TIDMMIRA
mirada plc
Interim results for the six months to 30 September 2009
Mirada plc ("mirada" or "the Company" or "the Group"), the AIM quoted
interactive media and games group, announces interim results for the six months
to 30 September 2009.
Highlights
* Completed final stages of complex turnaround plan resulting in a complete
transformation of the Group
* Change in media and advertising markets due to economic climate plays to
the strengths of mirada
* Consolidation of areas of expertise and revamped strategy for the Group
* Significant increase in gross margins - 72% (2008: 48%)
* Large reduction in administrative expenses to GBP2.6 million (2008: GBP3.6
million)
* Loss before interest, tax, amortisation and depreciation of GBP109,000 (2008:
GBP525,000)
* Historical second half bias to financial results
* New global contracts announced in targeted key growth regions: Europe,
Latin America and Eastern Europe
* More expected to follow in the coming period as mirada grows its global
partnerships based on its niche strengths and expertise
Jose Luis Vazquez, Chief Executive Officer of mirada, commented:
"We have concluded the long process of implementing the Group's turnaround
plan, which clearly defines a path for the international growth of our
activities. This is being reflected in the successful conclusion of deals with
customers and partners worldwide, and we expect this growth to have a clear
impact on our financial results in the future. We have a growing activity in
Western and Eastern Europe, and in Latin America, and we expect to announce an
increasing news flow of contract wins during the coming months to add to the
recently won deals."
31 December 2009
Enquiries:
mirada PLC +44 (0) 207 942 7942
Jose Luis Vazquez, Chief Executive Officer
Graham Duncan, Chief Financial Officer
Haggie Financial LLP +44 (0) 207 417 8989
Nicholas Nelson/Kathy Boate Nicholas.nelson@haggie.co.uk
Seymour Pierce Limited (Nominated Advisor & +44 (0) 207 107 8000
Broker)
Mark Percy/Christopher Howard
Chief Executive Officer's Statement
Business overview
We are pleased to report on a period that encompassed the final stages of a
long and complex turnaround plan that saw a total transformation of the Group.
We accomplished this during very adverse economic conditions that led to a
large reduction in activities by important players in the digital media arena.
However, at the same time, these changes in the media and advertising business
models are leading to the rapid growth of online alternatives and the
increasing migration of budgets to interactive audiovisual models - this being
an ideal opportunity to exploit mirada's specialist understanding of the
market.
After some customers ceased their broadcast activities due to severe budgetary
restrictions, mirada continued to focus on improving its gross margins whilst
at the same time further reducing its overheads. One of our big milestones in
this period has been the cessation of our direct involvement in the B2C
satellite channels, a loss making business that was interfering with our focus
on being a strong technology company and jeopardising possible relationships
with potential B2C gaming customers.
We finished developing our business units' strategies and differentiation,
while consolidating our four areas: digital tv, gaming, broadcast and content,
and interactive marketing. We also saw the successful separation of our parking
business into `mirada connect' as an independent company fully owned by the
Group.
Financial overview
Although revenue has reduced in the period to GBP3.3 million (6 months ended 30
September 2008: GBP5.7 million) there has been a significant increase in the
gross margins earned, 72% in the current period compared to 48% in the 6 months
ended 30 September 2008, and a large reduction in other administrative
expenses, GBP2.6 million compared to GBP3.6 million. When combined, the effect
being that the Group made a loss before interest, tax, amortisation and
depreciation of GBP109,000 which shows an improvement to the loss of GBP525,000
reported in the 6 months ended 30 September 2008.
The Group historically experiences distinct seasonality in its earnings,
especially in the Digital TV area where many of the Group's customers
concentrate a large proportion of their development budgets to the second half
of the year. Notwithstanding our focus on developing a solid product base and
recurring revenues, we still have an exposure to this seasonality through our
service based activities.
Over the last few months we have announced several significant new contracts.
The negotiations for these contracts took longer than expected, which will mean
that the majority of the revenues from the new contracts will be recognised in
the second half of the year. This impact has led to the results for the period
being below management's expectations, however they leave the Group in a good
position for the remainder of the year.
Review of Operations
Gaming
As outlined above, mirada has ceased its activities in the B2C satellite market
and we are now able to focus on B2B products and customers, as well as
increasing our activity in the internet-based audiovisual gaming area.
The division has targeted the sales and marketing of our gaming products and
services to international third parties. An early achievement in the area has
been the agreement for mirada to deliver its Monte Carlo Roulette product into
the Eastern European market which was announced in September 2009. For the very
first time mirada was able to win a major gaming deal outside of the UK,
supporting our strategy of delivering our cutting-edge skills born in the UK to
the international market.
Digital TV
The Digital TV unit has been the fastest-growing unit in the Group, due mainly
to the successful integration of the products and services obtained from the
acquisition of Fresh Interactive Technologies. During this period the Group
continued developing its international activities in Europe, Middle East and
Latin America, leading to the announcement in August 2009 of our first major
contract with the Uruguayan Government in Latin America, followed by smaller
transactions that support our activity in the region. In addition the business
expansion to other countries in Western Europe has led to growing activity,
particularly in Italy and Portugal.
