Interim Results

RNS Number : 6116E

Forbidden Technologies PLC

30 September 2008

 



30 September 2008

Forbidden Technologies plc

Interim Results for six months to 30 June 2008

Chairman's statement

Sales for the sixth months ending 30th June 2008 were £31,221 (2007 £33,447). The loss in the six months was £201,799 (2007 £361,725). The 44% reduction in loss compared to the same period a year ago is a reflection of a rigorous cost control exerted by the management. The savings have come from a mix of areas: a reduction in P.R. spend; a more commission-based sales structure; a move from big exhibitions to word of mouth recommendations by customers such as Breathe Post; a new, more cost-efficient office and a salary contribution from directors.

The company continues to be financed by a £1 million loan facility provided by two directors. As at 30th June 2008, £532,500 of the facility had been drawn down. The directors are confident that the balance of the loan will provide sufficient funding beyond the next 12 months assuming the planned level of administrative expenses and based upon modest sales assumptions.

In the market place at large, the credit crunch and financial pressures appear to be focusing the minds of our current and potential customers on how to increase the efficiency of their workflows. With users saying that FORscene 'saves time and money' it is encouraging to see more post-production professionals introducing modern internet-based workflows using FORscene. For example, North One Television, one of the top UK independent production companies, is using FORscene on its Industrial Junkies series for Discovery and also on its NHS series for Channel 4. Michael Porecki, series producer of Industrial Junkies, said 'Now it's in use, we love it. The benefits are obvious: the logger can log, the Director can paper-edit (even at home) and I can dip into rushes to quality control the show and do things like pick out title shots.'

Similarly in Canada, the Canadian Broadcasting Corporation (CBC) has embraced FORscene as its official review system for all its Arts and Entertainment productions. FORscene allows senior management and decision makers to review dailies, cuts and final versions. All can review from any location across Canada. CBC has used FORscene on 16 productions in the past 5 months, and now requires all its A&E independent productions to use FORscene.

Users of Forbidden's flagship FORscene product do not need detailed knowledge of complex professional video-editing systems. As the FORscene tools advance technologically, it becomes more rewarding for customers to extend the range of tasks that they complete on FORscene. They can now make high quality rough cuts and even entire finished programmes with FORscene. Companies benefiting from these developments include ALL3MEDIA, the UK's number one independent production company, and FremantleMedia in Los Angeles with their 'America's got Talent' series.

In addition the new FORscene Server product makes editing even more practical over slow or contended internet links. By reducing internet traffic it is particularly helpful when FORscene is widely used within a company. Videos are still available remotely on demand, appearing on Forbidden's servers and preserving the real advantages of wide area access.

FORscene's immediacy and simplicity are also making it attractive to journalists working in television news and newspaper websites. A number of customers are exploring these areas with us.

Forbidden has introduced many new features to its consumer video-editing and publishing product Clesh, including new video effects and a range of colour control features. Examples can be seen at http://clesh.com/. Clesh is set to establish a consumer base in western USA through Forbidden's Los Angeles partner LP33.tv.

Our educational programme continues to expand in the UK, Canada and the USA exposing the value of the Forbidden products to more and more media students. A good example of this is found in the Cayuga Community College - part of the State University of New York - where students can now learn the art of editing using FORscene over the internet for timecode-accurate and frame-accurate editing. Professor Steve Keeler quotes, 'We can now walk students through the entire process of editing, from shooting through to modern video-publishing to a cross-platform on the web, iPod or mobile. This is a dream come true for distance learning'.

The market for reversioning video for the internet is starting to generate a significant proportion of the company's sales. FORscene's accessibility, scalability and ease of integration into larger systems suggest post-production for internet distribution could turn out to be a major market for FORscene.

With increasing awareness and interest from larger organizations in Europe and North America and a business environment which encourages time saving and cost saving, the directors expect that this will translate into increased business in the months and years ahead.

Note

This announcement, with P&L, Balance Sheet and supporting statements (including comparatives), will be posted on the company website http://www.forbidden.co.uk/. The Company does not intend to issue paper copies, in line with the practice established last year.

