TIDMMIRA
RNS Number : 3894E
Mirada PLC
18 July 2016
18 July 2016
Mirada plc
("Mirada", "the Company" or "the Group")
Final Results for the Year Ended 31 March 2016
Mirada plc (AIM: MIRA), the leading audio-visual content
interaction specialist, announces its final results for the year
ended 31 March 2016.
Financial Highlights
-- Revenue increased 6% to GBP6.02 million (2015: GBP5.66 million)
-- Gross profit increased 7% to GBP5.80 million (2015: GBP5.42 million)
-- Adjusted EBITDA* in line with previous year at GBP1.50 million (2015: GBP1.54 million)
-- Operating loss of GBP0.36 million (2015: profit of GBP0.29 million)
-- Placing on 24(th) November 2015 to raise GBP1.5 million (6p
per share), primarily subscribed by major shareholders, board and
management, to strengthen the balance sheet and working
capital.
-- Continued objective is to achieve positive free cash flow for
the year ending 31(st) March 2017.
*Adjusted EBITDA (see note 6) is defined as earnings before
interest, taxation, depreciation, amortisation, share-based payment
charges and irrecoverable sales tax.
Operational Highlights
-- Completed deployment of the Iris Inspire solution over the
Izzi Telecom (Televisa Telecom) networks.
-- Roll out of Cablevisión Monterrey (TVI), now part of the
Televisa Group, service ahead of management expectations.
-- Appointment of Gonzalo Babío (Chief Financial Officer) as
Executive Director. Rafael Martín Sanz stepped down as
non-executive director to pursue other business interests.
-- Increased sales and marketing activities with larger international presence.
José Luis Vázquez, CEO of Mirada, commented:
"Mirada has a complete and exceptional suite of multiscreen
products of which we consider our flagship Iris Inspire product to
be at least as strong as any major competitor. As such, we continue
to be a successful contender in the market for advanced digital
television user experience propositions.
"We are currently competing for most of the major live projects
in the Latin America region, and are confident that our product
quality, proven expertise, and the reference provided by our major
deployment with Televisa, will be key strengths in the
decision-making process. Meanwhile, our partners and local
representatives are building our pipeline in other regions,
especially South East Asia and Eastern Europe.
"We believe we are extremely well positioned to convert this
growing pipeline and this, combined with our expectation of
increasing revenues as our software is rolled out across Televisa's
network, gives us great confidence for the future."
Enquiries:
Mirada plc +44 (0) 203 751 0320
José Luis Vázquez, investors@mirada.tv
Chief Executive Officer
Newgate Communications +44 (0) 207 653 9850
Bob Huxford mirada@newgatecomms.com
Helena Bogle
Ed Treadwell
Allenby Capital Limited
(Nominated Adviser and
Broker)
Jeremy Porter / Alex Brearley
/ Liz Kirchner (Corporate
Finance)
Graham Bell / Katie Goad
(Equity Sales) +44 (0) 203 328 5656
About Mirada
Mirada creates and manages products and services for digital TV
operators and broadcasters. With over 15 years of experience, the
Company focuses on the future of Digital TV - Multiscreen
cross-platform navigation - anytime, anywhere. It offers a complete
suite of end-to-end modular products for STBs, PC, smartphones and
tablets, all with innovative state-of-the-art UI designs.
Mirada's products and solutions have been deployed by some of
the biggest names in digital media and broadcasting including
Televisa, Telefonica, Sky, Virgin Media, BBC, ITV and France
Telecom. Headquartered in London, Mirada has commercial offices
across Europe and Latin America and operates development centres in
the UK and Spain. For more information, visit www.mirada.tv.
