TIDMPTV
RNS Number : 7293R
PeerTV PLC
30 June 2015
30 June 2015
PeerTV PLC
("PeerTV" or "the Company")
Results for the year ended 31 December 2014
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 2014.
Highlights
-- Total revenue of $1.51 million (2013: $3.01million)
-- Operating Loss $4.5 million (2013: $1.8 million). Includes
Exceptional Item, being the write down of goodwill on the purchase
of Digitek of $957,000. (2013: Nil).
-- Total Comprehensive Loss of $5.1 million (2013 loss: $3.05
million). This includes $2.06 million of financing costs (2013:
$2.26 million) and
-- Operating expenses increased from $1.3 million in 2013 to $2.2 million in 2014.
-- Total equity fundraising of approximately $4.6 million during
the year including the conversion of loan notes of $1.8 million to
equity.
-- Challenging year for both the PeerTV and Digitek businesses,
with important technology advances not yet reflected in financial
results.
-- Confidence in the future of Over The Top TV on a global basis
and electronic assembly in Israel.
-- Both businesses impacted by shortage of working capital:
o PeerTV - forced dependence on main customer which despite
successful launch and sales of Android Set Top Box did not follow
through with further confirmed orders. However, new customer
introduced together with several leads subsequent to the year
end.
o Digitek - difficulty in financing turnkey projects and
problems with machinery resulted in reduced orders and delays in
bringing online some new customers from the military and medical
device markets.
Post Year-end Events
-- Investment of about $3.4 million raised to provide working
capital, repay certain loans, accrued interest and fees, purchase
equipment and to finance cooperation agreements with Speech Modules
Holdings Limited ("Speech").
-- Adoption of turnaround plan for PeerTV with appointment of
new Chief Executive Officer and Vice President Sales &
Marketing. Both appointees with strong industry experience.
-- New assembly line to be purchased by Digitek to significantly
increase capacity and attract new customers.
-- Cooperation agreements signed with Speech for the development
and marketing of synergetic products incorporating advanced
Automatic Speech Recognition technologies.
The Annual report and the auditor's report include the following
statements
Auditors Report: Emphasis of matter - going concern
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 $5,191,000 during the year ended 31 December
2014 and had net liabilities of $6,624,000 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
$5,191,000 and had net liabilities of $6,624,000
as at the year end. The directors continue to
raise additional funds to provide working capital
and have reached agreements with several long
term creditors for settlement of liabilities
over an extended period of time or through the
issue of shares.
The directors are taking significant steps to
improve the financial position of the Group and
have obtained finance during 2015 to enable the
purchase of a new assembly line for Digitek and
the recruitment of experienced senior management
for PeerTV as part of a clearly defined turnaround
plan.
The investor financing facility is being utilised
in place of bank finance for the Digitek business
and the directors are seeking arrangements with
component suppliers to finance certain turnkey
orders expected from both existing and newly
acquired customers.
The directors believe that due to the aforementioned
developments 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 and future orders.
Subject to the above, the directors consider
that it is appropriate to prepare the financial
statements on the going concern basis.
The full audited accounts are available from the Company's head
office and can be downloaded from www.peertvplc.com. They will be
posted to shareholders today together with the Notice of the Annual
General Meeting to be held on 28(th) July 2015
Further enquiries:
PeerTV Plc
Eitan Yanuv, Chairman
Tel: +972 974 07315
ZAI Corporate Finance Limited
Tim Cofman / Richard Morrison
Tel: +44 20 7060 2220
Daniel Stewart & Company plc
David Coffman
Tel: +44 207 7766550
PEERTV PLC
CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014
2014 was a challenging year for both our business units, Peer TV
and Digitek. Important advances were made in both technical and
business development. However, these are not yet not reflected in
the financial results.
We remain confident that both units have competitive advantages
which can be utilized to achieve significant profitability and
build shareholder value.
During 2015 significant additional steps have been taken to
address the shortcomings in these units and bring about the
necessary turnaround. These include the appointment of highly
experienced Chief Executive Officer and a VP Sales and Marketing at
PeerTV and the purchase of a state of the art assembly line at
Digitek.
Peer TV
With Broadband penetration levels rising and connected devices
becoming increasingly accessible the Over the Top (OTT) market is
showing strong growth and we anticipate rising demand for our
products.
The Android set top box was launched by our major customer in
January 2014. The reaction to the product of both our customer and
the end users was extremely positive, the product sold out and
initial orders were received from a new customer. Unfortunately
repeat orders were delayed by the major customer's decision to
deploy new infrastructure which would enable a more economic and
higher quality service to their subscribers. Responding to that
decision much effort was focused on the customer's requirement for
various enhancements, including support for the advanced H.265
technology. Our success in completing the related tasks resulted in
a conditional order worth just under $1 million. Unfortunately,
although all the stated tests were passed, that order has still not
been confirmed.
