A little Christmas present for you. Jagex's accounts have previously not been available until the following January, but this year they were filed in December (thanks to Pliigi for noticing!).
2010-11 was an interesting year for Jagex due to the change of control and ownership (see thread) and a heavy investment in various new ventures. This has meant that whilst turnover was up, their actual operating profit was down. Neither the Jagex Group nor Fen Research Ltd were mentioned in the Company Report and Financial Statement.
Jagex adjusted their 2008-09 turnover, turnover from subscription and gross profit figures in their previous report because they are now calculating them in a different way. This doesn't affect other figures such as operating profit, but does affect derived calculations such as the profit margin. Because of this the % change between the old and new figure for 2008-09 were used to adjust the relevant figures for previous years - it's not perfect, but it should be good enough for getting a sense of how the company are doing.
Donations to charity as % of turnover (adjusted):
0% (2003-04); 0.4922% (2004-05); 0.5896% (2005-06); 0.3421% (2006-07); 0.4221% (2007-08); 0.4657% (2008-09); 0.4404% (2009-10); 0.3310% (2010-11).
Profit margin (adjusted):
POLITICAL AND CHARITABLE CONTRIBUTIONS
The company made charitable donations amounting to £150,076 (2010 - £196,087) during the year Donations were made to a number of local and US based charities
34.47% (2003-04); 48.49% (2004-05); 56.60% (2005-06); 49.86% (2006-07); 41.91% (2007-08); 43.66% (2008-09); 42.21% (2009-10); 23.50% (2010-11).
Advertising as % of turnover (adjusted):
8.78% (2003-04); 8.06% (2004-05); 6.10% (2005-06); 6.46% (2006-07); 6.38% (2007-08); 5.23% (2007-08); 3.44% (2009-10); 3.27% (2010-11).
The directors are not disclosing the geographical analysis of the company’s turnover as they consider the information to be seriously prejudicial to the interests of the business
OFFICERS AND PROFESSIONAL ADVISERS
A C Crisses
STAFF NUMBERS AND COSTS
Average number of persons employed by the company (including directors) during the year
Directors - 2
Commercial/management - 33
Development - 181
Customer relations - 123
Technical - 66
Directors - 3
Commercial/management - 33
Development - 166
Customer relations - 136
Technical - 36
Staff costs incurred during the year in respect of these employees
Wages and salaries - £12,345,392
Social security costs - £1,096,934
Other pension costs - £11,722
Share based payment - £933,420
Total - £14,392,963
Wages and salaries - £11,612,323
Social security costs - £993,311
Other pension costs - £24,155
Share based payment - £230,502
Total - £12,911,295
CHANGE OF CONTROL
In the current ﬁnancial year, Insight Venture Partners, a leading private equity and venture capital ﬁrm acquired shares in Jagex from the existing sharesholders. As part of the sale the following transactions occurred:
- share options previously issued to key management personnel were exercised, being £100 nominal value of
- a share division of 10,000 for 1 and a bonus issue of 116,753,628 shares occurred,
- Jagex has acted as a guarantor for payments of deferred consideration owed, and
- Jagex agreed to pay all reasonable expenses incurred as a result of the sale of shares which totalled £2.5m in the ﬁnancial year
- an acceleration of the share option charge to recognise the full fair value of the equity instruments issued in the previous year has been recognised as an expense in the current period, being £938,000 (2010 - £280,000)
The controlling party is Insight Venture Partners, as a result of controlling directly 55% of the issued share capital of the company
During the year ended 31 March 2011 the company experienced further growth with turnover increasing to £45.3m. The return of the very popular ‘Free Trade and ‘Wilderness’, continued effect of the price increases and the positive contribution from the new games such as War of Legends contributed to the rise in turnover. Proﬁt for the ﬁnancial year reduced to £6.7m following the increased investment in the new games as well as the marketing activities that were accelerated during the ﬁnancial year. Although the company increased the investment in future products, it still remains very proﬁtable.
The landscape is continuing to be very competitive but the company is positive about the future as there are new product launches in the coming ﬁnancial year.
The directors expect the general level of activity to continue for the foreseeable future
Included within administrative expenses are costs of £2.9m (2010 nil) borne by Jagex Limited on behalf of
the shareholders relating to the sale of their shares during the year
KEY PERFORMANCE INDICATORS
The company has several key performance measures used internally to monitor and challenge performance and to assist investment decisions The most important indicators are:
- Operating proﬁt
Performance in the current and prior years is summansed as follows:
Revenue: 45,345 (2011); 44,520 (2010); +2% change
Operating profit: 10,658 (2011) 18,794 (2010); -43% change
Headcount: 405 (2011); 374 (2010); +8.3% change
RESULTS AND DIVIDENDS
The proﬁt for the year, after taxation, amounted to £6,730,298 (2010 - £13,772,776)
The directors paid dividends in the year of £nil (2010 - £22,833,585)
The company hopes to continue to grow its player base by launching internally developed new games in various languages as well as activity as a publisher for third party developed games.
The company intends to release at least one of the projects currently in rapid development
The company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings, as well as circulating data regarding subscriber growth.
- The Jagex Group
- Fen Research Limited
- 4 People join Jagex's Board of Directors
- Jagex Wins Patent Infringement Lawsuit
Contributors: , Pliigi.
Disclaimer: Views expressed by members of staff do not necessarily represent the view of Stellar Dawn Central.