9 July 2015
mirada plc
(AIM: MIRA)
("mirada", “the Company” or "the
Group")
Final Results for
the Year Ended 31 March 2015
mirada plc, the AIM quoted leading audiovisual content
interaction specialist, announces its final results for the year
ended 31 March 2015.
Financial Highlights
- Revenue increased 24% to £5.66 million (2014: £4.57
million)
- Revenues earned from licences remained in line with last year
to £1.73 million (2014: £1.74 million)
- Gross profit increased 23% to £5.42 million (2014: £4.39
million)
- Gross profit margin remained stable at 96%
- Adjusted EBITDA* increased 50% to £1.54 million (2014: £1.02
million)
- Pre-tax loss reduced to £0.11 million (2014: loss of £0.39
million)
*Adjusted EBITDA is defined as earnings before interest, tax,
depreciation, amortisation and share-based payment charges
Operational Highlights
- Commercialisation of first Tier One project for Televisa Group
with Cablevisión Monterrey
deployment commencing in February
2015
- Oversubscribed placing to raise £3.5 million at a price of
12.5p, providing funds to strengthen the Group’s position within
the Over The Top (“OTT”) market and Latin
America
- Inaugural OTT contract win
- Successful launch of Telefónica’s Movistar Go product
- Appointments of José Gozalbo (Chief Technology Officer) as
Executive Director, Matthew Earl as
Non-Executive Director, and Gonzalo Babío as Chief Financial
Officer (non Board appointment)
José Luis Vázquez, CEO of mirada, commented: “We have now
entered a new stage in which major players are showing increased
interest in our capabilities. Having proven our ability to win and
deliver Tier One contracts, the Board is encouraged by the
prospects that might develop from the continuing discussions with
other potential Tier 1 and Tier 2 customers.”
Enquiries:
mirada plc
José Luis Vázquez, Chief Executive Officer |
+44 (0) 207 549
5678 |
Walbrook PR
Nick Rome/Sam Allen
mirada@walbrookpr.com |
+44 (0) 207 933
8780 |
Arden Partners plc
(Nomad and Joint Broker)
Steve Douglas (Corporate Finance)
James Felix (Corporate Finance)
Kam Bansil (Corporate Broking) |
+44 (0) 207 614
5900 |
Overview
I am pleased to report the Group’s financial results for the
year ended 31 March 2015. This has
been a critical period for the Company during which we have secured
and deployed our first Tier One contract. mirada has proven capable
of winning and delivering milestone deals competing with the
largest players in the Digital TV market. As such, it has
established and strengthened its network of relationships and
successfully delivered its products in a challenging environment,
whilst creating a strong pipeline of potential large-scale
contracts.
The Company won its most important contract to date in
May 2014 with Televisa Group for its
flagship product, iris, a unique TV-everywhere ecosystem featuring
the advanced inspire user-experience, which it launched for
the first time on Cablevisión Monterrey’s cable network in February
this year. Even with a delay in commercial deployment beyond
mirada’s control, the Group achieved a healthy growth in revenues
of nearly 24% to £5.66 million (2014: £4.57 million). Most of this
growth resulted from professional services related to increased
functionality and customisation of the Televisa Group deployments,
while licence fees remained in line with last year at £1.73
million. The growth resulted in an improvement in adjusted EBITDA
(defined as earnings before interest, tax, depreciation,
amortisation and share based payment charges) of £1.54 million
(2014: £1.02 million), increasing more than 50% from the previous
year. The Group was also able to raise operating profit for the
year to £0.29 million (2014: £0.004 million). Losses Before Tax
were reduced to -£0.11 million (2014: -£0.39 million), with a Net
Loss of -£0.18 million (2014: £0.04 million profit) after
taxes.
In addition to the Televisa iris contract, the Group also
secured its first significant OTT contract, also with Televisa. In
addition, we deployed our iris technology with the Telefónica Group
in Peru. These milestones
demonstrate the competitiveness of mirada for next generation
Digital TV products. The team continues to be able to achieve its
goal of being at the forefront of OTT technologies, positioning us
well to secure larger deals and these milestones have translated
into continuing discussions with other Tier One customers.
We have a strongly supportive shareholder base, as demonstrated
by the oversubscribed placing of £3.5 million (before expenses) in
July 2014, which allowed the Group to
secure the OTT deals and substantially strengthen our balance
sheet. We remain grateful for their support.
Trading review
First Tier One
customer
The primary focus of the Group over the year was to secure the
deployment of our inaugural Tier One contract, which was awarded to
us by Televisa in May 2014. The first
such commercial deployment commenced in February 2015 for Televisa’s regional network,
Cablevisión Monterrey. The first
months of the deployment have gone well, with technical and
commercial performance surpassing expectations. As announced in
December and January, issues beyond mirada's control have delayed
commercial deployment in the other Televisa networks to the end of
the current financial year. Following the acquisition of Cablecom
and Telecable during the period under review, Televisa now owns
five cable networks, all of which the Company expects to adopt the
iris/inspire software.
