TIDMMIRA
RNS Number : 8604Z
Mirada PLC
20 December 2017
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
20 December 2017
Mirada plc
("Mirada", the "Company" or the "Group")
Interim results for the six months to 30 September 2017
Mirada plc (AIM: MIRA), a leading audio-visual content
interaction specialist, announces its unaudited interim results for
the six months to 30 September 2017.
This period delivered the first commercial achievements
resulting from the successful deployment of our Iris Inspire
platform in Mexico. The Company was also able to secure a long-term
recurring revenue contract with the US-based ATN International,
Inc. ("ATNi") for the deployment of Iris within several of their
Pay TV networks in the Caribbean. This deal was soon followed by
another contract win, shortly after the period end, to deploy Iris
for Bolivian operator Digital TV Cable Edmund S.R.L. ("Digital TV
Cable"). These contracts represented the first conversions of the
Company's significantly increased investment in developing its
sales pipeline after the commercial deployment with Televisa.
The Company now offers the alternative to clients of a Software
as a Service ("SaaS") model. This is not only considered more
attractive to many potential customers, but also generates
long-term subscriber-based licence fees, thereby ensuring greater
visibility for future Company revenues. However, contracts under
the SaaS require significant financing before they start to deliver
revenues. The Company is working hard to obtain the necessary
funding for its prospective sales pipeline, with a GBP1.7m loan
facility secured after the period end to implement current
contracts.
In this period, the Board decided to change the reporting
currency for this year due to the growing exposure to the US
Dollar, as all major contracts and most on the new potential deals
for the Company are denominated in this currency.
Operational Highlights
-- On 29 August 2017, the Company announced a contract win with
ATNi, a NASDAQ-listed company, which operates in several US and
Caribbean locations under various trade names. Under the contract,
Mirada will provide products and services to four different
Caribbean operators owned by ATNi located in the U.S. Virgin
Islands, Bermuda, the Cayman Islands and French Guyana.
-- As of 30 September 2017, Izzi had deployed in excess of
800,000 set-top boxes bringing Mirada's technology into more than
400,000 households.
-- First contract won with the new SaaS business model, which
provided the Company with better long-term revenues visibility and
enabled Mirada to better meet its customer's needs.
Financial Highlights
-- Revenue of $3.47 million during the six months to 30
September 2017 (H1 2016: $3.79 million, an 8% decrease, owing to a
temporary reduction in business with our largest client, Televisa,
following a slow-down in the Mexican economy. This includes $0.24
million revenues for the first months of integration of ATNi
partially offset by the decrease in revenues from Izzi.
-- EBITDA* loss of $1.20 million (H1 2016: $0.08 million loss).
The increased loss results from increased sales, marketing and
operational activities costs and a one off GBP0.50 million of
license revenue recognised in H1 2016 associated with the initial
deployment in Izzi.
-- Televisa made two payments in advance to the Company:
o On 27 July 2017, the Company billed and collected $1.24
million for front-end licenses. Of these licenses, $1.19 million
will be installed after 30 September 2017 and has been recorded as
Deferred Income.
o On 25 September 2017, the Company billed and collected $1.02
million for professional services to be carried out in the
following months. $0.55 million of this will be recognized after 30
September 2017 and has been recorded as Deferred Income.
-- Net Debt** rose to $7.57 million (31 March 2017: $5.25
million). The increase results from the utilisation of existing
credit lines and invoice discount facilities.
* EBITDA is defined as earnings before interest, tax,
depreciation and amortisation
** Net Debt is defined as Gross Debt minus Cash
Post period highlights
-- On 6 October 2017, the Company announced a five-year contract
win with Digital TV Cable, a Bolivian pay TV operator and broadband
services provider based in Santa Cruz, Bolivia, also with a SaaS
business model.
-- On 28 November 2017, the Company announced it had entered
into agreement for the provision to the Company of unsecured
one-year loan facilities of up to GBP1.7 million (together, the
"Facility"). The Facility has certain conditional subscription
rights. The proceeds from the Facility are to be used alongside
Mirada's existing financing facilities for the general working
capital purposes of the Company, including for the implementation
of the contracts with ATNi and Digital TV Cable. More details are
available at www.mirada.tv/en/investors/rns/.
