Final Results

RNS Number : 9759I

One Media iP Group PLC

22 April 2022

 

22 April 2022

One Media iP Group Plc

("One Media", "the Company" or the "Group")

Final Results for the year ended 31 October 2021 and Posting of Accounts

Another year of double-digit earnings growth and investment into

complementary Group platforms

One Media iP (AIM:OMIP), the digital media content provider which exploits intellectual digital property rights around music, video and copyright technology, announces its Final Results for the 12-month period ended 31 October 2021.

Financial Highlights

· 10% increase in total revenue and 11% uplift in EBITDA to £4,389,581 (2020: £4,005,385) and £1,648,598 (2020: £1,485,645) respectively, driven by organic growth and active management of portfolio in line with strategy to maximise commercialisation of rights under ownership

· Organic revenue growth in the year of 4.5%

· 10% average organic revenue growth over the last five years, reflecting the inherent potential of the portfolio before commercialisation 

· 13% uplift in net revenue to £2,780,526 (2020: £2,439,352)

· Operating profit increased 5.5% to £1,075,958 (2020: £1,019,884)

· Cash at 31 October 2021 of £2,565,813 (2020: £6,766,424) following investment into TCAT Ltd and providing flexibility for investment into accretive opportunities

· Catalogue valuation of £34.8m, conducted by independent valuers

· IFRS NAV per Ordinary Share increased to 7p (2020: 6p)

· Operative NAV per Ordinary Share 17p (Operative NAV is calculated by using the IFRS NAV, adjusting for the revaluation of catalogues assets to fair value and then adding back the catalogue amortisation)

· Final dividend declared of 0.055p per share

Operational and Post-Period Highlights

· £4.3m of investment across nine acquisitions at an average blended 11.2 multiple, including the producer's income royalties to Take That's 'A Million Love Songs', 'Could It Be Magic' and 'I Found Heaven', all from Take That's 1992 debut studio album, Take That & Party

· Largest acquisition undertaken by the Company to date, comprising the composition rights to over 200 tracks by country music star Don Williams

· All acquisitions in 2021 undertaken via Harmony IP business division, further diversifying Group revenue streams and generating additional strategic partnerships

· £0.8m of capex deployed into software development subsidiary TCAT Limited ("TCAT")

· Board and management team appointed to further progress TCAT business plan

· Fundraise underway to support next phase of growth for TCAT directly into the limited company subsidiary

· Positive early trials for TCAT with two major labels, the world's largest digital aggregator and music trade body, the BPI

Outlook

· Ongoing supportive market backdrop with music industry growth projections accelerating

· Technology advances delivering increasing opportunities to place content and grow royalties 

Michael Infante, CEO said: "2021 has been active year for One Media, delivering another strong set of results, driven largely by our independently valued £34.8 million content catalogue. We welcomed some high-profile names to our stable, including some of Take That's highest profile hits through the acquisition of their producer's royalties, as well as music by Kid Creole, Culture Club and, in our largest acquisition to date, country music star Don Williams. These income accretive investments are in line with our strategy of acquiring proven assets that we know can enhance our recurring revenues, while also providing opportunity to add further value and grow income. This is supported by our complementary business ventures - Harmony IP and TCAT - which will both help us diversify and further improve our revenue.

"The outlook for our industry is extremely encouraging, with growth accelerating and technology advances providing more and more opportunities for us to place our assets and maximise royalties. Against this and with a strong balance sheet we're looking to the future with great optimism."

This announcement contains inside information for the purposes of UK Market Abuse Regulation. The person who arranged the release of this information is Michael Infante, Chief Executive Officer of the Company.

