23 March
2017
One Media IP Group
Plc
(“One Media” or
the “Group”)
Final Results and
Notice of A.G.M.
One Media iP (AIM: OMIP), the digital media content provider
which exploits intellectual digital property rights around music,
video and spoken word, is pleased to announce its Final Results for
the year ended 31 October 2016.
Financial Highlights
- Revenue £2,045,652 (2015: £2,519,330);
- EBITDA £242,326 (2015: £670,804);
- Operating profit £28,959 (2015: £445,312);
- Cash balances of £335,664 at 31 October
2016 (2015: £816,249), and;
- Dividends paid in year ending 31 October
2016, totalling £100,896 (2015: £100,647). The first on
20 November 2015 at 0.071p per share
and on 22 July 2016 a further
dividend of 0.071p per share.
Operational Highlights
- Pursuant to the Half-Year ending 30
April 2016, an interim dividend of 0.071p per share
announced.
- Philip Miles appointed to the
Main Group PLC board to spearhead TCAT and other OMIP technical
developments.
- Nigel Smethers retires and
Steve Gunning is appointed Company
Secretary and Financial Controller.
- Filming of a video pilot for a new Men & Motors series to
be pitched to all major broadcasters both in the UK and on the
international broadcast market.
- The Group’s You Tube channels have achieved 2 billion viewed
minutes to date.
- Exclusive long-term digital exploitation license agreement with
HiBrow Productions on TV & music content.
- Acquired the exclusive ownership to the Owl Music Catalogue on
a complete buy-out basis.
One Media CEO & Chairman, Michael
Infante, commented
“Our continued fall in turnover and profitability continues to
challenge the Group. Brexit and the Sterling drop have not helped
us in the year under review.. We are improving the way we market
the Group’s new activities which have broadened over the last year,
all of which are more clearly defined on the Company’s new web
sites. As our Technical Copyright Analysis Tool (TCAT) develops we
will become much more than just an audio-visual content business.
We intend this technology (TCAT) to meet the changes that we have
outlined over the last year by becoming a supplier of ‘data intel’
to the music industry. The shifting audio market continues to take
its toll on our audio content sales but as the shift in monetising
our music from downloading to streaming gains further traction we
anticipate a levelling and repositioning looking ahead. We remain
profitable with an EBITDA of £242,000 on a turnover of £2.05m
maintaining a gross margin of 44.3%. The uplift in our video
viewing on YouTube progresses and our channel management is
encouraging with approximately 2 billion minutes of video being
viewed from our 25 You Tube channels since 2013. Streaming in both
video and audio is now the dominant force with ‘subscription’ and
‘ad-funded’ revenue models. We have entered a different world of
music sales, which continues to challenge our previous monetisation
model. My confidence however is high, as this shift comes as
no surprise to the Group, as stated previously. Streaming
delivers a continued revenue source on every ‘play’ of the Group’s
content. In other words, we generate revenue every time a consumer
listens to our music. With the growth of digital stores like
Spotify and Apple Music opening new territories globally, this will
be good for us in the long term. Previously, when a track was
downloaded we received a ‘one off’ payment, with streaming we
receive payment every time the recording is played, effectively a
digital pension.
The report of the auditor in the Report and Financial Statements
for the year ended 31 October 2016 is
unqualified and the results announcement can be viewed on the
company’s website, http://www.onemediaip.com/, with effect from
Wednesday 23 March 2017. Notice of
the Annual General Meeting, to be held at 11.00 a.m. on Friday 21
April 2017 will be posted to shareholders on or by Thursday
30 March 2017.
For further information, please
contact:
One Media IP Group
Plc |
|
Michael Infante |
Chairman and Chief
Executive
Tel: +44 (0)175 378 5500 |
Alice Dyson-Jones |
Corporate
Communications
Tel: +44 (0)175 378 5501 |
|
|
Cairn Financial Advisers
LLP |
Nominated Adviser |
Liam Murray / Jo
Turner |
Tel: +44 (0)20
7213 0880 |
Panmure Gordon (UK) Ltd |
Broker |
Karri Vuori |
Tel: +44 (0)20 7886 2500 |
CEO & Chairman’s Statement
If I am in danger of beginning to sound like a worn out record
that is being played at 45 rpm to 33 rpm then I fully admit maybe I
am. No CEO & Chairman can take pleasure in reporting negative
growth and receding profit especially one so invested. This is a
storm. And not one for the faint-hearted investor that wants
instant results. But continue to invest I do. My time, money and my
enthusiasm.