Commenting on the outlook for the Group, José Luis Vázquez, CEO
of Mirada, said:
"Mirada has built a solid platform, which is highly valued by
its customers. This, combined with the successful commercial
rollout of the Iris solution for Televisa last year, has enabled
the Company to build a solid sales pipeline, which has started
bearing fruit with the signing of two significant new contracts. We
are confident that we are just at the beginning of a new stage in
which Mirada is successfully securing new business and ensuring
long-term revenue visibility for its stakeholders."
Enquiries:
Mirada plc +44 (0) 207 868
José Luis Vázquez, 2104
Chief Executive Officer investors@mirada.tv
Gonzalo Babío, Finance
Director
--------------------------------- -------------------------
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 +44 (0) 203 328
/ Liz Kirchner 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 2017.
The Company has been able to increase its customer base by
signing new agreements with ATNi and, after the period end, with
Digital TV Cable, thereby securing greater visibility for future
revenues. We have been able to feed off the success of Televisa's
commercial deployment, enhancing our product and leveraging our
track record. From a commercial and operational perspective, we are
well placed. However, the new contracts are under the SaaS model
and, while expected to be profitable over the longer term, require
short-term funding, which Mirada has been working hard to secure
and we announced a new GBP1.7m loan facility for this purpose.
Televisa rollouts
In Mexico, during a period of budget constraints resulting from
the US Presidential elections and associated market fall-out, the
Company's activities have primarily focused on ensuring the
operational stability of current deployments. While this affected
the revenues for the period, the Mexican economy has since begun to
recover, with a stronger currency, and we are confident that
deployments will recover also. At 30 September 2017, the number of
households with Izzi using Mirada technology was over 400,000, with
more than 800,000 set-top boxes deployed to date, which now
represents nearly 10% of Izzi's installed base.
New customer wins
In August 2017, the Company announced its first major contract
win since the successful deployment at Televisa's Izzi Telecom in
Mexico. The contract is with the US-based ATNi for deployments at
some of its Pay TV assets based in the Caribbean. This win was the
direct result of our increased sales and marketing activity,
leveraging on our product's good references and our demonstrated
capability in managing large deployments. The contract was
structured on a SaaS model, giving greater revenue visibility in
future years.
This framework was replicated post-period end at Digital TV
Cable in Bolivia, which was announced on 5 October 2017. Both
contract wins lower our customer concentration and diversify our
sources of revenue, adding subscriber-based license revenues to
those from previous contracts.
Funding requirements
The Company faced funding challenges from the slow-down in
deployments at Televisa, which impacted revenues for the last
quarter of the previous fiscal year and the first half of the
current fiscal year. This increased our working capital needs for
the period under review. We managed this through the use of
available short-term facilities, including credit lines and invoice
discounting facilities, at very competitive interest rates.
Meanwhile, the Company has invested in its marketing and sales
efforts, which are beginning to deliver results as demonstrated by
ATNi and Digital TV Cable.
Finally, the new contract wins on the SaaS model require funding
for part of the deployment costs in exchange for a recurrent flow
of subscriber-based license fees in the longer term. To finance
these deals, and post-period end, the Company announced entering
into an agreement for a convertible loan of GBP1.7 million. We
greatly appreciate the continued support of a group of shareholders
with such expertise in the telecommunications industry, which is
especially encouraging as they have a deep understanding of the
Company as former customers of Mirada.
Financial Overview
Turnover was $3.47 million (H1 2016: $3.78 million),
representing an 8% decrease against last year. The major cause of
the decrease was the slow-down in professional services from our
largest contract. Initial revenues from ATNi partially offset the
decrease. We anticipate stronger revenues in the second half of the
year, owing to an improvement in the Mexican economy and to the new
sources of income from the new contracts.
The Board resolved to change the reporting currency for this
year owing to its growing exposure to the US Dollar, as all major
contracts and most of the new potential deals for the Company are
dollar-denominated.
Over the half-year period, the Americas accounted for 67% of
total revenues (H1 2016: 75%). The Board expects that turnover from
other regions will represent a higher proportion assuming that
negotiations outside the Americas generate new contract wins.
EBITDA loss was $1.20 million (H1 2016: $0.08 million loss) due
to costs relating to increased sales, marketing and operational
activities. EBITDA in this context is defined as earnings before
interest, tax, depreciation and amortisation. Operating Losses were
$2.79 million (H1 2016: loss of $1.44 million). Increased costs
were mainly due to the larger operational team required for the
deployment of the new contracts.
