Correction: Final Results

MILESTONE GROUP PLC
("Milestone" or the "Company")

Correction: Final Results

The following replaces the Final Results announcement released at 7:00am on 26 February 2016 and makes corrections to the Nexstar section within the Chairman's statement.

All other details in the announcement remain the same.  The full text of the amended announcement is set out below.

Milestone, the AIM quoted (AIM: MSG) provider of digital media and technology solutions, announces its final results for the year ended 30 September 2015.

Highlights

• Research and development work across all product ranges is all but complete and marketing has commenced
• Passion Project formally launched at the Cass Business School with 50 Founding partners
• Fee paying corporate members, sponsors and key ambassadors supporting the Passion Project
• Nexstar joint venture established with Black Cactus Holdings Pty Ltd offering multiple revenue opportunities
• First contract signed for Nexstar with Procurement International Ltd, post year-end
• White-labelled version of the Nexstar Rewards site agreed with Milestone Foundation
• Key Personnel recruited for Passion Project and Foundation
• Pilot of Passion Project community programmes commenced
• Passion Project featured in key industry events
• Development of additional modules for both OnSide and OnGuard
• Release of Disorder Magazine in both print and digital versions
• Winning in the Game of Life ("WITGOL") being rolled out into 100 Schools, post year-end
• Expanded the Spirituality for Kids ("SFK") licence with the US

Deborah White, CEO and Interim Chairman, commented:

"The vision to build a brand synonymous with the generation of shareholder value and the creation of social change has been the raison d'etre behind the repositioning of Milestone since my joining in March 2008. Creating both a business model and a product that was a true differentiator in the media and technology marketplace was key to fulfilling that vision. I am delighted to confirm that, whilst this has taken longer than anticipated to materialise, the building blocks are now complete and key partners engaged.

"This has been a year of consolidation, with the Passion Project now firmly established as our flagship product and our business model of creating shareholder value and social impact realised as a leading innovator in the commercial marketplace. This coming year will be pivotal for Milestone as we concentrate on revenue generation now that the research and development phase has been completed."

For further information

Milestone Group PLC Deborah White, Chief Executive	Tel: [phone]
Cairn Financial Advisers LLP, Nominated Adviser Liam Murray / Avi Robinson	Tel: [phone]
Hybridan LLP, Broker Claire Louise Noyce	Tel: [phone]

CHAIRMAN'S STATEMENT

Foreword

The vision to build a brand synonymous with the generation of shareholder value and the creation of social change has been the raison d'etre behind the repositioning of Milestone since my joining in March 2008. Creating both a business model and a product that was a true differentiator in the media and technology marketplace was key to fulfilling that vision. I am delighted to confirm that, whilst this has taken longer than anticipated to materialise, the building blocks are now complete and key partners engaged.

This has been a year of consolidation, with the Passion Project now firmly established as our flagship product and our business model of creating shareholder value and social impact realised as a leading innovator in the commercial marketplace. This coming year will be pivotal for Milestone as we concentrate on revenue generation now that the research and development phase has been completed.

There is an ever-growing understanding of the Passion Project, its purpose and the commercial opportunities available for products and services offered by Milestone in supporting its development and delivery. The DNA of the initiative, to help young people become life ready as well as work ready, encapsulates the growing realisation and public acceptance of the need for a work force with "emotional intelligence" as well as work related skills training.

Requests for the Passion Project's attendance at Industry events is a clear demonstration of acceptance and a result of significant groundwork that has been carried out behind the scenes over recent years. This is perhaps best demonstrated by the granting of Platinum sponsorship status to the Passion Project at the Annual Apprenticeship 4 England event at the Emirates Stadium, post year-end, on 25/26 February 2016.

The operational team required to commercialise the initiative is in place and is industry proven. The team's knowledge of the marketplace has resulted in the Passion Project's inclusion in numerous partner bids along with being actively promoted throughout a growing industry community. The Passion Project now has over 100 founding partner organisations engaged.

The Government's Employer Ownership of Skills programme coming into effect shortly, combined with the forthcoming Apprenticeship Levy in April 2017, is helping to realise the market opportunity for the Company via the Passion Project initiative and we have already been approached by a number of blue chip companies to help them with this new government initiative.

