TIDMMIRA
RNS Number : 9588R
Mirada PLC
11 November 2011
11 November 2011
mirada plc
(AIM: MIRA)
("mirada" or "the Group")
Interim results for the six months to 30 September 2011
mirada plc, the AIM quoted leading audiovisual content
interaction specialist, announces its interim results for the six
months to 30 September 2011.
Key Points
-- Revenue for the period is GBP2.28 million, compared to
GBP2.61 million for the six months ended 30 September 2010
-- Gross profit increased to GBP2.01 million from GBP1.96
million in the six months ended 30 September 2010.
-- Loss before interest, tax, amortisation and depreciation was
GBP0.23 million, compared to GBP0.26 million for the six months
ended 30 September 2010.
-- Loss per share is 4p compared to 3p for the six months ended 30 September 2010.
Operational Highlights
-- Transition to a product orientated business focusing on its
core areas of expertise, namely Digital TV and Broadcast
-- International expansion with notable success in the Central and South American markets
-- The Group won its first international contract for the sale
of xplayer, mirada's Broadcast synchronisation product
-- In May the Group announced its first contract in
collaboration with Ericsson, this project was with GVT
-- Showcased "Iris" at IBC in September, mirada's multi-screen
"TV everywhere tool" and secured first international customer,
Cablecom
Jose Luis Vazquez, Chief Executive Officer of mirada,
commented:
"This period shows an evolution of the company towards a product
orientated business focusing on its core areas of expertise, namely
Digital TV and Broadcast. The investment in development that the
Group has made and continues to make in its two main Digital TV
products, Navi and Iris, is beginning to show commercial success
with major new customers being signed during the period. The
revenues earned from the Navi and Iris products are generated from
initial set-up fees and a royalty-based model, we believe that this
will in the future lead to higher recurring revenues than our
traditional professional services business."
--END--
Enquiries:
mirada plc
Jose Luis Vazquez, Chief Executive Officer +44 (0) 207 549 5678
Bishopsgate Communications
Deepali Schneider/Natalie Quinn
mirada@bishopsgatecommunications.com +44 (0) 207 562 3350
---------------------
Seymour Pierce Limited (Nominated Advisor
& Broker)
Mark Percy (Corporate Finance)
David Banks (Corporate Broking) +44 (0) 207 107 8000
---------------------
Rivington Street Corporate Finance (Joint
Broker)
Jon Levinson +44 (0) 207 562 3351
---------------------
Chief Executive Officer's Statement
Overview
I am pleased to present the Group's financial results for the
six months to 30 September 2011. This period shows an evolution of
the company towards a product orientated business focusing on its
core areas of expertise, namely Digital TV and Broadcast. The
investment in development that the Group has made and continues to
make in its two main Digital TV products, Navi and Iris, is
beginning to show commercial success with major new customers being
signed during the period. The revenues earned from the Navi and
Iris products are generated from initial set-up fees and a
royalty-based model, we believe that this will in the future lead
to higher recurring revenues than our traditional professional
services business.
mirada is continuing to expand its international activities with
notable success in the Central and South American markets. During
the period the Group also won its first international contract for
the sale of xplayer, mirada's Broadcast synchronisation product. We
expect the Group to continue its expansion into international
markets leading to a reduction in the reliance on our traditional
UK and Spanish markets.
The major evolution of a business model such as the one that we
are successfully implementing at mirada is only possible with the
strong support of our customers, our employees and our
shareholders. I want to especially thank them for helping to make
it possible.
Review of operations
Digital TV
In addition to the Group's traditional professional services
activities, mirada is now commercialising its two new Digital TV
products, Navi and Iris.
Navi is a content navigation tool which is used for finding and
purchasing programming on IPTV and is the product used under the
Ericsson partnership agreement as the user interface for their IPTV
offering. Ericsson is the world's second largest IPTV
infrastructure supplier to telecommunication companies.
In May this year we announced the Group's first contract in
collaboration with Ericsson. This project was with GVT, a Brazilian
Telecommunications group. The work is now nearly complete and in
September GVT announced the launch of its new digital TV service.
Under the terms of this agreement mirada earns both set-up fees and
a royalty per subscriber meaning that mirada will soon start to
benefit from the growth of GVT's customer base.
The IPTV market is expected to grow substantially over the
coming years, it is currently forecast that worldwide IPTV
subscribers will increase from the current level of 50 million to
110 million by the end of 2015. Through its partnership with
Ericsson, mirada is well placed strategically to take advantage of
this growth and under its royalty based model we believe that this
will lead to substantial recurrent future revenues.