So why the drop?
I have spoken in my previous statements about the ‘long term’.
Who is in charge of the ‘long term’ and how can I speed up the
change and what do I mean by ‘long term’. The definition of
‘long-term’ according to an online dictionary is “evolving,
maturing after, or being in effect for a long term” it does not
state a period of time. A long-term mortgage can be greater than 25
years, a long-term marriage can suffer an ‘itch’ after 7 years! I
am pleased to say that my long-term plans reflect neither of these
two time scales.
The drop was expected and predicted and indeed outlined by a
Panmure Gordon’s ‘brokers note’ at the beginning of the year under
review. Unfortunately, currency issues and Brexit have added to our
pain, as we do after all pay royalties on a US Dollar basis.
Currency is a big part of our world as dealing in over 120
territories globally everything ends up getting converted to US
dollars and then back to British Sterling, even our UK sales. Our
royalty Advance-recouping process (monies received in US dollars
from our US based distributor) has contributed largely to us
incurring a foreign exchange loss of £59,081. In addition, we have
made cautious provisions for some non-material bad debts and
carried the expense of employee change with the associated
costs.
At the end of calendar year 2016 the music industry proudly
announced that it was on the mend. Global figures stated by the
British Phonographic Industry (BPI) saw a rise to $15bn in global sales. Let’s not forget that back
in 2002 (pre digital monetisation) this was $42bn. Of course this figure was entirely based
on the physical medium of CD and cassettes being manufactured and
distributed for every track of music sold. Now digital sales are
outselling physical for the first time with 55% of UK sales in
digital format. Physical sales have been given a boost by the
occasional flash back to nostalgic vinyl LPs in which you are being
led to believe is a ‘new musical coming’. I will believe that when
I see a record player in every new Tesla sold.
My market overview below will provide a greater in-depth look at
the state of the global music market.
Our acquisition program has definitely slowed by design. We have
signed several new deals and renewed certain exclusive licenses
that have come up for review. We are renewing deals in line with
digital store policy to meet the ever-increasing quality assurance
store guidelines as laid down by our primary retail partners. The
Group is well equipped to meet the meticulous ‘meta-data’
requirements carried out by our team of Creative Technicians with
whom the Group trains in all the best practices of digital
ingestion. We maintain our corporate YouTube partner accreditation
for which our team participate in an annual exam to remain current
and accredited.
On YouTube, our content has exceeded 2 billion minutes of all
time viewing. This (ad-funded) business model continues to grow for
the Group. Our Creative Technicians are all trained in YouTube best
practices to grow this emerging content exploitation and
monetisation.
Being based at Pinewood Studios we continue to focus on
exploiting our music on both TV and film. In the year under
review our music has featured in TV shows such as ‘Mozart of the
Jungle’, ‘Agents of Shield’, ‘Sleepy Hollow’, ‘The Discovery’,
‘Code Black’, ‘Nashville’, ‘Pure Genius’, ‘Falling Water’ and
‘Westworld’ to name just a few.
During the year under review TCAT (Technical Copyright Analysis
Tool) has seen us continue investment in developing the ‘Software
as a Service’ (SAAS) tool. It has been presented to a careful
selection of major record labels and trials continue. The evolution
of this software is gradual and the Group is now dedicating further
financial resource and personnel to its continued development. We
have identified initial client requirements during the last year,
working with and testing TCAT with a few chosen major labels. We
have made significant advances in TCATs ability to ‘crawl’ music
sites and handle millions of lines of data, which is expanding its
role as a tool for the music industry. We have produced a trade
video for the purpose of demonstration, which outlines the many
facets that TCAT can offer. The TCAT service is we believe, both
unique and a first. Copyright control on legitimate digital stores
has been widely overlooked by the industry with all eyes on global
piracy, which is an ever-moving target. We have chosen to create a
tool that focuses on content policing and auditing on the most
popular legitimate stores such as iTunes, Apple Music and Spotify.
