TIDMMIRA
RNS Number : 0026Q
Mirada PLC
24 November 2016
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
24 November 2016
Mirada plc
("Mirada", the "Company" or the "Group")
Interim results for the six months to 30 September 2016
Mirada plc (AIM: MIRA), a leading audio-visual content
interaction specialist, announces its unaudited interim results for
the six months to 30 September 2016.
This was a key period for the Company, which saw the deployment
of Mirada's full Iris Inspire platform over the five cable networks
of Izzi, the telecom branch of the Televisa Group. This deployment
has allowed the Group to significantly improve its financial
sustainability.
In addition, Mirada has established a strong Sales and Marketing
team, which is committed to replicating similar deployments
worldwide, starting with potential customers in Europe, Asia and
Latin America. This strategy is supported by a reinforced
operational team, to ensure the timely execution of future
projects.
Operational Highlights
-- Full commercial rollout across the five cable networks of the
Televisa Group, achieved with exemplary execution and technical
performance.
-- Televisa has experienced significant growth in Video on
Demand consumption via Mirada's solution.
-- Expansion of Sales and Marketing team, with new local
presence in India, Southeast Asia, Eastern Europe and Americas.
-- Increased global pipeline with 50% of new opportunities in
Eastern Europe, India and Southeast Asia.
Financial Highlights
-- Revenue of GBP2.78 million during the six months to 30
September 2016 (H1 2015: GBP2.26 million, a 23% increase).
-- Adjusted EBITDA* loss of GBP0.01 million (H1 2015: GBP0.18
million profit) predominantly due to increased sales, marketing and
operational activities.
-- Higher margins from subscriber-based licence fees anticipated
in the second half of the year, as the full commercial launch at
Televisa took place at a midway point in the first half of the
financial year.
*Adjusted EBITDA is defined as earnings before interest, tax,
depreciation, amortisation and share based payment charges
Post period highlights
-- On 28 October 2016, the Company announced that it has
achieved the milestone of 500,000 set-top boxes deployed by Izzi
with Mirada's technology. As of 31 October 2016, in excess of
525,000 set-top boxes had been deployed.
-- Increased pipeline of potential revenue in new geographical areas.
Commenting on the outlook for the Group, José Luis Vázquez, CEO
of Mirada, said:
"Thanks to the successful commercial rollout of the Iris
solution for Televisa in July, we are currently enjoying our
strongest position in the market in the Company's history. We have
reinforced our sales and marketing team in order to capitalise on
the exceptional reference our work with Televisa provides and this
has enabled us to build a solid pipeline in Asia, Europe and Latin
America. We are confident that this should result in new customers,
further strengthening our position as one of the leading providers
of state-of-the-art technology for Pay TV."
Enquiries:
Mirada plc
José Luis Vázquez,
Chief Executive Officer
Gonzalo Babío, Finance +44 (0) 207 868
Director 2104
--------------------------------- -------------------------
Newgate Communications +44 (0) 207 653
Bob Huxford 9850
Helena Bogle mirada@newgatecomms.com
Ed Treadwell
--------------------------------- -------------------------
Allenby Capital Limited
(Nominated Adviser and Broker)
Jeremy Porter / Alex Brearley
/ Liz Kirchner (Corporate
Finance) +44 (0) 203 328
Graham Bell (Equity Sales) 5656
--------------------------------- -------------------------
Chief Executive Officer's Statement
Overview
I am pleased to present the Group's interim financial results
for the six months ended 30 September 2016.
We defined three major goals to progress this financial year:
the successful rollout of our product across the entire Izzi
network; financial sustainability (i.e. not requiring any further
equity fundraising for recurrent business); and most importantly,
new customer wins. I am glad to say that the Company is steadily
working towards fulfilling these goals.
Successful rollout
This period saw the launch of our Iris Inspire platform across
the five cable networks of Televisa Group's Izzi. This represents
the largest deployment that Mirada has undertaken in the history of
the Company. After a successful initial deployment of the Iris
platform over Cablevision Monterrey last year, followed by the
integration of the five cable networks under a common Izzi brand
and technical facilities, Televisa proceeded to deploy Mirada's
technology, accompanied by an extensive marketing campaign in the
Mexican market. In October 2016, we announced that the number of
set-top boxes deployed using Mirada's technology surpassed the
500,000 milestone, which, with a further six million Televisa
set-top boxes in the field, should provide for a steady, long-term
revenue stream for Mirada.
