TIDMMES
RNS Number : 3259Y
Messaging International Plc
08 September 2015
Messaging International Plc / Market: AIM / Epic: MES / Sector:
Technology
Messaging International Plc
('Messaging International' or 'the Company')
Interim Results
Messaging International Plc, the AIM traded company and provider
of innovative messaging services, announces its unaudited results
for the six months ended 30 June 2015.
Overview Overview
-- Continued progress of new product: "Business Mobile
Messaging" - signed contract with first tier US carrier
-- Gross revenues of GBP1,730,535 down 6.5% from GBP1,851,237 in
H1 2014
-- Pre tax loss for the period of GBP85,502 down from a loss of
GBP186,664 in H1 2014
Continued Transition period
As we described in our last annual report, the Company is
transitioning from its legacy Text-to-Landline product focused on
Telecom operators, into our new offering "Business Mobile
Messaging" focused on Enterprises.
Revenues in the Text-to-Landline product have stabilized at a
new level. Some customers were lost due to market consolidation
and, as announced on March 27 2015, the Company has reached an
agreement on a change of the Text-to-Landline business model with
one of its key mobile carrier customers in North America. The
change to the Text-to-Landline service from a standard SMS fee to a
premium SMS fee has resulted in fewer transmitted messages with a
corresponding decline in the revenue generated from this customer,
although there is an improved gross margin.
The Company has been focused on developing its new product line
- Secure Business Mobile Messaging - and a growing number of
potential customers are currently running pilot trials. We are
currently seeking partnership opportunities for these products
through our relationships with carriers. In June 2015 the Company
signed such a partnership agreement based on revenue share with one
of the top tier North American mobile carriers. The agreement
includes a set-up fee for the customization of the product to meet
our partner's requirements. It is too premature to estimate the
success with which the partner will be able to promote the product
with initial revenues expected in H1 2016.
The company has also identified an immediate demand for its
traditional messaging platform within the developers' community. In
view of this, the Company has focused some efforts on providing
APIs for its Messaging Gateway for this community as can be seen on
http://developer.telemessage.com.
As the new product has been launched in the market, the Company
will continue to invest R&D efforts in adding new features and
capabilities to the product and if necessary, we may shift some of
our resources to support sales and marketing efforts.
Financial Results
For the six-month period ended 30 June 2015, we are reporting a
pre-tax loss of GBP85,502 (H1 2014: loss of GBP186,664) based on
gross revenues of GBP1,730,535 (H1 2014: GBP1,851,237).
The group's cash balances at 30 June 2015 totaled GBP682,365 (H1
2014: GBP377,058). The bank loan from Mizrahi Tefahot Bank
outstanding at 30 June 2015 was GBP533,092 (H1 2014, GBP198,892).
This reflects the renewed loan announced earlier this year on
January 26, 2015.
Outlook
We have managed to stabilize the reduction in revenues while
continuing our efforts in building the new products without
neglecting our legacy solutions. We continue to explore
opportunities to maintain and grow that business.
With initial revenues and several pilots with potential
customers for our "Mobile Business Messaging", we seek to expand
this area of the business directly as well as through partners such
as the tier one mobile carrier mentioned above.
I would like to thank our team for their hard work and
dedication over the past year in adapting to changing markets and
changing technologies as well as to our shareholders for their
continued support.
