Interim Results

RNS Number : 5911T

Messaging International Plc

30 September 2010

 



Messaging International Plc / Market: AIM / Epic: MES / Sector: Technology

30 September 2010                                          

Messaging International Plc ('Messaging International' or 'the Company')

Interim Results

Messaging International Plc, the AIM traded company and provider of converged messaging products and services, announces its results for the six months ended 30 June 2010.

Highlights

·    Strengthened global market position as a leading provider of converged messaging services

·    Pre and post tax profit of £25,628 for 6 months to 30 June 2010 (2009: loss £173,224)

·    Total revenues for the period totalled £1,234,842 (2009: £1,122,326)

·    Steady trading resulting in 10% increase in gross revenue

·    Expanding geographic footprint - established new clients in North America for 'Text to Landline' messaging products

·    Launched a number of new products such as the new 'Internet Video Download' application and the 'Messaging Gateway' to enhance the Company's offering in the messaging services arena

Chairman's Statement

The Company has achieved positive trading over the period and this has been reflected in steadily improving financial results as our revenues and profitability continue to increase.  We have a robust business model and an innovative product pipeline which greatly adds to our ability to maintain and strengthen relationships with our existing and developing client base.  Importantly, we have also been successful in expanding our reach, particularly in North America, demonstrating the commerciality of our products. 

Financial Results

The results for the six months ended 30 June 2010 show a pre-tax profit of £25,628 (2009: loss £173,224) on a turnover of £1,234,842.  The Company's cash position at 30 June 2010 was £235,483, which is an increase in funds of £32,792 in the six month period. 

The Board does not recommend the payment of an interim dividend.

Operations Review

We have a strong presence within the mobile telecoms sector which includes major international mobile operators such as Sprint Nextel ('Sprint') and Bell Canada, and we continue to work closely with them so that we can develop new products to meet their users' needs. 

The functionality of our applications is continually recognised by those operating within the sector and our technology has claimed a large amount of interest, particularly as mobile users rely more on their handsets for communication and entertainment purposes.  Our 'Text-to-Landline' application continues to gain traction as it extends our client base and we are now working with three new Tier 3 clients in the USA, including Golden State Cellular and Panhandle Telecommunication Systems, Inc., a wholly owned subsidiary of Panhandle Telephone Cooperative, Inc.  This has provided us with a further foothold and established new relationships in the North American market place from which to build upon.

In Q1 2010 we launched a number of new products designed to enhance our current offering.  One such example is an 'Internet Video Download' application which allows users to download and stream videos to their mobile phones, and a 'File to Mobile' application which allows users to save PC content onto their mobile phone in a similar way to a portable disk. 

Included within our new products is a 'Messaging Gateway' which reduces integration costs and improves margins for mobile operators by providing them with a secure multi-channel entry point for external messaging content and social networking sites.  This has received a substantial amount of interest and has been sold to a customer in North America.

Prospects

We remain focussed on strengthening our position amongst the leading providers in the rapidly growing multimedia messaging market and we are committed to investing in our products and services, as well as extending our geographic reach in order to achieve this aim. 

Our products appeal to mobile phone users around the world, as illustrated by our relationships with many major international mobile operators covering a broad range of geographic regions including Russia, the USA, Australia and South America, where it is our aim to strengthen our presence by continuing to provide products that satisfy the needs of operators and users.

H Furman

Chairman

29 September 2010

For further information visit www.telemessage.com or contact:

Guy Levit	Messaging International Plc	Tel: + 972 3 9225252
Mark Percy	Seymour Pierce Limited	Tel: [phone]
Catherine Leftley	Seymour Pierce Limited	Tel: [phone]
Elisabeth Cowell	St Brides Media & Finance Ltd	Tel: [phone]

Consolidated statement  of comprehensive income for the six months ended 30 June 2010

	Notes		Unaudited six months ended 30 June 2010		Unaudited six months ended 30 June 2009		Audited year ended 31 December 2009
			£		£		£
Revenues	2		1,234,842		1,122,326		2,274,080
Cost of revenue			(540,472)		(581,425)		(980,879)
Gross profit			694,370		540,901		1,293,201
Operating expenses
Research and development			(222,261)		(182,266)		(366,762)
Sales and marketing			(251,529)		(296,251)		(508,716)
Administrative costs			(175,065)		(216,124)		(390,415)
Total operating expenses			(648,855)		(694,641)		(1,265,893)
Operating profit/(loss)			45,515		(153,740)		27,308
Finance costs			(19,887)		(19,484)		(60,404)
Profit/(loss) before taxation			25,628		(173,224)		(33,096)
Taxation	3		-		-		-
Profit/(loss) for the financial period			25,628		(173,224)		(33,096)
Other comprehensive loss
Foreign exchange difference on translation of foreign operations							(29,029)
Foreign exchange difference arising from restating the carrying value of goodwill associated with foreign operations			(1,155)		39,609		(343,945)
			(1,155)		39,609		(372,974)
Total comprehensive profit/(loss)			24,473		(133,615)		(406,070)
Earnings/(Loss) per share
Basic and diluted earnings/(loss) per share	4		0.01p		(0.07)p		(0.15)p

Consolidated statement of changes in equity for the six months ended 30 June 2010