Financial sustainability
In terms of the balance sheet, even with the intense working
capital requirements of a deployment as large as Televisa, the
Group has been able to carefully manage its cash, and is now
benefitting from the cash inflows from the licensing of our
software to cover a rapidly growing base of end-user subscribers.
The steadily growing revenue stream from subscriber-based license
fees has significantly improved our operating cash flow, giving the
Board confidence that the Group's existing business is not
currently expected to require further equity fundraising. The Board
will evaluate the working capital requirements of new projects on a
case-by-case basis, as and when appropriate.
New customer wins
Over the half-year period, the Company was predominantly focused
on the priority of securing new customers. At present, Mirada's
position in the market has never been stronger. We are not only
benefitting from the excellent reference deployment via the
successful Televisa launch, but also from the very promising
performance ratios of our product, including higher levels of Video
on Demand consumption by users, when compared to the legacy
platforms. The latter is one of the most appealing arguments in
favour of our product, as higher Video on Demand consumption has a
materially positive impact on Pay TV operators' average revenue per
user (ARPU) -, which is a significant KPI for such operators.
In order to capitalise on this favourable situation, we also
made significant enhancements to our Sales and Marketing strategy.
Mirada recruited several sales representatives and resellers to
cover Eastern Europe, India, South East Asia and Americas more
effectively, and we now have a local presence within these regions.
Our presence at key industry events increased over the last year,
and we have seen our pipeline greatly improve to a better position
than ever before. Client decision-making processes in our industry
tend to be lengthy, taking on average from six months to two years
for a deal to be signed. The Board believes that the Group is now
well prepared to replicate the Televisa success in other
territories and we expect to see several of our new client
discussions advance over the shorter to medium term. In terms of
geography, out of the 12 most likely opportunities that we are
currently working on, six are situated in Eastern Europe, India and
South East Asia, which indicates a healthy trend towards
diversifying our business into these promising regions.
Financial Overview
Turnover was GBP2.78 million (H1 2015: GBP2.26 million),
representing a 23% increase over last year. Notwithstanding this
healthy growth in revenues, it is worth noting that the vast
majority of the subscriber-based licence fees from the Televisa
rollout will be recognised in the second half of the financial
year. Most of the revenues in the first half relate to professional
services, which continue to be a relevant source of income for the
Company. The second half of the year, which is traditionally
stronger than the first half, will also benefit from the licence
fees of the Televisa rollout and further professional services
which have already been requested by this customer.
Over the half-year period, the Americas accounted for 75% of
total revenues (H1 2015: 77%), which was in line with management's
expectations. The Board expects for the majority of revenues to be
derived from the Americas until the Group secures new business in
Europe and Asia.
Adjusted EBITDA loss was GBP0.01 million (H1 2015: GBP0.18
million profit) due to the increased sales, marketing and
operational activities. Adjusted EBITDA in this context is defined
as earnings before interest, tax, depreciation, amortisation and
share based payment charges. Operating Losses were GBP1.02 million
(H1 2015: loss of GBP0.61 million).
Loans and borrowings increased by GBP0.91 million to GBP5.10
million (March 2016: GBP4.19 million) to provide the working
capital required for the commercial rollout at Televisa. Of these
facilities, GBP1.24 million were long-term bank loans, GBP0.42
million were zero-coupon long-term facilities from Spanish
Government entities, GBP1.59 million were short-term bank loans and
GBP1.84 million were short-term invoice discounting facilities.
Cash and cash equivalents increased to GBP0.81 million at the end
of the period (March 2016: GBP0.71 million).
Appointments
During the half-year period, we were pleased to appoint Allenby
Capital as our AIM nominated adviser and sole broker. We believe
that Allenby Capital and Newgate Communications have a sound
understanding of our business and will be of great support in
achieving our goals.
