Final Results
30 September 2013
mirada plc
(AIM: MIRA)
("mirada" or "the Company" or "the Group")
Results for the year ended 31 March 2013
mirada plc, the AIM-quoted leading audiovisual content interaction specialist,
announces its preliminary results for the year ended 31 March 2013.
Financial Highlights
* Revenue: £4.84 million (2012: £4.35 million)
* Gross profit: £4.63 million (2012: £3.78 million)
* Gross profit margin: 96% (2012: 87%)
* EBITDA: £0.98 million (2012: £0.37 million loss)
* Maiden operating profit: £0.24 million (2012: £2.30 million loss)
Operational Highlights
* Wide recognition of the mirada brand in the fast growing Latin American
market where revenues have more than doubled year-on-year from £1.50
million to £3.16 million
* The Group is becoming less reliant on mirada's traditional geographical
markets with only 25% of turnover coming from the Spanish and UK markets
* Digital TV revenues increased 22% from £3.35 million in 2012 to £4.09
million this year and now represents 85% of the total Group turnover
* Improvement in performance is largely due to an impressive 137% increase in
licence fee revenues, increasing to £1.42 million in the current year
compared to £0.60 million in 2012
* Post year end, a new satellite service launched with GVT, a Brazilian
telecommunications company
* In February, the Company raised £1.47 million to strengthen the balance
sheet, help fund ongoing product development and support mirada's rapid
growth in Latin America
Commenting on the results, José-Luis Vázquez, Chief Executive Officer of mirada
plc, said:
"This has been a very positive year for the company in which we have recorded
an EBITDA of £0.98 million and an operating profit of £0.24 million, the first
time that mirada has achieved a positive operating result. This improvement has
been achieved after completing a successful transition to a product-based model
and a concentration of the Group's activities in its highest growth area, the
Digital TV market.
"The Group has now started to see a return on the investment it has made in its
suite of products which have been very well received by customers worldwide."
--END --
Enquiries:
mirada plc +44 (0) 207 549 5678
José Luis Vázquez, CEO
Bishopsgate Communications +44 (0) 207 562 3350
Nick Rome/Sam Allen
mirada@bishopsgatecommunications.com
Cantor Fitzgerald Europe (Nomad and Joint Broker) +44 (0) 207 894 7000
Mark Percy (Corporate Finance)
David Banks (Corporate Broking)
Peterhouse Corporate Finance (Joint Broker)
Jon Levinson +44 (0) 207 469 0937
About mirada
mirada creates and manages services which enable consumers to interact with and
purchase digital content on television, mobile, online and bespoke devices.
mirada's products and solutions are used worldwide to deliver interactive TV,
video on demand, multi-player gaming, digital marketing and payment services.
Its products and services have been deployed by some of the biggest names in
digital media and broadcasting including Disney International TV, Sky, ITV and
MTV Networks. Headquartered in London, mirada has commercial offices across
Europe and Latin America and operates technical centres in the UK and Spain.
For more information, visit www.mirada.tv.
Chief Executive Officer's Statement
Overview
I am pleased to report on the Group's financial results for the year ended 31
March 2013. This has been a very positive year for the company in which we have
recorded an EBITDA of £0.98 million and an operating profit of £0.24 million,
the first time that mirada has achieved a positive operating result. This
improvement has been accomplished after completing a successful transition to a
product-based model and a concentration of the Group's activities in its
highest growth area, the Digital TV market. The Group has now started to see a
return on the investment it has made in its suite of products which have been
very well received by customers worldwide. Moreover, the recognition of our
brand in the fast growing Latin American market is increasing our exposure to
established digital television operators, which I believe will further
consolidate mirada as a leading player in User Interaction products for the
Digital TV market.
The improvement in performance is largely due to the impressive growth we have
seen in our licence fee revenues which are earned based on the number of
subscribers signing up to our customers' digital television services. The
licence fees earned during the year equalled £1.42 million compared to £0.60
million in the prior year. This product-based model, where the licence fee
revenues are based on the success of our customers, is perfectly aligned to the
market needs and allows the Group to continue to earn revenues long after our
customers have launched their services. At the year end we had three customers
from whom we generate licence fees compared to only one customer at the end of
the prior year which was GVT, a Brazilian telecommunications company, which we
secured through our partnership agreement with Ericsson.
