TIDMMIRA
30 December 2015
mirada plc
(AIM: MIRA)
("mirada", "the Company" or "the Group")
Interim results for the six months to 30 September 2015
mirada plc, the AIM quoted leading audiovisual content interaction specialist,
announces its unaudited interim results for the six months to 30 September
2015.
This was a busy period for the Company as it saw the continued commercial roll
out of its iris inspire product over the first Televisa cable network in
Monterrey and completion of the development of the new Over the Top ("OTT")
suite. The Televisa contract proved a useful reference point with the Company
pitching for a number of significant potential new Tier 1 and Tier 2
contracts.
Operational Highlights
* Interim results ahead of last year, and on track for full year performance
to be in line with market expectations.
* Continued commercial deployment of the first Televisa network (Cablevision
Monterrey), roll out 20% ahead of management expectations.
* Next two networks (Cablevisión and Cablemás, both with headquarters in
Mexico City) expected to deploy mirada products commercially at the end of
the current financial year.
* Two additional networks (Cablecom and Telecable) added to the Televisa
Group, which substantially increased the contract's long- term value.
* Successful deployment of the mirada designed user experience for Movistar+
in Spain.
Key Points
* Revenue of GBP2.26 million (H1 2014: GBP2.19 million) during the six months to
30 September 2015.
* Increased adjusted EBITDA* of GBP0.18 million (H1 2014: GBP0.09 million loss),
further increase expected once the Mexico City Televisa networks start
their commercial roll out.
* Professional services fees expected to drive second half revenue higher in
advance of the deployment of two additional networks in Mexico.
* The Board is confident of generating positive free cash flow during the new
financial year (FY17).
*Adjusted EBITDA is defined as earnings before interest, tax, depreciation,
amortisation and share based payment charges
Post period highlights
* Strengthened the Board with the appointment of Gonzalo Babío (CFO) as an
Executive Director. Rafael Martín Sanz stepped down as non-executive
director to pursue other business interests.
* Placing on 24th November 2015 of 25,000,000 ordinary shares of 1 penny each
to raise GBP1.5 million (6p per share), primarily subscribed by major
shareholders, board and management.
* Good progress with Tier 1 and Tier 2 prospects.
Commenting on the future outlook of the Group, José Luis Vázquez, CEO of
mirada, said:
"The commercial roll out of our new inspire product in Mexico marked a
milestone for the Company and demonstrated our ability to manage large projects
on behalf of Tier 1 customers. After several months of usage by a large number
of subscribers, we are happy to report that the superior quality and
performance of our products has been proven. We are confident that the product
will receive a warm welcome amongst end subscribers when launched elsewhere in
Mexico at the end of the current fiscal year."
"We now have a suite of seamlessly integrated products, that enables customers
to manage TV experience from a tablet or smartphone and to move content from
one screen to another. In Televisa's selection of our OTT solution we have
gained a key reference that should help us win other deals. In addition, the
OTT product opens an attractive new business line for mirada. The Company has
recently been invited to submit proposals for important new business."
"The team is performing well and is fully deployed on the projects announced in
recent months. The immediate priority is the commercial roll out of the larger
networks at Televisa, while continuing to develop our product suite.
"Our main shareholders have been supportive, having for the most part
participated in the recent placing that reinforced our balance sheet.
Meanwhile, we are working hard to increase our footprint among new customers."
Enquiries:
mirada plc +44 (0) 207 868 2104
José Luis Vázquez, Chief Executive Officer
Walbrook PR +44 (0) 207 933 8783
Nick Rome/Sam Allen
mirada@walbrookpr.com
Arden Partners plc (Nomad and Joint +44 (0) 207 614 5900
Broker)
James Felix/Ciaran Walsh (Corporate
Finance)
Kam Bansil (Corporate Broking)
Chief Executive Officer's Statement
Overview
I am pleased to present the Group's financial results for the six months ended
30 September 2015. During this period the Company's flagship product, iris
inspire, was commercially deployed in the first cable network in Mexico,
Cablevisión Monterrey, and enjoyed growth ahead of expectations, ending the
period with more than 100,000 set-top boxes spread among over 60,000
households. Additionally, the customer reported that the Video on Demand
service was much more widely used than on the legacy platform - an endorsement
of the quality of our product and offering our customers a better return on
investment.
During the period the Company has been progressing successfully with the
development of additional functionalities for the next generation of the iris
inspire product, and further customisation of the services deployed for the
Televisa Group. Although for internal reasons, Televisa delayed the launch of
the commercial service over the next two networks to the end of mirada's fiscal
year, it continued to contract further professional services. These largely
compensated for the delay in the subscriber-based license fees, albeit at a
lower margin. As previously announced, the Board expects the next two networks
at Televisa will be commercially rolled-out by April 2016, and the Board is
confident that the other recently acquired cable networks will also start using
the mirada products during the new fiscal year.