Outlook
One of the most important assets of this Group is customer
loyalty. We have a track record of establishing long-term
relationships, with long-standing recurrent revenues from license
fees and professional services. We continue to provide services for
customers who initially deployed our technology over 15 years ago,
and our aim is to continue nurturing high-quality standards that
make our customers request our services, year after year. This
gives us confidence that the revenues from existing and future
customers should extend significantly beyond the initial contract's
scope, to provide additional revenues on a year-on-year basis.
The Group has been able to deliver its largest ever commercial
rollout without any technical issues. The revenues from this
deployment should significantly improve the turnover and
profitability of the Company. Most importantly, our increased sales
and marketing activities are benefitting from the exceptional
reference of our Televisa success story, which we are committed to
replicating in several other international territories, through our
healthily growing pipeline in areas such as Eastern Europe and
Asia. We expect some of these deals to advance significantly over
the shorter to medium term and we look forward to updating the
market in due course.
Jose Luis Vazquez
Chief Executive Officer
24 November 2016
Consolidated income statement
Note 6 months 6 months
ended ended
30 September 30 September
2016 2015
(Unaudited) (Unaudited)
GBP000 GBP000
Revenue 2,779 2,264
Cost of sales (150) (107)
------------------------ ----- --------------- ---------------
Gross profit 2,629 2,157
Depreciation (11) (8)
Amortisation (977) (755)
Share-based payment
charge (27) (27)
Other administrative
expenses (2,636) (1,973)
------------------------ ----- --------------- ---------------
Total administrative
expenses (3,651) (2,763)
Operating loss 2 (1,022) (606)
Finance income - -
Finance expense (200) (206)
Loss before taxation (1,222) (812)
Taxation 30 12
Loss for period (1,192) (800)
------------------------ ----- --------------- ---------------
The above amounts are attributable to the equity holders of the
parent Company.
Consolidated statement of comprehensive income
6 months ended 6 months ended
30 September 30 September
2016 2015
(Unaudited) (Unaudited)
GBP000 GBP000
(Loss) for the period (1,192) (800)
Other comprehensive
loss:
Currency translation
differences 292 33
--------------------------- --------------- ---------------
Total other comprehensive
profit 292 33
Total comprehensive
loss for the period (900) (767)
--------------------------- --------------- ---------------
Consolidated statement of financial position
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2016 2015 2016
(Unaudited) (Unaudited) (Audited)
GBP000 GBP000 GBP000
Goodwill 6,946 6,946 6,946
Other Intangible
assets 4,462 3,407 3,890
Property, plant and
equipment 103 45 94
Deferred Tax Assets 427 551 395
Other Receivables 207 - 191
-------------------------------------------- --------------- --------------- ------------
Non-current assets 12,144 10,949 11,516
-------------------------------------------- --------------- --------------- ------------
Trade & other receivables 2,313 3,356 3,839
Cash and cash equivalents 812 352 714
-------------------------------------------- --------------- --------------- ------------
Current assets 3,125 3,708 4,553
Total assets 15,269 14,657 16,069
-------------------------------------------- --------------- --------------- ------------
Loans and borrowings (3,496) (2,180) (2,419)
Trade and other payables (750) (2,108) (1,570)
Provisions - (499) -
---------------------------------- --- --- --------------- --------------- ------------
Current liabilities (4,246) (4,788) (3,989)
-------------------------------------------- --------------- --------------- ------------
Net current (liabilities)/assets (1,121) (1,082) 564
-------------------------------------------- --------------- --------------- ------------
Total assets less
current liabilities 11,023 9,867 12,080
-------------------------------------------- --------------- --------------- ------------
Interest bearing
loans and borrowings (1,607) (1,588) (1,772)
Other non-current
liabilities - (42) (18)
Non-current liabilities (1,607) (1,630) (1,790)
-------------------------------------------- --------------- --------------- ------------
Total liabilities (5,853) (6,417) (5,779)
-------------------------------------------- --------------- --------------- ------------
Net assets 9,417 8,237 10,290
-------------------------------------------- --------------- --------------- ------------
Issued share capital
and reserves attributable
to equity holders
of the company
Share capital 1,391 1,141 1,391
Share premium 9,859 8,748 9,859
Other reserves 3,326 2,763 3,033
Retained earnings (5,159) (4,415) (3,994)