In terms of product development, the presentation of our NAVI set of digital tv
products during the International Broadcasting Convention in Amsterdam was very
successful and we expect to announce some important international partnerships
during the coming months.
Broadcast and Content
One of the major moves in the media strategy was to split the activities
between the Digital TV platforms and the Broadcasters and Content providers.
During this period Carlos Zalve joined the company to drive mirada's activities
into the content market, helping to develop our technology and expertise into
multilayer (TV, internet and mobile) enhanced content experiences. We have
progressed partnerships with leading content providers at an international
level, and we expect that our synchronisation technologies and our expertise
will open new business opportunities that the market is increasingly demanding
in the convergent media world.
Interactive Marketing
The period under review has seen the consolidation of our relationship with
major partners in the market like Britvic, for whom we successfully deployed
campaigns for its brands including Pepsi and Tango. The Interactive Marketing
business unit has surpassed our initial expectations in a clearly unfavourable
market for advertising, managing to expand its activities to new countries like
Italy. We have recently won a set of new international deals, and we expect
this area to grow through our worldwide expansion and new product agreements
with media agencies, broadcasters, content providers and advertisers.
Outlook
We have concluded the long process of implementing the Group's turnaround plan,
which clearly defines a path for the international growth of our activities.
This is being reflected in the successful conclusion of deals with customers
and partners worldwide, and we expect this growth to have a clear impact on our
financial results in the future. We have a growing activity in Western and
Eastern Europe, and in Latin America, and we expect to announce an increasing
news flow of contract wins during the coming months to add to the recently won
deals.
Jose Luis Vazquez
Chief Executive Officer
31 December 2009
Consolidated income statement for the six months to 30 September 2009
Note 6 months 6 months Year ended
ended ended 31 March
30 September 30 September 2009
2009 2008
(Unaudited) (Unaudited) (Audited)
GBP000's GBP000's GBP000's
Revenue 3,276 5,757 10,465
Cost of sales (901) (2,956) (4,492)
Gross profit 2,375 2,801 5,973
Net gaming income 78 278 462
Depreciation (134) (189) (349)
Amortisation of deferred (186) (79) (251)
development costs
Restructuring costs - (91) (117)
Share-based payment charge (35) (83) (165)
Other administrative expenses (2,562) (3,604) (7,100)
Total administrative costs (2,917) (4,046) (7,982)
Operating loss 4 (464) (967) (1,547)
Finance income - 99 117
Finance expense (34) (25) (825)
Loss on ordinary activities (498) (893) (2,255)
before taxation
Taxation - - -
Loss for the financial period (498) (893) (2,255)
Loss per share
- basic & diluted 5 (GBP0.03) (GBP0.05) (GBP0.11)
The above amounts are attributable to the equity holders of the parent.
Consolidated statement of recognised income and expense
Six months to 30 September 2009
6 months 6 months Year ended
ended ended 31 March
30 September 30 September 2009
2009 2008
(Unaudited) (Unaudited) (Audited)
GBP000's GBP000's GBP000's
Currency translation differences (514) 127 941
Net income recognised directly in (514) 127 941
equity
Loss for period (498) (893) (2,255)
Total recognised income and expense (1,012) (766) (1,314)
for the period
Attributable to equity holders of the (1,012) (766) (1,314)
parent
Consolidated balance sheet as at 30 September 2009
Note 30 September 30 September 31 March
2009 2008 2009
(Unaudited) (Unaudited) (Audited)
GBP000's GBP000's GBP000's
Non-current assets
Property, plant and equipment 879 976 990
Goodwill 17,574 17,574 17,574
Intangible assets 1,183 776 1,096
Total non-current assets 19,636 19,326 19,660
Trade and other receivables 2,108 3,942 2,833
Cash and cash equivalents 71 1,921 1,508
Current assets 2,179 5,863 4,341
Total assets 21,815 25,189 24,001
Loans and borrowings (433) (349) (371)
Trade and other payables (2,791) (5,094) (4,089)
Current liabilities (3,224) (5,443) (4,460)
Net current (liabilities)/assets (1,045) 420 (119)
Total assets less current 18,591 19,746 19,541
liabilities
Interest bearing loans and (28) - (39)
borrowings
Other non-current payables (920) (660) (882)
Non-current liabilities (948) (660) (921)
Net assets 17,643 19,086 18,620
Equity attributable to equity
holders of the company
Share capital 34,923 34,923 34,923
Shares to be issued 281 281 281
Other reserves 6 5,208 4,791 5,687
Accumulated losses 6 (22,769) (20,909) (22,271)
Equity shareholders' funds 17,643 19,086 18,620
Consolidated statement of cash flows six months to 30 September 2009
6 months 6 months Year ended
ended ended 31 March
30 September 30 September 2009
2009 2008 (Audited)
(Unaudited) (Unaudited)
GBP000's GBP000's GBP000's
Cash flows from operating activities
Loss for the period (498) (893) (2,255)
Adjustments for:
Depreciation of property, plant and 134 189 349
equipment
Amortisation of intangible assets 186 79 251