The team completed the OTT product, which has become an integral part of the
iris inspire proposition, on time. Customers can now choose either the classic
set-top box-based product or the full proposition, enabling integrated
interface with the TV and other available screens (web, tablets, smartphones).
A subscriber can select content, pause or play TV from companion devices, or
move content from screen to screen. Customers can also choose the mirada OTT
product without the need of a "living room proposition", thereby expanding the
potential user base.
We continue developing relationships with partners - set-top box vendors,
conditional access suppliers, content delivery network suppliers - who are
expanding mirada's reach to customers in regions we would otherwise struggle to
reach. Such partners are able to demonstrate the system and its benefits on our
behalf and in this way we have been invited to participate in new territories
in Central and Eastern Europe and Africa. Mirada is also reinforcing its
presence through local players in these new markets (resellers and integrators)
to service the new opportunities.
Financial Overview
Turnover was GBP2.26 million (H1 2014: GBP2.19 million). Professional services fees
relating to the deployment of two additional networks in Mexico City will be
recognised in the second half of the year.
Revenues in the Americas remained strong at 77% of the total revenues (H1 2014:
61%), in line with expectations.
Adjusted EBITDA was GBP0.18 million (H1 2014: GBP0.09 million loss), a GBP0.27
million improvement.
Operating Losses were GBP0.61 million (H1 2014: GBP0.70 million loss), a GBP0.09
million improvement.
Loans and borrowings increased by GBP0.96 million to GBP3.77 million (March 2015: GBP
2.81 million). The additional funding was required to speed-up product
development and incorporate additional functionalities for the next two
networks. Cash and cash equivalents increased to GBP0.35 million at the end of
the period (March 2015: GBP0.21 million).
Post period end, the Company completed an equity placing of GBP1.5 million on
24th November 2015, with the backing of major shareholders, directors and
management. The funds are to be used to strengthen mirada's balance sheet and
working capital.
Appointments
During the period we were pleased to welcome Gonzalo Babío (CFO) as an
Executive Director. The addition of such a highly experienced professional to
our Board strengthens our ability to develop our relationships with big
telecoms suppliers and improves our financial capabilities and corporate
governance, which will be invaluable as we develop our business.
Outlook
The Company is confident that full year revenues will be in line with market
expectations, due to the high degree of visibility of revenues until the
year-end, mostly from professional services for Televisa. Subscriber-based
license fees should start to flow in the new financial year, giving the Board
confidence of reaching positive free cash flow over the year starting 1 April
2016.
Jose Luis Vazquez
Chief Executive Officer
30 December 2015
Consolidated income statement for the six months to 30 September 2015
Note 6 months 6 months Year ended
ended ended 31 March
30 30 2015
September September
2015 2014
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Revenue 2 2,264 2,191 5,657
Cost of sales (107) (124) (234)
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Gross profit 2,157 2,067 5,423
Depreciation (8) (9) (21)
Amortisation (755) (575) (1,187)
Share-based payment charge (27) (31) (61)
Other administrative expenses (1,973) (2,154) (3,869)
Total administrative costs (2,763) (2,769) (5,138)
3 (606) (702) 285
Operating (loss)/profit
Finance income - - 38
Finance expense (206) (185) (436)
(Loss) before taxation (812) (887) (113)
Taxation 12 - (62)
(Loss)/for period (800) (887) (175)
(Loss) per share
- basic and diluted 4 (0.7p) (1.0p) (0.2p)
The above amounts are attributable to the equity holders of the parent Company.
