Interim Results

RNS Number : 1328N

Digitalbox PLC

28 September 2021

 

28 September 2021

Digitalbox plc

("Digitalbox", the "Group" or the "Company")

Unaudited interim results for the six months ended 30 June 2021

Digitalbox plc, the mobile-first digital media business, which owns leading websites Entertainment Daily, The Daily Mash and The Tab, today publishes its interim results for six months to 30 June 2021.

The Company is also pleased to announce that it will provide a live investor presentation through the Investor Meet Company platform today at 09.30am (further details below).

Financial Highlights

· Group revenue of £1.3 million, up 37% (H1 2020: £1.0 million)

· Gross profit of £1.1 million, up 61.5% (H1 2020: £0.7million) 

· Gross margin of 84% (H1 2020: 71%)  

· Adjusted operating profit¹ of £0.3 million (H1 2020: £0.1 million)

· Profit before taxation of £0.1 million (H1 2020: loss of £0.1 million)

· P ositive total comprehensive income of £0.1 million   (H1 2020: loss of £0.1 million) and positive basic EPS of 0.08 pence   (H1 2020: loss of 0.15 pence) for the first time since readmission to AIM in February 2019

· Cash generated by operating activities £0.2 million (H1 2020: £0.7m)

· Cash balance of £2.0 million as at 30 June 2021 (31^st December 2020: £1.9m)

^1.  Adjusted operating profit is stated before amortisation, depreciation, share based payment charges, direct costs associated with business combinations and capital restructure costs.

Operational Highlights

· Increased auction competition for high-quality mobile inventory has fueled growth in session values across the portfolio

· Entertainment Daily session values up 43%

· Entertainment Daily Interactive Advertising Bureau (IAB) ad unit prices up over 30% in Q1

· The Tab website users up 15% to a total of 34 million for the period

· The Tab continued to generate an adjusted operating profit through every month in the period

· The Daily Mash TV show commissioned for nine episodes in H2 2021 compared to six episodes in H2 2020

Current trading and outlook

· Trading has remained strong since the end of H1 2021, with the positive trend in the ad market continuing alongside some very strong traffic attached to some seasonal TV shows.

· Building on the strong trading in the first half of 2021, the Group is optimistic regarding the continued trading momentum in the second half of the year, which represents the biggest trading period for the Group.

· Although there remains some uncertainty in the second half of 2021 due to COVID 19, the full year 2021 outcome is anticipated to be materially ahead of market consensus.

James Carter, CEO, Digitalbox plc, said:  "Digitalbox's performance has exceeded our expectations amid the turbulent economic conditions of the first half of 2021, reaching profitability at profit after tax and EPS levels. This is evidence of our resilient operating model and strong management. The success is in part due to the latest addition to our stable, The Tab, validating our buy and build strategy. Our focus on mobile publishing has seen disproportionate growth in advertising revenues. With the excellent trading performance the Group experienced in the first half of the year we expect the shift in advertising budgets to mobile channels to continue and competition for audience share of voice on key platforms such as Google and Facebook to intensify. Whilst the effects of COVID 19 still injects some uncertainty, the Group is optimistic that the continued recovery in the advertising market will benefit revenue in the second half, traditionally the Group's strongest trading period ."

Investor Presentation - Investor Meet Company

Digitalbox will also provide a live investor presentation through the Investor Meet Company platform today at 09.30am. The presentation is open to all existing and potential shareholders. Questions can be submitted at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add to meet Digitalbox plc via https://www.investormeetcompany.com/digitalbox-plc/register-investor . Investors who have already registered and added to meet the Company will be automatically invited. 