During the period, there have been significant improvements to
the software, and mirada has faced the additional challenge of
integrating its product in a complex multi-network environment in
the middle of a consolidation process. Substantial progress has
been made and the Company is ready to launch the products across
the rest of the cable networks as required by the customer.
Performance of
Installed Base
The period under review generated licence fees from the
following main sources: GVT in Brazil, and Cablecom, Axtel and the Televisa
Group in Mexico.
During the year Telefónica acquired GVT, and has stated that it
intends to merge GVT's activities with Telefónica Brazil. This merger generated around 190,000
new subscribers during the period, comprised of additional hybrid
(IPTV) and satellite (DTH) operations, with GVT subscribers
accounting for around 940,000 in total. However, GVT has reached
relative maturity and, with its impending consolidation process,
mirada is conservative about its growth and direction with respect
to user-experience software.
Axtel in Mexico continues to
grow, reaching nearly 100,000 subscribers for the Navi solution, a
user-friendly tool for finding and purchasing programming on IPTV,
at the end of the period. The Company continues invoicing new
licence batches and earning managed service through our long
established relationship with Ericsson Mexico.
In August 2014, the Televisa Group
completed its acquisition of Cablecom. As the operational merger
concludes, management expects that subscribers from the cable
network will adopt the iris/inspire solution. In the meantime,
mirada continues to offer managed services to Cablecom for their
already deployed iris/origin solution. With respect to the
commercial deployment of the iris/inspire solution, mirada was able
to invoice one-off back-office licence fees and the first batch of
subscriber-based licence fees at the end of the period as
expected.
Digital TV and
Broadcast unit financial performance
The Group has continued to concentrate on Digital TV &
Broadcast business, which accounted for 92.5% of total turnover
(2014: 90.7%) and 95.4% of gross margin (2014: 94%). Owing to the
consolidation of the business and the successful transition of the
Digital TV model, growing with our customers’ success based on a
subscriber-based licence fees agreements, revenues from the unit
reached £5.23 million (2014: £4.15 million), representing 26%
growth year-on-year. Licence fees remained flat, mainly due to the
delays in the Tier One commercial launch, while most of the growth
came from professional services, with sales of £3.50 million (2014:
£2.41 million), some of which derived from the Televisa contract.
Segmental EBITDA also increased to £2.09 million (2014: £1.87
million).
The major source of revenues – mainly US dollar denominated –
continued to be Latin America,
which accounted for 72% of sales (2014: 69%), while the Company
strengthened its pipeline elsewhere in the world. Turnover from the
UK and Spain increased to £1.55
million (2014: £1.22 million), amounting to 27% of total turnover,
in line with last year’s percentage.
Mobile unit
financial performance
Revenues from the mobile unit remained stable at £0.43 million
(2014: £0.42 million). The business, comprising mainly cashless
parking, is active in the UK.
Appointments
During the year we were pleased to welcome Matthew Earl to the role of Non-Executive
Director and José Gozalbo (CTO) to the role of Executive Director.
Gonzalo Babío, an experienced
professional formerly working for Electronic Arts and Disney, also
joined as our new CFO (non board position) at the end of the
financial year.
Financial overview
Revenue grew to £5.66 million (2014: £4.57 million), mainly from
Digital TV & Broadcast activities. Gross profit margin remained
stable at 96% and adjusted EBITDA for the year increased 50.7% to
£1.54 million (as disclosed in note 6) compared to £1.02 million in
the prior year. Amortisation charges increased to £1.19 million
from £0.92 million as a result of increased investment in iris,
especially in the inspire user-experience and the OTT features.
Based on the Group’s improved performance and future projections, a
deferred tax asset of £0.04 million was recognised during the
year.
Adjusted EBITDA is a key performance indicator (“KPI”) used by
management as it removes the impact of one-off and non-cash
transactions. Other KPIs used by management include the
following:
- Gross profit margin: the Group’s focus on Digital TV &
Broadcast business, in which cost of sales are minimal, delivered a
gross profit margin of 96%, in line with last year.
- Overseas activities (i.e. excluding UK and Spain): total revenues from Latin America increased to £4.06 million
(2014: £3.14 million), representing 72% of our turnover, up from
69% last year. Overseas activities remained at 73% of total Group
turnover, the same percentage as last year.
- Subscriber-based licence fee revenue included within the
Digital TV & Broadcast segment: revenues from licence fees
command higher margins and are key to our return on investment and
overall profitability. Total licence fees for the year equalled
£1.73 million, in line with £1.74 million in the prior period.
The Group posted a loss before tax for the year of £0.11 million
compared to a loss of £0.39 million in the prior period. The
Televisa contract-related professional services led to increased
revenues, EBITDA and operational profit, although management expect
subscriber-based licence fees to drive overall profitability of the
contract, once the commercial launch takes place across the rest of
the Customer’s cable networks.
