TIDMPTV
RNS Number : 7392K
PeerTV PLC
27 June 2014
27 June 2014
PeerTV PLC
("PeerTV" or "the Company")
Results for the year ended 31 December 2013
PeerTV (AIM:PTV), a provider of technology solutions for the OTT
(TV over the internet) market and PCB (printed circuit board)
production solutions announces its audited results for the year
ended 31 December 2013.
Highlights
-- Total revenue of $3.01 million (2011: $1.96 million)
-- Operating Loss $1.8 million (2011 $4.4 million)
-- Total Comprehensive Loss of $3.05 million (2012 loss: $5.17
million). This includes $2.26 million of financing costs (2012 $1.4
million)
-- Operating expenses reduced from $2 million in 2012 to $1.06 million in 2013.
-- Total equity fundraising of approximately $2.8 million during the year
-- Continued restructuring and refinancing of the Digitek
business through the issue of additional secured loan notes and
reaching agreements with bank and various other creditors
-- Obtaining the standards required to attract high tier
customers capable of generating orders for mass production.
Continuing to reduce costs across the Group
-- Focus on completing the development of the Android based Set
Top Box and supplying first orders to PeerTVs major customer.
Initial products which were delivered in 2013 and launched by the
customer in early 2014, were well received by both the customer and
its end users and expected to lead to increasing order levels.
Post Year-end Events
-- Order of approximately $6.3m received by Digitek for delivery within 12 months
-- Additional working capital of GBP566,800 raised through private placings
-- GBP450, 280 of 8% Loan Notes converted to equity at a
discount of 10% to the average price at which funds were raised
during the quarter ended 31 March 2014
The Annual report and the auditor's report include the following
statements
Auditors Report: Emphasis of matter - going concern
In forming our opinion, which is not modified, we have
considered the adequacy of the disclosures made within note 1e of
the accounting policies concerning the group's and the parent
company's ability to continue as a going concern. The group
incurred a net loss of $3,048,000 during the year ended 31 December
2013 and had net liabilities of $6,339,000 as at that date. This,
along with the other matters explained within note 1e of the
accounting policies indicate the existence of a material
uncertainty which may cast a significant doubt about the group and
company's ability to continue as a going concern. The financial
statements do not include the adjustments that would result if the
group and company were unable to continue as a going concern.
Annual Report: Going concern
Going concern
During the year the group incurred a loss of $3,048,000 and had
net liabilities of $6,339,000 as at the year end. The directors
are in the process of raising additional funds to provide working
capital.
The directors are encouraged by a strong inflow of orders and
Letters of Intent which are expected to convert into firm orders
for both the PeerTV and Digitek businesses later in 2014 and
in 2015. The major order for a minimum value of $6.3m received
by the Digitek business from an overseas customer in May 2014
is particularly encouraging.
The directors believe that due to the aforementioned developments,
including the private placement that is currently in progress
and the significant order detailed above, that the company is
a going concern. However, the future of the Group is dependent
on it achieving its trading projections and on the directors
being successful in their bid to secure finance, renegotiate
existing financing arrangements (including the conversion of
loan notes to equity) and future orders.
Subject to the above, the directors consider that it is appropriate
to prepare the financial statements on the going concern basis.
If additional financing by whatever means is not secured in the
next twelve months, then it is unlikely that the group be able
to continue in its present form.
The financial statements do not include any adjustments that
would be necessary should this basis not be appropriate.
The full audited accounts are available from the Company's
website: www.peertvplc.com and will be posted to shareholders in
the next few days.
Further enquiries:
PeerTV Plc
Eitan Yanuv, Chairman
+972 974 07315
Daniel Stewart & Company
Antony Legge / David Coffman
+44(0)20 7776 6550
CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2013
I was appointed Chairman in May 2013. During 2013 the Group
continued to focus on realising the potential of both its business
units, Peer TV and Digitek, by exploiting the competitive
advantages and positive developments in its market sectors.
Peer TV
The PeerTV business made significant progress during 2013. The
first delivery of our Android set top box was made to our major
customer in May 2013. However, the customer's product launch was
delayed until January 2014 due to a combination of issues outside
the control of PeerTV, including requests from the customer for
additional features.
During 2013, our sales team succeeded in identifying several
major prospects. However, due to the demands for substantial
customisation and ongoing support, it was decided to focus
resources on our major customer to ensure a successful deployment
as a reference for expansion of the customer base.
I am very pleased to report that the reaction to the product of
both our customer and the end users has been extremely positive,
confirming the importance of PeerTV being the first vendor in the
market with an Android based solution. The launch has resulted in
approaches from at least two new customers, one of which has placed
an initial order, as part of a framework order for a more
significant quantity.
Investment raised in 2014 will be utilised for marketing to
expand the customer base. Our development program will result in a
series of innovative features which will further strengthen our
competitive advantage.
We are seeing consistent and significant growth in interest and
adoption of Smart TV solutions which bridge the gap between the
Internet and traditional television, and anticipate rising demand
for our products.
Digitek
During the year management focus at Digitek was on strengthening
the customer base and obtaining the standard approvals necessary to
address certain high growth sectors, including the military and
medical equipment, which offer the possibility of mass production
orders.
Improved sales volumes and the introduction of new important
customers during the final quarter of 2013 demonstrated the success
of the approach. In some cases, shortages of working capital have
prevented Digitek from taking full advantage of the opportunities
generated by being unable to finance the inventory of components
required for large scale turnkey projects.
The Digitek team has made great steps in repositioning the
business, while simultaneously dealing with serious financial
challenges. Major new customers have been recruited. In May 2014 we
announced a purchase order from an overseas customer of a minimum
of $6.3 million for delivery in 2014. The receipt of this order for
mass production represents an important milestone and we are
optimistic that it will result in further high value contracts.
The board has managed its financial challenges successfully
during 2013 through further issues of debt and equity finance.
Thanks go to our chief executive Avi Vermus, directors and
members of staff, together with our advisors for their hard work
and support during the year. We look forward to building on the
significant progress that is being made in both businesses during
2014.
E.Yanuv
Chairman
PEERTV PLC
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2013
2 0 1 2 0 1
3 2
Note $'000 $'000
REVENUE 1,2 3,010 1,959
Cost of sales (3,737) (2,418)
GROSS LOSS (727) (459)
Research and development (274) (397)
Sales and marketing (109) (152)
General and administrative (898) (1,400)
Other income/ (expenditure) 217 (98)
Exceptional items - impairment of intangibles 5 -- (1,913)
OPERATING LOSS 3 (1,791) (4,419)
Finance expenditure 6 (2,262) (1,401)
Other expense (30) (32)
LOSS BEFORE TAXATION (4,083) (5,852)
Taxation 7 -- --
Minority interest 1,035 682
TOTAL COMPREHENSIVE LOSS FOR THE YEAR (3,048) (5,170)
LOSS PER SHARE
BASIC 8 ($0.04) ($0.10)
DILUTED ($0.03) ($0.08)
PEERTV PLC
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