| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 2.30 | -100 |
| Graham Formula | n/a |
Best of the Best PLC (BOTB.L) is a UK-based company specializing in high-end prize competitions, offering participants the chance to win luxury cars, motorbikes, watches, technology, holidays, and cash prizes. Operating since 1999, the company leverages both online platforms and physical retail locations in high-traffic areas such as airports and shopping centers to sell competition tickets. BOTB operates in the Gambling, Resorts & Casinos industry under the Consumer Cyclical sector, catering to thrill-seeking consumers looking for unique, high-value rewards. With a market cap of approximately £45 million, the company has carved a niche in the premium competition space, differentiating itself from traditional lotteries by focusing on aspirational prizes. Its business model combines impulse purchases from travelers with online engagement, making it a distinctive player in the UK’s gaming and leisure market.
Best of the Best PLC presents an intriguing investment case with its niche focus on luxury prize competitions, a debt-free balance sheet, and consistent profitability (FY2023 net income: £4.66 million). The company’s low beta (0.66) suggests relative stability compared to broader markets, while its dividend yield (based on a £0.06 per share payout) may appeal to income-focused investors. However, risks include regulatory scrutiny in the gambling sector, reliance on discretionary consumer spending, and potential saturation in competition-based models. The lack of debt and strong cash position (£6.9 million) provide financial flexibility, but growth depends on expanding participation and maintaining high-margin operations.
Best of the Best PLC competes in a specialized segment of the gambling industry, distinguishing itself by offering high-value, aspirational prizes rather than traditional casino games or lotteries. Its competitive advantage lies in its dual-channel distribution (online and airport/shopping center kiosks), which captures both planned online entries and impulse purchases from travelers. The company’s focus on luxury items (e.g., cars, watches) differentiates it from mass-market lottery operators, appealing to a demographic willing to pay premium ticket prices for exclusive rewards. However, its niche model faces competition from both traditional gambling operators and digital-first contest platforms. Scalability may be limited by reliance on physical retail partnerships, though its lean operations (minimal capex: £122k in FY2023) support profitability. Regulatory risks are mitigated by its competition-based structure, which avoids direct gambling classification in some jurisdictions. The lack of debt enhances resilience, but the company must continuously innovate its prize offerings to sustain engagement.