1 November 2012
mirada plc
(AIM: MIRA)
("mirada" or "the Group")
Interim results for the six months to 30 September 2012
mirada plc, the AIM quoted leading audiovisual content
interaction specialist, announces its unaudited interim results for
the six months to 30 September
2012.
Key Points
* Revenue for the period is £2.46 million, compared to £2.28
million for the
six months ended 30 September 2011
* Gross profit increased to £2.35 million from £2.01 million in the six
months ended 30 September 2011
* Profit before interest, tax, depreciation and amortisation was £0.61
million, compared to a £0.23 million loss for the six months ended 30
September 2011
* Earnings per share equalled 0.1p compared to a loss per share
of 4.4p for
the six months ended 30 September
2011
Operational Highlights
* mirada has reached profitability for the first time in its history
* Successful transition from a professional services based company to a
product based model
* Significant investment made in iris, a "TV everywhere", multi-screen
product mainly addressed to the cable television market, and navi, a
content navigation tool for the IPTV market
* Several major customers have led to the generation of substantial,
recurrent licence fee revenue
* GVT has gained more than 200,000 new subscribers and it has become the
fastest growing Digital TV operator in the Brazilian market
* Additionally, mirada and Ericsson are participating in a number of new
negotiations, mostly in Latin
America and Eastern Europe,
which it is hoped
will lead to further new contracts in the present fiscal
year
* First iris customer, Cablecom, launched its HD (High
Definition) service in
July
José Luis Vázquez, Chief Executive Officer of mirada, said:
"The first six months of this financial year has seen the start of the return
on the investment made in our product development strategy. The recurrent
revenues generated from licence fees based on the growth of our customers,
especially in the Latin American market, have helped the Group to make the
transition to profitability. The Group has been able to make this transition in
the current adverse economic environment through a strong belief in the
benefits of the new business model and thanks to the expansion into growing
international markets."
--END--
Enquiries:
mirada plc +44 (0) 207 549 5678
Jose Luis Vazquez, Chief Executive Officer
Bishopsgate Communications +44 (0) 207 562 3350
Nick Rome/Sam Allen/ Matt Low
mirada@bishopsgatecommunications.com
Seymour Pierce Limited (Nominated Advisor & Broker) +44 (0)
207 107 8000 Mark Percy (Corporate
Finance)
David Banks (Corporate Broking)
Peterhouse Corporate Finance (Joint Broker) +44 (0) 207 469
0937
Jon Levinson
Chief Executive Officer's Statement
Overview
I am pleased to present the Group's financial results for the six months to 30
September 2012. This period has seen the benefits of the transition from a
professional services based company to a product based model. The investment
made in our most important products, iris and navi, has been rewarded with
deployment of new Digital TV services by several major customers leading to the
generation of substantial, recurrent licence fee revenue. These licence fees
have helped to enable the Group to record a profit for the period.
This improved performance was made possible thanks to the incredible support
from our employees, customers and major shareholders. Their continued belief
that mirada has an important role to play in the Digital TV market, and that a
product-led strategy could generate value in this rapidly changing market have
been the cornerstones which have led to the creation of a successful business
model from which the Group is now benefiting.
It has been a long process, during which we have needed to close some
loss-making business areas to enable us to concentrate on the core skills of
our team. We are now proud to announce that the process is complete and that
the Group has reached profitability. In order to improve performance further we
have set ourselves the targets of extending our international reach into new
markets and of continuing to improve our product proposition to allow us to
keep ahead of the expectations of the Digital TV market.
Review of operations
During the period mirada has focused on the expansion of its main area of
business, Digital TV, through the deployment of its navi and iris products.
Major new contracts in this area are on a product-based model that comprises
set-up fees, plus licence fees based on the number of subscribers signing up to
our customers' digital television services.
navi is a content navigation tool which allows the end user of a
Digital TV platform to optimise their experience whilst using the
service. mirada deploys navi via its global partnership agreement
with Ericsson who are the world's leading IPTV infrastructure
supplier to telecommunication companies.
mirada's first major customer through its partnership with Ericsson was GVT, a
Brazilian telecommunications company who are part of the Vivendi group, who
launched their IPTV service in November 2011. During the 6 months ended 30
September 2012 GVT has gained more than 200,000 new subscribers and it has
become the fastest growing Digital TV operator in the Brazilian market. In
addition to the licence fees earned in relation to these new subscribers mirada
earns recurrent annual support and maintenance fees. GVT is also continuing to
deploy new functionalities developed by mirada from which the Group earns
additional professional service fee income.