	Share	Share	Translation	Revenue
	capital	premium	reserve	reserves		Total
	£	£	£	£		£
As at 1 January 2010	1,179,400	4,298,727	336,730	(1,881,674)		3,933,183
Profit for the period				25,628		25,628
Share based payments				1,816		1,816
Foreign currency translation changes			(1,155)			(1,155)
As at 30 June 2010	1,179,400	4,298,727	335,575	(1,854,230)		3,959,472
As at 1 January 2009	1,176,900	4,266,227	709,704	(1,881,126)		4,271,705
Loss for the period				(173,224)		(173,224)
Share based payments				21,156		21,156
Foreign currency translation changes			39,609			39,609
As at 30 June  2009	1,176,900	4,266,227	749,313	(2,033,194)		4,159,246
As at 1 January  2009	1,176,900	4,266,227	709,704	(1,881,126)		4,271,705
Issue of shares	2,500	32,500				35,000
Loss for the year				(33,096)		(33,096)
Share based payments				32,548		32,548
Foreign currency translation changes for goodwill			(343,945)			(343,945)
Other foreign currency translation changes			(29,029)			(29,029)
As at 31 December 2009	1,179,400	4,298,727	336,730	1,881,674		3,933,183

Consolidated Statement of financial position as at 30 June 2010

			Unaudited as at 30 June 2010		Unaudited as at 30 June 2009		Audited as at 31 December 2009
			£		£		£
Non current assets
Goodwill			3,562,317		3,906,262		3,562,317
Property, plant and equipment			62,042		48,313		56,067)
Other investments			165,909		118,927		157,562
			3,790,268		4,073,502		3,775,946
Current assets
Cash and cash equivalents			235,483		297,669		626,106
Trade and other receivables			611,863		484,791		202,691
			847,346		782,460		828,797
Total assets			4,637,614		4,855,962		4,604,743
Current liabilities
Trade and other payables			(354,630)		(288,235)		(292,418)
Borrowings			(133,731)		(165,830)		(169,679)
			(488,361)		(454,065)		(462,097)
Non current liabilities
Borrowings			-		(96,879)		(8,466)
Deferred income			-		-		(20,764)
Employee provisions			(189,781)		(145,772)		(180,233)
			(189,781)		(242,651)		(209,463)
Total liabilities			(678,142)		(696,716)		(671,560)
Net assets			3,959,472		4,159,246		3,933,183
Equity
Share capital			1,179,400		1,176,900		1,179,400
Share premium account			4,298,727		4,266,227		4,298,727
Foreign currency translation reserve			335,575		749,313		336,730
Revenue reserves			(1,854,230)		(2,033,194)		(1,881,674)
Shareholders' equity			3,959,472		4,159,246		3,933,183

Consolidated cash flow statement for the six months ended 30 June 2010

		Unaudited six months ended 30 June 2010		Unaudited six months ended 30 June 2009		Audited year ended 31 December 2009
		£		£		£
Cash flow from operating activities
Profit/(loss) before taxation		45,515		(153,740)		27,308
Adjustments for:
Share based payments		1,815		21,156		33,798
Depreciation and amortisation		4,326		12,234		25,677
Amortised finance costs		-		19,201		-
Foreign currency translation adjustments		(2,927)		23,938		(39,440)
		3,214		76,529		20,035
Operating cash flow before working capital movements		48,729		(77,211)		47,343
Decrease/(increase) in receivables		14,243		92,116		(15,449)
(Decrease)/increase in payables		41,449		(94,621)		(69,673)
Decrease in provisions		-		-		28,960
		55,692		(2,505)		(56,162)
Cash inflow/(outflow) from operating activities		104,421		(79,716)		(8,819)
Investing activities
Investments		-		-		(34,148)
Purchase of property, plant and equipment		(7,328)		(14,195)		(33,645)
Net cash used in investing activities		(7,328)		(14,195)		(67,793)
Financing activities
Net borrowings/(repayments)		(44,414)		110,411		(2,228)
Interest paid		(19,887)		(19,484)		(19,122)
Net cash from financing activities		(64,301)		90,927		(21,350)
Net change in cash and cash equivalents		32,792		(2,984)		(97,962)
Cash and cash equivalents at the beginning of the period/year		202,691		300,653		300,653
Cash and cash equivalents at the end of the period/year		235,483		297,669		202,691

Notes to the interim report

For the six months ended 30 June 2010

1.       Basis of preparation and consolidation

The financial information contained in the interim results has been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union. It has been prepared in accordance with IAS 34 - Interim Financial Reporting and does not include all of the information required for full annual financial statements.

The financial information contained in these interim results for the six months ended 30th June 2010 and 30th June 2009 are un-audited. The comparative figures for the year ended 31st December 2009 do not constitute statutory financial statements of the group within the definition of S434 of the Companies Act 2006. Full audited accounts of the group in respect of that financial period prepared in accordance with IFRS, which we received an unqualified audit opinion have been delivered to Registrar of Companies.

The accounting policies used in the interim statement are consistent with those used in the financial statements for the year ended 31 December 2009 and are in accordance with International Financial Reporting Standards.

The statement of comprehensive income, statement of changes in equity and financial position include the financial statements of the company and its subsidiary undertakings up to 30 June 2010.

The consolidated interim financial statements do not include all the information required for full annual financial statements and therefore cannot be construed to be in full compliance with IFRS.

The consolidated interim financial statements were approved by the board and authorised for issue on 29 September 2010.

2.       Turnover

		Unaudited six months ended 30 June 2010		Unaudited six months ended 30 June 2009		Audited year ended 31 December 2009
		£		£		£
North America		1,123,814		980,939		1,946,603
Rest of the World		111,028		141,387		327,477
		1,234,842		1,122,326		2,274,080

Notes to the interim report

For the six months ended 30 June 2010 (continued)

3.       Taxation

No provision has been made for taxation as the group has losses available to carry forward against future trading profits.  No deferred tax asset has been recognised in accordance with International Accounting Standard 12.

4.       Basic and diluted loss per share

The calculation of the earnings per ordinary share is based on the profit after taxation for the six month period to 30 June 2010 of £25,628 (2008: Loss of £173,224) and 235,880,000 ordinary shares being the weighted average number of shares in the period. (2009: 235,380,000).

 

END

 

 

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