Consolidated statement of comprehensive income
Six months to 30 September 2015
6 months 6 months Year ended
ended ended 31 March
30 30 2015
September September
2015 2014
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
(Loss) for the financial period (800) (887) (175)
Currency translation differences 33 (77) (225)
Total comprehensive (expense) for the (767) (964) (400)
period
Consolidated statement of financial position as at 30 September 2015
30 September 30 31 March
2015 September 2015
2014
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Property, plant and equipment 45 39 41
Goodwill 6,946 6,946 6,946
Intangible assets 3,407 2,389 2,843
Deferred Tax assets 551 523 543
Non-current assets 10,949 9,897 10,373
Trade and other receivables 3,356 1,679 3,565
Cash and cash equivalents 352 1,218 206
Current assets 3,708 2,897 3,771
Total assets 14,742 12,794 14,144
Loans and borrowings (2,180) (557) (1,467)
Trade and other payables (2,108) (1,556) (1,790)
Provisions (500) (500) (500)
Current liabilities (4,788) (2,613) (3,757)
Net current liabilities/assets (1,082) 284 14
Total assets less current 9,867 10,181 10,387
liabilities
Interest bearing loans and (1,588) (1,703) (1,345)
borrowings
Other non-current liabilities (42) (96) (66)
Non-current liabilities (1,630) (1,799) (1,411)
Net assets 8,237 8,382 8,976
Issued share capital and reserves
attributable to equity holders of
the company
Share capital 1,141 1,141 1,141
Share premium 8,748 8,748 8,748
Other reserves 2,763 2,878 2,730
Accumulated losses (4,415) (4,385) (3,643)
Equity 8,237 8,382 8,976
Consolidated statement of changes in equity
Six months to 30 September 2015
Share Share Foreign Merger Profit Total
capital Share option exchange reserve and GBP000
GBP000 premium reserve reserve GBP000 loss
GBP000 GBP000 GBP000 account
GBP000
At 1 April 2015 1,141 8,748 - 258 2,472 (3,643) 8,976
Profit for the financial - - - - - (800) (800)
period
Share based payment - - - - - 28 28
Movement in foreign exchange - - - 33 - - 33
reserve
At 30 September 2015 1,141 8,748 - 291 2,472 (4,415) 8,237
Share Share Foreign Merger Profit Total
capital Share option exchange reserve and GBP000
GBP000 premium reserve reserve GBP000 loss
GBP000 GBP000 GBP000 account
GBP000
At 1 April 2014 861 5,776 - 483 2,472 (3,529) 6,063
Profit for the financial - - - - - (887) (887)
period
Share based payment - - - - - 31 31
Issue of shares 280 3,220 - - - - 3,500
Share issue costs - (248) - - - - (248)
Movement in foreign exchange - - - (77) - - (77)
reserve
At 30 September 2014 1,141 8,748 - 406 2,472 (4,385) 8,382
Share Share Foreign Merger Profit Total
capital Share option exchange reserve and GBP000
GBP000 premium reserve reserve GBP000 loss
GBP000 GBP000 GBP000 account
GBP000
At 1 April 2014 861 5,776 - 483 2,472 (3,529) 6,063
Profit for the financial - - - - - (175) (175)
period
Share based payment - - - - - 61 61
Issue of shares 280 3,220 - - - - 3,500
Share issue costs - (248) - - - - (248)
Movement in foreign exchange - - - (225) (225)
reserve
At 31 March 2015 1,141 8,748 - 258 2,472 (3,643) 8,976
Consolidated statement of cash flows six months to 30 September 2015
6 months 6 months Year ended
ended ended 31 March 2015
30 30 September (Audited)
September 2014
2015 (Unaudited)
(Unaudited)
GBP000 GBP000 GBP000
Cash flows from operating activities
(Loss) for the period (800) (887) (175)
Adjustments for:
Depreciation of property, plant and equipment 8 9 21
Amortisation of intangible assets 755 575 1,187
Share based payment charge 27 31 61
Profit on disposal of fixed assets - - (11)
Finance income - - (38)
Finance expense 206 185 436
Taxation - - 62
Operating cash inflows/(outflows) before 196 (87) 1,543
movements in working capital
Decrease in trade and other receivables 256 98 (2,144)
Decrease in provisions - (76) (76)
Increase in trade and other payables 270 (802) (444)
Net cash generated from operating activities 722 (867) (1,121)
Cash flows from investing activities
Interest and similar income received - 2 8
Cash payments receipts for financial - - (132)
investments assets
Receipts for financial investment assets - - 23
Proceeds from disposal of property, plant and - - 11
equipment
Purchases of property, plant and equipment (13) (13) (29)
Purchases of other intangible assets (1,259) (630) (1,795)
Net cash used in investing activities (1,272) (641) (1,914)
Cash flows from financing activities
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Net payment to settle derivative - - (121)
Interest and similar expense paid (206) (186) (420)
Issue of share capital - 3,500 3,500
Costs of share issue - (248) (248)
Loans received 1,379 233 1,254
Repayment of loans (484) (432) (570)
Net cash (used in)/generated from financing 689 2,867 3,395
activities
Net (decrease)/increase in cash and cash 140 1,359 360
equivalents
Cash and cash equivalents at the beginning of 206 (150) (150)
the period
Exchange gains on cash and cash equivalents 6 9 (4)
Cash and cash equivalents at the end of the 352 1,218 206
period
Cash and cash equivalents comprise cash at bank less bank overdrafts.
Notes to the Accounts
1. Basis of Preparation
These interim financial statements have been prepared using policies based on
International Financial Reporting Standards (IFRS and IFRIC Interpretations)
issued by the International Accounting Standards Board ("IASB") as adopted for
use in the EU. They do not include all disclosures that would otherwise be
required in a complete set of financial statements and should be read in
conjunction with the 31 March 2015 Annual Report. The financial information for
the half years ended 30 September 2015 and 30 September 2014 do not constitute
statutory accounts within the meaning of Section 434 (3) of the Companies Act
2006 and both periods are unaudited.