Market abuse regulation  

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

 

Enquiries:

Digitalbox	c/o SEC Newgate
James Carter, CEO
Panmure Gordon (Nominated Advisor, Financial Advisor and Joint Broker)	Tel: [phone]
Alina Vaskina / James Sinclair-Ford (Corporate Advisory) Rupert Dearden (Corporate Broking)
Alvarium Capital Partners (Joint Broker)	Tel: [phone]
Alex Davies / Hugh Kingsmill Moore
SEC Newgate Robin Tozer / Isabelle Smurfit	Tel: [phone] [e-mail]

About Digitalbox plc

Based in Bath, UK, Digitalbox is a 'pure-play' digital media business with the aim of profitable publishing at scale on mobile platforms and seeks to acquire scale through its buy and build strategy.

Digitalbox operates three trading brands, "Entertainment Daily", "The Daily Mash" and "The Tab". Entertainment Daily produces and publishes online UK entertainment news covering TV, showbiz and celebrity news. The Daily Mash produces and publishes satirical news content. The Tab is the UK's biggest youth culture site fueled by students.

Digitalbox generates revenue from the sale of advertising, in and around the content it publishes. The Group's optimisation for mobile enables it to achieve revenues per session significantly ahead of market norms for publishers on mobile.

CHIEF EXECUTIVE'S Statement

Overview

In spite of the aftershocks from last year's market disruption caused by the pandemic, the performance of the Group in the first six months has been encouraging, and the market recovery has exceeded our expectations. As a result of the Group's strong operating margins, Digitalbox has reported an adjusted operating profit of £0.3 million, which is ahead of management expectations. Furthermore, the cash balance has increased from 1.9 million at 31 December 2020 to 2.0 million at 30 June 2021.

Operating Review

The two factors that drive revenue are the volume and value of advertising. The volume is reflected in the number of visits (or sessions) that the Group's websites receive from users that come to read our content. The value is the price paid by advertisers to reach these users during these sessions. The number of visits to the Group's websites significantly increased in the first half, in part as a result of the acquisition of the Tab. While we anticipated continued advertising uncertainty in the first quarter as a result of Brexit and the Spring lockdown, there was strong competition for high quality mobile inventory that saw session values push considerably ahead of management expectations in the first six months.

The delivery of the Group's strategy has progressed in the first six months, and the total audience has grown. Entertainment Daily, which is focused on TV and showbusiness news, had a solid six months with the number of users up 17% on the same period last year. The Daily Mash saw its traffic position normalise after the surge in the consumption of humour within the first lockdown of 2020, while the Tab user base grew by 15%. As a result, Digitalbox's total average monthly unique users for the Period rose to 14 million.

Advertisers across the market re-established their priorities in the second half of 2020 with an acceleration towards mobile advertising inventory. We were further encouraged by how the market adapted at the start of 2021. Session values across the portfolio performed ahead of internal expectations among the challenging UK environment of lockdown combined with Brexit. For example, a segment of Entertainment Daily's inventory - IAB inventory - traded at over 30% up year on year in the first quarter compared to the same pre-pandemic levels of 2020.

The Daily Mash started to develop a paid content offering at the start of the second quarter with some positive early feedback. Testing continues as we look to maintain a direct dialogue with the site's audience base. At the beginning of last year, we were disappointed to learn that the BBC wasn't going to recommission the Mash Report TV show despite its fantastic ratings performance in 2020. Subsequently, we are very pleased that the show has now been commissioned by UKTV/Dave for an Autumn 2021 run of 9 episodes under the new name of Late Night Mash.

The Tab has delivered a profit every month since it was acquired in October 2020. The editorial team have remained as engaged as ever on serving the 16-24 student-focused demographic. The commercial operations have pivoted to an automated advertising solution delivered through Digitalbox's Graphene ad stack. This approach has led the site to deliver revenue in a much more efficient manner hence the conversion of the site to a profitable model. This approach forms part of our plan when evaluating future acquisition targets.

Financial review

The Directors are pleased to report strong absolute growth in revenues with a year-on-year uplift of 37% to £1.3 million driven by sustained recovery from last year's market disruption and by the addition of The Tab in October 2020. On a like for like basis, excluding The Tab, revenues were flat year on year.  In the first quarter, revenue was 21% down, but importantly 39% up in the second quarter. The recovery was evident.

