Interim Results

RNS Number : 4485N

Forbidden Technologies PLC

28 July 2014

 

Date:	28 July 2014
On behalf of:	Forbidden Technologies plc ("Forbidden", the "Company" or the "Group")
Embargoed until:	0700hrs

Forbidden Technologies plc

Interim Results

Forbidden Technologies plc (AIM: FBT), the AIM-quoted owner and developer of the market leading cloud video platform, Forscene, announces its interim results for six months ended 30 June 2014.

Highlights

·              Significantly strengthened workforce including doubling of R&D headcount and recruitment of additional sales and technical support staff

·               Good progress in North America with initial sales made and an impressive pipeline

·               Establishment of Consumer Products division with social platform on course for Q4 release

·               Cash and short term investments of £6,446,339

Commenting on the results, Stephen Streater, Forbidden Technologies CEO, said:

"The industry shift towards cloud-based workflows continues and, with a number of new staff appointments, growing momentum in North America, and the development of an exciting new consumer offering well underway, we remain confident in Forbidden's ability to grow in the second half and beyond."

Enquiries

Forbidden Technologies plc	Tel: [phone]
Stephen Streater, CEO
Cenkos Securities plc (Nominated Adviser and Broker)	Tel: [phone]
Bobbie Hilliam, Corporate Finance
Alex Aylen, Sales
Redleaf Polhill (Financial PR)	Tel: [phone]
Rebecca Sanders-Hewett	Email: [e-mail]
Dwight Burden
David Ison

About Forbidden Technologies plc

Forbidden Technologies plc (AIM: FBT, www.forbidden.co.uk) floated in February 2000.

The Company develops and markets the 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

The six-month period to 30 June 2014 was one of significant investment into the business following last summer's fundraising activity. As anticipated, operating expenses in the period rose from £538,191 to £1,461,888. Almost half the increase (£474,000) resulted from increased staff costs including the doubling of R&D headcount and the recruitment of additional sales and technical support staff. £184,000 was spent setting up and staffing our new US subsidiary, a venture which is making good progress, while further recruitment costs, professional services, and marketing added a further £356,000. The resulting overall loss was £1,157,890 compared with £189,618 in the corresponding period last year.

Forbidden has led the emergence of cloud in the video editing industry through its disruptive technologies. The cloud is now having a disruptive effect on the video editing market. This has led a historically strong market player to take defensive action. Conservative executives are exercising caution as they decide which way to turn. Partly as a result of this, revenue in the period was £348,077 compared with £401,278 in the corresponding period last year. Later start dates for some major broadcast series and slow take up of new opportunities in Sports have also contributed.

We remain confident that a generational shift to cloud-based workflows is ongoing and that we are taking the right steps to take advantage of this.

The balance sheet remains strong with cash and short term investments of £6,446,339 at the end of the period. 

We have continued to improve our flagship product, Forscene, by broadening the technology to include a media asset management interface (to extend access to existing technology within the Forbidden cloud platform), an editor re-skin and third-party integration.  

During the period, we have made rapid progress on the design and development of our planned entry into the consumer market with our social platform and its app. In the two months since his appointment as Consumer Products Director, Aziz Musa, has made significant progress including the creation of the brand name "eva" and the obtaining of the web address eva.co. eva has published its initial web page today and visitors are invited to apply to take part in the Alpha testing of the product. A full launch is planned for the fourth quarter making use of a "freemium" business model to acquire a significant number of monthly active users as efficiently as possible.

Although revenue in the period is lower than the previous year, we consider the contributory factors to be short term and remain confident of our strategy. Our pipeline in North America is impressive and initial sales have been made, with significant growth expected in the second half and continuing into 2015.

FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)

UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2014

		Unaudited half year to 30 June 2014		Unaudited half year to 30 June 2013		Audited year to 31 December 2013
		£		£		£
CONTINUING OPERATIONS
Revenue		348,077		401,278		772,180
Cost of Sales		(56,038)		(53,581)		(105,078)
GROSS PROFIT		292,039		347,697		667,102
Administrative expenses		(1,461,888)		(538,191)		(1,491,408)
OPERATING LOSS		(1,169,849)		(190,494)		(824,306)
Finance costs		(887)		-		-
Finance income		12,846		876		21,528
LOSS BEFORE INCOME TAX		(1,157,890)		(189,618)		(802,778)
Income Tax		-		-		5,231
LOSS FOR THE PERIOD		(1,157,890)		(189,618)		(797,547)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		(1,157,890)		(189,618)		(797,547)
Earnings per share expressed in pence per share:
Basic - continuing and total operations		(1.08p)		(0.22p)		(0.74p)

FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)

UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

30 JUNE 2014

		Unaudited at 30 June 2014		Unaudited at 30 June 2013		Audited at 31 December 2013
		£		£		£
ASSETS
NON-CURRENT ASSETS
Intangible assets		1,459,403		1,054,690		1,188,960
Property, plant and equipment		145,103		47,030		49,366
		1,604,506		1,101,720		1,238,326
CURRENT ASSETS
Inventories		38,376		-		3,274
Trade and other receivables		306,248		265,451		330,637
Tax receivable		5,213		53,603		58,834
Short-term investment		2,000,000		-		2,000,000
Cash and cash equivalents		4,446,339		189,488		5,839,109
		6,796,176		508,542		8,231,854
TOTAL ASSETS		8,400,682		1,610,262		9,470,180
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital		1,054,518		698,056		1,054,518
Share premium		13,317,572		5,336,967		13,317,572
Capital contribution reserve		125,000		125,000		125,000
Retained earnings		(6,311,309)		(4,651,946)		(5,206,105)
TOTAL EQUITY		8,185,781		1,508,077		9,290,985
LIABILITIES
NON-CURRENT LIABILITIES
Trade and other payables		-		-		-
CURRENT LIABILITIES
Trade and other payables		214,901		102,185		179,195
TOTAL LIABILITIES		214,901		102,185		179,195
TOTAL EQUITY AND LIABILITIES		8,400,682		1,610,262		9,470,180

The financial statements were approved by the Board of Directors on 25 July 2014.

...............................................................................                                         ...............................................................................

S B Streater - Director                                                                                P J Madden - Director

FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)

UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2014

		Called up share capital			Share premium		Capital contribution reserve		Profit and loss account	Total equity
		£			£		£		£	£
Balance at 1 January 2013		696,936			5,311,637		125,000		(4,505,365)	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			5,336,967		125,000		(4,651,946)	1,508,077
Changes in equity
Issue of share capital		356,462			7,980,605		-		-	8,337,067
Share based payment		-			-		-		53,770	53,770
Total comprehensive income		-			-		-		(607,929)	(607,929)
Balance at 31 December 2013		1,054,518			13,317,572		125,000		(5,206,105)	9,290,985
Changes in equity
Issue of share capital		-			-		-		-	-
Share based payment		-			-		-		52,686	52,686
Total comprehensive income		-			-		-		(1,157,890)	(1,157,890)
Balance at 30 June 2014		1,054,518			13,317,572		125,000		(6,311,309)	8,185,781

FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)

UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2014

		Unaudited half year to 30 June 2014		Unaudited half year to 30 June 2013		Audited year to 31 December 2013
		£		£		£
Cash flows from operating activities
Cash generated from operations		(917,434)		(112,250)		(581,785)
Tax received		53,621		-		-
Net cash from operating activities		(863,813)		(112,250)		(581,785)
Cash flows from investing activities
Purchase of intangible fixed assets		(346,000)		(158,835)		(351,106)
Purchase of tangible fixed assets		(195,803)		(26,540)		(72,832)
Purchase of fixed term deposits		-		-		(2,000,000)
Interest received		12,846		876		21,528
Net cash from investing activities		(528,957)		(184,499)		(2,402,410)
Cash flows from financing activities
Share issue (net of expenses)		-		26,450		8,363,517
Net cash from financing activities		-		26,450		8,363,517
(Decrease)/Increase in cash and cash equivalents		(1,392,770)		(270,299)		5,379,322
-
Cash and cash equivalents at beginning of the period		5,839,109		459,787		459,787
Cash and cash equivalents at end of the period		4,446,339		189,488		5,839,109

FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)

NOTES TO THE UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2014

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

		Unaudited half year to 30 June 2014		Unaudited half year to 30 June 2013		Audited year to 31 December 2013
		£		£		£
Loss before income tax		(1,157,890)		(189,618)		(802,778)
Depreciation charges		65,947		(7,308)		36,648
Loss on disposal of assets		34,119		-		-
Amortisation charges		75,557		58,001		116,002
Employee share option costs		52,686		43,037		96,807
Finance income		(12,846)		(876)		(21,528)
		(942,427)		(96,764)		(574,849)
Decrease/(Increase) in trade and other receivables		24,389		(36,178)		(125,520)
(Increase)/Decrease in inventories		(35,102)		-		20,882
Increase in trade and other payables		35,706		20,692		97,702
Cash generated from operations		(917,434)		(112,250)		(581,785)

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 2014		Unaudited half year to 30 June 2013		Audited year to 31 December 2013
		£		£		£
Cash and cash equivalents		4,446,339		189,488		5,839,109

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 2013.  These interim financial statements do not constitute statutory accounts within the meaning of the Companies Act. 

FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)

NOTES TO THE UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2014 (CONTINUED)

The interim financial information has not been audited. The interim financial information was approved by the Board of Directors on 25 July 2014.  The information for the year ended 31 December 2013 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 2013.

 

END

 

 

IR RPMITMBATMLI