As was demonstrated at the launch of the Milestone Foundation at the House of Lords, post year-end, in October 2015, the need for assisting our future talent is topical attracting over 300 industry guests and also marking the establishment of the 500 Quality Apprenticeship programme.

The significant and untapped commercial opportunities our multi-channel services offer via our Joint Venture, Nexstar, is a welcome addition to the Company's skill set, further supporting its ethos of audience aggregation, activation and amplification, offering a technological unique selling point ("USP").

It is the Board's belief that the combination of our relationships, along with our product set and structure offer the Company an exciting commercial opportunity and a clear market advantage.

Developments

Passion Project

The Passion Project has continued to attract attention and has gathered momentum throughout the year.

In December 2014, the Passion Project was formally launched at the Cass Business School, with over 200 guests, including the Project's ambassadors and over 50 Founding Partners, such as Big Invest, Ambition UK, NCVO, Be the Best 21^st Century Legacy, Each One Teach One and many others.

All Founding Partners share the Company's vision of using the Passion Project as a common platform through which to help inspire, educate and empower young people whilst helping to tackle youth unemployment.

The Project's structure is designed to aggregate all parties involved in the engagement, education and employment of young people whilst also providing a surrounding ecosystem through which to provide both commercial and social opportunities. The Passion Project process has been designed to ensure that its audience is equipped with the tools and skills it needs for life and the world of work, and the employers and industry partners are best placed to identify and engage tomorrow's talent and manage the increasing need for support driven by new Government employment directives.

In the run up to the launch event, it was announced that Erith Contractors and The Rank Group Plc had signed up as the first fee-paying corporate members. It has since attracted others including Higgins Construction Plc, Hammersons Plc, Mitre Group Plc, HR in Flow, STM Security Group UK Ltd, BGP Global Services, Box Pensions, Hill Group, Oak Futures, PW Interiors (UK) Ltd, Sonru and others.

The Passion Project's digital platform is now under development with the following key stages:

• Registration / Profile - allowing individuals and corporates to sign up using a variety of devices from desktop, tablet and mobile. Following sign up, the portal will deliver relevant content to users.
• Game Part 1 - A shortened version of the full game, which will use 1-16 character traits to indicate which areas of employment are most relevant to the user. The platform will now deliver targeted content and the users will gain rewards for registration and completing this initial stage of the Game.
• Activities - This development will allow activities to be displayed within the platform with sign up functionality, online booking and third party payment functionality.
• Game Part 2 - The full game, enabling users to match their profile with relevant jobs.
• Employment - the ability for employers to post jobs and for users to search and apply for them.
• Passport and achievements - this is a tracking and progress monitor which will allow users to pull in information to show they are growing their experiences and connections to enrich their employment profile.

Attracting fee-paying corporate members and sponsorship, including £130,000 in January 2015, was a key milestone in the product's lifecycle, highlighting the early stage commercial viability of the offering. Further commercial discussions are underway, including membership, data, advertising, sponsorship, events and competitions.

During the year the initiative has also attracted ambassadors including rapper, songwriter, actor and film director, Ben Drew, primarily known as Plan B, Rosie Chan, (Composer & Pianist) Akram Khan (Dance), Ali Tenant, (Singer/Composer), Amy Bailey (Actress) Jermain Jackman, (Winner of the Voice 2014) Wendy Smith (paralympian) and most recently in December 2015, Alex Pritchard, Tottenham Hotspur professional footballer. These relationships will support the initiative by actively raising awareness of it through social media - this campaign is scheduled to commence in Spring 2016.

Education and Training

The need for quality emotional intelligence material is evident with numerous Government funding streams being made available to support its development, and a heightened awareness in organisations about the need for a workforce and workplace fit for purpose. The Company has for a number of years been evaluating and preparing an early intervention model that would be acceptable to the UK Department of Education and comply with the Ofsted requirement for the current guidelines surrounding Spiritual, Moral, Social and Cultural (SMSC) education and the recent advice on the promotion of British Values.