For further information, please contact:

One Media IP Group Plc
Michael Infante	Chief Executive Tel: [phone]
Claire Blunt	Chairman Tel: [phone]
Cairn Financial Advisers LLP	Nominated Adviser
Liam Murray / Jo Turner / Ludovico Lazzaretti	Tel: [phone]
Cenkos Securities plc	Broker
Giles Balleny / Max Gould (Corporate Finance) Michael Johnson (Sales)	Tel: [phone]
Pete Flatt / PPR Publicity	PR
	Tel: [phone]

About One Media iP Group Plc  

One Media is a digital music rights acquirer, publisher and distributor with a catalogue independently valued at £34.8 million (as at April 2022). The Group specialises in purchasing and monetising intellectual property rights with proven, repeat income streams.  One Media adds value to its content by maximising its availability in over 600 digital stores globally, including Apple Music, YouTube, Amazon and Spotify.

One Media's music is also widely used for synchronisation in film and TV whilst its video content is primarily viewed on YouTube where One Media operates over 20 YouTube channels as a certified partner. Additionally its copyright infringement and digital music audit tool software TCAT, is used daily with major record labels and the world leading digital international distributor. Men & Motors its branded car channel is now available via YouTube www.youtube.com/channel/UCNLiybn_9jgQaV0NZlSRwCg

One Media is listed on the AIM Market of the London Stock Exchange under the symbol 'OMIP'.

 For further information, please visit www.omip.co.uk  and www.harmonyip.com/  

Chairman's Statement

I am pleased to report, following a busy 12 months, another set of positive results. The Group has posted a 10% increase in revenues to £4.4 million and, despite some impact from unfavourable foreign exchange movements with approximately 89% of revenues generated in US dollars, a very healthy 11% uplift in EBITDA to £1.65 million. 

This year's strong performance was driven by the continuing active management of the portfolio by the One Media team, as well as organic growth propelled by the increased consumer demand on streaming platforms and other revenue distributions from digital platforms.

 The organic growth of the portfolio in the period was 4.5%. Over the last five years average organic growth has been 10%, reflecting the inherent value of the assets the Group invests in and the positive structural trends driving the music industry which support the investment case. This organic growth is further supplemented by the proactive commercialisation of the portfolio by the Company, where it adds considerable value, unlocking the latent potential of the kinds of copyrights it acquires.

The Group retains a healthy cash position with a cash balance of £2.6 million and with £1.9 million in structured debt as at 31 October 2021, which puts us in a strong position for the year ahead, with some important investments having already been completed post period end.

Given the positive performance, together with the outlook for the Group and the industry, the Board is pleased to confirm a final dividend for the year of 0.055p per share .

2021 has been an important year strategically, with further capital investment into complementary Group activities that will diversify and supplement our revenue streams, while also expediting our overall objective of maximising the potential of our intellectual property assets.

Harmony IP is already proving a hit with composers, writers and performers and has been the main avenue for investment in 2021, providing us with an expanded, more flexible route to market and a vehicle through which to grow our partnerships with rights owners, while also enhancing revenues.

Alongside this, the business plan for TCAT is progressing well, with a full management team and board with expertise across the technology, software and music industries, who are now in place to market the product's capabilities. TCAT is an exciting prospect for the Group and an attractive tool for the music industry, which is already clear from the early stage talks and trials that are underway with some of the biggest names in our sector. 

The year was once again impacted by the pandemic, but we very much hope that we, and the industry, are through the other side of this now, albeit to a larger degree in some territories compared to others.

Attentions have now, sadly, turned to the horrific events in Ukraine. While recent sanctions around supplying the Russian Federation via our DSP partners in Russia, such as Apple and Spotify, may slow growth as these stores have now partially been suspended, following an audit we are not expecting a material impact on the Group given the limited levels of business conducted in these areas.

We are deeply concerned about Russia's invasion of Ukraine and stand with all of the people who are suffering as a result of the violence. We join all those around the world who are calling for peace.

I continue to remain excited for the future of One Media and, as always, would like to extend my thanks to the experienced team of directors, staff, consultants and professionals across the Group who contribute to our continued success, as well as our shareholders for their ongoing support.

Claire Blunt

Non-Executive Chairman

Chief Executive's Statement

Strategy overview

One Media Plc is an owner, publisher and distributor of digital music copyrights, which it actively monetises to deliver proven income streams. We derive the majority of our revenue from royalties collected from the use of the Company's content internationally, which we enhance by improving its availability globally across 600 digital stores (also known as Digital Service Providers ("DSPs")) including Apple Music, YouTube, Amazon Music and Spotify.