Iris is mirada's multi-screen "TV everywhere tool" which allows
digital television subscribers to find and use content when and
where they want. Iris was showcased during the IBC in Amsterdam in
September this year and is aimed to satisfy the needs of the market
for an increased consumption of content through the internet. This
product includes solutions for Electronic Program Guides ("EPG"),
Video on Demand ("VoD"), live TV and Personal Video Recorders
("PVR") and allows the subscribers of our cable and satellite
digital television customers to browse, purchase and view digital
television content on multiple devices including televisions,
computers, iPads, tablets and mobile phones.
The Group's first international customer for the Iris product
was Cablecom, a major cable operator in Mexico. Revenues are earned
via set-up fees and royalties based upon the future subscribers.
Due to mirada's investment in its product-based strategy, Iris is a
cost effective solution for our customers compared to other
products offered by our competitors. We are at an advanced stage in
negotiations with other potential customers and we expect to
announce future deals in relation to Iris in the coming months.
In addition to the sales of Navi and Iris the Group continues to
earn revenues from its professional service activities. In April
this year we announced a contract with a leading European satellite
operator worth in excess of EUR0.8 million. Under the terms of this
deal mirada is developing a bouquet of 10 interactive applications
for the customer's Digital TV service.
The Group's focus on following a product based strategy and
expanding its overseas activities is beginning to have a positive
impact on the performance of the Digital TV business with revenues
increasing in the current period to GBP1.61 million from GBP1.02
million in the 6 months ended 30 September 2010 and earnings before
interest, taxation, depreciation and amortisation improving to
GBP0.46 million from GBP0.16 million.
Broadcast
The Group ceased its red button return path activities at the
end of June 2011 due to its eroding margins and the decrease in
demand from broadcasters. Although this action leads to a decrease
in revenues and to a lesser extent a decrease in gross margin, the
overall impact on the income statement will be negligible due to
the significant savings to be achieved in reducing the Group's
infrastructure costs.
The Group's broadcast activities are now focused upon the
distribution and support of our xplayer product, a synchronisation
tool for broadcasters that allows them to link their live
programming to interactive services including EPG information, PVR
reminders, interactive advertising and second screen applications
(personal computers, tablets, iPads and mobile phones). This is a
well-placed product, long established in the UK market with
customers including the BBC, ITV, Channel 4 and UKTV. During the
period mirada achieved its first international sale of xplayer, and
we expect to make further announcements on the international
distribution of this product in the second half of the year.
The revenues earned from the Group's broadcast activities
reduced to GBP0.43 million in the current period compared to
GBP0.71 million in the 6 months ended 30 September 2011, the major
reason for this is the cessation of the Group's return path
activities. The impact on the earnings before interest, taxation,
depreciation and amortisation was less significant with the current
period showing earnings of GBP0.2 million compared to GBP0.25
million in the 6 months ended 30 September 2010.
Other activities
The group has traditionally structured its activities around
Digital TV, Broadcast, Gaming, Interactive Marketing and cashless
payment solutions for the car parking market. This has proved to be
difficult to manage from an operational point of view as well as
time consuming from a management perspective. The Group has
therefore decided to focus upon our core areas of expertise and the
activities which we believe will provide a greater return for
mirada.
During the period mirada ceased its gaming operations as the
Group has not been able to successfully develop the business due to
the high level of specialisation of the competitors, the lack of
size of the unit and the continued delays on the progress of
international gambling regulations. The costs associated to the
cessation of the gaming activities are included in restructuring
costs in the income statement.
The Group has a separate subsidiary company, Mirada Connect
Ltd., which now operates all of the Group's activities relating to
cashless payment solutions for car parking operators. This
subsidiary has a specialised management team separate to that of
the rest of the Group. Although still relatively small compared to
the other areas of the Group these activities have increased during
the period with contracts secured with Apcoa and Vinci Park, two
major international parking operators that are now using our
cashless payment solutions at many of their car parks across the
UK. We expect Mirada Connect to continue progressing as our payment
solution is rolled out across additional sites through our
contracts with Apcoa and Vinci Park.
Financial overview
Revenue for the period equalled GBP2.28 million, compared to
GBP2.61 million for the six months ended 30 September 2010. The
reasons for this reduction are the cessation of the gaming and
return path activities. The Group increased its international
activities during the period with revenues generated from outside
of mirada's traditional markets of the UK and Spain increasing to
GBP1.31 million (57% of total revenues) compared to GBP0.63 million
(24% of total revenues) in the six months ended 30 September
2010.