During the period under review, mirada has being working hard on deploying a
second Digital TV platform with navi, and we expect to announce its commercial
launch very shortly. This customer is based in Mexico, reinforcing our presence
in the region. Additionally, mirada and Ericsson are participating in a number
of new negotiations, mostly in Latin America and Eastern Europe, which we hope
will lead to further new contracts in the present fiscal year.
iris is our "TV everywhere" multi-screen product mainly addressed to the cable
television market. Our first iris customer, Cablecom, launched its HD (High
Definition) service in July this year, and has started signing up new
subscribers which has led to additional licence fees being earned by mirada.
The iris product has been received very well by the market and mirada is
currently in negotiations to sell the technology to other customers, mainly in
Latin America, and we expect to announce an important new customer by the end
of 2012.
The Digital TV revenues of the Group during the period have grown by 32% to £
2.12 million when compared to revenues of £1.61 million in the 6 months ended
30 September 2011. Of these revenues, 90% were generated overseas (outside of
UK and Spain), growing to £1.91 million from £1.31 million in the same period
last year. The Digital TV earnings before interest, taxation, depreciation and
amortisation improved to £0.96 million from £0.46 million.
Other activities
Revenues earned by the Broadcast division were £0.12 million for period
compared to £0.43 million for 6 months ended 30 September 2011, of this
reduction £0.24 million relates to the fact that the Group's return path
activities ceased at the end of June 2011. The remaining reduction was due to
mirada's technical team focusing their efforts on the Digital TV deployments
made during the period. We expect the revenues for the Broadcast division to
increase significantly in the second half of the year with new projects
anticipated to be contracted through mirada's partnership with Red Bee Media.
There is a continued growth of the revenues in mirada connect, our cashless
parking payment solution, through new deployments from our partnerships with
Apcoa and Vinci in the UK. Mirada now manages the cashless parking services for
the First Great Western and First Capital Connect train lines, as well as
parking for the Travelodge hotel chain. The business unit is increasingly
independent from the Group with an independent management team and services now
being deployed from the cloud, which has dramatically increased the
flexibility, time to market and resilience of our managed services. We expect
the unit to consolidate its growth and to expand its activities to on-street
cashless parking services during the following months.
Financial overview
Group revenue for the period equalled £2.46 million, compared to £2.28 million
for the six months ended 30 September 2011, with gross profit increasing to £
2.35 million from £2.01 million. The reasons for the growth are related to our
international expansion and to the increase in the revenues generated from
licence fees, which represent a 33% of our total revenues during the period
(14% during the same period last year).
The closure of the loss making businesses and the restructuring which has taken
place over the last year has led to a decrease in other administrative expenses
from £2.24 million in the 6 months ended 30 September 2011 to £1.74 million in
the current period.
The effect of the above has led to a dramatic improvement in earnings before
interest, tax, depreciation and amortisation, which totalled £0.61 million in
the current period compared to a loss of £0.23 million in the 6 months ended 30
September 2011. This improvement has continued to the bottom line with the
Group earning a retained profit for the period of £0.02 million compared to a
loss of £0.93 million in the 6 months ended 30 September 2011.
Outlook
The first six months of this financial year has seen the start of the return on
the investment made in our product development strategy. The recurrent revenues
generated from licence fees based on the growth of our customers, especially in
the Latin American market, have helped the Group to make the transition to
profitability. The Group has been able to make this transition in the current
adverse economic environment through a strong belief in the benefits of the new
business model and thanks to the expansion into growing international markets.
We continue to invest in our core Digital TV products to provide the market
with the best solutions for the transition to a multi-screen world, and we are
very satisfied with the progress that we are making in this field. We believe
that, with our experience in the audio-visual interaction market, we will be
able to continue surpassing the expectations of our customers and partners. Our
two major products, navi and iris, have been very well received in the Digital
TV market, and we expect to achieve further growth through the continued
development of new functionalities and through an increased access to growing
markets.
The transition is complete, and we are now seeing the benefits of the product
based model. We expect to continue to improve our performance and we look
forward to providing the market with continued news flow of our achievements
during the following months.
Jose Luis Vazquez
Chief Executive Officer
1 November 2012
Consolidated income statement for the six months to 30 September 2012
Note 6 months 6 months Year ended
ended ended
30 September 30 September 31 March
2012 2011 2012
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Revenue 3 2,457 2,282 4,346
Cost of sales (109) (273) (562)
Gross profit 2,348 2,009 3,784
Depreciation (33) (58) (106)
Amortisation of deferred (317) (363) (733)
development costs
Impairment of goodwill - - (560)
Restructuring costs - (71) (528)
Other administrative expenses (1,743) (2,238) (4,156)
Total administrative costs (2,093) (2,730) (6,083)
Operating profit/(loss) 4 255 (721) (2,299)
Finance income 3 - 4
Finance expense (233) (211) (867)
Profit/(loss) before taxation 25 (932) (3,162)
Taxation - - -
Profit/(loss) for period 25 (932) (3,162)
Earnings/(loss) per share
- basic 5 0.1p (4.4p) (11.0p)
The above amounts are attributable to the equity holders of the
parent.