The Company ran a successful national pilot in 2013/14 in collaboration with Prospects and Prospects Improve, which supported the findings of an earlier study carried out in the US by the RAND organisation. The follow on from this pilot has been slower than anticipated due to a change in management within the proposed distribution partners.

The existing agreement with our US partner has now been extended to include the rights to commercialise all materials for additional age ranges which will incorporate those in and outside of the current school system (primary to secondary) as well as those involved in the work programme and Passion Project training age of 14 - 25.

Numerous opportunities to incorporate emotional intelligence training are available to the Company via the Passion Project and its partner network as well as a stand-alone offering. This training forms the bedrock of the Passion Project and is now rapidly gaining industry acceptance. A framework entitled "The Ladder" has been designed to showcase how these products can be used in conjunction with the Passion Project to support a holistic solution for young people, training companies, grant givers and prospective employers.

Examples where Winning in the Game of Life ("WITGOL") and additional education materials are currently being promoted outside of a traditional distribution partner include: Corporate Partner organisations Section 106 tenders; embedded in training companies delivery of life and work ready courses; and Corporate charitable/sponsorship initiatives.

In September 2015, Milestone acquired the funding to deliver WITGOL into 100 schools - this will be monitored and evaluated by the Milestone Foundation and is discussed below.

Nexstar

In July 2015, the Company signed a Joint Venture agreement with Black Cactus Holdings Pty Ltd ("Black Cactus"). The JV is owned 51% by Milestone and 49% Black Cactus, with a 50:50 revenue share and will be trading as Nexstar.

This agreement gave Milestone the opportunity to promote and establish loyalty and reward programmes to members of the Passion Project initiative. This offering was designed to include the provision of a full range of products and services owned and offered by Black Cactus. The Nexstar Platform can be viewed at www.nexstar.org.

These services include access to Tier 1 digital content from recognised industry partners and includes products such as music, movies and TV programming in the form of streaming, and transactional services on iOS, Android, Windows, Blackberry and other mobile platforms.

The range includes music streaming of 40 million songs to more than 183 countries as well as 43 million tracks of transactional music to 153 countries. The movie and TV platform has a total of 86,000 movies and 300,000 TV Shows that can be streamed or purchased. It also offers an over the top ("OTT") Internet video service with over 1,000 channels streaming live news, documentaries, family programing, sports and 24-hour Music TV.

Additional products and services available to Nexstar include hotel booking platform, event ticketing for sports, concerts and shows and a white label mobile merchandise platform. Also included is a Money Over IP platform that supports virtual bank accounts, loyalty and reward cards, prepaid debit cards (using Mastercard products) and a crypto currency service.

This agreement was followed, post year-end, in October 2015 by the signing of a partnership agreement between Nexstar and Procurement International Limited, a well-established and recognised leader in the provision of procurement and fulfilment services to the Loyalty and Rewards industry.

The relationship with Black Cactus was extended in December 2015 and saw Milestone secure the exclusive global rights to market and commercialise all the existing IP within Black Cactus, thereby extending its offering beyond loyalty and reward programmes. The new agreement allows for a revenue split of 60:40 in favour of the introducing party.

This extensive collection of products has created a simple, modular multi-channel offering that can help numerous organisations solve problems in areas including: finance, marketing, distribution, PR, e-commerce and logistics.

Readymade opportunities for Nexstar within the Milestone Group include: the provision of virtual bank accounts with pre-paid cards to those without bank accounts identified via the Passion Project; the provision of an affordable "off the shelf" multi-channel network for those with a product or service to promote, for example new and existing talent; and opportunities for charities to white label for fundraising purposes.

The first white label site agreed under this new agreement was with the Milestone Foundation for the purpose of raising funding for the Passion Project, its community partners and its initiatives (see below).

Foundation

The Milestone Foundation was formally launched, along with the 500 Quality Apprenticeship Alliance ("Alliance") at an event held at the House of Lords post year-end in October 2015.

The Alliance was formed to provide sustainable apprenticeship opportunities, with appropriate wages to 500 young people through its partner network during 2016/17. The Alliance intends to maximise employer engagement in the delivery of the apprenticeship framework to help drive improvements in success rates, sustainable employment opportunities and increased industry activity and acceptance.