During 2017 & 2018 the Group will continue with its chosen
major label partners to test TCAT’s services. I will keep you
informed as to further developments as the Group pioneers ground
breaking data research to further TCAT’s future as a copyright
control and audio exploitation analysis tool. Full details of this
service can be found at http://www.tcat.media/.
Financial Overview
This has been, as predicted, a difficult year for us and as a
consequence we have seen our revenue fall with a final
reported figure of £2,045,652, a decrease of 18.8% on the
£2,519,330 from last year, but in line with market
expectation. Despite the decline in revenue we have been able
to hold our gross margins at 44.3%, 7.0% behind 2015. Operating
profit before tax is reported at £28,959, compared to the
equivalent 2015 figure of £445,312. Aware of the fall in revenue we
have kept strict control of our overheads, reporting at £876,742
and achieving a minimal increase of £29,925 on the £846,817
reported for 2015. This was achieved despite incurring a foreign
exchange loss of £59,081 down £36,527 on the 2015 figure of
£95,608. This demonstrates the operational leverage within our
business whilst maintaining tight control of administrative
costs.
A profit after tax attributable to equity shareholders of
£62,871 is reported for the financial year. Down from the £356,738
in 2015 and due to the combined effects of the revenue fall and
reduced margin. The corporation tax credit of £32,852 in the period
(2015: charge of £92,031) is mainly as a result of the Research and
Development allowances available to the Group (£38,812 prior year
and £43,200 current year) and fixed asset timing differences,
meaning a deferred tax liability of £5,960 has been recognised.
EBITDA, calculated on profit from continuing activities before
interest, tax, depreciation and amortisation is £242,326 (2015:
£670,804).
At the end of the year our cash position is reported at £335,664
(2015: £816,249). Due to the uncertainties in our business,
mentioned elsewhere in this report, we have been careful over the
investment in content and rights with this year showing a spend of
only £280,176, reduced from the £325,568 for 2015. However, we
maintained our dividend policy with total dividends virtually
unchanged at £100,896 (2015: £100,647).
We continue to operate a steady, considered approach with our
acquisition programme. We will broaden our search for IP content
and technical development, considering forums, avenues and methods
of exploitation outside of the traditional music platforms.
Content Update and Rights
Acquisition
We continue to make content acquisitions and strategic
distribution deals. As we have in the audio business we look to
acquire legacy content in the video market. This is a ‘fit’ with
our growing YouTube channel initiative.
On the 15 March 2016 we entered an
exclusive digital exploitation agreement with the "Associated
Rediffusion Television, Archive footage of 1954 to 1968” controlled
by Archbuild Ltd. The distribution agreement includes
thousands of hours of television footage, broadcast by Rediffusion
from the 1950s through to the 1960s. Many of the programs have not
been seen for over 50 years but will prove to be of great
historical importance as this archive reflects the development of
independent television which revolutionised TV broadcast as we know
it today. Programs include TV classics such as: The Frost Program,
This Week (over 500 hours of international current affairs from the
era covering the post war changes across the world), Various
Popular TV Quiz Shows from the period, Children's of Other Lands,
Half Hour Story, Intertel, The Levin Interviews, Man of our Times,
Peace Keepers, No Hiding Place (crime dramas), Play of the Week,
Something to Say (interviews with the great leaders and celebrities
of the time) Do Not Adjust your set, At last the 1948 Show, World
of Crime series and over a hundred of 'one-off' documentaries from
the time period including, the Ideal Home, The Queens Speech,
Harrods a Shopping Guide, The Harlem Globetrotters, British
Communism, The Derby in the 60's, The Budget 1962 and the British
Academy Awards to name just a few selected titles. It is a vast
historic collection of TV history memorabilia. The library is
archived with the British Film Institute (BFI) and we have been in
active discussions as to how we best digitally transpose this most
historical collection from their original format into a digital
format for distribution.