Consolidated statement of comprehensive income
Six months to 30 September
2012
6 months 6 months Year ended
ended ended
30 September 30 September 31 March
2012 2011 2012
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Profit/(loss) for the financial period 25 (932)
(3,162)
Currency translation differences 90 (61)
(306)
Total comprehensive income/(expense) 115 (993) (3,468)
for the period
Consolidated statement of changes in equity
Six months to 30 September
2012
Profit
Share Foreign and
Share Share option exchange Merger loss
capital premium reserve reserve reserve account Total
£000 £000 £000 £000 £000 £000 £000
At 1 April 2012 319 1,216 140 537 2,472 (3,026) 1,658
Profit for the financial - - - - - 25 25
period
Movement in foreign - - - 90 - - 90
exchange reserve
At 30 September 2012 319 1,216 140 627 2,472 (3,001) 1,773
Profit
Share Foreign and
Share Share option exchange Merger loss
capital premium reserve reserve reserve account Total
£000 £000 £000 £000 £000 £000 £000
At 1 April 2011 213 273 2,109 843 2,472 (1,833) 4,077
Loss for the financial - - - - - (932) (932)
period
Movement in foreign - - - (61) - - (61)
exchange reserve
At 30 September 2011 213 273 2,109 782 2,472 (2,765) 3,084
Profit
Share Foreign and
Share Share option exchange Merger loss
capital premium reserve reserve reserve account Total
£000 £000 £000 £000 £000 £000 £000
At 1 April 2011 213 273 2,109 843 2,472 (1,833) 4,077
Loss for the financial - - - - - (3,162) (3,162)
period
Transfer between - - (1,969) - - 1,969 -
reserves
Issue of shares 106 960 - - - - 1,066
Share issue costs - (17) - - - - (17)
Movement in foreign - - - (306) - - (306)
exchange reserve
At 31 March 2012 319 1,216 140 537 2,472 (3,026) 1,658
Consolidated statement of financial position as at 30 September 2012
30 September 30 September 31 March
2012 2011 2012
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Property, plant and equipment 79 156 112
Goodwill 6,946 7,506 6,946
Intangible assets 1,442 1,377 1,295
Non-current assets 8,467 9,039 8,353
Trade and other receivables 1,615 926 1,324
Cash and cash equivalents 3 28 35
Current assets 1,618 954 1,359
Total assets 10,085 9,993 9,712
Loans and borrowings (674) (818) (1,095)
Trade and other payables (3,447) (2,417) (3,088)
Current liabilities (4,121) (3,235) (4,183)
Net current liabilities (2,503) (2,281) (2,824)
Total assets less current 5,964 6,758 5,529
liabilities
Interest bearing loans and (3,058) (3,095) (2,817)
borrowings
Embedded conversion option (292) (292) (292)
derivative
Other non-current liabilities (185) - (194)
Provisions (656) (287) (568)
Non-current liabilities (4,191) (3,674) (3,871)
Net assets 1,773 3,084 1,658
Issued share capital and reserves
attributable to equity holders of
the company
Share capital 319 213 319
Share premium 1,216 273 1,216
Other reserves 3,239 5,363 3,149
Accumulated losses (3,001) (2,765) (3,026)
Equity 1,773 3,084 1,658
Consolidated statement of cash flows six months to 30 September 2012
6 months 6 months Year ended
ended ended
30 September 30 September 31 March
2012 2011 2012
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Cash flows from operating activities
Profit/(loss) for the period 25 (932) (3,162)
Adjustments for:
Depreciation of property, plant and 33 58
106
equipment
Amortisation of intangible assets 317 363
733
Impairment of goodwill - - 560
Finance income (3) - (4)
Finance expense 233 211 867
Operating cash flows before movements 605 (300) (900)
in working capital
(Increase)/decrease in trade and other (340) 594 152
receivables
Increase/(decrease) in trade and other 587 (536)
(56)
payables
(Decrease)/increase in provisions (113) -
216
Cash generated from/(used in) 739 (242) (588)
operations
Interest and similar expenses paid (126) (110)
(307)
Net cash generated from/(used in) 613 (352) (895)
operating activities
Cash flows from investing activities
Interest and similar income received 3 -
4
Purchases of property, plant and (2) (35)
(41)
equipment
Purchases of other intangible assets (514) (512)
(828)
Net cash used in investing activities (513) (547)
(865)
Cash flows from financing activities
Issue of share capital - - 843
Costs of share issue - - (17)
Loans received 604 935 1,246
Repayment of loans (570) (50) (239)
Repayment of capital element of finance (5) (16)
(27)
leases
Net cash generated from financing 29 869 1,806
activities
Net increase/(decrease) in cash and 129 (30)
46
cash equivalents
Cash and cash equivalents at the (299) (366) (366)