This initiative dovetails with development of the Passion Project and the growing employer awareness of the resulting impact expected due to the Employer Ownership of Skills initiative set to start taking effect as of April 2017.

The Foundation has to date secured over 1,000 pledges for apprenticeship placements, which will be evaluated, managed and monitored by industry specific working groups, comprising industry specialists and members from the DWP, Job Centre Plus and Apprenticeships 4 England. It is also engaged in several trailblazer initiatives with further announcements expected in the near future.

The on-boarding of a recognised industry delivery team was formally started in August 2015, although discussions had been underway for some time prior. Ensuring that sufficient momentum had been developed to support the need for full-time staff was key. With over 50 organisations on board, the training of young people using Disorder in full swing and a growing number of requests for collaboration, it was necessary to bring on two full-time members of staff, both with significant industry experience, as well as a Commercial Director/Bid Writer. The Foundation is well placed to convert this potential into revenue for the Company through the Passion Project partner sales channel.

An example of this being the Foundation's current preparations for the launch of a white-labelled version of the Nexstar platform for the purpose of raising awareness of the Passion Project, its partners and initiatives. The team will use the support of key influencers and celebrities across a wide range of genres, including sport, music, entertainment and fashion, to help promote the platform. Revenue from commission on products sold via the Foundation platform will be split between the Foundation and Nexstar, creating key revenue to support important social initiatives whilst generating revenues for the company.

Another initiative of the Foundation has been the establishment of a social impact study using the WITGOL programme. 100 primary schools in areas including East Yorkshire, Sussex and London will participate in a year-long study to measure the behavioural change in young people experienced pre and post participation. Once concluded this evidence will be used to lobby for Central Government funding to provide the programme into primary schools going forward.

The promotion of Emotional Intelligence and its associated social impact is one of the three key objectives of the Foundation. As such, it is actively promoting its inclusion in all partner relationships, in-house initiatives, delivery programmes, bids and grant applications.

At present the Foundation is involved with three active bids, four draft bids and has 23 expressions of interest registered with Partner organisations.

Mobile

Milestone's Mobile Business Solutions offering has been designed in a simple modular format allowing businesses and organisations the option to create a bespoke solution without excessive software development costs. These modules form the building blocks for a wide range of potential applications that can be used by any organisation to provide a cost effective business solution, facilitating the creation of operational efficiencies and effective collection and management of data.

This capability is of interest to many organisations undergoing a shift towards a technology enabled operations model and is becoming more important to those who are required to provide evidence of their services and their impact. The network of relationships offered via the Passion Project and its surrounding ecosystem offers the Company an exciting marketing opportunity especially with the increased need for evidence-based funding in the public sector regarding social impact evaluation.

Current modules include:

• Scheduling and Control Room Management
• Business Process Control
• Risk Assessment
• Incident Reporting
• Training Management
• Attendee and Participant Management and Monitoring
• Human Resource Management
• Mobile Workforce Management and Mobile Applications
• Survey Building Tool
• Multi-Discipline Quotation Tool
• Timesheet and Financial Management
• Third Party Application Integration

Additional bespoke modules can be developed to meet specific needs, a number of which have been created this year. Examples of where our technology is being used includes: 

During the year, Milestone's relationship with Charlton Athletic Community Trust ("CACT") has continued to develop. In December 2014, CACT agreed to a proposal for Milestone to develop an online monitoring and case study capability with OnSide. This platform will be used by CACT to track and monitor their activities aimed at helping young people to develop and find employment through the use of sport.

Post year-end, CACT has further engaged Milestone to provide a Trust-wide solution, which is currently under negotiation for a three-year annuity contract for service.

At the end of February 2015, Milestone was engaged by Handy Heroes Ltd to develop a quotation module to be used with OnGuard solution at a value of £15,000.

These examples show the flexibility of the Mobile Business Solutions and it is encouraging to see existing clients renewing contracts and returning to expand their relationship with the products.