Although there has been a reduction in revenues, the gross
profit has actually increased from GBP1.96 million in the six
months ended 30 September 2010 to GBP2.01 million in the current
period. This improvement is due to the Group's move to a product
based strategy and the focus on its higher margin core activities.
Loss before interest, tax, amortisation and depreciation was
GBP0.23 million (six months ended 30 September 2010: GBP0.26
million). The loss before taxation for the period equalled GBP0.93
million compared to GBP0.72 million in six months ended 30
September 2010.
During the period the Group received additional bank financing
of GBP0.70 million and secured a long term development loan of
GBP0.24 million, it was able to do this by demonstrating a robust
business plan with a strong pipeline of contracts and the ability
to earn recurrent future revenues based upon its new licensing
model.
Outlook
The first six months of this financial year reflect the
evolution of mirada to an international, product orientated
business. We increased our international revenues, especially in
growing markets like Latin America, securing important contracts
both directly and through our global partnership deal with
Ericsson.
The Group has started to see a return on our product investment
with the initial sales of mirada's key Digital TV products, Navi
and Iris. These contracts earn set-up fees and royalty payments
which will help secure future recurrent revenues. The timely
integration of Navi over GVT's IPTV platform demonstrated the
efficiency in which we can deploy our products and created an
important reference which can be used in the future.
Now that our core product development is substantially complete
and there is an increasing portfolio of opportunities for our
Digital TV and Broadcast business activities, we believe that
mirada is well positioned to grow and become a commercially
successful technology group.
Jose Luis Vazquez
Chief Executive Officer
11 November 2011
Consolidated income statement for the six months to 30 September
2011
6 months 6 months
ended ended Year ended
30 September 30 September 31 March
Note 2011 2010 2011
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Revenue 3 2,282 2,611 5,116
Cost of sales (273) (651) (1,163)
Gross profit 2,009 1,960 3,953
Net gaming income - 15 15
Depreciation (58) (60) (118)
Amortisation of deferred
development costs (363) (284) (617)
Impairment of goodwill - - (4,911)
Restructuring costs (71) - -
Other administrative expenses (2,238) (2,230) (4,975)
Total administrative costs (2,730) (2,574) (10,621)
Operating loss 4 (721) (599) (6,653)
Finance income - - 97
Finance expense (211) (122) (410)
Loss before taxation (932) (721) (6,966)
Taxation - - -
Loss for the financial period
from continuing operations (932) (721) (6,966)
Discontinued operations
Profit/(loss) for financial
period from discontinued
operations - 199 (135)
Loss for period (932) (522) (7,101)
Loss per share
- basic & diluted 5 (GBP0.04) (GBP0.03) (GBP0.35)
The above amounts are attributable to the equity holders of the
parent.
Consolidated statement of comprehensive income and expense
Six months to 30 September 2011
6 months
6 months ended ended Year ended
30 September 30 September 31 March
2011 2010 2011
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Loss for the financial period (932) (522) (7,101)
Other comprehensive expense (61) (183) (48)
Total comprehensive expense for
the period (993) (705) (7,149)
Attributable to equity holders
of the parent (993) (705) (7,149)
Consolidated statement of changes in equity
Six months to 30 September 2011
Share Foreign
Share Share option exchange Merger Profit
capital premium reserve reserve reserve and loss account Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 April 2011 213 273 2,109 843 2,472 (1,833) 4,077
Loss for the financial
period - - - - - (932) (932)
Movement in foreign exchange
reserve - - - (61) - - (61)
At 30 September 2011 213 273 2,109 782 2,472 (2,765) (3,084)
Share Foreign
Share Share option exchange Merger Profit
capital premium reserve reserve reserve and loss account Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 April 2010 34,923 - 2,109 891 2,472 (29,457) 10,938
Loss for the financial
period - - - - - (522) (522)
Movement in foreign exchange
reserve - - - (183) - - (183)
At 30 September 2010 34,923 - 2,109 708 2,472 (29,979) 10,233
Share Foreign
Share Share option exchange Merger Profit
capital premium reserve reserve reserve and loss account Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 April 2010 34,923 - 2,109 891 2,472 (29,457) 10,938
Loss for the financial
period - - - - - (7,101) (7,101)
Cancellation of share
capital against profit and
loss account (34,725) - - - - 34,725 -
Issue of shares 15 285 - - - - 300
Share issue costs - (12) - - - - (12)