In December 2012 we announced that we had secured a contract for the launch of
a satellite service in Latin America, we can now say that this deal is for
GVT's new DTH deployment. This contract was signed directly with GVT without
any intermediaries. The service was launched in August 2013 and GVT will now
use mirada's technology to access new customers in regions with a high demand
for Digital TV services which they could not previously access through their
IPTV product.
In February 2013 the Company announced that Axtel, one of Mexico's largest
telecommunications operators, had launched their new digital television
service, Axtel TV, which incorporates mirada's content navigation tool, Navi.
Axtel is the second customer signed through our partnership with Ericsson and
another contract from which licence fees are earned. We are proud to now have
two successful deployments in Mexico, which is a flagship country in the region
and a fast growing market.
Our team has been very active post year end in securing a contract with a large
new customer. This deal involves a paid trial for our iris multi-screen product
to test mirada's capability to deploy our iris solution commercially on the
client's existing digital television service. If the trial is successful, and
our solution is rolled out across the customer's existing subscriber base, it
will significantly increase the Group's turnover over the coming years. This is
a key milestone for the Company and we expect to complete the trial in the
first quarter of next year. We will keep the market updated with our progress
in this project.
In February 2013 we announced the completion of a £1.47 million fund raising,
which consisted of a placing and the capitalisation of certain convertible loan
and creditor balances. The objective of the fund raising was to help strengthen
the Group's balance sheet, to help fund ongoing investment in product
development, and to reinforce our working capital requirements to support
mirada's rapid growth in Latin America. This fund raising, in which we again
had the participation of existing major shareholders and directors, together
with the conversion of a substantial proportion of the outstanding convertible
loans shows a strong belief in the capabilities of mirada by our stakeholders.
I am really proud of the incredible work of our employees, and I would like to
thank them, our customers, shareholders and partners for their continued
support of the business.
Trading review
The main objectives of the management during the year was to consolidate
mirada's expansion into emerging markets, especially into Latin America, and to
continue the evolution of iris as our brand product. Iris is our multi-screen
proposition, working on Digital TV set-top-boxes, smartphones, tablets and
computers. Our first deployment of iris in Latin America was with Cablecom in
Mexico, this solution is based on mirada's first generation User Interface
(UI), origin, which is proving itself to be a very appropriate product for the
market, especially for the mid-to-low range platforms in the area. The Group
has invested in the development of a brand new UI, named inspire, which works
at the mid-to-high level range of set-top-boxes and is very suitable for those
customers wanting to deploy a high quality and innovative user experience.
This year has been the first complete year under the product-based model in
which the Group is benefiting from the growth of its customers through the
licence fees being charged based upon each new subscriber signing up to our
customers' digital television services. By the year end mirada had three
customers from whom we generated licence fees: GVT in Brazil (part of the
Vivendi group), which increased the subscriber base for their IPTV platform by
over 350,000 new subscribers during the year; Axtel in México, who launched
their service in February 2013; and Cablecom in Mexico, who launched the
service in July 2012. The numbers of Cablecom subscribers are not publicly
available, however I can say that we are very satisfied with their performance.
After the year end it has been publicly announced that Televisa Group, the
largest media corporation in the Hispanic market, has an agreement with the
owners of Cablecom to acquire a controlling stake in Cablecom. This is
fantastic news for mirada because, if approved by the Mexican authorities, this
means our Company would be working with the Televisa group. This gives us the
opportunity to showcase our capabilities and the potential for an agreement to
deploying our technology over more than 5 million cable set-top-boxes in the
region.