Total borrowings remained at a similar level to last year
totalling £2.81 million (2014: £2.64 million). Long term interest
bearing loans and borrowings reduced 30% to £1.35million (2014:
£1.91 million) and short term borrowings increased from £0.73
million to £1.47 million due to working capital needs related to
delays on the Televisa commercial deployment, including factoring
facilities at £0.44 million. Trade receivables were exceptionally
high at the end of the period at £2.19 million (2014: £0.79
million) due to invoicing in March of licence fees related to the
commercial launch of the contract. In July
2014, the Company completed the equity funding of £3.5
million (before expenses), which enabled successful OTT product
development and improved the Net Asset position.
During the year to March 2015, it
was concluded that Mirada should have raised a provision for
dilapidations on a long-term lease. As a result the consolidated
balance sheets as at 31 March 2013
and 31 March 2014 have been restated
to reflect the liability of a £500k lease provision. The
restatement does not affect the Income Statement or the Statement
of Cashflows.
Operational Review
Areas of business
mirada is an audiovisual interaction technology company
providing both interactive products and software development
services. We trade in complementary areas around the media
business, with some smaller stand-alone activities in certain other
markets:
Digital TV & Broadcast:
We have more than 15 years’ experience in technologies from
interactive TV to advanced navigational services and
synchronisation technologies and have a solid network of partners
and we are internationally recognised for our skill base. Our
products comprise user interfaces for content navigation and
consumption over Digital TV receivers (TV and set-top boxes),
personal computers and companion devices (tablets and smartphones).
Our major products are our navigational software propositions: iris
(with our origin and inspire user interfaces), navi (in partnership
with Ericsson) and xplayer for Broadcasters.
Other areas:
mirada has experience and business activities in other areas,
principally broadcast and cashless payment solutions for the car
parking market via mirada connect. mirada connect will remain
independent from the rest of the business. Although non-core, it
makes a positive contribution to Group EBITDA.
Current Trading and Outlook
This year has seen the consolidation of the Company as a
significant contender in the Digital TV world, winning contracts
generally only awarded to much larger players. The contract awarded
in May 2014 and the later deployment
at the first cable network, Cablevisión Monterrey, further confirmed mirada's
capability to deliver complex projects on a multi-network Tier One
scale.
The Group suffered from third-party related delays that
postponed the receipt of further subscriber-based licence fees in
the year under review, although Professional Services at normal
market rates increased Revenues more than 25% on a year-to-year
basis. Subscriber-based licence fees will further improve the
profitability from contracts already won, as our return on
investment benefits from the growth of our Customers’ installed
subscriber bases.
This has been the first commercial launch for our iris-inspire
user experience, and we are glad to confirm that the deployment of
the solution went smoothly, without noticeable technical problems,
and the commercial rollout at Monterrey is progressing ahead of
expectations. The Company continues integrating the solution with
additional features at two additional cable networks in the
customer, including the new OTT solution, with an expectation to
start the commercial roll-out in those areas during the coming
months. While the final date for the delivery will rely on the
progress of the customer’s technical team, I am very satisfied with
the performance of our engineers, who continue to enhance the
solution, thereby generating increased revenues from professional
services.
The Company secured the funds and other resources to accelerate
the availability its OTT full product proposition, securing a large
contract with one of the largest players in the market. This
reference, for both the DVB technologies and OTT propositions, has
delivered new leads and translated into continuing discussions with
other Tier One customers..
I would like to thank all our stakeholders, who have