On the 28 June 2016 we entered an
exclusive long-term digital exploitation license agreement with
HiBrow Production's TV & music catalogue for an Advance of
£21,000 ($26,000 USD) recoupable
against future royalties. The film director Don Boyd founded Hibrow Productions in 2008. It
gathered a wide eclectic range of prestigious professionals from
within the international arts industries (the Hibrow 'Curators') in
order to create high quality arts content. The company's
experienced film-making teams have produced over 200 hours of
original 'high-definition' broadcast quality digital videos
featuring numerous internationally acclaimed artists, authors,
Hollywood actors, dancers,
choreographers, conductors, musicians, directors and designers. It
has enjoyed successful associations and partnerships with
broadcasters including the BBC and Sky
Arts where its content was regularly broadcast. One
Media will further exploit the Hibrow content primarily via its
digital audio and video routes to market such as YouTube, Amazon
and its 600 digital stores such as iTunes, Spotify, Deezer and
Google Play.
On the 24 August 2016 we acquired
the exclusive rights and ownership to the Owl Music Catalogue on a
complete buy-out basis for €21,000 (twenty
one thousand Euros). The Owl catalogue comprises of over
1,100 original Irish folk and Celtic music recordings. The tracks
have been marketed by One Media since 2008 on a royalty sharing
basis. Owl Records, was established in 1997. It developed a diverse
catalogue of over 90 albums, mainly in the Celtic folk, traditional
and new age genres. Original percussive arrangements of best-loved
classical compositions are also included in the catalogue. There is
additionally a varied range of Christmas albums. Unique to the
catalogue is the 'Counties of Ireland' series, a 350 strong collection of
songs drawn from the 32 counties of Ireland. Dagda's four Celtic new age albums
spent over 100 weeks in the American New Age radio charts and
provided the trailer sound track for an Oscar winning film. Their
only dance album is 'Raverdance Celtic Clubland'. Rob Strong, father of Commitments star
Andrew Strong has two albums in the
catalogue which also includes some childrens' story collections.
Each of Owl's six Mystical Ireland albums reached gold or platinum
status in Ireland. Artists include
Owl's founder and director Reg
Keating, who is also the man behind Dagda, soul singer
Rob Strong, popular Irish crooner
Sonny Knowles, New Ireland Orchestra
and balladeer/troubadour Tom
Donovan. All Owl recordings were produced in its own studio
in Ireland.
Synchronisation, the placing of music in films, TV shows and
video, has seen an increasing number of ‘tune placings’ over the
last year. We have been successful in placing music from our own
library, and that of our strategic partners, in some high profile
broadcast opportunities, including adverts for BMW and Toyota. From
the world of TV and Film, we have had placings in the Minions
Movie, a track in the American series ‘Nashville’, ‘The
Messengers’, ‘The Originals’, ‘Flash’, ‘Stereotypically You’,
‘Anitra's Dance’, ‘Looking’ and a show on Fox/FX Networks called
‘Wayward Pines’ among many others. Monetising music through Film
& TV is a strong way to get our content noticed and it assists
in our digital exploitation opportunities via music stores,
especially if the tracks are relatively unknown.
The Men and Motors TV content that we acquired from Granada/ITV
has continued to be exploited via YouTube and some minor third
party licensing. During the year under review the Group invested a
further £25,000 in the preparation of a new TV format trailer. In
October 2016, we attended the Mip Com
exhibition to present our newly formatted vision for a new Men
& Motors TV show to broadcasters. Continued interest is
expressed and any deals will be announced as they occur.
Additionally we continue to offer the 3,400 archived shows to
potential broadcast partners running legacy channels. Men &
Motors now has over 70,000 subscribers and receives circa 500,000
views a week on its dedicated YouTube channel operated by the Group
and is monetised via ad-funded revenues. We remain positive that
the brand has value and will suit broadcast in the future.