Movement in foreign
exchange reserve - - - (48) - - (48)
At 31 March 2011 213 273 2,109 843 2,472 (1,833) 4,077
Consolidated statement of financial position as at 30 September
2011
30 September 30 September 31 March
2011 2010 2011
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Non-current assets
Property, plant and equipment 156 181 180
Goodwill 7,506 12,417 7,506
Intangible assets 1,377 1,272 1,236
Total non-current assets 9,039 13,870 8,922
Trade and other receivables 926 1,540 1,531
Cash and cash equivalents 28 12 68
Current assets 954 1,552 1,599
Total assets 9,993 15,422 10,521
Loans and borrowings (818) (546) (619)
Trade and other payables (2,417) (3,030) (2,773)
Current liabilities (3,235) (3,576) (3,392)
Net current liabilities (2,281) (2,024) (1,793)
Total assets less current
liabilities 6,758 11,846 7,129
Interest bearing loans and
borrowings (3,095) (1,073) (2,408)
Embedded conversion option
derivative (292) (339) (292)
Provisions (287) (201) (352)
Non-current liabilities (3,674) (1,613) (3,052)
Net assets 3,084 10,233 4,077
Equity attributable to equity
holders of the company
Share capital 213 34,923 213
Share premium 273 - 273
Other reserves 5,363 5,289 5,424
Accumulated losses (2,765) (29,979) (1,833)
Equity 3,084 10,233 4,077
Consolidated statement of cash flows six months to 30 September
2011
6 months ended 6 months ended Year ended
30 September 2011 30 September 2010 31 March 2011
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Cash flows from operating activities
Loss for the period (932) (522) (7,101)
Adjustments for:
Depreciation of property, plant and equipment 58 60 118
Amortisation of intangible assets 363 284 617
Impairment of goodwill - - 4,911
Profit on disposal of subsidiaries - (488) (444)
Finance income - - (97)
Finance expense 211 122 410
Operating cash flows before movements in working capital (300) (544) (1,586)
Decrease in trade and other receivables 594 240 265
(Decrease)/increase in trade and other payables (536) 517 293
Cash (used in)/generated from operations (242) 213 (1,028)
Interest and similar expenses paid (110) (34) (142)
Net cash (used in)/generated from operating activities (352) 179 (1,170)
Cash flows from investing activities
Interest and similar income received - - 2
Cash held in disposed subsidiaries - - (1)
Purchases of property, plant and equipment (35) (38) (61)
Purchases of other intangible assets (512) (318) (601)
Net cash used in investing activities (547) (356) (661)
Cash flows from financing activities
Issue of convertible loans - - 200
Issue of share capital - - 300
Costs of share issue - - (12)
Loans received 935 103 1,466
Repayment of loans (50) - (36)
Repayment of capital element of finance leases (16) (11) (23)
Net cash generated from financing activities 869 92 1,895
Net (decrease)/increase in cash and cash equivalents (30) (85) 64
Cash and cash equivalents at the beginning of the period (366) (433) (433)
Exchange gains on cash and cash equivalents 4 14 3
Cash and cash equivalents at the end of the period (392) (504) (366)
Cash and cash equivalents comprise cash at bank less bank
overdrafts.
Notes to the Accounts
1. Basis of Preparation
This interim report was approved by the Directors on 11 November
2011 The condensed interim financial statements comprise the
unaudited results for the six months to 30 September 2011 and 30
September 2010 and the audited results for the year ended 31 March
2011. The financial information for the year ended 31 March 2011
does not constitute the full statutory accounts for the period. The
Annual Report and Financial Statements for the year ended 31 March
2011 have been filed with the Registrar of Companies. The
Independent Auditors' Report on the Annual Report and Financial
Statements for the year ended 31 March 2011 was unqualified, but
did include a reference to the uncertainties surrounding going
concern, to which the auditors drew attention by way of emphasis
and did not contain a statement under 498(2) - (3) of the Companies
Act 2006.
The information included in these condensed interim financial
statements for the six months ending 30 September 2011 does not
include all the information and disclosures made in the annual
financial statements. The condensed interim financial statements
have been prepared in a manner consistent with the accounting
policies set out in the group financial statements for the year
ended 31 March 2011 and on the basis of the International Financial
Reporting Standards (IFRS) as adopted for use in the EU that the
Group expects to be applicable as at 31 March 2012. IFRS are
subject to amendment and interpretation by the International
Accounting Standards Board (IASB) and there is an ongoing process
of review and endorsement by the European Commission. 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.