Creative Services

The Company's in-house team has remained small and has continued to balance work for external clients with the completion of the remaining in-house product development. Examples of which include: the on-boarding of the Passion Project founding partners; the Passion Project platform build; digitisation of the Disorder magazine; development of mobile modules for data collection; and the Foundation launch. This has offered an opportunity to define the core offering and build a team with the required skill sets to take the company forward.

Examples of external works includes:

• Design and build of large-scale interactive experiences for marketing of pharmaceutical products
• Multi-channel platform solutions and social media management projects
• Website design, branding and build across a number of disciplines

Disorder

Milestone purchased Disorder in April 2014 and has since relaunched the print version of the magazine as well as producing a new website and app. Disorder will play a key role in the creation of content for the Passion Project and has already attracted a number of supporters from the world of fashion, music, sport and the Arts.

The magazine continues to gain awareness, support and interest from the Passion Project network. The Disorder team has continued to train young people as part of the accompanying development and delivery of the magazine, which remains true to its original ethos and is complimentary to the Passion Projects vision. The first phase of commercialising the magazine was completed with the creation of the digital version and the signing of distribution rights with Nexstar in December 2015. The expansion and development of the magazine offering is being actively explored with a number of industry partners with further announcements expected shortly.

Since the year-end, Nexstar has agreed to syndicate the content globally. This will provide the magazine with new channels to market and opportunities to increase and engage the audience. This will allow Disorder to take on more training opportunities to help young people gain experience across a range of subjects, including fashion, journalism and photography. 

The next version of the magazine will be released as a digital download on Apple Newsstand in March 2016. This issue features the likes of Made in Chelsea star, Oliver Proudlock, as well as rising pop starlet, Fleur East, a previous contender on the X Factor, who has since gone on to find fame as a solo artist under Simon Cowell's Syco music label.

Management Changes

Post year-end, in January 2016, Patrick Vigors joined the management team as Interim Chief Financial Officer, replacing Jim Brown, who resigned as Group Finance Director. During Jim's time at Milestone, the Company underwent an extensive phase of development and expansion so is now well positioned for growth. This has left the Company with the need for a more full-time finance department. 

Financial Summary

During the year, the Group's net loss was £1,402,542 (2014: £1,071,383, which included a realised gain on the sale of investments of £409,453). Revenues were £318,035 (2014: £157,377) and net liabilities at the period end were £1,706,090 (2014: £1,162,250).

These results are presented under European Union Adopted International Financial Reporting Standards ("EU Adopted IFRS").

Funding

During the year, the Company issued 38,125,000 new ordinary shares for a total consideration of £381,250 of which £347,000 was received in cash and £34,250 was in exchange for goods or services received.

Since the year-end, the Company has issued 33,077,550 new ordinary shares, raising £293,600 in cash and exchanging £37,176 worth for services. The Company continues to carefully manage its working capital position and will need to raise further monies through subscriptions for new shares in the short term to continue to support its business activities until they are fully revenue generating.

The Company is firmly focused on generating revenue through all of its activities, as well as developing further opportunities. Protecting the interest of the Company's shareholders is a priority and the Board's strategy is to seek to raise funds on a basis that is fair to all.

Outlook

The growing interest and support for the Passion Project highlights the Company's USP in the digital marketplace. By establishing the Passion Project as an aggregator and amplifier it provides a solution to many and is supported by a product suite designed to help facilitate its Partners' success. 

The time taken to establish the structure and the team required for its delivery has been longer than anticipated, however the delivery process is now operational and growing rapidly. In light of these and other developments expected shortly the Board feels confident that the Company has now reached an inflection point and is positive about the Company's future going forward.