Chief Executive Officer's Report
Overview
I am pleased to present the Group's financial results for the
year ended 31 March 2016. This year saw the consolidation of our
flagship product, Iris, across one of the largest Digital TV
deployments that has taken place in Latin America within recent
years. We were able to integrate our technology across all of the
Televisa cable networks, now operating under the Izzi brand,
thereby greatly reinforcing our relationship with our largest
customer. Mirada was also able to demonstrate the effectiveness of
its technology through its first Iris Inspire deployment in
Monterrey. No technical issues have been experienced with the
Monterrey deployment and its performance is ahead of the Board's
expectations.
The Group slightly increased revenues for the year, which were
concentrated around the provision of professional services relating
to the conclusion of the Televisa project. While the key
performance indicators for the year under review were comparable to
the previous year, we expect to see an improvement in our revenue
mix going forward, given that the full commercial rollout across
the Televisa cable networks commenced post year end. Professional
services should remain strong due to the extended functionalities
and customisation required by our customers, but subscriber-based
licence fees should represent a higher percentage of our turnover
in the present financial year (FY2017), leading to an expected
increase in margins and improved cash flows.
Mirada was also able to increase its capabilities in three main
areas during the year: (i) operationally, through improved
processes and technology, enabling us to cope with highly complex
projects; (ii) commercially, with an extended network of partners
and local resellers expanding our sales reach beyond Latin America
and Western Europe; and (iii) in our marketing activities, with our
flagship product Iris commanding a greater presence at important
trade events.
Once again, I would like to thank all our stakeholders for their
efforts and support; our team, who were resilient throughout all of
the challenges on our largest deployment to date; our shareholders,
who have continuously demonstrated their support for our vision;
and our customers and partners, who inspire us to continue growing
as a leading player in the Digital TV market.
Trading review
The priorities for the Company over the year were to ensure the
successful deployment of our products over the global Izzi Telecom
network, to support operating needs of prior deployments and to
achieve new references in the market.
As system integrators for the full Izzi TV project we are proud
to have led a very complex project involving hundreds of people and
a large number of partners; including software vendors, set-top box
manufacturers and content providers among others. The roll out at
Monterrey used the R4 version of our Iris service delivery platform
(SDP) product, only deployed initially on set-top boxes. The full
roll out, extended across five different cable networks, used the
newer R6 version of our Iris SDP product. This version includes
Over the Top (OTT) functionalities, which allow content to be
seamlessly delivered to tablets, computers and smartphones, and
allows handheld devices to be used as remote controls for the TV.
In addition, it provides links to major content providers such as
Fox and HBO. This was a significant technological achievement, and
has been praised by our partners. Following this successful
deployment, Izzi tv is ahead of any of the competitors in the
Mexican market in terms of user experience and multiscreen
integration.
Since first deploying its technology in Cablevision Monterrey in
February 2015, Mirada had by 31 March 2016 installed its solutions
into more than 240,000 set-top-boxes, representing 150,000
subscribers. This cable network, totalling nearly 500,000
subscribers (and now fully controlled by the Televisa Group) served
as a good test-bed for the performance of our user interface, even
without the full OTT capabilities available with the latest version
of our solution. Video On Demand consumption was also ahead of
expectations, as a result of easier content discovery and our
improved service experience.
A main focus for Mirada's management team has been to develop a
healthy pipeline from different parts of the world. In September,
the Company announced the launch of the new Movistar+ user
interface designed by Mirada. This was an early success with the
Telefónica Group in Spain, which enhanced our reputation with this
customer. The Company was also invited to participate in bids for
other significant Tier One projects during the period.
In addition, Mirada has been able to demonstrate its
capabilities at a larger number of events during the year. These
include the IBC show in Europe, NAB in the United States and more
recently the Broadcast Asia show.
Our partners, including manufacturers, conditional access
providers and content delivery network providers, now have our Iris
technology fully integrated into their products (partially as a
result of the work on the Televisa project). As a result, they are
showcasing our user experience to their customers all over the
world and are generating new leads. This network, alongside our
recent agreements with local resellers and our increased sales and
marketing presence, give us confidence that we will deliver new
contract wins during the year.