Royalty returns are largely uncorrelated to the performance of the public and private equity markets, making them predictable and generating an annuity-like income for investors, which is at the core of our investment case. Additionally, we generally focus on more mature compositions with a proven durability, supporting reliable revenues.

We are custodians of an expansive catalogue of over 200,000 music tracks, diversified across a range of genres including pop, rock, country and classical, which deliver long term, growing and secure income, around 97% of which is recurring. Leveraging its expansive industry relationships, the Company is able to identify proven content which it believes is undervalued or has latent potential, which we then seek to crystallise on behalf of shareholders.

In the last two years we have expanded the Group with the launch of two wholly complementary entities that support the delivery of our core strategy while also providing additional, diversified sources of revenue.

Harmony IP, a new business division, was established in 2020. It enables composers and master rights owners to release portions of equity from their music, giving artists greater flexibility to access future earnings while retaining majority ownership of their intellectual property. From a One Media perspective, it supplements our existing revenue streams and expands our opportunity to create strongly aligned partnerships and relationships with rights owners, putting us in a favourable position to increase our exposure to their assets in the future.

Our Technical Copyright Analysis Tool business, TCAT Ltd was established as a subsidiary business last year. It is a software as a service ("SaaS") platform - a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.  Developed by One Media, it is a proprietary, specialist anti-piracy tool which identifies the illegal or unlicensed use of digital music, helping to maximise revenue for record labels and also for One Media. It also provides real time data on the past performance and expected future trends of content, supporting our acquisition strategy and further de-risking the investment process.

Financial performance

The year under review saw revenues grow by 10% to £4,389,581 (2020: £4,005,385) and our EBITDA by 11% to £1,648,598 (2020: £1,485,645), driven by increased consumer demand on streaming platforms and other revenue distributions from digital platforms, combined with our active asset management, acquisitions and a continuing focus on maintaining a low cost, largely fixed cost base.

Net revenue increased by 13% to £2,780,256 (2020: £2,459,351), reflecting the strong underlying performance of our catalogue. Operating profit was also up by 5.5% to £1,075,958.

At the end of the period, our cash balance was £2,565,813 (2020: £6,766,424), providing a solid balance sheet position from which to move forward in 2022, and our net margin increased to 63% (2020: 61%). Admin expenses for the year are reported at £1,040,706 (2020: £919,250).

Profit after tax attributable to equity shareholders was £544,575 (2020: £630,197), reflecting the increase in revenues and the maintenance of strong margins.

IFRS NAV per Ordinary Share increased to 7p (2020: 6p) and an Operative NAV per Ordinary Share of 17p. The Directors are of the opinion that the Operative NAV (Operative NAV is calculated by using the IFRS NAV, adjusting for the revaluation of catalogues assets to fair value and then adding back the catalogue amortisation) provides a meaningful alternative performance measure and the values of the catalogues are based on fair values produced by an independent valuer.

Development work on TCAT is progressing and has moved to the next phase, including the incorporation of a new subsidiary and the appointment of an experienced management team, as detailed below. Circa £1.0 million of capex was invested into TCAT during the year to support the next phase of its growth, which we believe presents a significant opportunity for the Group and industry generally.

The Board continues to review the dividend policy, especially given the current economic climate, but looks to maintain an equilibrium between retention of profit to finance long term growth plans whilst rewarding shareholders for their support. As a result of the positive performance, a final dividend of 0.055p per share has been declared.

We remain confident that our model for steady growth and continual investment in copyrights is a proven, recurring cash generative business and the Board and management remains strongly aligned with investors through its 11.9% shareholding in the Company.

Operational update

During the year our focus remained on actively creating value and finding alternative methods to maximise revenues from our music assets. This means curating, repurposing, restoring and, importantly, policing our content with all the care that the original writers and performers value and now rely on.