demonstrated their belief in our capabilities and have contributed
so much to the transformation of our business .We look forward with
great optimism.
José-Luis Vázquez
Chief Executive Officer
8 July 2015
Consolidated income statement
Year ended 31
March 2015
|
|
|
Note |
Year ended
31 March 2015
£000 |
Year ended
31 March 2014
£000 |
|
|
|
|
|
|
Revenue |
|
|
4 |
5,657 |
4,572 |
Cost of sales |
|
|
|
(234) |
(182) |
Gross profit |
|
|
|
5,423 |
4,390 |
|
|
|
|
|
|
Depreciation |
|
|
|
(21) |
(43) |
Amortisation |
|
|
|
(1,187) |
(924) |
Share-based payment charge |
|
|
|
(61) |
(53) |
Other administrative expenses |
|
|
|
(3,869) |
(3,366) |
Total
administrative expenses |
|
|
|
(5,138) |
(4,386) |
|
|
|
|
|
|
Operating profit |
|
|
5 |
285 |
4 |
|
|
|
|
|
|
Finance income |
|
|
|
38 |
32 |
Finance expense |
|
|
|
(436) |
(422) |
|
|
|
|
|
|
Loss before taxation |
|
|
|
(113) |
(386) |
|
|
|
|
|
|
Taxation |
|
|
6 |
(62) |
427 |
|
|
|
|
|
|
Profit/(loss) for year |
|
|
|
(175) |
41 |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/Earnings per
share |
|
|
Year
ended
31 March
2015
p |
Year ended
31 March
2014
p |
(Loss)/Earnings per
share for the year
- basic & diluted |
|
|
7 |
(0.2) |
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated statement of
comprehensive income
Year ended 31
March 2015
|
Year
ended
31 March 2015 |
|
Year
ended
31 March 2014 |
|
|
£000 |
|
|
£000 |
|
|
|
|
|
|
|
|
|
|
|
|
Loss/(Profit) for the
period |
|
(175) |
|
|
41 |
|
|
|
|
|
|
Other comprehensive
loss: |
|
|
|
|
|
Currency translation
differences |
|
(225) |
|
|
(26) |
Total other
comprehensive loss |
|
(225) |
|
|
(26) |
|
|
|
|
|
|
Total
comprehensive (loss)/income for the year |
|
(400) |
|
|
15 |
Consolidated statements of changes in
equity
Year ended 31
March 2015
|
|
Share capital
£000 |
Share premium
account
£000 |
Share
option
reserve
£000 |
Foreign
exchange
reserve
£000 |
Merger
reserves
£000 |
Retained earnings
£000 |
Total
£000 |
|
|
|
|
|
|
|
|
|
Restated Balance at
1 April 2014 |
|
861 |
5,776 |
- |
483 |
2,472 |
(3,529) |
6,063 |
Loss for the financial
year |
|
- |
- |
- |
- |
- |
(175) |
(175) |
Movement in foreign
exchange reserve |
|
- |
- |
- |
(225) |
- |
- |
(225) |
Share based payment |
- |
- |
- |
- |
- |
61 |
61 |
Issue of shares |
|
280 |
3,220 |
- |
- |
- |
- |
3,500 |
Share issue costs |
|
- |
(248) |
- |
- |
- |
- |
(248) |
Balance at 31 March
2015 |
|
1,141 |
8,748 |
- |
258 |
2,472 |
(3,643) |
8,976 |
|
Note |
Share capital
£000 |
Share premium
account
£000 |
Share
option
reserve
£000 |
Foreign
exchange
reserve
£000 |
Merger
reserves
£000 |
Retained earnings
£000 |
Total
£000 |
|
|
|
|
|
|
|
|
|
Balance at 1
April 2013, as previously reported |
|
519 |
3,059 |
140 |
509 |
2,472 |
(3,234) |
3,465 |
Prior year
restatement |
3 |
- |
- |
- |
- |
- |
(500) |
(500) |
Restated Balance 1
April 2013 |
|
519 |
3,059 |
140 |
509 |
2,472 |
(3,734) |
2,965 |
Profit for the
financial year |
|
- |
- |
- |
- |
- |
41 |
41 |
Movement in foreign
exchange reserve |
|
- |
- |
- |
(26) |
- |
- |
(26) |
Share based payment |
- |
- |
- |
- |
- |
53 |
53 |
Transfer between reserves |
- |
- |
(140) |
- |
- |
140 |
- |
Conversion of convertible loans into shares |
98 |
877 |
- |
- |
- |
(29) |
946 |
Issue of shares |
|
244 |
1,894 |
- |
- |
- |
- |
2,138 |
Share issue costs |
|
- |
(54) |
- |
- |
- |
- |
(54) |
Restated Balance at
1 April 2014 |
|
861 |
5,776 |
- |
483 |
2,472 |
(3,529) |
6,063 |
Consolidated statement of financial
position
As at 31 March
2015
|
|
|
Note |
31 March
2015
£000 |
31 March
2014
£000 |
31 March
2013
£000 |
|
|
|
|
|
As
restated |
As
restated |
Property, plant and equipment |
|
|
|
41 |
37 |
61 |
|
Goodwill |
|
|
|
6,946 |
6,946 |
6,946 |
|
Other Intangible assets |
|
|
|
2,843 |
2,444 |
1,719 |
|
Deferred Tax Assets |
|
|
|
543 |
5088
508 |
- |
|
Non-current assets |
|
|
|
10,373 |
9,935 |
8,726 |
|
|
|
|
|
|
|
|
|
Trade & other receivables |
|
|
|
3,565 |
1,781 |
1,292 |
|
Cash and cash equivalents |
|
|
9 |
206 |
30 |
94 |
|
Current assets |
|
|
|
3,771 |
1,811 |
1,386 |
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
14,144 |
11,746 |
10,112 |
|
|
|
|
|
|
|
|
|
Loans and borrowings |
|
|
|
(1,467) |
(728) |
(697) |
|
Trade and other payables |
|
|
|
(1,790) |
(2,339) |
(2,725) |
|
Provisions |
|
|
3 |
(500) |
(576) |
(141) |
|
Current liabilities |
|
|
|
(3,757) |
(3,643) |
(3,563) |
|
|
|
|
|
|
|
|
|
Net current assets /