Furthermore, gross margins are up from 71% last year to 84% this year, highlighting the high efficiency of successful digital media businesses like Digitalbox.

The business passed an important milestone in the period, reporting positive total comprehensive income and positive earnings per share for the first time since readmission to AIM in February 2019.

With adjusted operating profit of £0.3 million, which is the true cash-generating indicator for the business, and cash in hand of £2.0 million, the stage is set for the second half of the year, typically the significantly larger trading period, although there is material uncertainty surrounding the visibility of forecast revenues.

The future

Digitalbox has delivered strong results despite significant challenges presented by the aftershocks from last year's market disruptions resulting from COVID 19. This reinforces the view that the Company's continued focus on mobile content consumption is the right one and that the consumer behaviour that was accelerated by the pandemic is here to stay. Although there remains some uncertainty in the second half of 2021 due to COVID 19, the Directors expect the full year results for 2021 to be materially ahead of the current market consensus.

DIGITALBOX PLC

INTERIM CONSOLIDATED INCOME STATEMENT

for the six months ended 30 June 2021

		Unaudited	Unaudited	Audited
	Notes	Six months to	Six months to	12 months to
		30 June 21	30 June 20	31 December 20
		£'000	£'000	£'000
Continuing Operations
Revenue		1,345	983	2,187
Cost of sales		(219)	(286)	(529)
		__________	__________	__________
Gross profit		1,126	697	1,658
Administrative expenses		(1,028)	(818)	(1,823)
Other operating income		5	18	24
		__________	__________	__________
Operating profit/(loss)		103	(103)	(141)
"Adjusted operating profit" being operating profit before exceptional charges, amortisation and depreciation		294	54	305
Depreciation		(15)	(15)	(30)
Amortisation		(105)	(63)	(149)
Share based payment charge		(71)	(79)	(140)
Direct costs of business combinations		-	-	(98)
Capital restructure costs		-	-	(29)
		__________	__________	__________
Operating profit/(loss)		103	(103)	(141)
Finance income		1	1	-
Finance costs		(5)	-	(2)
		__________	__________	__________
Profit/(loss) before taxation		99	(102)	(143)
		__________	__________	__________
Tax charge		(8)	(31)	(48)
		__________	__________	__________
Profit/(loss) for the period from continuing operations		91	(133)	(191)
TOTAL INCOME/(EXPENSE) FOR THE		91	(133)	(191)
PERIOD		=============	=============	=============
OTHER COMPREHENSIVE INCOME FOR  THE PERIOD		-	-	-
TOTAL COMPREHENSIVE INCOME/(EXPENSE)  FOR THE PERIOD		91	(133)	(191)
		=============	=============	=============
Earnings per share	4
		Pence	Pence	Pence
Basic EPS from continuing operations		0.08	(0.15)	(0.20)
		__________	__________	__________
Basic EPS from loss for the period		0.08	(0.15)	(0.20)
Diluted EPS from continuing operations		0.08	(0.15)	(0.20)
		__________	__________	__________
Diluted EPS from loss for the period		0.08	(0.15)	(0.20)
		__________	__________	__________