The condensed interim financial information for the six months
ended 30 September 2011 and 30 September 2010 has neither been
audited nor reviewed pursuant to guidance issued by the Auditing
Practices Board.
2. Accounting policies
The accounting policies adopted are consistent with those set
out in the financial statements for the year ended 31 March 2011
and that are expected to apply for the year ended 31 March
2012.
3. Segmental reporting
For management purposes the Group is currently organised into
four operating divisions based upon the varying products and
services provided by the Group - Gaming, Digital TV, Broadcast and
Mobile (which includes Interactive Marketing and Mirada Connect).
The segment headed other relates to corporate overheads, assets and
liabilities.
Segmental results for the 6 months ended 30 September 2011 are
as follows:
Digital
Gaming TV Broadcast Mobile Other Group
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue - 1,609 429 244 - 2,282
Gross profit - 1,592 280 137 - 2,009
Profit/(loss) before
interest, tax, depreciation
& amortisation - 463 197 (4) (885) (229)
Depreciation - (27) - - (31) (58)
Amortisation - (350) - - (13) (363)
Restructuring costs (71) - - - - (71)
Finance income - - - - - -
Finance expense - - - - (211) (211)
Segmental profit/(loss) (71) 86 197 (4) (1,140) (932)
Segmental results for the 6 months ended 30 September 2010 are
as follows:
Digital
Gaming TV Broadcast Mobile Other Group
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 569 1,017 710 315 - 2,611
Gross profit 347 1,017 391 205 - 1,960
Net gaming income 15 - - - - 15
Profit/(loss) before
interest, tax, depreciation
& amortisation 221 163 248 35 (922) (255)
Depreciation - (28) - - (32) (60)
Amortisation - (269) - - (15) (284)
Finance income - - - - - -
Finance expense - - - - (122) (122)
Discontinued operations - - 199 - - 199
Segmental profit/(loss) 221 (134) 447 35 (1,091) (522)
Segmental results for the year ended 31 March 2011 are as
follows:
Digital
Gaming TV Broadcast Mobile Other Group
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 888 2,410 1,334 484 - 5,116
Gross profit 537 2,384 692 340 - 3,953
Net gaming income 15 - - - - 15
Profit/(loss) before
interest, tax, depreciation
& amortisation 279 525 418 32 (2,261) (1,007)
Impairment of goodwill (2,716) - (2,195) - - (4,911)
Depreciation - (55) - - (63) (118)
Amortisation - (590) - - (27) (617)
Finance income - - - - 97 97
Finance expense - - - - (410) (410)
Discontinued operations - - (135) - - (135)
Segmental profit/(loss) (2,437) (120) (1,912) 32 (2,664) (7,101)
Geographical disclosures
Revenue by location of customer
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2011 2010 2011
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
UK 602 1,598 2,610
Spain 370 383 925
Continental Europe 630 520 1,189
Americas 680 77 347
Other - 33 45
Total 2,282 2,611 5,116
4. Operating loss
Reconciliation of operating loss to loss before interest,
taxation, depreciation and amortisation:
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2011 2010 2011
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Operating loss (721) (599) (6,653)
Depreciation 58 60 118
Amortisation of deferred development
costs 363 284 617
Impairment of goodwill - - 4,911
Restructuring costs 71 - -
Loss before interest, taxation,
depreciation and amortisation (229) (255) (1,007)
5. Loss per share
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2011 2010 2011
(Unaudited) (Unaudited) (Audited)
Loss for period (GBP932,000) (GBP522,000) (GBP7,101,000)
Weighted average number of shares 21,305,485 19,805,485 20,010,964
Basic & diluted loss per share (GBP0.04) (GBP0.03) (GBP0.35)
For the periods ended 30 September 2011, 31 March 2011 and 30
September 2010 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.
Adjusted loss per share
Adjusted loss per share is calculated by reference to the loss
from continuing activities before interest, taxation, amortisation
and depreciation (see note 4).
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2011 2010 2011
(Unaudited) (Unaudited) (Audited)
Loss for period (GBP229,000) (GBP255,000) (GBP1,007,000)
Weighted average number of shares 21,305,485 19,805,485 20,010,964
Basic & diluted loss per share (GBP0.01) (GBP0.01) (GBP0.05)
6. 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.
7. 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, New City
Cloisters, 196 Old Street, London, EC1V 9FR.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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