This year our Digital TV unit has again experienced a substantial growth in
revenues, increasing 22% from £3.35 million in the year ended 31 March 2012 to
£4.10 million in the current year, and this unit now represents 85% of the
total Group turnover. This growth is mainly driven by the increase in licence
fees earned, £1.42 million in the current year compared to £0.60 million in the
prior year, and we foresee that this growth in licence fees will continue in
future years. The traditional Digital TV revenues streams of professional
services and support and maintenance have remained relatively constant,
totalling £2.68 million this year and £2.75 million last year. It is important
to note that the Digital TV revenues grew without any material change in
operating costs; this has resulted in an increase in EBITDA for the division to
£1.76 million compared to £0.79 million in the prior year, an improvement of
123%.
The performance of the Group is becoming less reliant on mirada's traditional
geographical markets, with the revenues generated from our international
activities (everything outside of the UK and Spain) continuing to increase each
year, £3.62 million in the current year compared to £2.82 million in the prior
period. This improvement is mainly due to our increased presence in the Latin
American market, with these revenues more than doubling year on year from £1.50
million to £3.16 million. We are experiencing strong growth in this region due
to the fact that our initial deployments there were well received by both our
customers and their subscribers and these deployments have proved to be
valuable references in the region.
Financial overview
We are pleased to announce that the year under review has been the first one in
which the Group has reported an operating profit. We believe this turnaround is
due to a combination of a successful restructuring of the Group, the
concentration of efforts on the profitable Digital TV business, and the
adoption of the product-based model resulting in licence fees continuing to be
earned long after our customers have launched their services.
During the year revenues increased by 11% to £4.84 million, up from £4.35
million in the previous year, this combined with the fact that the gross profit
margin has improved from 87% to 96% has led to a 22% increase in gross profit
from £3.78 million in the prior year to £4.63 million in the current year. Even
with the increase in revenues there has been a 12% reduction in administrative
expenses compared to the last year, this has been achievable by focusing
attention to the most profitable activities of the Group. The EBITDA for the
year was £0.98 million, compared to a loss of £0.37 million in year ended 31
March 2012, and the Group achieved an operating profit of £0.24 million showing
a dramatic turn around on the operating loss of £2.30 million shown in the
prior year accounts.
Earnings before interest, tax, depreciation and amortisation ("EBITDA") is a
key performance indicator ("KPI") used by management and removes the impact of
one-off and non-cash transactions. Other KPIs used by management are as
follows:
- Gross profit margin: The Group's continued concentration on the Digital TV
business has led to an increase in the gross profit margin from 87% in the year
ended 31 March 2012 to 96% in the year under review.
- Overseas activities (outside of UK and Spain): Due to the increased
activities in Latin America, the revenues generated from these international
customers increased by 28% to £3.62 million and amounted to 75% of the Group's
total revenues compared to 65% in the prior year. The highest area of growth
has been in Latin America which now accounts for 65% of the total Group
turnover.
- Licence fee revenue: Revenues from licence fees have higher margins and allow
the Group to benefit from multi-year agreements with customers with revenues
continuing long after the deployment of the customers' digital television
services. During the year the total licence fees equalled £1.42 million,
showing a 137% increase on the £0.60 million earned in the prior year.
Loss for the year equalled £0.24 million which is a significant improvement on
the loss of £3.16 million recorded in the prior year. Management are confident
that as the licence fees earned continue to grow this positive trend will be
reflected in the performance of the Group.
In February 2013 the Group completed an equity fundraising for £1.47 million
and in March 2013 convertible loans totalling £175,000 were converted into
ordinary shares; this has helped to strengthen the Group's balance sheet with
net assets at the year end equalling £3.47 million, compared to £1.66 million
at 31 March 2012. The net current liabilities position has also improved from £
3.16 million in the prior year to £2.18 million in the current year. Although
there has been a significant improvement in the balance sheet and the net
current liabilities we believe there is still further work to do; primarily the
Group needs to ensure it substantially meets its revenue projections. We are
also currently in negotiations to secure project financing for one of our
longer term projects. Due to the visibility of potential future contracts and
the continuing increase in licence fee revenue we have found that banks and
other financial institutions are very supportive; this has been evidenced by
the fact that post year further long term bank loans totalling £0.30 million
have already been secured.