DIGITALBOX PLC
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2021

	Share Capital	Share Premium reserve	Share based payment reserve	Retained earnings	Total
	£'000	£'000	£'000	£'000	£'000
Balance at 1 January 2020	21,331	29,757	181	(39,836)	11,433
Total comprehensive expense for the period	-	-	-	(133)	(133)
Issue of new shares	16	20	-	-	36
Share based payment charge	-	-	79	-	79
	_____	_____	_____	_____	_____
Balance at 30 June 2020	21,347	29,777	260	(39,969)	11,415
Total comprehensive expense for the period	-	-	-	(58)	(58)
Issue of new shares	244	956	-	-	1,200
Share issue costs	-	(84)	-	-	(84)
Capital reduction	(20,428)	(19,500)	-	39,928	-
Share based payment charge	-	-	61	-	61
	_____	_____	_____	_____	_____
Balance at 31 December 2020	1,163	11,149	321	(99)	12,534
Total comprehensive income for the period	-	-	-	91	91
Share based payment charge	-	-	71	-	71
	_____	_____	_____	_____	_____
Balance at 30 June 2021	1,163	11,149	392	(8)	12,696
	_____	_____	_____	_____	_____

 

DIGITALBOX PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 June 2021

		Unaudited	Unaudited	Audited
	Notes	30 June 21	30 June 20	31 December 20
		£'000	£'000	£'000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment		61	34	19
Intangible assets	5	10,741	10,185	10,839
		______	______	_______
TOTAL NON-CURRENT ASSETS		10,802	10,219	10,858
		______	______	_______
CURRENT ASSETS
Trade and other receivables		951	556	1,047
Cash and cash equivalents		2,042	1,207	1,853
		______	______	_______
TOTAL CURRENT ASSETS		2,993	1,763	2,900
		______	______	_______
TOTAL ASSETS		13,795	11,982	13,758
		______	______	_______
LIABILITIES
CURRENT LIABILITIES
Trade and other payables		269	351	449
Lease liabilities		28	14	2
Bank loans		71	-	25
Corporation tax payable		55	70	51
		_______	_______	________
TOTAL CURRENT LIABILITIES		423	435	527
		_______	_______	________
NON-CURRENT LIABILITIES
Lease liabilities		17	-	-
Bank loans		423	-	465
Deferred tax		236	132	232
		_______	_______	________
TOTAL NON-CURRENT LIABILITIES		676	132	697
		_______	_______	________
TOTAL LIABILITIES		1,099	567	1,224
TOTAL NET CURRENT ASSETS		2,570	1,328	2,373
		_______	_______	________
TOTAL NET ASSETS		12,696	11,415	12,534
		_______	_______	________
CAPITAL AND RESERVES ATTRIBUTABLE TO EQUITY SHAREHOLDERS
Issued share capital	6	1,163	21,347	1,163
Share premium account		11,149	29,777	11,149
Share based payment reserve		392	260	321
Retained earnings		(8)	(39,969)	(99)
		_______	_______	________
		12,696	11,415	12,534
		_______	_______	________

 

DIGITALBOX PLC

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 30 June 2021

	Unaudited	Unaudited	Audited
	Six months to	Six months to	Period to
	30 June 21	30 June 20	31 December 20
	£'000	£'000	£'000
OPERATING ACTIVITIES
Profit / (loss) from ordinary activities	91	(133)	(191)
Adjustments for: Tax expense	8	4-4-458547  31	48
Share based payment charge	71	79	140
Amortisation of intangibles	105	63	149
Depreciation on property, plant and equipment	15	15	30
Finance costs	5	-	2
Finance income	(1)	(1)	-
Taxes paid	-	(55)	(109)
	_____	_____	_____
Operating profit/(loss) before changes in working capital and provisions	294	(1)	69
Decrease in trade and other receivables	96	851	518
Decrease in trade and other payables	(185)	(145)	(205)
	_____	_____	_____
Cash generated by/(used in) working capital	(89)	706	313
	_____	_____	_____
Cash generated by operating activities	205	705	382
	_____	_____	_____
INVESTING ACTIVITIES
Acquisition of subsidiary	-	-	(841)
Cash on acquisition of subsidiary	-	-	269
Purchase of intangible assets	(7)	-	-
Finance income	1	1	-
	_____	_____	_____
Cash generated by/(used in) investing activities	((6)	1	(572)
	_____	_____	_____
FINANCING ACTIVITIES
Proceeds from share issues	-	36	1,236
Share issue costs	-	-	(84)
Finance costs	-	-	(2)
New loans	-	-	440
Loan and finance lease repayments	(10)	(12)	(24)
Cash (used in)/generated by financing activities	_____ (10)	_____ 24	_____ 1,566
INCREASE IN CASH AND CASH EQUIVALENTS	--------------- 189	--------------- 730	--------------- 1,376
Cash and cash equivalents brought forward	1,853	477	477
	_____	_____	_____
CASH AND CASH EQUIVALENTS CARRIED FORWARD	2,042	1,207	1,853
	_____	_____	_____
Represented by:
Cash at bank and in hand	2,042	1,207	1,853
	========	========	========