Foreign exchange (457) 28 1,392
Share-based payment charges 35 83 165
Finance income - (99) (117)
Finance expense 34 25 72
Operating cash flows before movements (566) (588) (143)
in working capital
Decrease/(increase) in trade and other 610 (603) 369
receivables
Decrease in trade and other payables (1,064) (3,108) (4,388)
Cash used in operations (1,020) (4,299) (4,162)
Interest and similar expenses paid (34) (25) (72)
Net cash used in operating activities (1,054) (4,324) (4,234)
Cash flows from investing activities
Interest and similar income received - 99 117
Purchases of property, plant and (33) (345) (435)
equipment
Purchase of other intangible assets (343) (303) (719)
Net cash used in investing activities (376) (549) (1,037)
Cash flows from financing activities
Loans received 85 - -
Repayment of loans - - (300)
Repayment of capital element of finance (46) (126) (212)
leases
Net cash generated from/(used in) 39 (126) (512)
financing activities
Net decrease in cash and cash (1,391) (4,999) (5,783)
equivalents
Cash and cash equivalents at the 1,137 6,920 6,920
beginning of the period
Cash and cash equivalents at the end of (254) 1,921 1,137
the period
Cash and cash equivalents comprise cash at bank less bank overdrafts.
Notes to the Accounts
1. General information
The information for the period ended 30 September 2009 does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. The
Group has not adopted IAS 34: "Interim Financial Reporting" as the AIM Rules
for Companies and related regulations do not require half-yearly financial
reports to be prepared in accordance with IAS 34.
2. Basis of Preparation
This interim report was approved by the Directors on 31 December 2009. The
condensed interim financial information has been prepared on the basis of the
accounting policies set out in the 2009 Report and Financial Statements using
accounting policies consistent with International Reporting Standards. The
condensed interim financial information for the six months ended 30 September
2009 and 30 September 2008 has neither been audited nor reviewed pursuant to
guidance issued by the Auditing Practices Board.
The financial information contained in this interim report does not constitute
statutory accounts. The comparatives for the period from 1 April 2008 to 31
March 2009 are derived from but are not the Company's full statutory accounts
for that period. The auditors' report on those accounts was unqualified and did
not include references to any matters to which the auditors drew attention by
way of emphasis without qualifying their report(s) and did not contain a
statement under section 237(2)-(3) of the Companies Act 1985.
3. Accounting policies
The accounting policies adopted are consistent with those set out in the
financial statements for the year ended 31 March 2009 and that are to apply for
the year ended 31 March 2010.
4. Operating loss
Reconciliation of operating loss to loss before interest, taxation,
depreciation, amortisation, restructuring and share-based payment charges:
6 months 6 months Year ended
ended ended 31 March 2009
30 September 30 September
2009 2008 (Audited)
(Unaudited) (Unaudited) GBP000's
GBP000's GBP000's
Operating loss (464) (967) (1,547)
Depreciation 134 189 349
Amortisation of deferred development 186 79 251
costs
Restructuring costs - 91 117
Share based payment charge 35 83 165
Loss before interest, taxation, (109) (525) (665)
depreciation, restructuring, and
share-based payment charges
5. Loss per share
6 months 6 months Year ended
ended ended 31 March 2009
30 September 30 September
2009 2008
(Unaudited) (Unaudited) (Audited)
Loss for period (GBP498,000) (GBP893,000) (GBP2,255,000)
Weighted average number of shares 19,805,485 19,805,485 19,805,485
Basic & diluted EPS (GBP0.03) (GBP0.05) (GBP0.11)
For the periods ended 30 September 2009, 31 March 2009 and 30 September 2008
the diluted loss and earnings per share is calculated on the same basis as
basic loss and earnings per share because the effect of the potential ordinary
shares reduces the net loss per share and is therefore anti-dilutive.
The deferred shares are not included in the earnings per share or diluted
earnings per share. These shares have no voting rights and are non-convertible
and therefore do not form part of the ordinary share capital used for the loss
per share calculation.
6. Reserves and changes in equity
Share option Foreign Merger Profit &
reserve exchange reserve loss account
reserve
GBP000's GBP000's GBP000's GBP000's
At 1 April 2009 2,014 1,201 2,472 (22,271)
Loss for financial period - - - (498)
Share based payment 35 - - -
Movement in foreign exchange - (514) - -
reserve
At 30 September 2009 2,049 687 2,472 (22,769)
7. Related party transactions
Transactions between the company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note. There were no material transactions between the Group and the related
parties during the period.
8. Other
Copies of unaudited interim results have not been sent to shareholders, however
copies are available on request from the Company Secretary at the Company's
registered office, 6 & 7 Princes Court, Wapping Lane, London, E1W 2DA.
END
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