Contacts

Forbidden Technologies plc	020 8879 7245
Stephen B Streater (Chief Executive Officer)
Brewin Dolphin Investment Banking	0845 213 4213
Alan Stewart

Profit and loss account
		Unaudited	Unaudited
		half year to	half year to	Year to
		30 June	30 June	31 December
		2008	2007	2007
		£	£	£
Turnover		31,221	33,447	70,848
Administrative expenses		-234,193	-398,251	-760,342
		__________	_________	____________
Operating loss		-202,972	-364,804	-689,494
Interest receivable and similar income		1,173	3,079	4,873
		__________	_________	____________
Loss on ordinary activities before taxation		-201,799	-361,725	-684,621
Tax on loss on ordinary activities		0	0	36,297
		__________	_________	____________
Loss for the period		-201,799	-361,725	-648,324
Basic and diluted loss per ordinary 0.8 pence share		-0.26p	-0.48p	-0.85p

The results for the year are all derived from continuing operations. There are no recognised gains or losses other than the loss for the year.

Reconciliation of movements in	Unaudited	Unaudited
shareholders' funds	half year to	half year to	Year to
	30 June	30 June	31 December
	2008	2007	2007
	£	£	£
Loss for the period	-201,799	-361,725	-648,324
FRS 20 employee share option costs	14,535	34,552	44,069
	__________	_________	___________
Net reduction in shareholders' funds	-187,264	-327,173	-604,255
Opening shareholders' funds	-245,461	358,794	358,794
	__________	_________	___________
Closing shareholders' funds	-432,725	31,621	-245,461

Balance sheet		Unaudited		Unaudited
		half year to		half year to		Year to 31
		30 June		30 June		December
		2008		2007		2007
		£		£		£
Fixed assets
Tangible assets		1,088		3,750		2,175
Current assets
Debtors	116,091		99,717		104,829
Cash at bank and in hand	66,648		38,847		59,657
	_______		________		_______
	182,739		138,564		164,486
Creditors (<1 year)	-84,052		-110,694		-77,122
	_______		________		_______
Net current assets		98,687		27,871		87,364
		___________		_________		________
Total assets less current liabilities		99,775		31,621		89,539
Creditors (>1 year)		-532,500		0		-335,000
		___________		_________		________
Net assets		-432,725		31,621		-245,461
		___________		_________		________
Capital and reserves
Called up share capital		609,300		609,300		609,300
Share premium account		2,996,375		2,996,375		2,996,375
Capital contribution reserve		125,000		125,000		125,000
Proft and loss account		-4,163,400		-3,699,054		-3,976,136
		___________		_________		________
Equity shareholders' funds		-432,725		31,621		-245,461
		______________		__________		_________

Reconciliation of operating loss to net	Unaudited	Unaudited
cash outflow from operating activities	half year to	half year to	Year to
	30 June	30 June	31 December
	2008	2007	2007
	£	£	£
Operating loss	-202,972	-364,804	-689,494
FRS 20 employee share option cost	14,535	34,552	44,069
Depreciation charges	1,087	3,750	7,238
Decrease/(increase) in debtors	-11,262	-4,805	-14,125
Increase/(decrease) in creditors	6,930	8,887	-24,685
	__________	__________	___________
Net cash outflow from operating activities	-191,682	-322,420	-676,997
	__________	__________	___________
Cash flow statement
Cash outflow from operating activities	-191,682	-322,420	-676,997
Returns on investment and servicing of finance	1,173	3,079	4,873
Taxation	0	0	40,505
Capital expenditure	0	-2,438	-4,350
	__________	__________	___________
Cash outflow before management of liquid resources	-190,509	-321,779	-635,969
Financing	197,500	0	335,000
	__________	__________	___________
Increase/(decrease) in cash in the period	6,991	-321,779	-300,969
	__________	__________	___________
Reconciliation of net cash flow to
movement in net funds
Increase/(decrease) in cash in the period	6,991	-321,779	-300,969
Cash inflow from increase in debt financing	-197,500	0	-335,000
	__________	__________	___________
Movement in net funds in the period	-190,509	-321,779	-635,969
Net (debt)/funds at the start of the period	-275,343	360,626	360,626
	__________	__________	___________
Net (debt)/funds at the end of the period	-465,852	38,847	-275,343
	___________	___________	____________

Basis of preparation

The Interim report for the six months ended 30 June 2008 and 2007 is unaudited and does not constitute statutory accounts with the meaning of Section 240 of The Companies Act 1985. It has been prepared under the historical cost convention and on a basis consistent with the accounting policies disclosed in the Annual Report and Accounts for the year ended 31 December 2007.

The results for the year ended 31 December 2007 and the balance sheet of that date are an extract from the statutory financial statements for that year, which have been filed with the Registrar of Companies and on which the Company's auditors gave an unqualified report and did not contain a statement under Section 237 (2) or (3) of that Act.

 

END

 

 

IR LLMFTMMBTBBP