-

 

2,588,460

Total comprehensive loss for the period

 

-

 

-

 

 

-

 

(651,287)

 

(651,287)

Share based payment

 

-

 

-

 

1,989

 

-

 

1,989

At 31 July 2021

 

76,550

 

2,562,410

 

1,989

 

(1,007,961)

 

1,632,988

 

 

 

 

 

Share

capital

 

Share

premium

 

Retained

earnings

 

Total

 

 

£

 

£

 

£

 

£

 

 

 

 

 

 

 

 

 

At incorporation

 

1

 

-

 

-

 

1

Issue of ordinary shares

 

50,499

 

269,499

 

-

 

319,998

Reduction in share capital

 

 

 

(269,499)

 

269,499

 

-

Total comprehensive loss for the period

 

-

 

-

 

(626,173)

 

(626,173)

 

 

 

 

 

 

 

 

 

At 31 January 2021

 

50,500

 

-

 

(356,674)

 

(306,174)

 

 

 

 

STATEMENT OF CASH FLOWS

 

 

 

Unaudited

Audited

 

 

Six months ended

Period

ended

 

 

31 July

2021

31 January 2021

 

 

 

 

 

 

£

£

Cash flows from operating activities

 

 

 

Loss before income tax

 

(651,287)

(626,173)

Adjustments:

 

 

 

Share based payments

 

1,989

-

Movement in working capital

 

 

 

Increase in receivables

 

(15,869)

(57,345)

Increase/(decrease) in payables

 

(226,009)

436,677

 

 

 

 

Net cash flow from operating activities

 

(891,176)

(246,841)

 

 

 

 

Cash flows from financing activities

 

 

 

Issue of ordinary shares

6

2,588,460

319,999

 

 

 

 

Net cash flows from financing activities

 

2,588,460

319,999

 

 

 

 

Net increase in cash and cash equivalents

 

1,697,284

73,158

 

 

 

 

Cash and cash equivalents at beginning of period

 

73,158

-

 

 

 

 

Cash and cash equivalents at end of period

 

1,770,442

73,158

 

 

The accounting policies and notes form an integral part of these financial statements.
 

NOTES TO THE FINANCIAL INFORMATION

For the six months ended 31 July 2021

 

1.          Basis of preparation

The interim financial information has been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRSs), as adopted by the UK.

The accounts have been prepared in accordance with accounting policies that are consistent with the Annual Report and Accounts for the year ended 31 January 2021 and that are expected to be applied in the Annual Report and Accounts for the year ended 31 January 2022.

The comparative financial information for the year ended 31 January 2021 in this interim report does not constitute statutory accounts for that period under 435 of the Companies Act 2006. Statutory accounts for the year ended 31 January 2021 have been delivered to the Registrar of Companies.

The auditors' report on the accounts for 31 January 2021 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

 

2.          Changes in significant accounting policies

The accounting policies applied in these interim financial statements are the same as those applied in the financial statements as at and for the year ended 31 January 2021.

 

3.          Operating expenses by nature

 

 

Unaudited

Six months

Audited

period

 

 

ended

ended

 

 

31 July

2021

31 January

2021

Directors' Remuneration

 

128,963

-

Accrued costs

 

-

48,333

Professional fees

 

356,852

493,976

Esports team costs

 

129,456

67,047

Share based payments

 

1,989

-

Sundry expenses

 

34,027

16,817

 

 

 

 

 

 

651,287

626,173

 

 

 

 

 

 

 

 

4.            Earnings per share

The basic earnings per share is calculated by dividing the loss attributable to equity shareholders by the weighted average number of shares in issue.

The Company had in issue 415,499,800 ordinary shares at 31 July 2021 & 154,999,800 ordinary shares at 31 January 2021. The loss attributable to equity holders and weighted average number of ordinary shares for the purposes of calculating diluted earnings per ordinary share are identical to those used for basic earnings per ordinary share.

 

 

Unaudited

Six months

Audited

period

 

 

ended

ended

 

 

31 July 2021

31 January 2021

 

 

£

£

Loss for the period attributable to equity holders (£)

 

(651,287)

(626,173)

Weighted average number of shares in issue

 

294,077,148

60,463,747

 

 

 

 

Basic and diluted earnings per share (£)

 

(0.002)

(0.01)

 

5.   Share capital and premium

On 24 March 2021, the Company issued 5,000,000 new ordinary shares of £0.0001 each at a price of £0.01 per ordinary share creating a share premium of £49,500. Amounts paid up of £50,000 in respect of the share capital issued was received into the Company's bank account.

On 26 April 2021, the Company issued 255,500,000 new ordinary shares of £0.0001 each at a price of £0.01 per ordinary share creating a share premium of £2,529,450. Amounts paid up of £2,555,000 in respect of the share capital issued was received into the Company's bank account. Broker fees of £16,540 in relation to the share issue have been offset against the share premium.

 

 

Number of

shares

Share

capital

Share

premium

Total

 

 

£

£

£

At 1 February 2021

155,034,800

50,500

-

50,500

Issue of ordinary shares (24/03/2021)

5,000,000

500

49,500

50,000

Issue of ordinary shares (26/04/2021)

255,500,000

25,550

2,512,910

2,538,460

 

 

 

 

 

As at 31 July 2021

415,534,800

76,550

2,562,410

2,638,960

 

 

6.   Share capital and premium (continued)


The number of shares above includes 415,499,800 ordinary shares and 35,000 redeemable deferred shares.

The ordinary shares have full voting, dividend and capital distribution (including on winding up) rights.

The redeemable deferred shares hold no voting rights or rights to receive dividends.

 

7.   Share based payments

On 26 April 2021, the Company granted options over 12,464,994 ordinary shares at an exercise price of 3.1p per share.  One third of the options vest one year after admission to AQSE, one third vest two years after admission and one third vest four years after admission.

The charge for share based payments in the six months ended 31 July 2021 was £1,989 (31 January 2021: £nil).

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
NEXGZMMGLRKGMZM ]]>