(liabilities) |
|
|
|
14 |
(1,832) |
(2,177) |
|
|
|
|
|
|
|
|
|
Total assets less current
liabilities |
|
|
|
10,386 |
8,103 |
6,549 |
|
|
|
|
|
|
|
|
|
Interest bearing loans
and borrowings |
|
|
(1,345) |
(1,911) |
(2,767) |
|
Embedded conversion option
derivative |
|
|
|
- |
- |
(65) |
|
Other non-current liabilities |
|
|
|
(66) |
(129) |
(181) |
|
Provisions |
|
|
3 |
- |
- |
(571) |
|
Non-current liabilities |
|
|
|
(1,411) |
(2,040) |
(3,584) |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
(5,168) |
(5,683) |
(7,147) |
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
8,976 |
6,063 |
2,965 |
|
|
|
|
|
|
|
|
|
Issued share capital
and reserves attributable to equity holders of the company |
|
|
|
|
|
|
Share capital |
|
|
8 |
1,141 |
861 |
519 |
|
Share premium |
|
|
|
8,748 |
5,776 |
3,059 |
|
Other reserves |
|
|
|
2,730 |
2,955 |
3,121 |
|
Retained earnings |
|
|
|
(3,643) |
(3,529) |
(3,734) |
|
Equity |
|
|
|
8,976 |
6,063 |
2,965 |
|
|
|
|
|
|
|
|
|
|
|
Consolidated statement of cash
flows
Year ended 31
March 2015
|
|
Year
ended |
Year ended |
|
|
31 March
2015 |
31 March 2014 |
|
Note |
£000 |
£000 |
Cash flows from operating activities |
|
|
|
Profit/(loss) after tax |
|
(175) |
41 |
Adjustments for: |
|
|
|
Depreciation of property, plant and equipment |
|
21 |
43 |
Amortisation of intangible assets |
|
1,187 |
924 |
Share-based payment charge |
|
61 |
53 |
Profit
on disposal of fixed assets |
|
(11) |
- |
Finance income |
|
(38) |
(32) |
Finance
expense |
|
436 |
422 |
Taxation |
|
62 |
(427) |
Operating cash flows before movements in working
capital |
|
1,543 |
1,024 |
|
|
|
|
(Increase)/decrease in trade and other
receivables |
|
(2,144) |
(501) |
(Decrease)/increase in trade and other payables |
|
(444) |
(484) |
(Decrease)/increase in
provisions |
|
(76) |
(136) |
Net
cash (used in)/generated from operating activities |
|
(1,121) |
(97) |
|
|
|
|
Cash flows from investing activities |
|
|
|
Interest and similar income received |
|
8 |
16 |
Cash
payments for financial investments assets |
|
(132) |
- |
Receipts for financial investment assets |
|
23 |
- |
Proceeds from disposal of property, plant and equipment |
|
11 |
- |
Purchases of property, plant and equipment |
|
(29) |
(20) |
Purchases of other intangible assets |
|
(1,795) |
(1,661) |
Net
cash used in investing activities |
|
(1,914) |
(1,665) |
|
|
|
|
Cash flows from financing activities |
|
|
|
Net
payment to settle derivative |
|
(121) |
- |
Interest and similar expenses paid |
|
(420) |
(335) |
Issue
of share capital |
|
3,500 |
2,036 |
Costs
of share issue |
|
(248) |
(54) |
Loans
received |
|
1,254 |
289 |
Repayment of loans |
|
(570) |
(409) |
Repayment of capital element of finance
leases |
|
- |
(10) |
Net
cash from financing activities |
|
3,395 |
1,517 |
|
|
|
|
Net
(decrease)/increase in cash and cash equivalents |
|
360 |
(245) |
|
|
|
|
Cash
and cash equivalents at the beginning of the year |
24 |
(150) |
94 |
Exchange (losses)/gains on cash and cash equivalents |
|
(4) |
1 |
Cash and cash equivalents at the end of the year |
24 |
206 |
(150) |
Cash and cash equivalents comprise cash at bank less bank
overdrafts.
mirada plc
Notes to consolidated financial
statements
Year ended 31
March 2015
1. General information
mirada plc is a company incorporated in the United Kingdom. The address of the registered
office is 69 Old Street, London,
EC1V 9HX. The nature of the Group’s operations and its
principal activities are the provision and support of products and
services in the Digital TV and Broadcast markets.
2. Basis of preparation
The financial information set out in this document does not
constitute the Company's statutory accounts for year to
31 March 2014 and 2015.
Statutory accounts for the years ended 31
March 2014 and 31 March 2015
have been reported on by the Independent Auditors. The
Independent Auditor’s Reports on the Annual Report and Financial
Statements for each of 2014 and 2015 were unmodified and did not
contain statements under sections 498(2) or 498(3) of the Companies
Act 2006.
Statutory accounts for the year ended 31
March 2014 have been filed with the Registrar of Companies.
The statutory accounts for the year ended 31
March 2015 will be delivered to the Registrar in due course,
and will be available from the Company's registered office at 69
Old Street, London, EC1V 9HX and
from the Company's website www.mirada.tv/corporate.