H Furman
Chairman
10 September 2015
For more information visit www.telemessage.com or contact:
Guy Levit Messaging International Tel: + 972 3
Plc 9225252
Horacio Furman Messaging International Tel: + 972 3
Plc 6964420
Catherine Leftley/David Cantor Fitzgerald Tel: +44 (0)
Foreman Europe 20 7894 7000
Consolidated statement of comprehensive income for the six
months ended 30 June 2015
Unaudited Unaudited Audited
Notes six months six months year ended
ended ended 31 December
30 June 30 June 2014
2015 2014
GBP GBP GBP
Revenues 2 1,730,535 1,851,237 3,607,978
Cost of revenue (645,849) (640,431) (1,218,844)
Gross profit 1,084,686 1,210,806 2,389,134
------------ ------------ --------------
Operating expenses
Research and development (521,452) (681,464) (1,235,070)
Sales and marketing (451,903) (417,490) (865,147)
Administrative
costs (252,533) (258,976) (552,676)
Goodwill Impairment - - (2,550,000)
------------ ------------ --------------
Total operating
expenses (1,225,888) (1,357,930) (5,202,893)
------------ ------------ --------------
Operating loss (141,202) (147,124) (2,813,759)
Finance gains (costs) 55,700 (39,540) (71,039)
(Loss) before taxation (85,502) (186,664) (2,884,798)
Taxation 3 - - (8,914)
Loss for the period/year (85,502) (186,664) (2,893,712)
============ ============ ==============
Other comprehensive
loss
Re-measurement of loss
from defined benefit
scheme - - (71,715)
Foreign exchange
difference on translation
of foreign operations (54,213) (19,568) 21,632
Foreign exchange
difference arising
from restating
the carrying value
of goodwill associated
with foreign operations - - (78,802)
(54,213) (19,568) (128,885)
============ ============ ==============
Total comprehensive
loss (139,715) (206,232) (3,022,597)
============ ============ ==============
Loss per share
Basic and diluted
loss per share 4 (0.07)p (0.16)p (2.50)p
============ ============ ==============
Consolidated statement of changes in equity for the six months
ended 30 June 2015
Capital
Share redemption Translation Revenue
capital reserve reserve reserves Total
GBP GBP GBP GBP GBP
As at 1 January
2015 579,361 600,039 75,008 (63,431) 1,190,977
(Loss) for
the period (85,502) (85,502)
Share based
payments 11,448 11,448
Foreign currency
translation
changes (54,213) (54,213)
As at 30
June 2015 579,361 600,039 20,795 (137,485) 1,062,710
========== ============ ============ ============== ==============
As at 1 January
2014 579,361 600,039 118,602 2,845,271 4,143,273
(Loss) for
the period (186,664) (186,664)
Share based
payments 25,919 25,919
Foreign currency
translation
changes (19,568) (19,568)
As at 30
June 2014 579,361 600,039 99,034 2,684,526 3,962,960
========== ============ ============ ============== ==============
As at 1 January
2014 579,361 600,039 118,602 2,845,271 4,143,273
(Loss) for
the for the
year (2,893,712) (2,893,712)
Re-measurement
of defined
benefit plan (71,715) (71,715)
Share based
payments 56,725 56,725
Foreign currency
translation
changes for
goodwill (78,802) (78,802)
Other foreign
currency
translation
changes 35,208 35,208
As at 31
December
(MORE TO FOLLOW) Dow Jones Newswires
September 08, 2015 02:00 ET (06:00 GMT)
2014 579,361 600,039 75,008 (63,431) 1,190,977
========== ============ ============ ============== ==============
Consolidated Statement of financial position as at 30 June
2015
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2015 2014 2014
GBP GBP GBP
Non current assets
Goodwill 803,957 3,432,759 803,957
Property, plant
and equipment 54,209 120,870 86,526
Other investments 373,134 314,183 343,699
1,231,300 3,867,812 1,234,182
------------ ------------ -------------
Current assets
Trade and other
receivables 903,493 862,212 696,068
Cash and cash equivalents 682,365 377,058 381,109
1,585,858 1,239,270 1,077,177
------------ ------------ -------------
Total assets 2,817,158 5,107,082 2,311,359
Current liabilities
Trade and other
payables (652,888) (556,084) (525,664)
Borrowings (206,811) (198,892) (110,013)
------------ ------------ -------------
(859,699) (754,976) (635,677)
------------ ------------ -------------
Non current liabilities
Borrowings (326,281) - -
Other payables (46,599) (6,233) (5,049)
Employee provisions (521,869) (382,913) (479,656)
------------ ------------ -------------
(894,749) (389,146) (484,705)
------------ ------------ -------------
Total liabilities (1,754,448) (1,144,122) (1,120,382)
Net assets 1,062,710 3,962,960 1,190,977
============ ============ =============
Equity
Share capital 579,361 579,361 579,361
Capital redemption
reserve 600,039 600,039 600,039
Foreign currency
translation reserve 20,795 99,034 75,008
Revenue reserves (137,485) 2,684,526 (63,431)
Shareholders' equity 1,062,710 3,962,960 1,190,977
============ ============ =============
Consolidated cash flow statement for the six months ended 30
June 2015
Unaudited Unaudited Audited
six months six months year ended
ended ended 31 December
30 June 30 June 2014
2015 2014
GBP GBP GBP
Cash flow from operating