Appointments
We were delighted that our CFO, Gonzalo Babío, joined our Board
of Directors during the period. Gonzalo is an experienced
professional and is proving to be an excellent addition to our
Board. In October, Rafael Martín sadly decided to step down after a
long period serving as a Non-Executive Director to pursue other
business interests. The Board is grateful for his valuable
contribution over the years.
During the period Newgate Communications was appointed as our
new Financial PR advisor and post year-end, Allenby Capital was
appointed as our new Nominated Adviser and Broker.
Financial overview
Revenue grew to GBP6.02 million (2015: GBP5.66 million), driven
primarily by the significant product integration for the Televisa
Group. In our mobile cashless parking payment division, revenues
continued to grow steadily to GBP0.54 million (2015: GBP0.43
million). Gross profit margin also grew to GBP5.80 million (2015:
GBP5.42 million). Adjusted EBITDA for the year remained broadly
constant at GBP1.50 million (2015: GBP1.54 million) resulting from
the different revenue mix with a larger professional services
component. The Company also booked a potentially irrecoverable
sales tax charge on its Wapping lease of GBP150,000. Amortisation
charges increased to GBP1.63 million from GBP1.19 million, due to
increased product investment.
The Group posted a net loss for the year of GBP0.40 million
compared to a loss of GBP0.18 million in the prior year, mainly as
a result of increased amortisation and provisions.
Net Debt (see note 17) rose to GBP3.48 million (2015: GBP2.61
million) as a result of increased product investment, delays in the
full Televisa commercial roll out and currency exchange factors.
Long term interest-bearing loans and borrowings increased 32% to
GBP1.77 million (2015: GBP1.35 million) and short term borrowings
increased to GBP2.42 million (2015: GBP1.47 million). Trade
receivables decreased from GBP2.19 million to GBP1.43 million as
invoices related to the Monterrey deployment raised at the end of
the previous financial year matured.
Cash at bank increased to GBP0.71 million from GBP0.21 million,
with additional invoice discounting facilities of GBP2.28 million
available and unused short-term credit lines of GBP0.88 million
available at the end of March 2016. In November 2015, the Company
completed an equity fundraising of GBP1.5 million (before
expenses), which provided then working capital required for the
final stage of the Televisa deployments and strengthened the
balance sheet.
Current Trading and Outlook
The Company continues to be a successful contender in the market
for advanced digital television user experience propositions,
especially in Latin America. We are competing for most of the major
live projects in the region, and are confident that our product
quality and proven expertise will be key strengths in the
decision-making process. The reference provided by our major
project with Televisa, with its demonstrable efficiency ratios and
higher rates of consumption of Video-on-demand, should make a
positive impact on our negotiations with new customers.
Mirada had been fully prepared for the Televisa roll out since
the deployment of the solution in Monterrey in February 2015.
However, delays resulting from the integration of the Televisa five
cable networks under the Izzi brand shifted the balance of the
Company revenue mix for the full year towards professional services
associated with additional change requests from the customer. Now
we are at a new stage in our relationship with Televisa and the
Board believes that we will increasingly benefit from
subscriber-based license fees as our product is rolled out across
their networks. In addition, Televisa will continue to require
support, maintenance and additional professional services.
Meanwhile, our partners and local representatives are building
the pipeline in other regions, especially South East Asia and
Eastern Europe. In addition, we continue to open new reseller
agreements in unexplored areas, recognising that on-the-ground
representation is essential in most of our new target markets.
The Company now has a complete and exceptional suite of
multiscreen products, which we will continue to develop,
introducing new cutting-edge functionalities as the market demands.
As of today, we consider Iris Inspire to be a leading proposition,
at least as strong as any major competitor, and the Board believes
that Iris Inspire's development was achieved at a fraction of the
cost that our competitors have spent on their offerings. We
therefore believe that we are extremely well positioned within the
markets in which we operate, and are confident that we will
increasingly be able to convert our growing pipeline into concrete
deals.