Working with content from previous decades - often overlooked and undervalued by others in the market - has its advantages. The artists generally are well known with an established reputation and the tracks are, to a great extent, rooted in much loved music legacies and are often instantly recognisable. Our job is to ensure that a music track is available across every territory (currently over 202) via DSPs and the aggregators that supply those providers, to maximise exposure, usage and ultimately returns.

During the year, significant strides have been made with our complementary Group subsidiary TCAT and our Harmony IP platform.

Harmony IP aims to acquire between 10-30% of IP equity on agreed multiples, mainly targeting composers' rights which typically extend to 70 years after the artist's death, providing long term income streams, expanding and further diversifying One Media's recurring revenues. There are no other known operators offering artists this option and while banks offer artists the opportunity to borrow against their future earnings, the terms are much less favourable and lack the additional value that an aligned partnership with One Media delivers, including access to TCAT.

All of our investments this year were made via Harmony IP, as detailed in the investments section below, and we continue to build this portfolio, with significant interest from artists and using TCAT to analyse the past performance and future trends of content, to predict and identify opportunities to maximise future earnings for all parties.

At the start of the year, TCAT Ltd ("TCAT") was established as a separate, limited company within the Group, a decision driven by the growing external interest in its software capabilities. 

TCAT aims to tackle music piracy. Piracy purportedly costs the global economy alone approximately £9 billion per annum in lost revenues, £200 million of which is lost from the UK music industry's rights holders. 38% of global music listeners acquire music through illegal means, often without even knowing it, and TCAT works to detect copyright infringement across the legitimate DSPs by alerting rights owners to instances of corrupted data, facilitating the removal or monetisation of offending tracks.

A business plan is in place at TCAT, which is on track and is expected to be profitable over a medium-term timeframe. A dedicated team of recognised specialists has been appointed to drive TCAT to grow towards reaching its full potential, which we believe is significant based on the piracy statistics and the rapid expansion of the industry. 

In February 2022 Nick Stewart was appointed TCAT CEO. With over 40 years of experience in the music industry, including senior roles at Universal Music and Warner Music among others, Nick is extremely well positioned to establish and grow TCAT's customer base. Nick is exceptionally well connected across the music industry, with credits including signing U2 to Island Records and having worked with the Eagles, Neil Diamond and Sir Tim Rice among others. Nick will leverage his relationships and profile to grow TCAT's brand and market its capabilities.

Dr. Ed Vernon OBE was appointed TCAT's chairman in November 2020 bringing almost 40 years of experience in running tech businesses, his successes resulted in him being awarded an OBE for services to the tech industry. Further appointments include Gareth Waller, an experienced technical director with over 15 years' experience of managing large teams of software engineers, to the position of Chief Technology Officer and Robin Abeysinghe as COO and CFO.

One Media retains two seats on the board held by myself and our COO Alice Dyson.

The new management team is charged with delivering on the opportunity to improve and scale TCAT for wider use across the industry and other territories. A fundraise is underway directly into the subsidiary TCAT Ltd to support its next phase of growth, building on the initial client base and trials are ongoing with two major labels, the world's largest digital aggregator and the BPI, the trade body whose members include more than 400 independent music companies and all of the UK's major record companies.

Investments

While our investment activity was somewhat curtailed over the last two years due to the restrictions imposed by the pandemic, our relationships and network, established over many years in the industry, enabled us to make some important income accretive acquisitions, leveraging our newly launched Harmony IP platform through which all our 2021 investments were undertaken.

Nine investments were completed during the year for a total of £4.3 million, delivering a blended Net Publisher Share ("NPS") multiple of 11.2. This includes the largest acquisition undertaken by One Media to date - the composition rights to the catalogue of over 200 tracks of country music star Don Williams. Described by Rolling Stone Magazine as 'one of the finest singers of the genre', the acquisition covers Williams' 1970s and '80s output, during which time he delivered 17 number one hits and became a global superstar, winning fans from all over the world, especially in the UK. In 1975, The Who's Pete Townshend covered Don's No.1 hit ' Till the Rivers All Run Dry ' with Faces legend Ronnie Lane. Don's 1978 hit ' Tulsa Time ' was a regular on Eric Clapton's live set and he often jammed with contemporary stars such as Jimmy Page and Jeff Beck.