Operational Review
Areas of business
mirada is an audiovisual interaction technology company providing both
interactive products and software development services. We trade in
complementary areas around the media business, with some smaller independent
activities in certain other markets:
Digital TV operators:
We have more than 10 years of experience in technologies from Interactive TV to
advanced navigational services. We have a solid network of partners and we are
internationally recognised for our skill base. Our products comprise user
interfaces for content navigation and consumption over Digital TV receivers (TV
and set-top boxes), personal computers and companion devices (tablets and
smartphones). Our major products are navi, integrated over the Ericsson IAP
IPTV platform, and iris, our multi-screen proposition mainly addressed to the
cable and satellite television markets.
Other areas:
mirada has experience and business activities in other areas: broadcast,
interactive marketing and mirada connect which provides cashless payment
solutions for the car parking market. Whilst these activities are expected to
contribute towards the Group's profitability in the medium term management
believe that the main areas of growth for the business will be in the Digital
TV business.
Outlook
The Digital TV business has continued its growth with a 22% increase in the
turnover, and it now represents 85% of the Group's turnover and 88% of the
Group's gross margin. This growth shows the returns on the product investment
and the benefits of mirada's expansion into the Latin American market. Now only
25% of our turnover is coming from our original Spanish and UK markets, and our
revenues from the Americas have more than doubled during the last year. We now
have the products to address the different levels of clients in the region, and
we expect during this fiscal year to announce important news arising from
negotiations that are currently ongoing with major digital television operators
in the region.
As with the previous business model mirada still receives revenues in relation
to set-up fees and professional services for the deployment of our solution
into our customers' digital television services, the major change under the new
product-based model is that mirada continues to earn revenues long after the
solution has been deployed through the receipt of licence fees for each new
subscriber signing up to our customers' services. We believe that as we secure
new contracts based on this new model our licence fees will continue to
increase resulting in the continued long term improvement in the performance of
the Group.
This year have demonstrated how the investment made in product development by a
skilled team with more than 10 years' experience in the Digital TV business,
has led to the successful turn around in the performance of the Group. Now is
the time to show, through new deals and a healthy growth, how much our
stakeholders can benefit from this strategy.
José-Luis Vázquez
Chief Executive Officer
29 September 2013
Consolidated income statement
Year ended 31 March 2013
Year ended Year ended
31 March 2013 31 March 2012
Note £000 £000
Revenue 4 4,837 4,346
Cost of sales (207) (562)
Gross profit 4,630 3,784
Depreciation (58) (106)
Amortisation (683) (733)
Impairment of goodwill - (560)
Restructuring costs - (528)
Other administrative expenses (3,649) (4,156)
Total administrative expenses (4,390) (6,083)
Operating profit/(loss) 5 240 (2,299)
Finance income 137 4
Finance expense (617) (867)
Loss before taxation (240) (3,162)
Taxation 6 - -
Loss for year (240) (3,162)
Loss per share Year ended Year ended
31 March 2013 31 March 2012
£ £
Loss per share for the year 7 (0.01) (0.11)
- basic & diluted
The above amounts are attributable to the equity holders of the parent.