I would like to thank all of our stakeholders who have helped us
build Mirada to its present position, in which it has proven its
ability to deliver on a major deal. We now need to replicate this
with new business opportunities, and this will be our top priority
for the foreseeable future.
José-Luis Vázquez
Chief Executive Officer
15 July 2016
Business model
The Company's main activity is the provision of software for the
Digital TV market. Our major customers are Digital TV platforms,
mostly Pay TV service providers. We provide the technology needed
to facilitate the final user's interaction with the devices they
provide, including digital TV decoders (set-top boxes), tablets,
smartphones and computers. Our major products are our navigational
software proposition, Iris, including our Inspire user interface,
and xplayer, our broadcasting synchronisation technology.
Our customers need the services of a User Interface ("UI")
provider such as Mirada when creating a new Digital TV service or
replacing/upgrading an existing one. The UI provider interacts with
the device vendor (in the case of set-top boxes), the encryption
technology vendor (Conditional Access ("CA") vendor) for the
protection of content, and the customer systems (billing and
provisioning systems). For the larger customers, this is usually a
capital expenditure model per final subscriber or household, where
the set-top box vendor represents the most significant investment,
and licence fees are paid to the software providers for the use of
CA licences and UI licences.
The Group tends to interact with the customer in the early
stages of their decision-making process, and help in the selection
of the proper ecosystem. Our expertise is widely recognised in the
industry, and we provide a value that goes beyond our actual UI
proposition. Our business model is to charge a one-off subscriber
or device related fee, where the Pay TV platform pays the Group for
any new deployment of our products. As a result of this Mirada's
licence fees increase as our clients' subscribers increase.
Additionally, the customer pays for the set-up fees (adaptation and
integration of our technology) and for any additional bespoke
developments (on a professional services basis) or product
enhancements (on a subscriber or device basis). For small
customers, Mirada can also provide a financed model with recurrent
monthly subscriber-based revenues. A customer using Mirada's
technology would also pay annual support and maintenance fees.
Strategy
The Group's strategy is to extend its presence in the Digital TV
markets, focusing on those markets with higher potential growth
rates, for example the Latin American, Eastern Europe and South
East Asia market. The aim is to increase the number of customers
being charged subscriber-based licence fees, as these revenues
command higher margins and, as long as the customer's subscriber
base is growing, Mirada will continue to earn licence fees even
from projects which were completed several years previously.
The main key performance indicator ("KPI") used by management in
assessing the success of this strategy is the growth in Mirada's
licence revenues, which will be led by the progress of our recent
rollouts and any potential new licence-based contract wins.
Reference deployments are very important in this market, and
winning reference contracts has been and is an integral part of our
strategy. The Group will need to continue investing in research and
development in order to provide the required functionalities in our
products to satisfy the cutting-edge demands from our customers,
while maintaining a fair balance between potential growth and
profitability. Our continued investment in Iris is essential in
ensuring a proper implementation of this strategy.
