Interim Results

RNS Number : 8861J

Forbidden Technologies PLC

23 July 2013

 



                                                                        23 July 2013

Forbidden Technologies plc

("Forbidden" or the "Company")

Interim results for the six months to 30 June 2013

Forbidden Technologies (AIM: FBT), the AIM-quoted owner and developer of the market leading Cloud video platform, FORscene, is pleased to announce its Interim Results for the six months to 30 June 2012.

Highlights

·      Revenue for the period up 15% to £401,278

·      Gross profit for the period up 23% to £347,697

·      Revenue from Broadcast Post-Production up by 61%; News and Sport lower, but up 32%, excluding last year's one-off contribution from the Summer Games

·      Administrative expenses for the period increased to £538,191

·      Loss for the period was £189,618

·      Continuing strong demand for a cloud-based solution in video editing

·      New channels to market with ATOS in South Africa, with Key Code Media inc in the United States and with deltatre and EVS in the sport video space

·      Post balance sheet, the Company raised £8,900,000 through an oversubscribed placing and open offer

Vic Steel, Chairman of Forbidden Technologies, commented:

"Forbidden's growth continues to demonstrate the strength of the FORscene offering.  Revenue from Broadcast Post-Production has increased substantially while the Company has continued to build on the foundations that the licence to YouTube created in the sports video environment at last year's Olympics.

"The Company continues to develop its presence in lucrative international markets and the successful placing and open offer will allow this process to be accelerated at the same time as strengthening the balance sheet and continuing to improve the market leading technology already in place."

-END-

For more information, please visit www.forbidden.co.uk or contact:

Forbidden Technologies plc

Stephen Streater, CEO

Tel: [phone]

Cenkos Securities plc, Nominated Adviser and Broker

Adrian Hargrave, Corporate Finance

Alex Aylen, Sales

Tel: [phone]

Bishopsgate Communications

Nick Rome / Sam Allen / Matthew Low

Tel: [phone]

[e-mail]

Notes for editors

About Forbidden Technologies:

Forbidden Technologies plc (AIM: FBT, www.forbidden.co.uk) floated in February 2000. The Company develops and markets a powerful cloud video platform, FORscene, which is used by broadcasters, in professional web video, in education and by consumers.  FORscene is one of the world's most advanced browser-based and mobile applications.

Chairman's Statement

I am pleased to report that revenue in the six months to 30 June 2013 increased by 15% to £401,278 compared to £348,159 in the six months to 30 June 2012.

The UK Broadcast Post-production sector provided strong growth for the FORscene platform with revenue increasing by 61% over the corresponding period last year to £217,739.  This month there are over 90 productions being made using FORscene, compared with a monthly peak of 70 in the last quarter of 2012.  This growth reflects not only an increase in the number of programmes being produced using FORscene but also increasing use of FORscene's wide-ranging features for professionals involved in post-production.

First half revenue from the News & Sport sector was lower than that achieved in the first half of 2012 reflecting the absence of a significant proportion of the one-off contribution from last summer's major sporting event.  Excluding this event, performance increased by 32%.

Administrative expenses increased from £442,756 in the six months to 30 June 2012 to £538,191 in the six months to 30 June 2013, as a 32% increase in staff costs and a 10% increase in corporate costs gave an overall expense increase of 21%.

The loss for the six months to 30 June 2013 was £189,618 compared to £156,908 in the six months to 30 June 2012, an increase of 21%.

Key events

The successful involvement of FORscene in the 2012 summer games has had a significant impact upon the awareness, recognition and reputation of the FORscene platform in both the Broadcast Post-production and the News & Sport sectors.  This has enabled the company to undertake Partnership Agreements, in the first six months of 2013, with a number of major and global companies.

In February 2013 a deal was signed with ATOS, South Africa, a part of the global information technology company with operations in 47 countries.  This agreement is Pan-African in scope, with an initial introduction into South Africa where ATOS will operate its own FORscene cloud.  This agreement is expected to enable FORscene to become a key platform in the African Broadcast Post-production market.

In Post-production on the West Coast of the USA, Key Code Media, a global leading Avid re-seller, signed a FORscene Partnership Agreement in March 2013, providing an entry point into the US Post-production market which is a multiple of the size of the UK market.

In March 2013 FORscene reached agreements with two leading global deliverers of sports video.  deltatre leads in the delivery of sports through the internet and EVS is a leading supplier to the Broadcast Sport video market.  FORscene will be integrated into the offerings of both companies.

Post Balance Sheet Event

The recent completion of the placings of new shares and the open offer has raised £8,900,000 before costs thus strengthening the balance sheet and providing extra working capital to support accelerated growth into the future.

Outlook

With new and significant agreements put in place in the first six months of 2013, further agreements will be sought over the coming months.

The increased available funds will enable the Company to extend its practice of continuous development and improvement of its technology so as to take full part in the adoption of Cloud Technology on a wide scale across all facets of video post-production, publishing and distribution.

Funds will be used to exploit marketing opportunities to strengthen our human resources and to demonstrate a strong balance sheet to current and future partners.

The Board believes that Forbidden is now in a strong position to become a leading player internationally in the creation of video content for multiple media channels.