Throughout the year, shortages of working capital prevented us
from actively pursuing opportunities in the wider OTT market due to
the level of customization required. This meant the Company was
dependent upon these two customers.
In the first half of 2015, we have ramped up the level of
marketing with the aim of broadening the customer base. The
appointments of Wes Wilcox and Jim Lomax provide us with industry
expertise and we expect this to result in sales to established OTT
operators and new entries to the market around the world.
During 2015, cooperation agreements have been signed with Speech
Modules Holdings Ltd a leading provider of voice recognition
systems, quoted on the Tel Aviv Stock Exchange. We are developing
two exciting new products, incorporating the Speech technology. We
currently hold about 15% of the share capital of Speech. It is an
ambitious company with proprietary technologies for potentially
huge global markets, but it is not without competitors. Our
shareholding could prove to be an important financial asset.
Digitek
There remains good demand in Israel for quality electronic
assembly services. There are many high tech, military and medical
equipment companies which require local production for security and
control purposes.
During 2014 the Digitek business was impacted by difficulties in
obtaining financing for full turnkey projects and poor production
line performance, which held back the recruitment of new larger
customers, including those from the military and medical equipment
sectors, offering the possibility of mass production orders.
In May 2014, Digitek received an order of $6.3 million to supply
smart electric meters for export. An initial quantity worth
$100,000 was supplied. The order had involved much management time
and expense. Due to disputes between other parties in the supply
chain, that order was not realized, despite satisfaction with the
Digitek product and service.
During 2015, we have acquired a new assembly line, together with
other machinery enabling Digitek to meet the quality requirements
of larger customers and to significantly increase its assembly
capacity. We have seen increasing interest from both existing and
new customers and expect sales levels to increase during the second
half of 2015.
Financing
During 2014 the Company issued new share capital of $4.6
million. This included the full conversion of Loan Notes issued by
PeerTV plc in 2011, repayment of loan and other creditors, cash
raised through private placements and a Standby Equity Distribution
Agreement with Yorkville Advisers.
To support the business it continues to be necessary to raise
equity financing, but we are aware of the high level of shareholder
dilution that this involves and hope to move the group to a
position where this is no longer necessary as quickly as
possible
Our directors, management and members of staff, together with
our advisors have continued with their hard work and support and we
look forward to improved results in 2015 and beyond.
E.Yanuv
Chairman
PEERTV PLC
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014
2 0 2 0
1 4 1 3
Note $'000 $'000
REVENUE 1,2 1,512 3,010
Cost of sales (2,330) (3,737)
GROSS LOSS (818) (727)
Research and development (714) (274)
Sales and marketing (103) (109)
General and administrative (1,384) (898)
Other income/ (expenditure) (492) 217
Exceptional items (957) -
- impairment of intangibles
OPERATING LOSS 3 (4,468) (1,791)
Finance expenditure 6 (2,065) (2,262)
Other expense - (30)
LOSS BEFORE TAXATION (6,533) (4,083)
Taxation 7 - -
Minority interest 1,342 1,035
TOTAL COMPREHENSIVE LOSS FOR
THE YEAR (5,191) (3,048)
LOSS PER SHARE
BASIC 8 ($0.01) ($0.04)
DILUTED ($0.01) ($0.03)
PEERTV PLC COMPANY NUMBER: 7068350
CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2014
Year to 31
December
2 0 2 0
1 4 1 3
Note $'000 $'000
ASSETS
Non-current assets
Intangible assets 10 1,877 3,200
Property, plant and equipment 11 839 1,307
2,716 4,507
Current assets
Inventories 13 - 170
Trade and other receivables 14 486 919
Cash and cash equivalents 15 201 230
687 1,319
Total assets 3,403 5,826
LIABILITIES
Non-current liabilities
Other payables 22 76 77
Loans and loan notes 23 148 610
224 687
Current liabilities
Bank overdraft 1,681 979
Trade and other payables 19 3,095 3,912
Bank and other borrowings 20 4,727 6,418
Provisions 21 300 169
9,803 11,478
Total liabilities 10,027 12,165
Net liabilities (6,624) (6,339)
Called up share capital 16 4,834 838
Share premium account 24,354 23,759
Share options, warrants
and deferred shares 2,628 2,112
Other reserves - on consolidation under
predecessor accounting (1,817) (1,817)
Minority interest (3,908) (2,566)
Foreign exchange reserve 844 (297)
Other reserves - equity
component of preference
shares 18 490 490
Retained earnings (34,049) (28,858)
Total equity (6,624) (6,339)
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SDUFISFISEDM
Peertv (LSE:PTV)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Peertv (LSE:PTV)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024