Consolidated Income Statement
Year Year ended
ended 31 March
31 March 2015
2016
GBP000 GBP000
Revenue 6,019 5,657
Cost of sales (221) (234)
------------------------------ ---------- -----------
Gross profit 5,798 5,423
Depreciation (19) (21)
Amortisation (1,635) (1,187)
Share-based payment
charge (54) (61)
Other administrative
expenses (4,449) (3,869)
------------------------------ ---------- -----------
Total administrative
expenses (6,157) (5,138)
Operating (loss)/profit (359) 285
Finance income 5 38
Finance expense (475) (436)
Loss before taxation (829) (113)
Taxation 425 (62)
Loss for year (404) (175)
------------------------------ ---------- -----------
Loss per share Year Year ended
ended 31 March
31 March 2015
2016
GBP GBP
Loss per share
for the year
- basic & diluted (0.003) (0.002)
Consolidated statement of comprehensive income
Year Year
ended ended
31 March 31 March
2016 2015
GBP000 GBP000
Loss for the year (404) (175)
Other comprehensive
loss:
Currency translation
differences 303 (225)
---------------------------- ---------- ----------
Total other comprehensive
profit/(loss) 303 (225)
Total comprehensive
loss for the year (101) (400)
---------------------------- ---------- ----------
Consolidated statement of changes in equity
Share Share Foreign Merger Retained Total
capital premium exchange reserves earnings
account reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1 April
2015 1,141 8,748 258 2,472 (3,643) 8,976
--------------------- --------- --------- ---------- ---------- ---------- -------
Loss for the year - - - - (404) (404)
Movement in foreign
exchange - - 303 - - 303
Total comprehensive
loss for the year - - 303 - (404) (101)
--------------------- --------- --------- ---------- ---------- ---------- -------
Share based payment - - - - 54 54
Issue of shares 250 1,250 - - - 1,500
Share issue costs - (139) - - - (139)
Balance at 31
March 2016 1,391 9,859 561 2,472 (3,993) 10,290
--------------------- --------- --------- ---------- ---------- ---------- -------
Share Share Foreign Merger Retained Total
capital premium exchange reserves earnings
account reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1 April
2014 861 5,776 483 2,472 (3,529) 6,063
--------------------- --------- --------- ---------- ---------- ---------- -------
Loss for the year - - - - (175) (175)
Movement in foreign
exchange - - (225) - - (225)
Total comprehensive
loss for the year - - (225) - (175) (400)
--------------------- --------- --------- ---------- ---------- ---------- -------
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
--------------------- --------- --------- ---------- ---------- ---------- -------
Consolidated statement of financial position
31 March 31 March
2016 2015
GBP000 GBP000
Goodwill 6,946 6,946
Other Intangible assets 3,890 2,843
Property, plant and
equipment 94 41
Deferred Tax Assets 395 543
Other Receivables 191 -
Non-current assets 11,516 10,373
---------------------------------- --------- ---------
Trade & other receivables 3,839 3,565
Cash and cash equivalents 714 206
---------------------------------- ---------
Current assets 4,553 3,771
Total assets 16,069 14,144
---------------------------------- --------- ---------
Loans and borrowings (2,419) (1,467)
Trade and other payables (1,570) (1,790)
Provisions - (500)
---------------------------------- ---------
Current liabilities (3,989) (3,757)
---------------------------------- --------- ---------
Net current assets 564 14
---------------------------------- --------- ---------
Total assets less current
liabilities 12,080 10,387
---------------------------------- --------- ---------
Interest bearing loans
and borrowings (1,772) (1,345)
Other non-current liabilities (18) (66)
Non-current liabilities (1,790) (1,411)
---------------------------------- --------- ---------
Total liabilities (5,779) (5,168)
---------------------------------- --------- ---------
Net assets 10,290 8,976
---------------------------------- --------- ---------
Issued share capital
and reserves attributable
to equity holders of
the company
Share capital 1,391 1,141
Share premium 9,859 8,748
Other reserves 3,033 2,730
Retained losses (3,993) (3,643)
Equity 10,290 8,976
---------------------------------- --------- ---------
Consolidated statement of cash flows
Year ended Year
31 March ended
2016 31 March
2015
GBP000 GBP000
Cash flows from operating
activities
Loss after tax (404) (175)
Adjustments for:
Depreciation of property,
plant and equipment 19 21
Amortisation of intangible
assets 1,635 1,187