Acquisitions undertaken during the period were as follows:

· January 2021: acquired from Ian Levine the producer's income royalties to Take That's 'A Million Love Songs', 'Could It Be Magic' and 'I Found Heaven', all from Take That's 1992 debut studio album, Take That & Party. This attracted much press and introduced Harmony IP to the market.

· February 2021: acquired the licensor's share of the royalties to the 21 Vision catalogue of rights, comprising over 2,000 recordings from some of the all-time music greats from over the last seven decades. The 21 Vision catalogue had been licensed to One Media on a royalty-sharing basis. As part of the deal, One Media has acquired the licensor's royalty share of the catalogue on an in-perpetuity basis.

· May 2021: acquired the writer's share to the royalties of over 250 tracks performed by Kid Creole and the Coconut's best known music tracks, including chart toppers 'Annie I'm Not Your Daddy' and 'Stool Pigeon'.

· June 2021: acquired the award-winning producer, Steve Levine's rights into music performed by Culture Club, including the global hit 'Karma Chameleon' and 'Do you really want to hurt me', as well as nineties stars Louise Redknapp, 911 and the Honeyz. The Honeyz, an English R&B girl group, enjoyed three UK top 10 hits produced by Levine - 'Finally Found', 'End of the Line' and 'Love of a Lifetime' - which made Levine one of the most sought-after producers in the industry.

· June 2021: acquired the producer royalties to three albums by the 1970s funk/disco band Heatwave, produced by the legendary musician, songwriter, producer and artist Barry Blue: 'Too Hot To Handle' (1976), 'Central Heating' (1978) and 'Current' (1982). This includes the hits 'The Groove Line' (1978), 'Always and Forever' (1976), 'Mind-Blowing Decisions' (1978) and the million-selling global smash 'Boogie Nights' (1976), credited as one of the defining songs of the disco age.

· July 2021: secured our largest acquisition to date, comprising the composition rights to the catalogue of over 200 tracks of country music star Don Williams. Described by Rolling Stone Magazine as 'one of the finest singers of the genre', the acquisition includes Williams's output across the 1970s and 1980s, during which time he delivered 17 number one hits and became a global superstar, winning fans from all over the world, especially in the UK. In 1975, The Who's Pete Townshend covered Don's number one hit 'Till The Rivers All Run Dry' with Faces legend Ronnie Lane and his 1978 hit 'Tulsa Time' was a regular on Eric Clapton's live set.

· August 2021: with 50% already under our ownership, we acquired the remaining 50% of the licensor's royalty share of the royalties in the 5868 Ltd catalogues of rights. This added to the Company's bottom line the income derived from over 1,000 recordings supplied by 5868 Ltd and its respective partners.

· September 2021: exclusively signed a further deal to include three new recordings from multimillion selling US artist Evelyn Thomas. Evelyn Thomas has recorded has recorded 48 singles and EPs, four albums and has featured on over 1000 compilations and playlists over the years, including the number one hit 'High Energy', which charted in the UK in 1984. One Media will represent Evelyn Thomas on her publishing and part ownership to the three new tracks.

· October 2021: buy out of the licensor's royalty share of the income in the Mike Bennett Productions catalogue of rights, containing the income derived from over 6,000 recordings supplied by British songwriter and producer Mike Bennett and his respective partners. The recordings feature many 'backing tracks' and 'karaoke songs' together with some live albums or re-recordings performed by the Rubettes, the Stranglers, Wee Papa Girl Rappers and Wishbone Ash. 