beginning of the period
Exchange gains on cash and cash 13 4
21
equivalents
Cash and cash equivalents at the end of (157) (392) (299) the
period
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 31 October 2012. The
condensed interim financial statements comprise the unaudited results for the
six months to 30 September 2012 and 30 September 2011 and the audited results
for the year ended 31 March 2012. The financial information for the year ended
31 March 2012 does not constitute the full statutory accounts for the period.
The Annual Report and Financial Statements for the year ended 31 March 2012
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 2012 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 2012 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 2012 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 2013. 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 2012 and
30 September 2011 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 2012 and that are expected to apply for
the year ended 31 March 2013.
3. Segmental reporting
For management purposes the Group is currently organised into three 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 2012 are as follows:
Digital Broadcast Mobile Other Group
TV
£000 £000 £000 £000 £000
Revenue - external 2,119 120 218 - 2,457
Gross profit 2,116 106 126 - 2,348
Profit/(loss) before 958 84 13 (450) 605
interest, tax,
depreciation &
amortisation
Depreciation (19) - - (14) (33)
Amortisation (282) - (19) (16) (317)
Finance income - - - 3 3
Finance expense - - - (233) (233)
Segmental profit/(loss) 657 84 (6) (710) 25
Segmental results for the 6 months ended 30 September 2011 are as follows:
Digital Broadcast Mobile Other Group
TV
£000 £000 £000 £000 £000
Revenue - external 1,609 429 244 - 2,282
Gross profit 1,592 280 137 - 2,009
Profit/(loss) before 463 197 (4) (885) (229)
interest, tax,
depreciation &
amortisation
Depreciation (27) - - (31) (58)
Amortisation (350) - - (13) (363)
Restructuring costs - - - (71) (71)
Finance income - - - - -
Finance expense - - - (211) (211)
Segmental profit/(loss) 86 197 (4) (1,211) (932)
Segmental results for the year ended 31
March 2012 are as follows:
Digital Broadcast Mobile Other Group
TV
£000 £000 £000 £000 £000
Revenue - external 3,346 594 406 - 4,346
Gross profit 3,165 420 199 - 3,784
Profit/(loss) before 792 323 (61) (1,426) (372)
interest, tax,
depreciation &
amortisation
Impairment of goodwill - - (560) - (560)
Depreciation (53) - - (53) (106)
Amortisation (707) - (18) (8) (733)
Restructuring costs - - - (528) (528)
Finance income - - - 4 4
Finance expense - - - (867) (867)
Segmental profit/(loss) 32 323 (639) (2,878) (3,162)
Geographical disclosures
Revenue by location of customer
6 months 6 months Year ended
ended ended
30 September 30 September 31 March
2012 2011 2012
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
UK 338 602 908
Spain 210 370 615
Continental Europe 288 630 1,319
Americas 1,621 680 1,504
Total 2,457 2,282 4,346
4. Operating profit/(loss)
Reconciliation of operating profit/(loss) to profit/(loss)
before interest, taxation, depreciation and amortisation:
6 months 6 months Year ended
ended ended
30 September 30 September 31 March
2012 2011 2012
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Operating profit/(loss) 255 (721) (2,299)
Depreciation 33 58 106
Amortisation of deferred development 317 363
733
costs
Impairment of goodwill - - 560
Restructuring costs - 71 528
Profit/(loss) before interest, 605 (229) (372)
taxation, depreciation and
amortisation
5. Earnings/(loss) per share
6 months 6 months Year ended
ended ended
30 September 30 September 31 March
2012 2011 2012
(Unaudited) (Unaudited) (Audited)
Profit/(loss) for period £25,000 (£932,000) (£3,192,000)
Weighted average number of shares 31,973,423 21,305,485
29,050,700
Basic earnings/(loss) per share 0.1p (4.4p)
(11.0p)
Adjusted earnings/(loss) per share
Adjusted earnings/(loss) per share is calculated by reference to the loss from
continuing activities before interest, taxation, amortisation and depreciation
(see note 4).
6 months 6 months Year ended
ended ended
30 September 30 September 31 March
2012 2011 2012
(Unaudited) (Unaudited) (Audited)
Adjusted profit/(loss) for period £605,000 (£229,000)
(£372,000)
Weighted average number of shares 31,973,423 21,305,485
29,050,700
Basic & diluted earnings/(loss) per 1.9p (1.1p) (1.3p)
share
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.