Share-based payment charge 54 61
Profit on disposal of fixed
assets (1) (11)
Finance income (5) (38)
Finance expense 475 436
Taxation (425) 62
------------------------------------- ----------- ----------
Operating cash flows before
movements in working capital 1,348 1,543
Increase in trade and other
receivables (464) (2,144)
Decrease in trade and other
payables (27) (444)
Decrease in defered tax asset 191 -
Decrease in provisions (500) (76)
------------------------------------- -----------
Net cash (used in)/generated
from operating activities 548 (1,121)
Cash flows from investing
activities
Interest and similar income
received 5 8
Cash payments receipts for
financial investment assets - (132)
Receipts for financial investment
assets - 23
Proceeds from disposal of
property, plant and equipment 1 11
Purchases of property, plant
and equipment (73) (29)
Purchases of other intangible
assets (2,343) (1,795)
------------------------------------- -----------
Net cash used in investing
activities (2,410) (1,914)
Cash flows from financing
activities
Net payment to settle derivative - (121)
Interest and similar expenses
paid (475) (420)
Issue of share capital 1,500 3,500
Costs of share issue (139) (248)
Loans received 2,525 1,254
Repayment of loans (962) (570)
Net cash from financing activities 2,449 3,395
Net increase in cash and
cash equivalents 587 360
Cash and cash equivalents
at the beginning of the year 206 (150)
Exchange losses on cash and
cash equivalents (79) (4)
Cash and cash equivalents
at the end of the year 714 206
------------------------------------- ----------- ----------
Notes
1. General information
Mirada plc is a company incorporated in the United Kingdom. The
address of the registered office is 68 Lombard Street, London, EC3V
9LJ. 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 for the year ended 31 March 2016 and
the year ended 31 March 2015 contained in these preliminary results
does not constitute the company's statutory accounts for those
years. Statutory accounts for the year ended 31 March 2015 have
been delivered to the Registrar of Companies. The statutory
accounts for the year ended 31 March 2016 will be delivered to the
Registrar of Companies in due course and will be available from the
Company's registered office at 68 Lombard Street, London, EC3V 9LJ
and from the Company's website www.mirada.tv/corporate.
The auditors' reports on the accounts for 31 March 2016 and the
year ended 31 March 2015 were unqualified, did not draw attention
to any matters by way of emphasis, and did not contain a statement
under 498(2) or 498(3) of the Companies Act 2006.
The financial information contained in these preliminary results
has been prepared using [the recognition and measurement
requirements of] International Financial Reporting Standards
(IFRSs) as adopted by the EU. 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 financial statements for the year ended 31 March
2015. New standards, amendments and interpretations to existing
standards, which have been adopted by the Group for the year ended
31 March 2016, have not been listed since they have no material
impact on the financial information.
3. 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.
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 segment
headed 'other' relates to corporate overheads, assets and
liabilities.
Segmental results for the year ended 31 March 2016 are as
follows:
Digital Mobile Other Group
TV &
Broadcast
GBP'000 GBP'000 GBP'000 GBP'000
Revenue - external 5,482 537 - 6,019
Segmental profit/(loss)
(Adjusted EBITDA,
see note 6) 2,242 154 (898) 1,498
Finance income - - 5 5
Finance expense - - (475) (475)
Depreciation (19) - - (19)
Amortisation (1,612) (23) - (1,635)
Profit on sale 1 - - 1
Share-based payment
charge - - (54) (54)
Irrecoverable
sales tax expense (150) - - (150)
----------- -------- -------- --------
Profit / (Loss)
before taxation 462 131 (1,422) (829)
The segmental results for the year ended 31 March 2015,
presented on the revised basis, are as follows:
Digital Mobile Other Group
TV &
Broadcast
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 5,232 425 - 5,657
Segmental profit/(loss)
(Adjusted EBITDA,
see note 6) 2,086 91 (634) 1,543
Finance income - - 38 38
Finance expense - - (436) (436)
Depreciation (17) (1) (3) (21)
Amortisation (1,162) (25) - (1,187)
Profit on sale - - 11 11
Share-based payment
charge - - (61) (61)
----------- -------- -------- --------
Profit / (Loss)
before taxation 907 65 (1,085) (113)
There is no material inter-segment revenue.