Post period end, in March 2022, we announced that we had acquired the licensor's share of the royalty income to the Orbital Digital Ltd catalogue of rights, which contains several thousand recordings. The transaction also established a working relationship with Dutch content distributor FUGA, which is distributor to this catalogue. Orbital/Rapier Music features more than 40 branded labels across all the known digital platforms including African Lives, All About Blues, Travelscape Records, The Music Shed, Rapier Music, and Sunflash. The catalogue ranges from classical through to dance/hip hop and features a wide array of artists such as Jose Carreras, Jo Jo Adams, Kool & the Gang, Irish Tenor Trio, Alexandra O'Neal, Joe Strummer, Sid Vicious, Chic, Lee Perry, The Lambrettas, Dread Filmstone, Sex Pistols, Suketu, Col Abram, Psy-Co-Billy, Rachel Porter's all female Orchestra and Ebn Ozn. 

Catalogue Valuation

Post period end, the Group engaged YM&U Group, well known in the music industry for its valuation expertise, to undertake a detailed assessment and fully independent valuation of the full catalogue of rights. 

As a result of this report, the portfolio of rights has been valued at £34.8 million (as at April 2022), reflecting a blended NPS multiple of 12.5. This compares favourably to One Media's blended cost and average historic blended multiple over all content acquired since 2006 of 6 times and a content value applied on the Company's asset register (as at 31 October 2021) of £14 million.

We believe that this independent report provides a true reflection of the value of our underlying assets and vindicates our very careful and prudent approach to acquisitions over the last 15 years, whereby we consistently apply conservative multiples when assessing investment opportunities.

The report concludes:

"The Catalogues acquired by One Media IP (including acquisitions over the last three years) are varied and across the 7 grouped areas reviewed they have been performing well. There are steady and consistent income streams which is what you would like and need to see from a portfolio of catalogues and there is little reliance on one 'superstar' catalogue which dominates the revenue generation.

The "Pre 2019" catalogues collectively are performing well, and we would expect the collective value to far exceed the original purchase price. In future periods, and with a great timescale, we would look to perform a more granular review of the individual catalogues within this group. Following on our review we would place an estimated valuation on the catalogue of £34.8m, with a blended multiple of a conservative 12.5x as a method of calculation."

We continue to demonstrate that our catalogue drives additional value to the business alongside the growing market values of traded music content. With many music acquisitions reaching 20-25 times earnings, our mission of focusing on long term value will continue to differentiate One Media.

Market backdrop and outlook

This year we have emerged from the other side of the global pandemic, which had an impact on the industry from an entertainment and live music perspective in particular. Sadly, we are now also dealing with the horrors of war in Ukraine. For over 75 years, Europe has not seen this kind of unrest to both humanity and global resources. It is an ignominy at every level and almost makes writing encouraging and optimistic company reports on business activities seem insensitive to the predicament of the suffering.

While recent sanctions around supplying the Russian Federation and the suspension of access to DSPs may hinder growth in affected territories, the Company has undertaken a brief audit of the potential impact and, given the very limited levels of business conducted in these areas, does not envisage any material impact on revenues. 

The broader market backdrop against which we're delivering our strategy continues to be strongly supportive. In its market analysis Music in the Air, Goldman Sachs has significantly upgraded its forecasts, now predicting that music industry revenues are set to double by 2030 to $131 billion, driven by streaming and growing demographic trends, including the fact that Millennials and Generation Z are spending more of their annual budgets on music than any other age group. Goldman Sachs expects global live music revenues will reach $38 billion, music publishing $12.5 billion and the recorded music $80 billion.

The digital marketplace is still a young forum and the format of monetised streaming is less than 15 years old, so there is significant road to run as platforms continue to expand their reach and technology innovations improve access and recognition of intellectual property rights.

The opportunity landscape for royalty collection is growing far beyond the traditional DSPs, such as Amazon, Apple Music and Spotify. New monetisation avenues are continuing to open up, including Facebook, Peloton, Digital Radio Stations (such as iHeart Radio), Rakuten, IMusica and YouTube Subscription. As the world of digital TV music stations grows, supplementing the plethora of digital radio stations, combined with Smart Speaker technology and voice activated play listing, the future is looking positive. Moreover, with advances in the Metaverse and the growth of non -fungible tokens ("NFTs") we are entering the twilight zone of music values being used in a variety of ways not imagined five years ago.