activities
Loss before taxation (141,202) (147,124) (2,813,759)
------------ ------------ -------------
Adjustments for:
Goodwill impairment - - 2,550,000
Share based payments
- shares 11,448 25,919 56,725
Share based payments 25,609 - -
- issue of warrants
Defined benefit plan - - (71,715)
Depreciation and amortisation 32,151 43,289 100,094
Foreign currency translation
adjustments (33,739) (39,370) (2,899)
------------ ------------ -------------
35,469 29,838 2,632,205
------------ ------------ -------------
Operating cash flow
before working capital
movements (105,733) (117,286) (181,554)
(Increase)/decrease
in receivables (207,425) (77,558) 75,086
(Decrease)/increase
in payables 168,774 (78,002) (105,019)
Increase in provisions 42,213 723 97,466
3,562 (154,837) 67,533
------------ ------------ -------------
Cash (outflow)/inflow
from operating activities (102,171) (272,123) (114,021)
Investing activities
Interest received - - 232
Investments (29,435) 9,521 (19,995)
Purchase of property,
plant and equipment (385) (6,288) (14,581)
Net cash from /(used
in) investing activities (29,820) 3,233 (34,344)
------------ ------------ -------------
Financing activities
Interest and related
costs (31,092) (14,954) (25,068)
Bank loan net of repayments 464,339 (104,124) (210,484)
Net cash (used) in
financing activities 433,247 (119,078) (235,552)
------------ ------------ -------------
Net increase/(decrease)
in cash and cash equivalents 301,256 (387,968) (383,917)
Cash and cash equivalents
at the beginning of
the period/year 381,109 765,026 765,026
Cash and cash equivalents
at the end of the period/year 682,365 377,058 381,109
============ ============ =============
Notes to the interim report
For the six months ended 30 June 2015
1. Basis of preparation and consolidation
The financial information contained in the interim results has
been prepared in accordance with International Financial Reporting
Standards ('IFRS') as adopted by the European Union. It has been
prepared in accordance with IAS 34 - Interim Financial Reporting
and does not include all of the information required for full
annual financial statements.
The financial information contained in these interim results for
the six months ended 30th June 2015 and 30th June 2014 are
un-audited. The comparative figures for the year ended 31st
December 2014 do not constitute statutory financial statements of
the group within the definition of S434 of the Companies Act 2006.
Full audited accounts of the group in respect of that financial
period prepared in accordance with IFRS, which we received an
unqualified audit opinion have been delivered to Registrar of
Companies.
The accounting policies and methods of computation used in the
interim statements are consistent with those used in the financial
statements for the year ended 31 December 2014 and are in
accordance with International Financial Reporting Standards.
The statement of comprehensive income, statement of changes in
equity and financial position include the financial statements of
the company and its subsidiary undertakings up to 30 June 2015.
The consolidated interim financial statements do not include all
the information required for full annual financial statements and
therefore cannot be construed to be in full compliance with
IFRS.
The consolidated interim financial statements were approved by
the board and authorised for issue on 10 September 2015.
2. Turnover
Unaudited Unaudited Audited
six months six months year ended
ended ended 31 December
30 June 30 June 2014
2015 2014
GBP GBP GBP
North America 1,427,874 1,626,395 3,171,573
Europe and Middle
East 288,979 205,226 405,494
Rest of the World 13,682 19,616 30,911
------------ ------------ -------------
1,730,535 1,851,237 3,607,978
------------ ------------ -------------
Notes to the interim report
For the six months ended 30 June 2015 (continued)
3. Taxation
The tax charge in the six months ended 30 June 2015 represented
amounts due for US State tax in relation to the profits of
TeleMessage Inc. based in the USA. U.S. operating losses from
previous years are subject to annual limitations due to the "change
in ownership" provisions of the Internal Revenue Code of 1986 and
similar state provisions.
No further provision has been made for taxation as there are
losses available to carry forward against future trading profits.
No deferred tax asset has been recognised in accordance with
International Accounting Standard 12.
4. Basic and diluted loss per share
For the six months ended 30 June 2015, basic loss per share has
been calculated on the Group's loss attributable to owners the
Company of GBP85,502 and on the weighted average number of shares
in issue during the year, which was 115,872,147.
(MORE TO FOLLOW) Dow Jones Newswires
September 08, 2015 02:00 ET (06:00 GMT)
Messaging International (LSE:MES)
Historical Stock Chart
From Mar 2024 to Apr 2024
Messaging International (LSE:MES)
Historical Stock Chart
From Apr 2023 to Apr 2024