Consolidated statement of comprehensive income
Year ended 31 March 2013
Year ended Year ended
31 March 31 March
2013 2012
£000 £000
Loss for the period (240) (3,162)
Other comprehensive loss:
Currency translation differences (28) (306)
Total other comprehensive loss (28) (306)
Total comprehensive loss for the (268) (3,468)
year
Consolidated statement of changes in equity
Year ended 31 March 2013
Share Share Foreign
Share premium option exchange Merger Retained
capital account reserve reserve Reserves earnings Total
£000 £000 £000 £000 £000 £000 £000
At 1 April 2012 319 1,216 140 537 2,472 (3,026) 1,658
Loss for the - - - - - (240) (240)
financial year
Movement in foreign - - - (28) - - (28)
exchange reserve
Conversion of 45 400 - - - 32 477
convertible loans
into shares
Issue of shares 155 1,457 - - - - 1,612
Share issue costs - (14) - - - - (14)
At 31 March 2013 519 3,059 140 509 2,472 (3,234) 3,465
Share Share Foreign
Share premium option exchange Merger Retained
capital account reserve reserve Reserves earnings Total
£000 £000 £000 £000 £000 £000 £000
At 1 April 2011 213 273 2,109 843 2,472 (1,833) 4,077
Loss for the - - - - - (3,162) (3,162)
financial year
Movement in - - - (306) - - (306)
foreign exchange
reserve
Transfer between - - (1,969) - - 1,969 -
reserves
Issue of shares 106 960 - - - - 1,066
Share issue costs - (17) - - - - (17)
At 31 March 2012 319 1,216 140 537 2,472 (3,026) 1,658
Consolidated statement of financial position
31 March 2013
As restated
31 March 31 March
2013 2012
Note £000 £000
Property, plant and equipment 61 112
Goodwill 6,946 6,946
Intangible assets 1,719 1,295
Non-current assets 8,726 8,353
Trade & other receivables 1,292 1,324
Cash and cash equivalents 94 35
Current assets 1,386 1,359
Total assets 10,112 9,712
Loans and borrowings (697) (1,095)
Trade and other payables (2,725) (3,088)
Provisions (141) (338)
Current liabilities (3,563) (4,521)
Net current liabilities (2,177) (3,162)
Total assets less current 6,549 5,191
liabilities
Interest bearing loans and (2,767) (2,817)
borrowings
Embedded conversion option (65) (292)
derivative
Other non-current liabilities (181) (194)
Provisions (71) (230)
Non-current liabilities (3,084) (3,533)
Total liabilities (6,647) (8,054)
Net assets 3,465 1,658
Issued share capital and
reserves attributable to
equity holders of the company
Share capital 8 519 319
Share premium 3,059 1,216
Other reserves 3,121 3,149
Retained earnings (3,234) (3,026)
Equity 3,465 1,658
Consolidated statement of cash flows
Year ended 31 March 2013
Year ended Year ended
31 March 2013 31 March 2012
Note £000 £000
Cash flows from operating activities
Loss for the year (240) (3,162)
Adjustments for:
Depreciation of property, plant and 58 106
equipment
Amortisation of intangible assets 683 733
Impairment of goodwill - 560
Finance income (137) (4)
Finance expense 617 867
Operating cash flows before movements in 981 (900)
working capital
Decrease in trade and other receivables 44 152
Increase/(decrease) in trade and other 21 (56)
payables
(Decrease)/increase in provisions (356) 216
Net cash generated from/(used in) operating 690 (588)
activities
Cash flows from investing activities
Interest and similar income received 3 4
Purchases of property, plant and equipment (8) (41)
Purchases of other intangible assets (1,116) (828)
Net cash used in investing activities (1,121) (865)
Cash flows from financing activities
Interest and similar expenses paid (341) (307)
Issue of share capital 1,014 843
Costs of share issue (14) (17)
Loans received 913 1,246
Repayment of loans (735) (239)
Repayment of capital element of finance (10) (27)
leases
Net cash from financing activities 827 1,499
Net increase in cash and cash equivalents 396 46
Cash and cash equivalents at the beginning (299) (366)
of the year
Exchange gains on cash and cash equivalents (3) 21
Cash and cash equivalents at the end of the 9 94 (299)
year
Cash and cash equivalents comprise cash at bank less bank overdrafts.
1. General information
mirada plc is a company incorporated in the United Kingdom. The address of the
registered office is New City Cloisters, 196 Old Street, London, EC1V 9FR.
2. Basis of preparation
The financial information set out in this document does not constitute the
Company's statutory accounts for year to 31 March 2012 and 2013. Statutory
accounts for the years ended 31 March 2012 and 31 March 2013 have been reported
on by the Independent Auditors. The Independent Auditors' Reports on the
Annual Report and Financial Statements for each of 2012 and 2013 were
unmodified and did not contain statements under sections 498(2) or 498(3) of
the Companies Act 2006. However, consistent with prior years, the audit report
for the year ended 31st March 2013, drew attention to an emphasis of matter due
to the uncertainty over going concern, further details are included in note 3.