Deborah White

Chief Executive Officer and Interim Chairman

25 February 2016

Consolidated statement of comprehensive income for the year ended 30 September 2015

				2015	2014
				£	£
Revenue				318,035	157,377
Cost of sales				(140,214)	(247,087)
Gross profit / (loss)				177,821	(89,710)
Other operating income				-	1,500
Realised gain on disposal				-	409,453
Administrative expenses				(1,573,771)	(1,428,018)
				(1,573,771)	(1,017,065)
Loss from operations				(1,395,950)	(1,106,775)
Net finance (expense) / income				(6,592)	35,392
Loss before taxation				(1,402,542)	(1,071,383)
Taxation charge				-	-
Net loss for the year				(1,402,542)	(1,071,383)
Items which may be reclassified subsequently to profit or loss
Adjustment in carrying value of available for sale investments				-	(14,080)
Items reclassified to profit or loss
Recycling of realised gain on sale of available for sale investments				-	(335,304)
Total comprehensive loss for the year				(1,402,542)	(1,420,767)
Attributable to owners of the parent				(1,402,542)	(1,420,767)
Basic and diluted loss per share (pence)				(0.25)	(0.23)

Consolidated statement of financial position at 30 September 2015     Company No. 04689130

				2015		2014
				£		£
Non-current assets
Intangible assets				18,914		56,728
				18,914		56,728
Current assets
Trade and other receivables				63,477		114,983
Cash and cash equivalents				92,495		75,855
				155,972		190,838
Current liabilities
Trade and other payables				(1,774,449)		(1,336,289)
Interest bearing loans				(106,527)		(73,527)
				(1,880,976)		(1,409,816)
Net liabilities				(1,706,090)		(1,162,250)
Capital and reserves attributable to owners of the Company
Share capital					592,086	553,961
Share premium account					13,395,669	13,056,175
Shares to be issued					502,848	40,000
Merger reserve					11,119,585	11,119,585
Capital redemption reserve					2,732,904	2,732,904
Retained losses				(30,049,182)		(28,664,875)
Total Equity				(1,706,090)		(1,162,250)

Consolidated statement of cash flows for the year ended 30 September 2015

Cash flow from operating activities	2015	2014
	£	£
Loss for the year	(1,402,542)	(1,071,383)
Adjustments for:
Amortisation of intangible assets	37,814	37,814
Impairment of investments	-	61,713
Realised gain on disposal of available for sale investments	-	(409,453)
Impairment of goodwill	-	94,947
Net bank and other interest charges	(6,592)	(35,392)
Services settled by the issue of shares	30,619	27,049
Issue of share options charge	18,235	-
Net cash before changes in working capital	(1,322,466)	(1,294,705)
Decrease / (increase) in trade and other receivables	51,507	(64,255)
Increase in trade and other payables	444,743	119,754
Cash outflow from operations	(826,216)	(1,239,206)
Interest received	10	56
Interest paid	(2)	(5,866)
Net cash flows from operating activities	(826,208)	(1,245,016)
Investing activities
Purchase of available for sale investments	-	(232,937)
Proceeds from sale of available for sale investments	-	350,057
Acquisition of intangible assets	-	(1)
Net cash flows used in investing activities	-	117,119
Financing activities
Issue of ordinary share capital	809,848	1,207,467
Repayment of loan	(73,500)	(23,740)
New loans raised	106,500	3,000
Net cash flows from financing activities	842,848	1,186,727
Net increase in cash	16,640	58,830
Cash and cash equivalents at beginning of year	75,855	17,025
Cash and cash equivalents at end of year	92,495	75,855

Consolidated statement of changes in equity for the year ended 30 September 2015

	Share Capital	Share Premium	Shares to be issued	Other Reserves	Retained Earnings	Total Equity
	£	£	£	£	£	£
Balance at 30 Sept 2013	417,178	11,847,178	109,313	13,852,489	(27,244,108)	(1,017,950)
Loss for the year	-	-	-	-	(1,071,383)	(1,071,383)
Other comprehensive income	-	-	-	-	(349,384)	(349,384)
Shares issued	136,783	1,208,997	(69,313)	-	-	1,276,467
Balance at 30 Sept 2014	553,961	13,056,175	40,000	13,852,489	(28,664,875)	(1,162,250)
Loss for the year	-	-	-	-	(1,402,542)	(1,402,542)
Cash received in advance of share issue	-	-	462,848	-	-	462,848
Shares issued	38,125	339,494	-	-	-	377,619
Share options	-	-	-	-	18,235	18,235
Balance at 30 Sept 2015	592,086	13,395,669	502,848	13,852,489	(30,049,182)	(1,706,090)

Notes to the financial statements

1. Basis of preparation

Milestone Group PLC is a company registered and resident in England and Wales.