 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2021

 

1.  Corporate information

The interim consolidated financial statements of the group for the period ended 30 June 2021 were authorised for issue in accordance with a resolution of the directors on 27 September 2021. Digitalbox plc ("the company") is a Public Limited Company listed on AIM, incorporated in England and Wales. The interim consolidated financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.

2.  Statement of Accounting policies

2.1  Basis of Preparation

The entities consolidated in the half year financial statements of the company for the six months to 30 June 2021 comprise the company and its subsidiaries (together referred to as "the group").

The interim consolidated financial statements do not include all the information and disclosures required in the annual financial statements.

The directors are satisfied that, at the time of approving the consolidated interim financial statements, it is appropriate to adopt a going concern basis of accounting and in accordance with the recognition and measurement principles of International Financial Reporting Standards adopted for use in the European Union ("IFRS"). In reaching this conclusion the directors have considered the financial position of the Group, its cash, liquidity position and borrowing facilities together with its forecasts and projections for a period in excess of 12 months from the date of approval. In particular, the Group has reviewed the current situation with COVID 19 and produced several scenario plans assessing the impact on the Group. The directors believe that they can mitigate the risks arising from COVID 19 to ensure that the Group is able to continue to meet its liabilities as they fall due for the foreseeable future. At the reporting date the Group had £2.0m of cash at bank and in hand providing a strong position to support the continued and future success of the Group.

2.2  Accounting Policies

The principal accounting policies adopted in the preparation of the financial statements are set out below.  The policies have been consistently applied to all the years presented, unless otherwise stated.

The interim results announcement has been prepared in accordance with International Financial Reporting Standards ("IFRS"), International Accounting Standards and Interpretations issued by the International Accounting Standards Board as adopted by the European Union ("IFRSs") and with those parts of the Companies Act 2006 applicable to companies preparing their accounts under IFRSs.  The consolidated financial statements have been prepared under the historical cost convention.

The preparation of these consolidated half year financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates in preparing these consolidated half year financial statements.

 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2021

3.  Segment Information

The Group's primary reporting format for segment information is business segments which reflect the management reporting structure in the Group and of its core media assets.

Unaudited six months to 30 June 2021

		Entertainment Daily	The Daily Mash	The Tab	Head Office	Total Six months to 30 June 2021
		£'000	£'000	£'000	£'000	£'000
	Revenue	917	95	333	-	1,345
	Cost of sales	(105)	(84)	(30)	-	(219)
	Admin expenses*	(221)	(39)	(142)	(435)	(837)
	Other operating income	-	-	-	5	5
		----------------	----------------	----------------	----------------	--------------------
	Adjusted operating profit/(loss)	591	(28)	161	(430)	294
	Amortisation and depreciation	-)	-)	-)	(120)	(120)
	Share based payment charge	-)	-)	-)	(71)	(71)
	Finance income	-)	-)	-)	1	1
	Finance costs	-	-	-	(5)	(5)
	Tax	-)	-)	-)	(8)	(8)
		----------------	----------------	----------------	----------------	--------------------
	Profit/(loss) for the period	591	(28)	161	(633)	91
		----------------	----------------	----------------	----------------	--------------------