Equity 9,417 8,237 10,290
-------------------------------------------- --------------- --------------- ------------
Consolidated statement of cash flows
6 months 6 months
ended ended
30 September 30 September
2016 2015
(Unaudited) (Unaudited)
GBP000 GBP000
Cash flows from operating
activities
Loss after tax (1,192) (800)
Adjustments for:
Depreciation of property,
plant and equipment 11 8
Amortisation of intangible
assets 977 755
Share-based payment charge 27 27
Finance expense 200 206
Taxation (30) -
------------------------------------ --------------- ---------------
Operating cash flows before
movements in working capital (7) 196
Decrease in trade and other
receivables 1,526 256
Decrease in trade and other
payables (838) 270
Decrease in defered tax asset (16) -
------------------------------------
Net cash (used in)/generated
from operating activities 665 722
Cash flows from investing
activities
Purchases of property, plant
and equipment (18) (13)
Purchases of other intangible
assets (985) (1,259)
------------------------------------ --------------- ---------------
Net cash used in investing
activities (1,003) (1,272)
Interest and similar expenses
paid (200) (206)
Loans received 2,788 1,379
Repayment of loans (1,875) (484)
Net cash from financing activities 713 689
Net increase in cash and
cash equivalents 375 139
Cash and cash equivalents
at the beginning of the period 714 206
Exchange losses on cash and
cash equivalents (277) 6
Cash and cash equivalents
at the end of the year 812 352
------------------------------------ --------------- ---------------
Cash and cash equivalents comprise cash at bank less bank
overdrafts.
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 2016 Annual Report. The financial
information for the half- years ended 30 September 2016 and 30
September 2015 does 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 2016
included within this report does not constitute the full statutory
Annual Report and Financial Statements for that period. The
statutory Annual Report and Financial Statements for the year to 31
March 2016 have been filed with the Registrar of Companies. The
independent Auditors' Report on that Annual Report and Financial
Statement for 2016 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 has 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 23 November 2016.
2. 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
ended ended
30 September 30 September
2016 2015
(Unaudited) (Unaudited)
GBP000 GBP000
Operating (loss) (1,022) (606)
Depreciation 11 8
Amortisation 977 755
Profit on disposal - -
Operating (loss)/profit
before interest, taxation,
depreciation and amortisation
(EBITDA) (34) 157
Share-based payment charge 27 27
Operating (loss)/profit
before interest, taxation,
depreciation, amortisation
and share-based payment
charge (Adjusted EBITDA) (7) 184
=============== ===============
3. (Loss) per share
6 months ended 6 months ended
30 September 30 September
2016 2015
(Unaudited) (Unaudited)
Loss for period GBP(1,191,894) GBP(799,540)
Weighted average number
of shares 139,057,695 114,057,695
Basic loss GBP(0.009) GBP(0.007)
per share
Diluted loss per share GBP(0.009) GBP(0.007)
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 2).
6 months ended 6 months ended
30 September 30 September
2016 2015
(Unaudited) (Unaudited)
Adjusted EBITDA GBP(7,000) GBP184,058
Weighted average
number of
shares 139,057,695 114,057,695
Basic adjusted GBP0.000 GBP0.002
EBITDA per
share
Diluted adjusted GBP0.000 GBP0.002
EBITDA per
share
The Company may issue up to 4,697,166 (2015: 5,602,238)
additional ordinary shares arising in connection with existing
share options granted to staff, management and directors.
4. Related party transactions
Transactions between the company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not
disclosed in this note.
5. Cautionary statement
The Company has made forward-looking statements in this
announcement, including statements about the market for and
benefits of its products and services, financial results, 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 the Company's
actual results to differ materially from those that might be
inferred from the forward-looking statements. The Company and its
Directors can make no assurance that any forward-looking statements
will prove correct.
6. Other
Copies of unaudited interim results have not been sent to
shareholders. However, copies will shortly be available from the
Company's website: www.mirada.tv/public-documents and will also be
available on request from the Company Secretary at the Company's
registered office, 68 Lombard Street, London, EC3V 9LJ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FXLLLQFFXFBX
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November 24, 2016 02:01 ET (07:01 GMT)
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