The annual financial statements of Mirada plc are prepared in accordance with
IFRS as adopted by the European Union. The comparative financial information
for the year ended 31 March 2015 included within this report does not
constitute the full statutory Annual Report for that period. The statutory
Annual Report and Financial Statements for the year to 31 March 2015 have been
filed with the Registrar of Companies. The independent Auditors' Report on that
Annual Report and Financial Statement for 2015 was 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.
After making enquiries, the directors have concluded that the Group have
adequate resources to continue operational existence for the foreseeable
future. Accordingly, they continue to adopt the going concern basis in
preparing the half-yearly consolidated financial statements.
The same accounting policies, presentation and methods of computation are
followed in these interim consolidated financial statements as were applied in
the Group's latest annual audited financial statements. In addition, the IASB
have issued a number of IFRS and IFRIC amendments or interpretations since the
last Annual Report was published. It is not expected that any of these will
have a material impact on the Group. The Board of Directors approved this
interim report on 29 December 2015.
2. Segmental reporting
For management purposes the Group is currently organised into two operating
divisions based upon the varying products and services provided by the Group
-Digital TV & Broadcast and Mobile (which includes Interactive Marketing and
Mirada Connect). The segment headed other relates to corporate overheads.
Segmental results for the 6 months ended 30 September 2015 are as follows:
Digital Mobile Other Group
TV
&
Broadcast
GBP000 GBP000 GBP000 GBP000
Revenue - external 2,007 257 - 2,264
Gross profit 2,002 155 - 2,157
Profit/(loss) before 504 79 (399) 184
interest, tax,
depreciation &
amortisation
Depreciation (8) - - (8)
Amortisation (743) (11) - (754)
Share Option charges - - (27) (27)
Finance income - - - -
Finance expense - - (206) (206)
Taxation 12 - - 12
Segmental profit/(loss) (235) 68 (632) (799)
Segmental results for the 6 months ended 30 September 2014 are as follows:
Digital Mobile Other Group
TV
&
Broadcast
GBP000 GBP000 GBP000 GBP000
Revenue - external 1,978 195 18 2,191
Gross profit 1,934 115 18 2,067
Profit/(loss) before 91 54 (233) (87)
interest, tax,
depreciation &
amortisation
Depreciation (7) - (2) (9)
Amortisation (547) (12) (15) (575)
Share Option charges - - (31) (31)
Finance income - - - -
Finance expense - - (185) (185)
Segmental profit/(loss) (463) 41 (466) (887)
Segmental results for the year ended 31 March 2015 are as follows:
Digital Mobile Other Group
TV
&
Broadcast
GBP000 GBP000 GBP000 GBP000
Revenue - external 5,232 425 - 5,657
Gross profit 5,175 248 - 5,423
Profit/(loss) before 2,086 91 (634) 1,543
interest, tax,
depreciation &
amortisation
Depreciation (17) (1) (3) (21)
Amortisation (1,162) (25) - (1,187)
Profit on sale - - 11 11
Share based payment - - (61) (61)
charge
Finance income - - 38 38
Finance expense - - (436) (436)
Taxation (62) - - (62)
Segmental profit/(loss) 845 65 (1,085) (175)
Revenue by location of customer
6 months 6 months Year ended
ended ended 31 March
30 September 30 September 2015
2015 2014 (Audited)
(Unaudited) (Unaudited) GBP000
GBP000 GBP000
UK 301 327 593
Spain 224 463 953
Continental Europe - 46 52
Americas 1,739 1,355 4,059
Total 2,264 2,191 5,657
3. Earnings before interest, taxation, depreciation, amortisation and
share-based payment charge
Reconciliation of operating loss to profit before interest, taxation,
depreciation, amortisation and share-based payment charge:
6 months 6 months Year ended
ended ended 31 March
30 September 30 September 2015
2015 2014 (Audited)
(Unaudited) (Unaudited) GBP000
GBP000 GBP000
Operating loss (606) (702) 285
Depreciation 8 9 21
Amortisation of deferred 755 575 1,187
development costs
Share-based payment charge 27 31 61
Profit/(loss) before interest, 184 (87) 1,543
taxation, depreciation and
amortisation
4. (Loss) per share
6 months 6 months Year ended
ended ended 31 March
30 September 30 September 2015
2015 2014 (Audited)
(Unaudited) (Unaudited)
(Loss) for period (GBP799,540) (GBP887,041) (GBP175,078)
Weighted average number of shares 114,057,695 90,353,585 104,315,229
Basic earnings/(loss) per share GBP (0.007) GBP (0.01) GBP (0.002)
Adjusted (loss)/earning per share
Adjusted earnings per share is calculated by reference to the (loss)/profit
from continuing activities before interest, taxation, amortisation and
depreciation and share-based payment charge (see note 3).
6 months 6 months Year ended
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