Statutory accounts for the year ended 31 March 2012 have been filed with the
Registrar of Companies. The statutory accounts for the year ended 31 March 2013
will be delivered to the Registrar in due course, and will be available from
the Company's registered office at New City Cloisters, 196 Old Street, London,
EC1V 9FR and from the Company's website www.mirada.tv/corporate.
The financial information set out in these preliminary results has been
prepared using the recognition and measurement principles of International
Accounting Standards, International Financial Reporting Standards and
Interpretations adopted for use in the European Union (collectively Adopted
IFRSs). The accounting policies adopted in these preliminary results have been
consistently applied to all the years presented and are consistent with the
policies used in the preparation of the statutory accounts for the period ended
31 March 2013. The principal accounting policies adopted are unchanged from
those used in the preparation of the statutory accounts for the period ended 31
March 2012. New standards, amendments and interpretations to existing
standards, which have been adopted by the Group have not been listed, since
they have no material impact on the financial statements
3. Significant accounting policies
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 Chief Executive
Officer's Report. The financial position of the Group, its cash flows,
liquidity position and borrowing facilities are described in the Director's
report. In addition, note 19 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 consolidated statement of financial position as at 31 March 2013, being the
Company's year-end, shows a net current liability position of £2,177,000 (2012:
£3,162,000). Subsequent to the reporting date, the Group has been able to
secure additional long term bank loans totalling £295,000. The Company is,
however, reliant on its ability to achieve its revenue projections and if these
projections are not met in the short term further funds may be required. As
such, the Directors are currently in negotiations to secure additional project
financing and are confident that these negotiations will be concluded
satisfactorily.
The Directors have concluded that the need to generate future funds from either
further financing or from trading activities to satisfy the settlement of its
ongoing 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.
Prior year restatement
Following a review of the maturity of the onerous lease obligation, the
Statement of Financial Position as at 31 March 2012 has been restated to
reclassify £338,000 from non-current provisions to current provisions. The
restatement does not impact on total liabilities, net assets or retained
earnings and equally does not affect the Income Statement or the Statement of
Cashflows. A restatement of £171,000 from non-current provisions to current
provisions is also required in the Statement of Financial Position as at 31
March 2011. As the restatement is only limited to a reclassification of
non-current provisions to current provisions in all periods affected, no
Statement of Financial Position as at the beginning of the comparative period
has been presented.
4. Segmental reporting
Reportable segments
The chief operating decision maker for the Group is ultimately the board of
directors. For financial and operational management the board considers the
Group to be organised into three operating divisions based upon the varying
products and services provided by the Group - Digital TV, Broadcast & Content
and Mobile. The products and services provided by each of these divisions are
described in the CEO Statement on page 3. The segment headed other relates to
corporate overheads, assets and liabilities.
Segmental results for the year ended 31 March 2013 are as follows:
Digital Broadcast
TV & content Mobile Other Group
£'000 £'000 £'000 £'000 £'000
Revenue - external 4,094 273 470 - 4,837
Gross profit 4,074 257 299 - 4,630
Profit/(loss) before 1,761 213 57 (1,050) 981
interest, tax,
depreciation &
amortisation
Impairment of goodwill - - - - -
Depreciation (33) - - (25) (58)
Amortisation (615) - (34) (34) (683)
Finance income - - - 137 137
Finance expense - - - (617) (617)
Segmental profit/(loss) 1,113 213 23 (1,589) (240)
The segmental results for the year ended 31 March 2012 are as follows:
Digital Broadcast
TV & content Mobile Other Group
£'000 £'000 £'000 £'000 £'000
Revenue - external 3,346 594 406 - 4,346
Gross profit 3,165 420 199 - 3,784
Profit/(loss) before 792 323 (61) (1,426) (372)
interest, tax,
depreciation &
amortisation
Impairment of goodwill - - (560) - (560)
Restructuring costs - - - (528) (528)
Depreciation (53) - - (53) (106)
Amortisation (707) - (18) (8) (733)
Finance income - - - 4 4
Finance expense - - - (867) (867)
Segmental profit/(loss) 32 323 (639) (2,878) (3,162)
There is no material inter-segment revenue included in the segments which is
required to be eliminated.