Market Overview
The British Phonographic Industry (BPI) stated that underlining
the growing ascendancy of streams as the format of choice for many
fans, December 2016 witnessed the key
milestone of one billion UK based audio streams taking place for
the first time in a single week. To set this growth in context,
weekly streams totalled less than 200 million at the start of
2014. As a result of this dramatic increase, audio streaming
now accounts for well over a third (36.4 per cent) of all UK music
consumption. Downloaded albums and singles continued their downward
trend as streaming takes over as the main digital platform, now
accounting for just over a fifth (22.6 per cent) of music
consumption volume in the UK.
The International Federation of the Phonographic Industry
(IFPI) reported that digital sales now contribute 45 per
cent of the global industry revenue, this has overtaken physical's
39 per cent market share. Streaming revenues globally are up 45.2
per cent, helping to drive 3.2 per cent global growth. The global
music market achieved a key milestone in 2015 when digital became
the primary revenue stream for recorded music, overtaking sales of
physical formats for the first time. This growth of 3.2 percent led
to the industry's first significant year-on-year growth in nearly
two decades, taking revenue to US$ 15.0
billion. Digital revenues now account for more than half the
recorded music consumed in 19 markets. However, The IFPI reports
that there is a fundamental weakness underlying this recovery.
Music is being consumed at record levels, but this explosion in
consumption is not returning a fair remuneration to artists and
record labels at this time. This is because of a market distortion
resulting in a "value gap" which is depriving artists and labels of
a fair return for their work. Streaming remains the industry's
fastest-growing revenue source. Helped by the spread of
smartphones, increased availability of high-quality subscription
services and connected fans migrating onto licensed music services,
streaming has grown to represent 19 per cent of global industry
revenues, up from 14 per cent in 2014. Streaming now accounts for
43 per cent of digital revenues and is close to overtaking
downloads (45 per cent) to become the industry's primary digital
revenue stream. Premium subscription services have seen a dramatic
expansion in recent years with an estimated 68 million people now
paying a music subscription where available. This figure is up from
41 million in 2014 and just eight million when data was first
compiled in 2010.
So when I talk of the long-term, we are amidst the change that
will see a return to value moving forward as the market continues
to shift to streaming. This is a global market with currently over
3.2 billion people now using the Internet via all routes of
connection whether mobile or static according to the United Nations
agency that oversees international communications.
Employees
Our headcount as of 31 October
2016 was 13 including all executive and non-executive
directors (Group and Subsidiaries) and one technical consultant.
The Group would like to thank all the directors and staff for their
hard work during the year under review. The board will be
undertaking a strategic review to ensure that the correct skill
sets are in place in line with the changing trends of the
market.
Litigation
In May 2015 the Group announced it
had filed proceedings in the USA
pursuant to its belief that its music rights had been exploited
without authorisation. The Nashville Court ruled in the Group’s favour
with regard to the actions by HHO Licensing Ltd, Henry Hadaway
Organisation Ltd and Henry Hadaway
personally. One Media announced that this litigation was concluded.
On 17 September 2015 the Federal
Court in Nashville Tennessee
issued a judgment in the sum of $781,846
USD against Henry Hadaway,
HHO Licensing Ltd and Henry Hadaway Organisation Ltd (which
includes costs of $9,929 USD) for the
wilful infringement of 1,466 recordings from the Point Classics
catalogue owned exclusively by One Media. On the 7 February 2017 after an application from the
Hadaway defendants the Group was informed that the Nashville Court had retracted its jurisdiction
over the Hadaway defendants and vacated its judgement. The Group
has therefore decided to return the monies received to date from
the original Nashville judgement
to HHO Licensing Ltd, Henry Hadaway Organisation Ltd and
Henry Hadaway pending an appeal. The
Group will consider its position and issue a statement once it has
further reviewed the situation.