Vic Steel

Chairman

FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2013

		Unaudited half year to 30 June 2013		Unaudited half year to 30 June 2012		Audited year to 31 December 2012
		£		£		£
CONTINUING OPERATIONS
Revenue		401,278		348,159		812,744
Cost of Sales		(53,581)		(65,611)		(132,230)
GROSS PROFIT		347,697		282,548		680,514
Other operating income		-		135		6,431
Administrative expenses		(538,191)		(442,756)		(963,237)
OPERATING LOSS		(190,494)		(160,073)		(276,292)
Finance income		876		3,165		5,974
LOSS BEFORE INCOME TAX		(189,618)		(156,908)		(270,318)
Income Tax		-		-		53,603
LOSS FOR THE PERIOD		(189,618)		(156,908)		(216,715)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		(189,618)		(156,908)		(216,715)
Earnings per share expressed in pence per share:
Basic - continuing and total operations		(0.22p)		(0.18p)		(0.25p)

FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)

STATEMENT OF FINANCIAL POSITION

30 JUNE 2013

		Unaudited at 30 June 2013		Unaudited at 30 June 2012		Audited at 31 December 2012
		£		£		£
ASSETS
NON-CURRENT ASSETS
Intangible assets		1,054,690		847,891		953,856
Property, plant and equipment		47,030		15,142		13,182
		1,101,720		863,033		967,038
CURRENT ASSETS
Inventories		-		-		24,156
Trade and other receivables		265,451		252,093		205,117
Tax receivable		53,603		-		53,603
Cash and cash equivalents		189,488		617,100		459,787
		508,542		869,193		742,663
TOTAL ASSETS		1,610,262		1,732,226		1,709,701
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital		698,056		692,636		696,936
Share premium		5,336,967		5,199,999		5,311,637
Capital contribution reserve		125,000		125,000		125,000
Retained earnings		(4,651,946)		(4,486,219)		(4,505,365)
TOTAL EQUITY		1,508,077		1,531,416		1,628,208
LIABILITIES
NON-CURRENT LIABILITIES
Trade and other payables		-		-		-
CURRENT LIABILITIES
Trade and other payables		102,185		200,810		81,493
TOTAL LIABILITIES		102,185		200,810		81,493
TOTAL EQUITY AND LIABILITIES		1,610,262		1,732,226		1,709,701

The financial statements were approved by the Board of Directors on 22 July 2013.

S B Streater - Director

P J Madden - Director

FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)

STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2013

		Called up share capital		Profit and loss account		Share premium		Capital contribution reserve		Total equity
		£		£		£		£		£
Balance at 1 January 2012		692,636		(4,359,855)		5,199,999		125,000		1,657,780
Changes in equity
Issue of share capital		4,300				111,638		-		115,938
Share based payment		-		71,205		-		-		71,205
Total comprehensive income		-		(216,715)		-		-		(216,715)
Balance at 31 December 2012		696,936		(4,505,365)		5,311,637		125,000		1,628,208
Changes in equity
Issue of share capital		1,120		-		25,330		-		26,450
Share based payment		-		43,037		-		-		43,037
Total comprehensive income		-		(189,618)		-		-		(189,618)
Balance at 30 June 2013		698,056		(4,651,946)		5,336,967		125,000		1,508,077

FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)

STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2013

		Unaudited half year to 30 June 2013		Unaudited half year to 30 June 2012		Audited year to 31 December 2012
		£		£		£
Cash flows from operating activities
Cash generated from operations		(112,250)		25,981		(95,667)
Tax received		-		58,289		58,289
Net cash from operating activities		(112,250)		84,270		(37,378)
Cash flows from investing activities
Purchase of intangible fixed assets		(158,835)		(141,455)		(290,878)
Purchase of tangible fixed assets		(26,540)		(21,374)		(26,363)
Interest received		876		3,165		5,974
Net cash from investing activities		(184,499)		(159,664)		(311,267)
Cash flows from financing activities
Share issue		26,450		-		115,938
Sale of share options		-		-		-
Net cash from financing activities		26,450		-		115,938
Increase/(Decrease) in cash and cash equivalents		(270,299)		(75,394)		(232,707)
-
Cash and cash equivalents at beginning of the period		459,787		692,494		692,494
Cash and cash equivalents at end of the period		189,488		617,100		459,787

FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)

NOTES TO THE STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2013

1.	RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS

		Unaudited half year to 30 June 2013		Unaudited half year to 30 June 2012		Audited year to 31 December 2012
		£		£		£
Loss before income tax		(189,618)		(156,908)		(270,318)
Depreciation charges		(7,308)		15,657		22,606
Amortisation charges		58,001		43,458		86,916
Employee share option costs		43,037		30,544		71,205
Finance income		(876)		(3,165)		(5,974)
		(96,764)		(70,414)		(95,565)
(Increase)/Decrease in trade and other receivables		(36,178)		282,154		304,974
Increase/(Decrease) in trade and other payables		20,692		(185,759)		(305,076)
Cash generated from operations		(112,250)		25,981		(95,667)

2.           CASH AND CASH EQUIVALENTS

The amounts disclosed on the cash flow in respect of cash and cash equivalents are in respect of these balance sheet amounts:

		Unaudited half year to 30 June 2013		Unaudited half year to 30 June 2012		Audited year to 31 December 2012
		£		£		£
Cash and cash equivalents		189,488		617,100		459,787

1.   Basis of preparation and accounting policies

These interim statements have been prepared on a basis consistent with International Financial Reporting Standards (IFRS).  They do not contain all of the information required for full financial statements and should be read in conjunction with the consolidated financial statements of the Company as at and for the year ended 31 December 2012.  These interim financial statements do not constitute statutory accounts within the meaning of the Companies Act. 

The interim financial information has not been audited. The interim financial information was approved by the Board of Directors on 22 July 2013.  The information for the year ended 31 December 2012 is extracted from the statutory financial statements for that year which have been reported on by the Group's auditors and delivered to the Registrar of Companies. The audit report was unqualified and did not contain a statement under s498(2) or 498(3) of the Companies Act 2006.

The accounting policies applied by the Company in these interim financial statements are the same as those applied by the Company in its financial statements for the year ended 31 December 2012.

 

END

 

 

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