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 GBP3.6 million (2015: GBP2.16 million) and GBP0.94 million
(2015: GBP0.84 million) of the total Group revenues
respectively.
The segment assets and liabilities at 31 March 2016 are as
follows:
Digital Mobile Other Group
TV -
Broadcast
GBP'000 GBP'000 GBP'000 GBP'000
Additions to
non-current assets 2,330 - - 2,330
Total assets 11,108 139 4,822 16,069
Total liabilities (5,016) (79) (684) (5,779)
Capital expenditure comprises additions to property, plant and
equipment and intangible assets.
The segment assets and liabilities at 31 March 2015, presented
on a revised basis, are as follows:
Digital Mobile Other Group
TV -
Broadcast
GBP'000 GBP'000 GBP'000 GBP'000
Additions to
non-current assets 1,887 - 1 1,888
Total assets 13,210 714 220 14,144
Total liabilities (4,029) (134) (1,005) (5,168)
Segment assets and liabilities are reconciled to the Group's
assets and liabilities as follows:
Assets Liabilities Assets Liabilities
31 March 31 March 31 March 31 March
2016 2016 2015 2015
GBP'000 GBP'000 GBP'000 GBP'000
Digital TV -
Broadcast & Mobile 11,247 5,095 13,924 4,163
Other:
Intangible assets 3,890 - - -
Property, plant - - 2 -
& equipment
Other financial
assets & liabilities 932 684 218 1,005
Total other 4,822 684 220 1,005
Total Group assets
and liabilities 16,069 5,779 14,144 5,168
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 Total assets by
by location of
customer
location of assets
31 March 31 March 31 March 31 March
2016 2015 2016 2015
GBP000 GBP000 GBP000 GBP000
UK 609 593 5,230 3,323
Spain 540 953 10,839 10,821
Rest of Continental - 52 - -
Europe
Latin America 4,870 4,059 - -
6,019 5,657 16,069 14,144
Revenues by Products:
31 March 31 March 31 March 31 March
2016 2016 2015 2015
Digital Mobile Digital Mobile
TV & TV & Broadcast
Broadcast
GBP000 GBP000 GBP000 GBP000
Development 3,639 - 2,949 -
Self Billing - 537 - 410
Licenses 1,260 - 1,730 20
Managed Services 583 - 552 (4)
5,482 537 5,231 426
5. Taxation
The tax assessed on the loss on ordinary activities for the
period differs from the standard rate of tax of 20%. The
differences are reconciled below:
Year ended Year ended
31 March 31 March
2016 2015
GBP000 GBP000
Loss before taxation (829) (113)
Loss on ordinary activities
multiplied by 20% (2015:
21%) (166) (24)
Effect of expenses
not deductible for
tax purposes 13 21
Losses carried forward 153 3
Witholding Taxes - 159
Total current tax - 159
Origination and reversal
of temporary differences - 31
(Increase)/decrease
of deferred tax assets 191 (128)
Total deferred tax 191 (97)
Subtotal 191 62
R&D (616) -
Total tax (credit)
/ expense (425) 62
Deferred Taxation
The Deferred tax assets have been recognised in respect of tax
losses for Mirada Connect Limited, research and development
investment for Mirada Iberia 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 Mirada Iberia S.A and Mirada Connect
Limited over recent years, combined with the forecasts for future
periods. However, following a prudent approach deferred tax assets
have been reduced by GBP191,000 during FY16
The movements in deferred tax assets and liabilities during the
period are shown below:
Group Asset 31 Asset 31 (Charged)/credited
March 2016 March 2015 to profit
& loss 31
March 2016
GBP000 GBP000 GBP000
Tax credit for
losses 387 536 (191)
Other temporary
deductible differences 8 7 -
Tax asset 395 543 (191)
Foreign exchange differences of GBP42,000 arising on
consolidation of the deferred tax asset are recognised in other
comprehensive income.