Outlook
We have a continued period of change ahead of us as the
remodelling from downloading to streaming revenues fully matures. I
look forward to us developing our new technical initiatives and
monetising them. In addition, I believe that the market
will begin to perceive us as more than just an audio distribution
content business. Our video, brands and technical creativeness will
be playing a greater role for the Group in the future. They say you
have to move with the times, our challenge is to move ahead of the
times. This we can do. We will be strengthening, investing and
marketing certain Group activities during 2017. This is to align us
with the changing landscape and to make the Group better understood
within the space that we occupy. My team of directors and I remain
committed to delivering value and will continue to meet the
challenges that our industry faces. Thank you for your continued
support.
Michael Infante JP
Chairman and CEO
23 March
2017
Consolidated Statement of Comprehensive Income
For the year ended 31 October 2016
|
|
|
Year
ended
31 October 2016 |
|
Year
ended
31 October 2015 |
|
|
|
£ |
|
£ |
|
|
|
|
|
|
Revenue |
|
|
2,045,652 |
|
2,519,330 |
|
|
|
|
|
|
Cost of sales |
|
|
(1,139,951) |
|
(1,227,201) |
|
|
|
|
|
|
Gross profit |
|
|
905,701 |
|
1,292,129 |
|
|
|
|
|
|
Administration expenses |
|
|
(876,742) |
|
(846,817) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
|
28,959 |
|
445,312 |
|
|
|
|
|
|
|
|
|
|
|
|
Finance income |
|
|
1,060 |
|
3,457 |
|
|
|
|
|
|
|
|
|
|
|
|
Profit on ordinary activities
before taxation |
|
|
30,019 |
|
448,769 |
|
|
|
|
|
|
Tax credit / (expense) |
|
|
32,852 |
|
(92,031) |
|
|
|
|
|
|
Profit for period attributable to
equity shareholders and total comprehensive income for the
year |
|
|
62,871 |
|
356,738 |
|
|
|
|
|
|
Basic earnings per
share |
|
|
0.09p |
|
0.50p |
Diluted earnings
per share |
|
|
0.08p |
|
0.47p |
The Consolidated Statement of Comprehensive Income has been
prepared on the basis that all operations are continuing
activities.
Consolidated Statement of Changes in Equity
For the year ended 31 October 2016
|
Share
Capital |
Share redemption
reserve |
Share
premium |
Share based payment
reserve |
Retained
earnings |
Total
equity |
|
£ |
£ |
£ |
£ |
£ |
£ |
|
|
|
|
|
|
|
At 1 November 2014 |
353,518 |
239,546 |
1,452,895 |
21,215 |
1,091,911 |
3,159,085 |
|
|
|
|
|
|
|
Proceeds from the issue of new
shares |
1,750 |
- |
4,750 |
- |
- |
6,500 |
|
|
|
|
|
|
|
Share based payment charge |
- |
- |
- |
22,282 |
- |
22,282 |
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
356,738 |
356,738 |
|
|
|
|
|
|
|
Dividends |
- |
- |
- |
- |
(100,647) |
(100,647) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 November 2015 |
355,268 |
239,546 |
1,457,645 |
43,497 |
1,348,002 |
3,443,958 |
|
|
|
|
|
|
|
Share based payment charge |
- |
- |
- |
30,943 |
- |
30,943 |
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
62,871 |
62,871 |
|
|
|
|
|
|
|
Dividends |
- |
- |
- |
- |
(100,896) |
(100,896) |
|
|
|
|
|
|
|
At 31 October
2016 |
355,268 |
239,546 |
1,457,645 |
74,440 |
1,309,977 |
3,436,876 |
|
|
|
|
|
|
|
As detailed in note 15 Share capital the following transactions
were undertaken:
For the year ending 31 October 2015:
- On 12 May 2015 one employee
exercised options on 100,000 ordinary shares of 0.5p each at 2.75p
per share. The difference between the total consideration received
of £2,750 and the nominal value of the shares issued of £500 has
been transferred to the share premium account.