The Group has three major customers in the Digital TV segment (a major customer
being one that generates revenues amounting to 10% or more of total revenue)
that account for £1.37 million (2012: £0.79 million), £0.48 million (2012: £
0.63 million) and £0.48 million (2012: £0.47 million) of the total Group
revenues respectively.
The segment assets and liabilities at 31 March 2013 are as follows:
Digital Broadcast
TV & content Mobile Other Group
£'000 £'000 £'000 £'000 £'000
Additions to non-current 1,087 - 23 14 1,124
assets
Total assets 7,146 1,939 688 339 10,112
Total liabilities (1,969) (172) (97) (4,409) (6,647)
Capital expenditure comprises additions to property, plant and equipment and
intangible assets.
The segment assets and liabilities at 31 March 2012 are as follows:
Digital Broadcast
TV & content Mobile Other Group
£'000 £'000 £'000 £'000 £'000
Additions to 680 - 67 122 869
non-current assets
Total assets 6,302 1,940 1,104 366 9,712
Total liabilities (1,647) (214) (162) (6,031) (8,054)
Segment assets and liabilities are reconciled to the Group's assets and
liabilities as follows:
Assets Liabilities Assets Liabilities
31 March 31 March 31 March 31 March
2013 2013 2012 2012
£'000 £'000 £'000 £'000
Segment assets and liabilities 9,773 2,238 9,346 2,023
Other:
Intangible assets 89 - 109 -
Property, plant & equipment 19 - 41 -
Other financial assets & 231 4,409 216 6,031
liabilities
Total other 339 4,409 366 6,031
Total Group assets and 10,112 6,647 9,712 8,054
liabilities
Assets allocated to a segment consist primarily of operating assets such as
property, plant and equipment, intangible assets, goodwill and receivables.
Liabilities allocated to a segment comprise primarily trade payables and other
operating liabilities.
Geographical disclosures
External revenue by Non-current assets by
location of customer location of assets
31 March 31 March 31 March 31 March
2013 2012 2013 2012
£000 £000 £000 £000
UK 743 908 3,063 3,119
Spain 473 615 5,663 5,234
Continental Europe 465 1,319 - -
Americas 3,156 1,504 - -
4,837 4,346 8,726 8,353
5. Operating profit
The operating profit is stated after charging the following:
Year ended Year ended
31 March 31 March
2013 2012
£000 £000
Depreciation of owned assets 35 83
Depreciation of assets held under finance lease 23 23
Amortisation of intangible assets 683 733
Impairment of goodwill - 560
Operating lease charges 200 264
Restructuring costs (see below) - 528
Research and development costs 220 239
Reconciliation of operating profit for continuing operations to loss before
interest, taxation, depreciation and amortisation:
Year ended Year ended
31 March 31 March
2013 2012
£000 £000
Operating profit/(loss) 240 (2,299)
Depreciation 58 106
Amortisation 683 733
Restructuring costs - 528
Impairment of goodwill - 560
Operating profit/(loss) before interest, 981 (372)
taxation, depreciation, amortisation, impairment
of goodwill and restructuring costs
During the year ended 31 March 2012 the Group incurred restructuring costs of £
528,000 comprising £440,000 relating to an onerous lease commitment and £88,000
relating to redundancy costs.
6. Taxation
The tax assessed on the loss on ordinary activities for the period differs from
the standard rate of tax of 24%. The differences are reconciled below:
Year ended Year ended
31 March 31 March
2013 2012
£000 £000
Loss before taxation (240) (3,162)
Loss on ordinary activities multiplied by 24% (58) (822)
(2012: 26%)
Effect of expenses not deductible for tax purposes 23 252
Effect of non-taxable income (32) -
Losses carried forward 67 570
Current period tax - -
Deferred taxation
Deferred taxation provided in the financial statements is £nil (2012: £nil) and
the amounts not recognised are as follows:
Group Year ended Year ended
31 March 31 March
2013 2012
£000 £000
Depreciation in excess of capital allowances 1,582 1,782
Losses 10,185 11,440
11,767 13,222
The gross value of tax losses carried forward at 31 March 2013 equals £51.2
million (2012: £50.9 million).