The financial information set out in these preliminary results
has been prepared using the recognition and measurement principles
of International Accounting Standards, International Financial
Reporting Standards and Interpretations adopted for use in the
European Union (collectively Adopted IFRSs). The accounting
policies adopted in these preliminary results have been
consistently applied to all the years presented and are consistent
with the policies used in the preparation of the statutory accounts
for the period ended 31 March 2015. The principal accounting
policies adopted are unchanged from those used in the preparation
of the statutory accounts for the period ended 31 March 2014. New standards, amendments and
interpretations to existing standards, which have been adopted by
the Group have not been listed, since they have no material impact
on the financial statements
3. Significant accounting policies
Going concern policy
The directors have prepared a cash flow forecast covering a
period extending beyond 12 months from the date of these financial
statements. The forecast contains certain assumptions about the
performance of the business. These assumptions are the directors’
best estimate of the future development of the business, including
consideration of cash reserves required to support working capital
and its new growth initiatives. Based on this cash flow forecasts,
directors continue to adopt the going concern basis of accounting
in preparing the annual financial statements.
Prior year restatement
As disclosed in the overview section, during the year to
March 2015, Mirada received a
dilapidation claim.
It was concluded that Mirada should have raised a
dilapidation provision for the Wapping offices totalling
£500k. As a result the consolidated balance sheet as at
31 March 2014 has been restated to
reflect the post balance sheet liability of the lease provision.
This restatement was also required for the balance sheet as at
31 March 2013. The restatement does
not affect the Income Statement or the Statement of Cashflows.
4. Segmental reporting
Reportable segments
The chief operating decision maker for the Group is ultimately
the board of directors. For financial and operational management
the board considers the Group to be organised into two operating
divisions based upon the varying products and services provided by
the Group – Digital TV & Broadcast and Mobile. The products and
services provided by each of these divisions are described in the
Strategic Report on page 6. The segment headed other relates to
corporate overheads, assets and liabilities.
Segmental results for the year ended 31
March 2015 are as follows:
|
|
|
Digital
TV & Broadcast |
Mobile |
Other |
Group |
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
Revenue - external |
|
|
5,232 |
425 |
- |
5,657 |
Gross
profit |
|
|
5,175 |
248 |
- |
5,423 |
Profit/(loss) before interest, tax, depreciation, amortisation
& share based payments |
|
|
2,086 |
91 |
(634) |
1,543 |
Depreciation |
|
|
(17) |
(1) |
(3) |
(21) |
Amortisation |
|
|
(1,162) |
(25) |
- |
(1,187) |
Profit
on sale |
|
|
- |
- |
11 |
11 |
Share-based payment charge |
|
|
- |
- |
(61) |
(61) |
Finance income |
|
|
- |
- |
38 |
38 |
Finance expense |
|
|
- |
- |
(436) |
(436) |
Taxation |
|
|
(62) |
- |
- |
(62) |
Segmental profit/(loss) |
|
|
845 |
65 |
(1,085) |
(175) |
The segmental results for the year
ended 31 March 2014, presented on the
revised basis, are as follows:
|
|
Digital TV & Broadcast |
Mobile |
Other |
Group |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
Revenue - external |
|
|
4,149 |
423 |
- |
4,572 |
|
Gross
profit |
|
|
4,120 |
270 |
- |
4,390 |
|
Profit/(loss) before interest, tax, depreciation, amortisation
& share based payments |
|
|
1,871 |
53 |
(900) |
1,024 |
|
Depreciation |
|
|
(23) |
- |
(20) |
(43) |
|
Amortisation |
|
|
(864) |
(26) |
(34) |
(924) |
|
Share-based payment charge |
|
|
- |
- |
(53) |
(53) |
|
Finance income |
|
|
- |
- |
32 |
32 |
|
Finance expense |
|
|
- |
- |
(422) |
(422) |
|
Taxation |
|
|
375 |
52 |
- |
427 |
|
Segmental profit/(loss) |
|
|
1,359 |
79 |
(1,397) |
41 |
|
|
|
|
|
|
|
|
|
|
|
|
There is no material inter-segment
revenue included in the segments which is required to be
eliminated.
The Group has two major customers in
the Digital TV and Broadcast segment (a major customer being one
that generates revenues amounting to 10% or more of total revenue)
that account for £2.16 million (2014: £0.83 million) and
£0.84 million (2014: £ Nil) of the total Group revenues
respectively.
The segment assets and liabilities at
31 March 2015 are as follows:
|
|
Digital
TV - Broadcast |
Mobile |
Other |
Group |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
Additions to non-current assets |
1,887 |
- |
1 |
1,888 |
|
|
|
|
|
|
Total
assets |
|
13,210
,00( |
714 |
220 |
14,144 |
Total
liabilities |
|
(4,029) |
(134) |
(1,005) |
(5,168) |
Capital expenditure comprises
additions to property, plant and equipment and intangible
assets.