- On 27 July 2015 an employee
exercised their right to convert 250,000 1.5p warrants in ordinary
shares of 0.5p each. The difference between the amount raised of
£3,750 and the nominal value of the shares issued of £1,250 has
been transferred to the share premium account.
Consolidated Statement of Financial
Position at 31 October 2016
|
|
|
At
31 October 2016 |
|
At
31 October 2015 |
|
|
|
£ |
|
£ |
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
|
Intangible assets |
|
|
3,394,134 |
|
3,323,323 |
Property, plant and equipment |
|
|
6,452 |
|
8,017 |
|
|
|
|
|
|
|
|
|
3,400,586 |
|
3,331,340 |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
Trade and other receivables |
|
|
463,574 |
|
440,252 |
Cash and cash equivalents |
|
|
335,664 |
|
816,249 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
799,238 |
|
1,256,501 |
|
|
|
|
|
|
Total assets |
|
|
4,199,824 |
|
4,587,841 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
|
756,988 |
|
1,143,883 |
Deferred tax |
|
|
5,960 |
|
- |
|
|
|
|
|
|
Total liabilities |
|
|
762,948 |
|
1,143,883 |
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
Called up share capital |
|
|
355,268 |
|
355,268 |
Share redemption reserve |
|
|
239,546 |
|
239,546 |
Share premium account |
|
|
1,457,645 |
|
1,457,645 |
Share based payment reserve |
|
|
74,440 |
|
43,497 |
Retained earnings |
|
|
1,309,977 |
|
1,348,002 |
|
|
|
|
|
|
Total equity |
|
|
3,436,876 |
|
3,443,958 |
|
|
|
|
|
|
|
|
|
|
|
|
Total equity and
liabilities |
|
|
4,199,824 |
|
4,587,841 |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Cash Flow Statement
For the year ended at 31 October 2016
|
Year ended
31 October 2016
Group |
|
Year ended
31 October 2015
Group |
|
Year ended
31 October 2016
Company |
|
Year ended
31 October 2015
Company |
|
£ |
|
£ |
|
£ |
|
£ |
Cash flows from operating
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit before tax |
30,019 |
|
448,769 |
|
262,899 |
|
280,657 |
Amortisation |
209,365 |
|
216,989 |
|
- |
|
- |
Depreciation |
4,002 |
|
8,503 |
|
- |
|
- |
Share based payments |
30,943 |
|
22,282 |
|
30,943 |
|
22,282 |
Finance income |
(1,060) |
|
(3,457) |
|
(174) |
|
(765) |
Decrease/(increase) in
receivables |
(23,320) |
|
77,003 |
|
(276,743) |
|
(362,391) |
Increase/(decrease) in payables |
(290,186) |
|
(734,154) |
|
4,509 |
|
(4,575) |
Corporation tax paid |
(57,900) |
|
(17,686) |
|
- |
|
- |
|
|
|
|
|
|
|
|
Net cash inflow(outflow) from
operating activities |
(98,137) |
|
18,249 |
|
21,434 |
|
(64,792) |
|
|
|
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in intellectual property
rights |
(280,176) |
|
(325,568) |
|
- |
|
- |
Investment in property, plant and
equipment |
(2,436) |
|
(5,208) |
|
- |
|
- |
Finance income |
1,060 |
|
3,457 |
|
174 |
|
765 |
|
|
|
|
|
|
|
|
Net cash used in investing
activities |
(281,552) |
|
(327,319) |
|
174 |
|
765 |
|
|
|
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from the issue of new
shares |
- |
|
6,500 |
|
- |
|
6,500 |
Share issue costs |
- |
|
- |
|
- |
|
- |
Dividends paid |
(100,896) |
|
(100,647) |
|
(100,896) |
|
(100,647) |
|
|
|
|
|
|
|
|
Net cash inflow(outflow) from
financing activities |
(100,896) |
|
(94,147) |
|
(100,896) |
|
(94,147) |
|
|
|
|
|
|
|
|
Net change in cash and cash
equivalents |
(480,585) |
|
(403,217) |
|
(79,288) |
|
(158,174) |
Cash at the beginning of the
year |
816,249 |
|
1,219,466 |
|
110,771 |
|
268,945 |
|
|
|
|
|
|
|
|
Cash at the end of the
year |
335,664 |
|
816,249 |
|
31,483 |
|
110,771 |
Notes to the Preliminary Results
Basis of preparation
The Company is a public limited company incorporated and
domiciled in England under the
Companies Act 2006. The board has adopted and complied with
International Financial Reporting Standards (IFRS) as adopted by
the European Union. The Company’s shares are listed on the AIM
Market (a share trading platform of the London Stock exchange).