Unaudited six months to 30 June 2020

		Entertainment Daily	The Daily Mash	Head Office	Total Six months to 30 June 2020
		£'000	£'000	£'000	£'000
	Revenue	826	156	1	983
	Cost of sales	(180)	(106)	-	(286)
	Admin expenses*	(227)	(23)	(411)	(661)
	Other operating income	-	-	18	18
		----------------	----------------	----------------	--------------------
	Adjusted operating profit/(loss)	419	27	(392)	54
	Amortisation and depreciation	(2)	(61)	(15)	(78)
	Share based payment charge	-	-	(79)	(79)
	Finance costs	-	-	1	1
	Tax	-	-	(31)	(31)
		----------------	----------------	----------------	--------------------
	Profit/(loss) for the period	417	(34)	(516)	(133)
		----------------	----------------	----------------	--------------------

 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2021

3.  Segment Information (continued)

12 months to 31 December 2020

		Entertainment Daily	The Daily Mash	The Tab	Head Office	Total Year to 31 December 2020
		£'000	£'000	£'000	£'000	£'000
	Revenue	1,641	334	208	4	2,187
	Cost of sales	(307)	(192)	(30)	-	(529)
	Admin expenses*	(447)	(40)	(71)	(819)	(1,377)
	Other operating income	-	-	-	24	24
		----------------	----------------	----------------	----------------	--------------------
	Adjusted operating profit/(loss)	887	102	107	(791)	305
	Amortisation and depreciation	-	-	-	(179)	(179)
	Acquisition and listing costs	-	-	-	(98)	(98)
	Capital restructure costs	-	-	-	(29)	(29)
	Share based payment charge	-	-	-	(140)	(140)
	Finance costs	-	-	-	(2)	(2)
	Tax	-	-	-	(48)	(48)
		----------------	----------------	----------------	----------------	--------------------
	Profit/(loss) for the period	887	102	107	(1,287)	(191)
		----------------	----------------	----------------	----------------	--------------------

  * Admin expenses exclude share-based payment charges, amortisation, depreciation and acquisition and listing costs.

  External revenue by location of customer

	Six months to 30 June 2021	Six months to 30 June 2020	Year to 31 December 2020
	£'000	£'000	£'000
United Kingdom	572	473	1,024
Europe	313	356	704
Rest of World	460	154	459
	________	________	________
Total	1,345	983	) 2,187
	________	________	________

 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2021

4.  Earnings per share

The calculation of the group basic and diluted loss per ordinary share is based on the following data:

		Unaudited	Unaudited	Audited
		Six months to	Six months to	12 months to
		30 June 21	30 June 20	31 December 20
		£'000	£'000	£'000
	The earnings per share is based on the following:
	Continuing earnings post tax profit/(loss) attributable to shareholders	91	(133)	(191)
		==========	=========  =	==========
	Basic Weighted average number of shares	116,332,457	91,370,626	96,425,598
	Diluted Weighted average number of shares	116,332,457	91,699,911	96,425,598
		==========	==========	==========
		pence	pence	pence
	Basic earnings per share	0.08	(0.15)	(0.20)
	Diluted earnings per share	0.08	(0.15)	(0.20)
		==========	==========	==========

Earnings per ordinary share has been calculated using the weighted average number of shares in issue during the relevant financial periods. IAS 33 requires presentation of diluted EPS when a company could be called upon to issue shares that would decrease earnings per share or increase the loss per share. The exercise price of the outstanding share options is significantly more than the average and closing share price. Therefore, as per IAS 33 the potential ordinary shares are disregarded in the calculation of diluted EPS.