The segment assets and liabilities at
31 March 2014, presented on a revised
basis, are as follows:
|
|
Digital
TV - Broadcast |
Mobile |
Other |
Group |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
Additions to non-current assets |
2,132 |
54 |
3 |
2,189 |
|
|
|
|
|
|
Total
assets |
|
10,947
,00( |
732 |
67 |
11,746 |
Total
liabilities |
|
(4,280) |
(57) |
(1,346) |
(5,683) |
|
|
|
|
|
|
|
Segment assets and liabilities are
reconciled to the Group’s assets and liabilities as follows:
|
Assets
31 March
2015 |
Liabilities
31 March
2015 |
Assets
31 March
2014 |
Liabilities
31 March
2014 |
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
Digital TV - Broadcast & Mobile |
13,924 |
4,163 |
11,679 |
4,337 |
|
|
|
|
|
Other: |
|
|
|
|
Intangible assets |
- |
- |
- |
- |
Property, plant & equipment |
2 |
- |
2 |
- |
Other
financial assets & liabilities |
218 |
1,005 |
65 |
1,346 |
|
|
|
|
|
Total
other |
220 |
1,005 |
67 |
1,346 |
|
|
|
|
|
Total Group assets and liabilities |
14,144 |
5,168 |
11,746 |
5,683 |
|
|
|
|
|
Assets allocated to a segment consist
primarily of operating assets such as property, plant and
equipment, intangible assets, goodwill and receivables.
Liabilities allocated to a segment
comprise primarily trade payables and other operating
liabilities.
Geographical
disclosures
|
|
External
revenue by location of customer |
Total
assets by
location of assets |
|
|
|
31 March
2015 |
31
March
2014 |
31
March
2015 |
31 March
2014 |
|
|
|
£000 |
£000 |
£000 |
£000 |
|
|
|
UK |
|
|
593 |
563 |
3,323 |
3,041 |
Spain |
|
|
953 |
650 |
10,820 |
6,894 |
Rest of Continental Europe |
|
|
52 |
218 |
- |
- |
Latin America |
|
|
4,059 |
3,141 |
- |
- |
|
|
|
|
|
|
|
|
|
|
5,657 |
4,572 |
14,143 |
9,935
|
Revenues by Product |
|
|
|
|
|
|
|
|
|
31
March
2015
Digital TV & Broadcast |
31 March
2015
Mobile |
31 March
2014
Digital TV & Broadcast |
31
March
2014
Mobile |
|
|
|
£000 |
£000 |
£000 |
£000 |
|
|
|
Development |
|
|
2,949 |
- |
1,914 |
- |
Self Billing |
|
|
- |
410 |
- |
310 |
Licenses |
|
|
1,730 |
20 |
1,739 |
15 |
Managed Services |
|
|
552 |
(4) |
496 |
98 |
|
|
|
|
|
|
|
|
|
|
5,231 |
426 |
4,149 |
423 |
|
|
|
|
|
|
|
|
|
5.
Operating profit
The operating profit is stated after
charging the following:
|
Year ended
31 March
2015
£000 |
Year ended
31 March
2014
£000 |
|
|
|
Depreciation of owned assets |
21 |
43 |
Amortisation of intangible
assets |
1,187 |
924 |
Operating lease charges |
250 |
233 |
Research and development costs |
- |
- |
Operating Foreign Exchange
(gains)/losses |
(141) |
33 |
Reconciliation of operating profit for
continuing operations to adjusted earnings before interest,
taxation, depreciation and amortisation:
|
Year ended
31 March
2015
£000 |
Year ended
31 March
2014
£000 |
|
|
|
Operating profit |
285 |
4 |
Depreciation |
21 |
43 |
Amortisation |
1,187 |
924 |
Share-based payment charge |
61 |
53 |
Foreign Exchange |
- |
- |
Profit on disposal |
(11) |
- |
|
|
|
Operating profit before interest,
taxation, depreciation, amortisation and share-based payment
charge (Adjusted EBITDA) |
1,543 |
1,024 |
|
|
|
6. Taxation
The tax assessed on the loss on
ordinary activities for the period differs from the standard rate
of tax of 21%. The differences are reconciled below:
|
Year ended
31 March
2015
£000 |
Year ended
31 March
2014
£000 |
|
|
|
Loss before taxation |
(113) |
(386) |
|
|
|
Loss on ordinary activities
multiplied by 21% (2014: 23%) |
(24) |
(89) |
Effect of expenses not deductible
for tax purposes |
21 |
52 |
Losses carried forward |
3 |
37 |
Witholding Taxes |
159 |
- |
|
|
|
Total current tax |
159 |
- |
|
|
|
Origination and reversal of
temporary differences |
31 |
(35) |
Recognition of previously un
recognised deferred tax assets |
(128) |
(392) |
|
|
|
Total deferred tax |
(97) |
(427) |
|
|
|
|
|
|
Total tax expense |
62 |
(427) |
|
|
|
Deferred
taxation
Deferred tax assets have been
recognised in respect of tax losses for Mirada Connect Limited,
research and development investment for Fresh Interactive
Technologies S.A and other temporary differences giving rise to
deferred tax assets where the directors believe it is probable that
these assets will be recovered. The Directors believe that the
deferred tax assets are recoverable given the increasing
profitability of Fresh Interactive Technologies S.A and Mirada
Connect Limited over recent years, combined with the forecasts for
future periods.
The movements in deferred tax assets
and liabilities during the period are shown below.