Taxation
|
|
|
Year ended
31 October 2016 |
|
Year ended
31 October 2015 |
|
|
|
£ |
|
£ |
Analysis of the charge for the
year |
|
|
|
|
|
|
|
|
|
|
|
Adjustments to tax charge in respect
of prior years |
|
|
(38,812) |
|
(5,801) |
UK corporation tax charge |
|
|
- |
|
97,832 |
Deferred tax |
|
|
5,960 |
|
- |
|
|
|
|
|
|
|
|
|
(32,852) |
|
92,031 |
|
|
|
|
|
|
The standard rate of tax for the year, based on the UK standard
rate of corporation tax is 20% (2015: 20%). The actual tax charge
for the periods is different than the standard rate for the reasons
set out in the following reconciliation:
Reconciliation of current tax
charge |
|
|
Year ended
31 October 2016 |
|
Year ended
31 October 2015 |
|
|
|
£ |
|
£ |
|
|
|
|
|
|
Profit on ordinary activities before
tax |
|
|
30,019 |
|
448,769 |
|
|
|
|
|
|
Tax on profit on ordinary activities
at 20% (2015: 20%) |
|
|
6,004 |
|
89,754 |
Effects of: |
|
|
|
|
|
Non-deductible expenses |
|
|
8,942 |
|
8,954 |
Adjustments to tax charge in respect
of previous periods |
|
|
(38,812) |
|
(5,801) |
Fixed asset timing differences |
|
|
34,499 |
|
- |
Depreciation in excess of capital
allowances |
|
|
(285) |
|
3,174 |
Share scheme deduction |
|
|
- |
|
(4,050) |
Research and development |
|
|
(43,200) |
|
- |
|
|
|
|
|
|
Total tax (credit) /
charge |
|
|
(32,852) |
|
92,031 |
|
|
|
|
|
|
Earnings per
share
The weighted average number of shares in issue for the basic
earnings per share calculations is 71,053,698 (2015: 70,817,534)
and for the diluted earnings per share assuming the exercise of all
warrants and share options is 77,035,890 (2015: 75,595,068).
The calculation of basic earnings per share is based on the
profit for the period of £62,871 (2015: £356,738). Based on the
weighted average number of shares in issue during the year of
71,053,698 (2015: 70,817,534) the basic earnings per share is 0.09p
(2015: 0.50p). The diluted earnings per share is based on
77,035,890 shares (2015: 75,595,068) and is 0.08p (2015:
0.47p).
EBITDA
Profit from continuing activities before interest, tax,
depreciation and amortisation for the twelve months ended
31 October 2016 was £242,326 (2015:
£670,804).
Directors’ responsibilities
The Annual Report, including the financial information contained
therein, is the responsibility of, and was approved by the
directors on 22 March 2017.
Availability of Report and Accounts
and Notice of the Annual General Meeting
Copies of the Company’s Report and Accounts together with the
Notice of the Annual General Meeting, to be held at 11.00 a.m. on Friday 21
April 2017 will be posted to shareholders on or by Thursday
30 March 2017. Copies of the
Company’s Report and Accounts will also be available at the
registered office of the Company and can be viewed on the company’s
website, http://www.onemediaip.com/.
623 East Props
Building |
Pinewood Studios |
Pinewood Road |
Iver Heath |
Buckinghamshire |
SL0 0NH |