The prospects ahead of us are extremely exciting and One Media is well placed to take advantage of these new opportunities on behalf of shareholders, to generate value by developing and promoting its rights and exploiting the digital universe, underpinned by a prudent acquisition strategy that ensures secure and growing income.

Michael Infante

Chief Executive and Founder

Consolidated Statement of Comprehensive Income

For the year ended 31 October 2021

			Year ended  31 October 2021		Year ended  31 October 2020
			£		£
Revenue			4,389,581		4,005,385
Distribution charges			(1,107,127)		(1,002,805)
Royalty costs			(435,386)		(481,832)
Other costs			(66,542)		(61,397)
Net revenue			2,780,526		2,459,351
Amortisation of catalogues			(599,308)		(523,170)
Administration expenses			(1,040,706)		(919,250)
FOREX gains/(losses)			(64,554)		2,953
Operating profit			1,075,958		1,019,884
Share based payments			(77,178)		(62,465)
Finance costs			(184,045)		(223,384)
Finance income			1		8
Profit from continuing activities			814,736		734,043
Assets disposal			(93,939)		-
Profit on ordinary activities before taxation			720,797		734,043
Tax expense			(176,222)		(103,846)
Profit for period attributable to equity shareholders and total comprehensive income for the year			544,575		630,197
Basic earnings per share			0.24p		0.42p
Diluted earnings per share			0.20p		0.33p

The Consolidated Statement of Comprehensive Income has been prepared on the basis that all operations are continuing activities.

Consolidated Statement of Changes in Equity

For the year ended 31 October 2021

	Share Capital	Share redemption reserve	Share premium	Share based payment reserve	Retained earnings	Total equity
	£	£	£	£	£	£
At 1 November 2019	678,018	239,546	4,314,220	364,756	2,440,209	8,036,749
Proceeds from the issue of new shares	431,713	-	5,159,107	-	-	5,590,820
Share based payment charge	-	-	-	62,465	-	62,465
Profit for the year	-	-	-	-	630,197	630,197
Dividends paid	-	-	-	-	(74,582)	(74,582)
At 1 November 2020	1,109,731	239,546	9,473,327	427,221	2,995,824	14,245,649
Proceeds from the issue of new shares	2,500	-	11,250	-	-	13,750
Share based payment charge	-	-	-	77,178	-	77,178
Profit for the year	-	-	-	-	544,575	544,575
Dividends paid	-	-	-	-	(122,345)	(122,345)
At 31 October 2021	1,112,231	239,546	9,484,577	504,399	3,418,054	14,758,807

Consolidated Statement of Financial Position at 31 October 2021

			At 31 October 2021		At 31 October 2020
			£		£
Assets
Non-current assets
Intangible assets			13,484,077		8,884,158
Property, plant and equipment			44,007		91,260
			13,528,084		8,975,418
Current assets
Trade and other receivables			1,447,490		1,141,555
Cash and cash equivalents			2,565,813		6,766,424
Total current assets			4,013,303		7,907,979
Total assets			17,541,387		16,883,397
Liabilities
Current liabilities
Trade and other payables			904,015		823,151
Deferred tax			132,830		117,356
Total current liabilities			1,036,845		940,507
Borrowings			1,745,735		1,697,241
Total liabilities			2,782,580		2,637,748
Equity
Called up share capital			1,112,231		1,109,731
Share redemption reserve			239,546		239,546
Share premium account			9,484,577		9,473,327
Share based payment reserve			504,399		427,221
Retained earnings			3,418,054		2,995,824
Total equity			14,758,807		14,245,649
Total equity and liabilities			17,541,387		16,883,397