The financial information set out in this announcement does not constitute the Group's statutory accounts, as defined in Section 435 of the Companies Act 2006, for the years ended 30 September 2015 or 30 September 2014, but is derived from the 2015 Annual Report. Statutory accounts for 2014 have been delivered to the Registrar of Companies and those of 2015 will be delivered in due course.

The consolidated statement of comprehensive income, consolidated statement of financial position, consolidated cash flow, consolidated statement of changes in equity (above) and associated notes are extracts from the financial statements and do not constitute the Group's statutory accounts.

Statutory accounts for the year to 30 September 2014 and 30 September 2015 have been reported on by the Independent Auditors.

The Group financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting Standards as adopted by the EU ("EU Adopted IFRSs").

The Independent Auditor's Report on the Annual Report and Financial Statements for 2014 and for 2015 was unqualified, but did draw attention to matters by way of emphasis relating to the basis of preparation, which is reproduced below. This emphasis drew attention to the Company's requirement to manage the timing of settlement of its liabilities and raise funds in the immediate to short term and the profitability of key projects thereafter to satisfy liabilities associated with its activities. It noted that a material uncertainty remains which may cast significant doubt about the Company's ability to continue as a going concern.

The basis of preparation is reproduced below.

Going Concern

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Chairman's statement and below. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are described in the financial statements. In addition note 17 to the financial statements includes the Group's objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and exposures to credit risk and liquidity risk.

The net liability balance sheet position as at 30 September 2015, being the Group's financial year-end, was £1,706,090 (2014: £1,162,250).  Subsequent to the balance sheet date, the Board has been able to agree funding in the form of further share issues raising £293,600 in cash and exchanged £37,175 worth of shares for services received.

The Company continues to be reliant upon its continuing ability to manage the timing of settlement both of its current liabilities and future liabilities as they arise. Future fundraising will be required in the immediate to short term thereafter, however developing revenue lines through its various projects, including its subsidiary, Nexstar, and the expansion of the Passion Project, are expected to ease the reliance on fundraising in the coming months.

The Company's focus is on the generation of revenues across each of its business units. The Group is already at the contract stage with a number of new customers and, as a result, the Board has prepared forecasts to reflect these new revenues, which show the business becoming self-sustaining in the near future. Should any of these factors not deliver the funding envisaged by the Directors, then alternative sources of funds would continue to be required.

The Directors have concluded that the need to generate future funds from further fundraising and from trading activities to satisfy the settlement of its on-going and future liabilities represents a material uncertainty, which may cast significant doubt upon the Group's and the Company's ability to continue as a going concern. Nevertheless after making enquiries and considering this uncertainty and the measures that can be taken to mitigate the uncertainty, the Directors have a reasonable expectation that the Group and the Company will have adequate resources to continue in existence for the foreseeable future. For these reasons they continue to adopt the going concern basis in preparing the annual report and accounts. The financial statements do not include any adjustments that would result if the Group and Company was unable to continue as a going concern.

2. Loss per share

The calculation of the basic loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. The calculation of diluted loss per share is based on the basic loss per share, adjusted to allow for the issue of shares and the post tax effect of dividends and interest, on the assumed conversion of all other dilutive options and other potential ordinary shares.

There were 104,522,000 share options outstanding at the year-end (2014: 19,085,000). However, the figures for 2015 and 2014 have not been adjusted to reflect conversion of these share options as the effects would be anti-dilutive.

			2015			2014
		Weighted			Weighted
		average	Per share		average	Per share
	Loss	number of	Amount	Loss	number of	amount
	£	shares	Pence	£	shares	Pence
Basic and diluted loss per share attributable to shareholders	(1,402,542)	572,401,922	(0.25)	(1,071,383)	471,318,047	(0.23)

3.             Posting of Accounts

The Report and Accounts of Milestone Group PLC, including the Notice of Annual General Meeting will be posted to shareholders shortly.

A further announcement will be made by the Company at such time.

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Milestone Group PLC via Globenewswire

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