Group |
Asset
31 March
2015
£000 |
Asset
31 March
2014
£000 |
(Charged)/credited to
profit & loss
31 March
2015
£000 |
|
|
|
|
|
|
|
|
Tax credit for losses |
52 |
52 |
- |
Other tax credits |
484 |
421 |
128 |
Other temporary deductible
differences |
7 |
35 |
(31) |
|
|
|
|
Tax asset |
543 |
508 |
97 |
|
|
|
|
Reconciliation of deferred tax asset
and liabilities:
|
Asset
£000 |
|
|
Balance at 1 April 2014 |
508 |
|
|
Tax Credit for Losses |
- |
Other Tax Credit |
128 |
Other Temporary Deductible
differences |
(31) |
Forex |
(62) |
|
|
Balance at the end of year |
543 |
|
|
Deferred taxation amounts not
recognised are as follows:
Group |
Year ended
31 March
2015
£000 |
Year ended
31 March
2014
£000 |
|
|
|
Depreciation in excess of capital
allowance |
429 |
1,587 |
Losses |
9,515 |
9,830 |
Unrecognised Tax Credit |
2,199 |
1,839 |
|
|
|
|
12,143 |
13,256 |
|
|
|
The gross value of tax losses carried
forward at 31 March 2015 equals £57.8
million (2014: £57.6 million).
7.
Earnings per share
|
|
|
|
Year ended 31 March
2015 |
Year ended 31 March
2014 |
|
|
|
|
Total |
Total |
|
|
|
|
|
|
Loss/(Profit) for year |
|
|
|
£(175,078) |
£41,000 |
|
|
|
|
|
|
Weighted average number of
shares |
|
|
|
104,315,229 |
65,233,761 |
|
|
|
|
|
|
Basic (loss)/earnings per share |
|
|
|
£(0.002) |
£0.001 |
|
|
|
|
|
|
Diluted (loss)/earnings per
share |
|
|
|
£(0.002) |
£0.001 |
|
|
|
|
|
|
Adjusted (loss)/earnings per share
Adjusted loss per share is calculated
by reference to the loss from continuing activities before
interest, taxation, share-based payment charges, depreciation and
amortisation (see note 6).
|
|
|
|
Year ended 31 March
2015 |
Year ended 31 March
2014 |
|
|
|
|
Total |
Total |
|
|
|
|
|
|
Adjusted profit after tax for
year |
|
|
|
£1,543,178 |
£1,024,000 |
Weighted average number of shares |
|
|
|
104,315,229 |
65,233,761 |
|
|
|
|
|
|
Basic adjusted earnings per
share |
|
|
|
£0.015 |
£0.016 |
|
|
|
|
|
|
Diluted adjusted earnings per
share |
|
|
|
£0.014 |
£0.014 |
|
|
|
|
|
|
The Company has 5,602,238 (2014: 5,602,555) potentially dilutive
ordinary shares arising from share options issued to staff. Share
options have been included in calculating the diluted earnings.
8. Share
capital
A breakdown of the authorised and
issued share capital in place as at 31 March
2015 is as follows:
|
31 March
2015
Number |
31 March
2015
£000 |
31 March
2014
Number |
31 March
2014
£000 |
Allotted, called up and fully
paid |
|
|
|
|
Ordinary shares of £0.01 each |
114,057,695 |
1,141 |
86,057,695 |
861 |
|
|
|
|
|
Share
issues
During the year the following share
issues took place:
- On 5 August
2014 the Company completed a placing for cash raising gross
proceeds of £3,500,000 via the issue of 28,000,000 £0.01 ordinary
shares at a price of £0.125 each.
9.
Notes supporting cash flow
statement
Cash and cash equivalents
comprise:
|
31 March
2015
£000 |
31 March
2014
£000 |
|
|
|
Cash available on demand |
206 |
30 |
Overdrafts |
- |
(180) |
|
|
|
|
206 |
(150) |
|
|
|
Net cash increase/(decrease) in cash
and cash equivalents |
356 |
(244) |
|
|
|
Cash and cash equivalents at
beginning of year |
(150) |
94 |
|
|
|
Cash and cash equivalents at end of
year |
206 |
(150) |
|
|
|
Cash and
cash equivalents
Cash and cash equivalents are held in
the following currencies:
|
31 March
2015
£000 |
31 March
2014
£000 |
|
|
|
Sterling |
9 |
4 |
Euro |
197 |
26 |
|
|
|
Total |
206 |
30 |
|
|
|
Cash and cash equivalents comprise
cash held by the Group and short–term bank deposits with an
original maturity of three months or less. The carrying amount of
these assets approximates their fair value.
Significant non-cash transactions are
as follows:
|
31 March
2015
£000 |
31 March
2014
£000 |
|
|
|
Financing activities: |
|
|
Convertible loans converted into
equity |
- |
975 |
Accrued convertible loan interest
paid by issue of equity |
- |
33 |
Creditor balances paid by issue of
equity |
- |
68 |
|
|
|
Total |
- |
1,076 |
|
|
|
10.
Events after the reporting
date
There are no material reportable post
balance sheet.
11.
Availability of report and accounts
Copies of the report and accounts for
the year ended 31 March 2015 are
being posted to shareholders and will be available on the Company’s
website www.mirada.tv.