Loans and borrowings increased by $3.36 million to $8.89 million
(March 2017: $5.53 million). Of these facilities, $1.09 million
were long-term bank loans, $1.77 million were long-term zero-coupon
loans from Spanish Government entities, $2.20m were short-term
credit lines, $1.64 million were short-term bank loans and $2.19
million were short-term invoice discounting facilities. Cash and
cash equivalents increased to $1.32 million at the end of the
period (March 2017: $0.28 million). Net Debt rose to $7.57 million
(31 March 2017: $5.25 million).
Outlook
The Company has been able to secure new contract wins as a
result of increased sales and marketing activities, strong
references within the market, the quality of its product, and the
technical and operational skills demonstrated during its
deployments, especially the latest and largest ones in Mexico.
However, increasingly our new customers and prospective customers
expect us to operate a SaaS contract model, implying further
financial resources would be required for the Company, at least
initially.
Long-term revenue visibility and successful contract wins and
deployments are the right path to long-term financial stability and
success, which will only be possible with the continued support of
our stakeholders. We are grateful to our shareholders for
emboldening us to continue investing in our business model, and to
our partners and our team for their continued good work.
The sales pipeline remains healthy, with several open
opportunities in which Mirada has been already shortlisted and
which await a final decision in the upcoming months. We are hopeful
those customers will follow the path shown by ATNi and Digital TV
Cable, and will enable us to announce new contract wins
shortly.
Jose Luis Vazquez
Chief Executive Officer
21 December 2017
Consolidated income statement
6 months 6 months
ended ended
30 September 30 September
2017 2016
(Unaudited) (Unaudited)
$000 $000
Revenue 3,467 3,788
Cost of
sales (361) (205)
--------------------------- --------------- ---------------
Gross profit 3,106 3,583
Depreciation (29) (15)
Amortisation (1,554) (1,340)
Share-based payment
charge (35) (35)
Other administrative
expenses (4,273) (3,632)
--------------------------- --------------- ---------------
Total administrative
expenses (5,891) (5,022)
Operating
loss (2,785) (1,439)
Finance 2 -
income
Finance
expense (135) (265)
Loss before taxation (2,918) (1,704)
Taxation 91 41
Loss for
period (2,827) (1,663)
--------------------------- --------------- ---------------
The above amounts are attributable to the equity holders of the
parent Company.
Consolidated statement of comprehensive income
6 months 6 months
ended ended
30 September 30 September
2017 2016
(Unaudited) (Unaudited)
$000 $000
(Loss) for the
period (2,827) (1,663)
Other comprehensive
loss:
Currency translation
differences 1,642 328
--------------------------- --------------- ---------------
Total other comprehensive
profit 1,642 328
Total comprehensive
loss for the year (1,185) (1,335)
--------------------------- --------------- ---------------
Consolidated statement of financial position
6 months Year ended
ended
30 September 31 March
2017 2017
(Unaudited) (Audited)
$000 $000
Goodwill 6,221 5,643
Other Intangible
assets 6,609 5,936
Property, plant
and equipment 212 141
Other Receivables 849 635
---------------------------- --------------- ------------
Non-current assets 13,891 12,355
---------------------------- --------------- ------------
Trade receivables 1,255 999
Other receivables 2,153 2,215
Cash and cash equivalents 1,319 277
---------------------------- --------------- ------------
Current assets 4,727 3,491
Total assets 18,618 15,846
---------------------------- --------------- ------------
Loans and borrowings (6,135) (2,655)
Trade and other
payables (1,647) (1,384)
Deferred income (3,010) (1,844)
---------------------------- --------------- ------------
Current liabilities (10,792) (5,883)
---------------------------- --------------- ------------
Net current (liabilities) (6,065) (2,392)
---------------------------- --------------- ------------
Total assets less
current liabilities 7,826 9,963
---------------------------- --------------- ------------
Interest bearing
loans and borrowings (2,760) (2,875)
---------------------------- --------------- ------------
Non-current liabilities (2,760) (2,875)
---------------------------- --------------- ------------
Total liabilities (13,552) (8,758)
---------------------------- --------------- ------------
Net assets 5,066 7,088
---------------------------- --------------- ------------
Issued share capital
and reserves attributable
to equity holders
of the company
Share capital 12,809 12,809
Share premium 15,760 15,760