Deferred tax asset
The deferred tax asset has not been recognised due to the uncertainty
surrounding the timescale as to its recoverability. The asset would start to
become potentially recoverable if, and to the extent that, the Group were to
generate taxable income in the future.
7. Loss per share
Year ended Year ended
31 March 31 March
2013 2012
Total Total
Loss for year (£240,000) (£
3,162,000)
Weighted average number of shares 34,612,552 29,050,700
Basic & diluted loss per share (£0.01) (£0.11)
Adjustedearnings/(loss )per share
Adjusted loss per share is calculated by reference to the loss from continuing
activities before interest, taxation, impairment of goodwill, depreciation and
amortisation (see note 6).
Year ended Year ended
31 March 31 March
2013 2012
Total Total
Adjusted profit/(loss) after tax for £981,000 (£372,000)
period
Basic adjusted earnings/(loss) per £0.03 (£0.01)
share
Diluted adjusted earnings/(loss) per £0.02 (£0.01)
share
The Company has 301,327 (2012: 302,370) potentially dilutive ordinary shares
arising from share options issued to staff. The Company also has 9,750,000
(2012: 14,200,000) potentially dilutive ordinary shares arising from the
convertible loan, see note 19. These have not been included in calculating the
diluted earnings per share as the effect is anti-dilutive, although they have
been included in calculating the adjusted earnings per share.
8. Share capital
A breakdown of the authorised and issued share capital in place as at 31 March
2013 is as follows:
31 March 31 March 31 March 31 March
2013 2013 2012 2012
Number £000 Number £000
Allotted, called up and fully paid
Ordinary shares of £0.01 each 51,927,793 519 31,973,423 319
Share issues
During the year the following share issues took place:
- On 15 November 2012 3,509,273 £0.01 ordinary shares were issued at £0.1175
each to capitalise all convertible loan interest due and payable for the period
from the creation of the convertible loan up to 31 March 2013, equating to £
412,339. As part of this capitalisation, AsesorÃa Digital S.L., which is owned
by Rafael MartÃn Sanz and his wife, received 232,305 shares.
- On 27 February 2013 the Company raised £1,469,509 via the issue of 14,695,097
£0.01 ordinary shares at a price of £0.10 each. The issue of shares consisted
of a placing for cash raising gross proceeds of £1,014,000 by the issue of
10,140,000 ordinary shares, £270,000 of the convertible loan balance was
converted into 2,700,000 ordinary shares, and 1,855,097 ordinary shares were
issued to capitalise certain creditor balances totalling £185,509. These share
based payments to creditors were measured at the market value of the services
rendered. The directors who participated in this fund raising and the number of
ordinary shares subscribed for were, Richard Alden; 626,667 shares and Francis
Coles; 183,613 shares.
- On 28 March 2013 £175,000 of the convertible loan balance was converted into
1,750,000 £0.01 ordinary shares at £0.10 per share.
9. Notes supporting cash flow statement
Cash and cash equivalents comprise:
31 March 31 March
2013 2012
£000 £000
Cash available on demand 94 35
Overdrafts - (334)
94 (299)
Net cash increase in cash and cash equivalents 393 67
Cash and cash equivalents at beginning of year (299) (366)
Cash and cash equivalents at end of year 94 (299)
Cash and cash equivalents
Cash and cash equivalents are held in the following currencies:
31 March 31 March
2013 2012
£000 £000
Sterling 42 -
Euro 52 35
Total 94 35
Cash and cash equivalents comprise cash held by the Group and short-term bank
deposits with an original maturity of three months or less. The carrying amount
of these assets approximates their fair value.
Significant non-cash transactions are as follows:
31 March 31 March
2013 2012
£000 £000
Financing activities:
Convertible loans converted into equity 445 -
Accrued convertible loan interest paid by issue of equity 412 -
Creditor balances paid by issue of equity 186 224
Total 1,043 224
10. Availability of report and accounts
Copies of the report and accounts for the year ended 31 March 2013 are being
posted to shareholders and are available on the Company's website
www.mirada.tv.
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