Consolidated and Company Cash Flow Statement

For the year ended at 31 October 2021

	Year ended  31 October 2021 Group		Year ended  31 October 2020 Group		Year ended  31 October 2021 Company		Year ended  31 October 2020 Company
	£		£		£		£
Cash flows from operating activities
Operating profit before tax	720,798		734,043		(418,586)		(57,627)
Amortisation	599,169		523,170		369,263		-
Depreciation	50,509		18,504		-		-
Share based payments	77,178		62,465		77,178		(38,560)
Finance income	(1)		(8)		(1)		(3)
Finance costs (Increase) in receivables	184,045 (313,783)		223,384 (162,150)		- (4,070,290)		- 275,472
Increase/(decrease) in payables	(69,144)		(238,909)		144,017		178,193
Corporation tax paid	(72,063)		(127,735)		-		-
Net cash inflow (outflow) from operating activities	1,176,708		1,032,764		(3,898,419)		357,475
Cash flows from investing activities
Investment in intellectual property rights and TCAT	(5,199,087)		(506,919)		-		-
Investment in property, plant and equipment	(3,257)		(102,117)		-		-
Finance income	1		8		1		3
Net cash used in investing activities	(5,202,343)		(609,028)		1		3
Cash flows from financing activities
Net proceeds from the issue of new shares	13,750		5,590,820		13,750		5,590,820
Finance cost paid	(114,873)		(109,136)		(114,873)		(109,136)
Loan notes	48,492		74,975		48,492		74,975
Dividend paid	(122,345)		(74,582)		(122,345)		(74,582)
Net cash inflow (outflow) from financing activities	(174,976)		5,482,077		(174,976)		5,482,077
Net change in cash and cash equivalents	(4,200,611)		5,905,813		(4,073,394)		5,839,555
Cash at the beginning of the year	6,766,424		860,611		6,388,047		548,492
Cash at the end of the year	2,565,813		6,766,424		2,314,653		6,388,047

Notes to the Final Results

Basis of preparation

The Company is a public limited company incorporated and domiciled in England under the Companies Act 2006. The Board has adopted and complied with International Financial Reporting Standards (IFRS) as adopted by the European Union. The Company's shares were admitted for trading on the AIM market of the London Stock Exchange on 18 April 2013.

			Year ended  31 October 2021		Year ended  31 October 2020
			£		£
Analysis of the charge for the year
UK corporation tax charge			171,122		72,063
Deferred tax			5,100		31,783
			176,222		103,846

The standard rate of tax for the year, based on the UK standard rate of corporation tax is 19% (2020: 19%). The actual tax charge for the periods is different than the standard rate for the reasons set out in the following reconciliation:

Reconciliation of current tax charge			Year ended  31 October 2021		Year ended  31 October 2020
			£		£
Profit on ordinary activities before tax			814,737		734,043
Tax on profit on ordinary activities at 19% (2020: 19%)			154,800		139,468
Effects of:
Non-deductible expenses			18,071		14,869
Adjustments to tax charge in respect of previous periods			-		-
Fixed asset timing differences			5,100		31,783
Depreciation in excess of capital allowances			8,768		(4,430)
Share scheme deduction
Research and development			(10,517)		(77,844)
Total tax charge			176,222		103,846

Earnings per share

The weighted average number of shares in issue for the basic earnings per share calculations is 223,973,646 (2020: 149,252,562) and for the diluted earnings per share assuming the exercise of all warrants and share options is 267,606,979 (2020: 189,047,539).

The calculation of basic earnings per share is based on the profit for the period of £544,575 (2020: £630,197). Based on the weighted average number of shares in issue during the year of 223,973,646 (2020: 149,252,562) the basic earnings per share is 0.24p (2020: 0.42p). The diluted earnings per share is based on 267,606,979 shares (2020: 189,047,539) and is 0.20p (2020: 0.33p).

EBITDA

Profit from continuing activities before interest, tax, depreciation and amortisation for the twelve months ended 31 October 2021 was £1,648,459 (2020: £1,485,645).

Directors' responsibilities

The Annual Report, including the financial information contained therein, is the responsibility of, and was approved by the directors on 21 April 2022.

Availability of Report and Accounts

Copies of the Company's Report and Accounts will be posted to shareholders shortly. Copies of the Company's Report and Accounts will also be available at the registered office of the Company and can be viewed on the Company's website, www.omip.co.uk .

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

 

END

 

 

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