Other reserves 15,935 14,293
Retained earnings (39,438) (35,774)
Equity 5,066 7,088
---------------------------- --------------- ------------
Consolidated statement of cash flows
6 months 6 months
ended ended
30 September 30 September
2017 2016
(Unaudited) (Unaudited)
$000 $000
Cash flows from operating
activities
Loss after tax (2,827) (1,663)
Adjustments for:
Depreciation of property,
plant and equipment 29 15
Amortisation of intangible
assets 1,554 1,340
Share-based payment charge 35 35
Finance income (2) -
Finance expense 135 265
Taxation (91) (41)
------------------------------------ --------------- ---------------
Operating cash flows before
movements in working capital (1,167) (49)
Decrease in trade and other
receivables 408 2,406
Increase in trade and other
payables 1,430 (1,186)
Decrease in defered tax asset - (16)
------------------------------------ --------------- ---------------
Net cash (used in)/generated
from operating activities 671 1,155
Cash flows from investing
activities
Interest and similar income 2 -
received
Purchases of property, plant
and equipment (87) (23)
Purchases of other intangible
assets (1,692) (1,283)
------------------------------------ --------------- ---------------
Net cash used in investing
activities (1,777) (1,306)
Cash flows from financing
activities
Interest and similar expenses
paid (135) (265)
Loans received 3,961 3,837
Repayment of loans (579) (2,818)
Net cash from financing activities 3,247 754
Net increase in cash and
cash equivalents 2,141 603
Cash and cash equivalents
at the beginning of the period 277 1,025
Exchange losses on cash and
cash equivalents (1,099) (570)
Cash and cash equivalents
at the end of the year 1,319 1,057
------------------------------------ --------------- ---------------
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 2017 Annual Report. The financial
information for the half- years ended 30 September 2017 and 30
September 2016 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 2017
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 2017 have been filed with the Registrar of Companies. The
independent Auditors' Report on that Annual Report and Financial
Statement for 2016 was unqualified, but did include a reference to
the uncertainties surrounding going concern, to which the auditors
drew attention 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 20 December 2017.
The Board decided to change the reporting currency for this year
due to the growing exposure to the US Dollar, as all major
contracts and most on the new potential deals for the Company are
denominated in this currency.
2. Earnings before interest, taxation, depreciation,
amortisation and share-based 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
2017 2016
(Unaudited) (Unaudited)
$000 $000
Operating (loss) / profit (2,785) (1,439)
Depreciation 29 15
Amortisation 1,554 1,340
Operating (loss)/profit before
interest, taxation, depreciation
and amortisation (EBITDA) (1,202) (84)
Share-based payment charge 35 35
Operating (loss)/profit before
interest, taxation, depreciation,
amortisation and share-based
payment charge (Adjusted
EBITDA) (1,167) (49)
=============== ===============
3. (Loss) per share
6 months 6 months
ended ended 30
30 September September
2017 2016
(Unaudited) (Unaudited)
Loss for period $(2,827,470) $(1,664,302)
Weighted average
number of shares 139,057,695 139,057,695
Basic loss per $(0.020) GBP(0.012)
share
Diluted loss per $(0.020) GBP(0.012)
share
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 6 months
ended ended
30 September 30 September
2017 2016
(Unaudited) (Unaudited)
Adjusted EBITDA $(1,167,267) $(49,095)
Weighted average
number of shares 139,057,695 139,057,695
Basic adjusted $(0.008) GBP(0.000)
EBITDA per share
Diluted adjusted $(0.008) GBP(0.000)
EBITDA per share
The Company may issue up to 4,697,166 (2016: 4,697,166)
additional ordinary shares arising in connection with existing
share options granted to staff, management and directors.
4. Related party transactions
After the period end, on 28 November 2017, the Company announced
it had entered into agreement for the provision to the Company of
unsecured one-year loan facilities of up to an aggregate amount of
GBP1.7 million (together, the "Facility"). The Facility has certain
conditional subscription rights. The proceeds from the Facility are
to be used alongside Mirada's existing financing facilities for the
general working capital purposes of the Company, including for the
implementation of the contracts with ATN International, Inc.
("ATNi") and Digital TV Cable Edmund S.R.L ("Digital TV
Cable").
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 XKLLFDLFFFBE
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