Interim Results for 2017

Ultimate Sports Group Plc, the AIM listed investment vehicle, is pleased to announce its interim results for six months ended 30 June 2017.

Chairman's Statement and Chief Executive's Review

For the six months ended 30 June 2017 we are reporting a total comprehensive loss of £53,375 (June 2016: loss £199,178).

USG's net cash balances as at 30 June2017 were £208,022 (June 2016:£461,814). The Directors are not recommending the payment of a dividend.

Share Placing

The Company raised £212,500 before expenses through a placing of 2,125,000 shares at 10p per share on 29 March 2017.

Pantheon Leisure Plc ("Pantheon")

USG holds 85.87% of the issued share capital of Pantheon which in turn owns 100% of the operating business of Pantheon's Sport and Leisure division.

Pantheon's Sport and Leisure division is the owner of Sport in Schools Limited ("ESS") also known as The Elms Sport in Schools and Football Partners Ltd ("FPL"). In November 2016, terms were agreed for the sale of FPL's business to Powerplay Team Sports Limited, a company operating in the same sector for a consideration of up to £100,000 with cash payable on deferred terms and subject to certain conditions. Those conditions have now been fulfilled and £82,500 has been received with a further final payment of £17,500 due in October 2017.

Pantheon as a group made a profit of £102,255 for the 6 months ended 30 June 2017 including the net proceeds from the sale of FPL less costs. (June 2016: profit £36,259).

Sport in Schools Limited ('ESS' - Elms Sport in Schools)

On a turnover of £739,249 (June 2016: £664,087), ESS has contributed a divisional profit of £70,644 as compared with £117,494 to June 2016.

ESS specialises in the delivery of primary school sport - covering the National Curriculum during the day and The Extended Day before and after school hours (breakfast, lunchtime and after-school clubs).

The majority of the breakfast and lunchtime clubs are provided and paid for by the school, whilst the majority of after-school clubs are paid for by the parents.

Holiday camps are a successful area for ESS where it provides sports tuition during the school holidays. The majority of the camps are paid for by parents, whilst a few are paid for by the school.

The ESS directors have developed bespoke skill sets which have been adopted with great enthusiasm by its full time staff and part time coaches. On average, some 20,000 children are coached between 12 to 25 hours a week. All its coaches are highly qualified (minimum level 2), DBS checked, child protection vetted and rigorously trained by ESS in all the main disciplines required by the National Curriculum. The management of ESS constantly monitors and assesses the level of performance of its coaches throughout the school year.

Ultimate Player.me

UltimatePlayer.me is a new digital platform that is designed to increase the participation and enjoyment of children in sports.

The platform is operating as a Freemium business model - aiming to achieve web scale of free users with a percentage encouraged to subscribe as members.

Given that the platform is built to be used by coaches and children, it has a complex set of functionality required to address the different needs of the target audience and there have been a number of challenges as you would expect, including:

  • Coaches must be motivated to use, and encourage the use of, the platform with their classes
  • Parents must be comfortable to allow their children to join the platform, and help their children engage with it, ultimately getting enough value to purchase memberships and products
  • Children must be excited enough about the platform to want to log in regularly and to participa
  • e in the platform

We have successfully dealt with these challenges because the young players embrace it. In our experience when a coach uses he platform with a class, their players are excited to participate. They change their behaviour in the classes, wanting to develop a wider range of skills and ultimately they participate in more classes. They are excited by awards and actively engage with their parents in the evenings to check their results.

Outlook

The continuing success of the sports tuition activities of ESS is encouraging, as is the engagement by coaches and children of UltimatePlayer.me. and we look forward to updating shareholders on progress.

R.L. Owen
G.M. Simmonds

For the full results report please click here.

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