Reconciliation of deferred tax asset and liabilities:
Year ended Year ended
31 March 31 March
2016 2015
Asset Asset
GBP000 GBP000
Balance at 1 April 543 508
Other tax credit - 128
Reversal of Deferred (191) -
tax asset
Other Temporary Deductible
differences - (31)
Forex 43 (62)
Balance at the end
of year 395 543
Deferred taxation amounts not recognised are as follows:
Group Year ended Year ended
31 March 31 March
2016 2015
GBP000 GBP000
Depreciation in excess
of capital allowance 429 429
Losses 9,668 9,515
Research and Development
tax credits, useable
against future profits 2,199 2,199
12,296 12,143
The gross value of tax losses carried forward at 31 March 2016
equals GBP58.0 million (2015: GBP57.8 million). Research and
Development tax credits, useable against future profits
6. Operating profit
The operating profit is stated after charging/(crediting) the
following:
Year Year
ended ended
31 March 31 March
2016 2015
GBP000 GBP000
Depreciation of owned assets 19 21
Amortisation of intangible
assets 1,635 1,187
Operating lease charges 265 250
Reconciliation of operating profit for continuing operations to
adjusted earnings before interest, taxation, depreciation and
amortisation:
Year Year
ended ended
31 March 31 March
2016 2015
GBP000 GBP000
Operating (loss) / profit (359) 285
Depreciation 19 21
Amortisation 1,635 1,187
Profit on disposal (1) (11)
Operating profit before interest,
taxation, depreciation, amortisation
(EBITDA) 1,294 1,482
Share-based payment charge 54 61
Irrecoverable sales tax expense 150 -
Operating profit before interest,
taxation, depreciation, amortisation
and share-based payment charge
(Adjusted EBITDA) 1,498 1,543
7. Earnings per Share
Year Year
ended ended
31 March 31 March
2016 2015
Total Total
Loss for year GBP(404,647) GBP(175,078)
Weighted average
number of shares 122,345,366 104,315,229
Basic loss per GBP(0.003) GBP(0.002)
share
Diluted loss per GBP(0.003) GBP(0.002)
share
Adjusted EBITDA per share
Adjusted EBITDA per share is calculated by reference to the
operating margin from continuing activities before profit on
disposal, share-based payment charges, depreciation, amortisation
and irrecoverable sales tax (see note 6).
Year Year
ended ended
31 March 31 March
2016 2015
Total Total
Adjusted EBITDA GBP1,497,955 GBP1,543,178
Weighted average
number of shares 122,345,366 104,315,229
Basic adjusted GBP0.012 GBP0.014
EBITDA per share
Diluted adjusted GBP0.012 GBP0.014
EBITDA per share
The Company has 4,697,165 (2015: 5,602,238) 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 2016 is as follows:
31
31 March March 31 March 31 March
2016 2016 2015 2015
Number GBP000 Number GBP000
Allotted, called
up and fully paid
Ordinary shares
of GBP0.01 each 139,057,695 1,391 114,057,695 1,141
Share issues
During the year the following share issues took place:
On 1 December 2015 the Company completed a placing for cash
raising gross proceeds of GBP1,500,000 via the issue of 25,000,000
GBP0.01 ordinary shares at a price of GBP0.06 each.
9. Events after the reporting date
There are no material reportable events post the balance sheet
date.
10. Cautionary Statement
Mirada plc has made forward-looking statements in this press
release, including statements about the market for and benefits of
its products and services; financial results; product development
plans; the potential benefits of business relationships with third
parties and business strategies. These statements about future
events are subject to risks and uncertainties that could cause
Mirada plc's actual results to differ materially from those that
might be inferred from the forward-looking statements, Mirada plc
can make no assurance that any forward-looking statements will
prove correct.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFUSMWFMSEIW
(END) Dow Jones Newswires
July 18, 2016 02:00 ET (06:00 GMT)
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