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2021

5.  Intangible Assets

Other Intangible Assets Goodwill arising on consolidation Development costs Total £'000 £'000 £'000 £'000 Cost At 1 January 2021 1,476 9,610 35 11,121 Additions - - 7 7 _____ _____ _____ _____ At 30 June 2021 1,476 9,610 42 11,128 Amortisation At 1 January 2021 247 - 35 282 Charge for the period 105 - - 105 _____ _____ _____ _____ At 30 June 2021 352 - 35 387 _____ _____ _____ _____ Net book value 30 June 2021 1,124 9,610 7 10,741 _____ _____ _____ _____ 31 December 2020 1,229 9,610 - 10,839 _____ _____ _____ _____

The other intangible assets are being amortised over a period of 7 years.

Amortisation is charged to administrative costs in the Statement of Comprehensive Income.

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2021

6.  Share capital

Allotted, issued and fully paid		No.	Value £'000
Ordinary shares of 0.01p each		116,332,457	1,163
		---------------------------	-------------------------
Total		116,332,457	1,163
		=============	============

    No shares issued in the 6-month period to 30 June 2021.

7.  Related party transactions

At 30 June 2021, the Group was due £171k (30 June 2020: £172k, 31 December 2020: £171k) from James Carter and Jim Douglas, two Directors of the company. The outstanding balance is split equally between the directors and is included within trade and other receivables. The amounts are repayable either on sale of shares by the Directors, by prior charge over the proceeds of dividends or distributions due to the directors net of tax, or by prior charge over remuneration payments in excess of a pre-determined level. Interest is charged at 0.75% per annum.

Prior to the readmission of Digitalbox plc (formerly Polemos plc) onto AIM, and its subsequent acquisition of Digitalbox Publishing Holdings Ltd, James Carter and Jim Douglas each held shares in Digitalbox Publishing Holdings Ltd. It was agreed by the then board that these shares would form the basis for their physical shareholding in Digitalbox plc once the acquisition had completed and that the loans would transfer to the plc. The loan facility from the Company was part of a package to ensure key management were sufficiently incentivised and locked into the success of the business. Where any individuals' personal bonus payment exceeds £100,000 in a calendar year, the excess will be used to pay down these loans. The current board of Directors view this arrangement as satisfactory and believe it has served well to incentivise management.

During the period, Integral 2 Limited charged £26k (30 June 2020: £27k, 31 December 2020: £57k) to the Group, a company related by virtue of David Joseph, a member of key management personnel, having control over the entity. As at 30 June 2021, £5k (30 June 2020: £5k, 31 December 2020: £5k) was owed to Integral 2 Limited.

During the period, the Group received revenue of £nil (30 June 2020: £2k, 31 December 2020: £1.5k) from Immotion Group plc, a company related by virtue of Martin Higginson being a member of key management personnel of both entities. As at 30 June 2021, £nil (30 June 2020: £nil, 31 December 2020: £nil) was owed to the Group.

During the period, M Capital Investment Partners (Holdings) Limited billed £12.5k (30 June 2020: £15k, 31 December 2020: £25k) to the Group, a company related by virtue of Martin Higginson, a member of key management personnel, having control over the entity. As at 30 June 2021, £nil (30 June 2020: £3k, 31 December 2020: £2.5k) was owed to M Capital Investment Partners (Holdings) Limited.

During the period, Robin Miller Consultants Limited billed £6k (30 June 2020: £9k, 31 December 2020: £17k) to the Group, a company related by virtue of Robin Miller, a former member of key management personnel, having control over the entity. As at 30 June 2021, £nil (30 June 2020: £nil, 31 December 2020: £1.7k) was owed to Robin Miller Consultants Limited.

The key management personnel are considered to be the Board of Directors, and were remunerated £196k in the period (30 June 2020: £191k, 31 December 2020: £382k).

The key management personnel were provided 3,008,808 share options contributing to a charge of £71k in the period (30 June 2020: £47k, 31 December 2020: £99k).

 

DIGITALBOX PLC
NOTES TO THE INTERIM REPORT
for the six months ended 30 June 2021

8.  Seasonality

The Group's activities are not subject to significant seasonal variation outside the normal parameters of a consumer media business.

 

END

 

 

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