Interim Results

RNS Number : 1361P

Messaging International Plc

29 September 2011

 



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

29 September 2011

     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 2011.

Highlights

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

·    Pre and post tax profit of £170,401 for 6 months to 30 June 2011 (2010: loss £25,628)

·    Total revenues for the period totalled £1,684,354 (2010: £1,234,842)

·    Steady trading resulting in 36% increase in gross revenue

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

·    Growth in revenues from our new 'Massaging Gateway' either directly or through our customers in North America and Israel

Chairman's Statement

Trading has been solid for Messaging over the last six months as we continue to focus on developing converged messaging services, through our subsidiary TeleMessage, to improve the way users and operators send messages across various communication mediums.  We have close relationships with our blue-chip client base, a highly creative R&D team and innovative messaging solutions which ensure that the Company retains its place as a leading provider in this sector. 

Our converged messaging products and services are provided to carriers and enterprises to deliver text, voice, video and multimedia messages to and from any communication device.  Users can send, receive, and manage SMS, MMS, voice, fax and e-mail messages from the Internet, fixed or mobile phones and application programming interfaces ('APIs'). 

Our clients include, among others, companies such as Sprint in the US, Rogers Wireless, Bell Mobility and Telus in Canada, USI in Russia and T-Mobile in Macedonia.  We ensure stable revenues by either hosting messaging services for a per-message fee or by selling software licences, which are usually linked to the number of messages that can be sent through the system or to the number of active users. 

Sales of our Messaging Gateway product, which offers a range of interfaces for content providers, enterprises and Facebook developers, continue to increase.  The product enables  enterprises to send out messages (mainly SMS/MMS, but also voice, fax and email) to customers and employees on a wide scale and uptake is gaining impetus particularly as more clients understand its convenience and cost-saving benefits.

Our hard working Israeli based R&D team continues to develop existing products and create new ones to ensure that we maintain our position in the market and continue to the supplier of choice for our partners.  Our products conform to Open Network Enabler API standards so that our converged messaging services can be integrated across multiple operators.  These include a range of new Facebook applications and API devices, which allow developers to integrate SMS, MMS, voice, conferencing, fax and video messaging within their own applications.

Financial Results

As demonstrated by our financials, Messaging continues to demonstrate growth and maintain profitability.  For the period ended 30 June 2011, we are reporting a profit before tax of £170,401 on the back of revenues of £1,684,354 (2010: £1,234,842)

The Company's cash position at 30 June 2011 was £393,311 (December 2010: £357,319).

Outlook

Our focus remains on increasing our presence within the telecom sector both geographically and technologically.  We are a profitable company with an expert technical team that has again proven its ability to provide innovative messaging services that add value to our blue chip customers, thus positioning the Company for continued growth.

I would like to thank our team for their hard work and dedication over the past year, and our shareholders for their continued support.  I look forward to reporting another successful period of trading at our interims.

H Furman

Chairman

27 September 2011

**ENDS**

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]
Elisabeth Cowell	St Brides Media & Finance Ltd	Tel: [phone]

Consolidated statement of comprehensive income for the six months ended 30 June 2011

	Notes		Unaudited six months ended 30 June 2011		Unaudited six months ended 30 June 2010		Audited year ended 31 December 2010
			£		£		£
Revenues	2		1.684,354		1,234,842		2,901,985
Cost of revenue			(699,148)		(540,472)		(1,142,621)
Gross profit			985,206		694,370		1,759,364
Operating expenses
Research and development			(297,583)		(222,261)		(482,741)
Sales and marketing			(287,316)		(251,529)		(494,328)
Administrative costs			(218,403)		(175,065)		(410,760)
Total operating expenses			(803,302)		(648,855)		(1,387,829)
Operating profit			181,904		45,515		371,535
Finance costs			(11,503)		(19,887)		(14,290)
Profit before taxation			170,401		25,628		357,245
Taxation	3		-		-		-
Profit for the financial period			170,401		25,628		357,245
Other comprehensive loss
Foreign exchange difference on translation of foreign operations			(27,761)		(1,155)		(48,686)
Foreign exchange difference arising from restating the carrying value of goodwill associated with foreign operations							106,348
			(27,761)		(1,155)		57,662
Total comprehensive profit			142,640		24,473		414,907
Earnings per share
Basic  earnings per share	4		0.07p		0.01p		0.15p
Diluted  earnings per share	4		0.06p		0.01p		0.14p

Consolidated statement of changes in equity for the six months ended 30 June 2011

	Share	Share	Translation	Revenue
	capital	premium	reserve	reserves		Total
	£	£	£	£		£
As at 1 January 2011	1,179,400	4,298,727	390,561	(1,520,598)		4,348,090
Profit for the period				170,401		170,401
Share based payments				4,563		4,563
Foreign currency translation changes			(27,761)			(27,761)
As at 30 June 2011	1,179,400	4,298,727	362,800	(1,345,634)		4,495,293
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  2010	1,179,400	4,298,727	336,730	(1,881,674)		3,933,183
Issue of shares
Profit for the year				357,245		357,245
Share based payments				3,831		3,831
Foreign currency translation changes for goodwill			106,348			106,348
Other foreign currency translation changes			(52,517)			(52,517)
As at 31 December 2010	1,179,400	4,298,727	390,561	(1,520,598)		4,348,090

Consolidated Statement of financial position as at 30 June 2011

			Unaudited as at 30 June 2011		Unaudited as at 30 June 2010		Audited as at 31 December 2010
			£		£		£
Non current assets
Goodwill			3,668,665		3,562,317		3,668,665
Property, plant and equipment			59,267		62,042		57,148
Other investments			199,126		165,909		206,362
			3,927,058		3,790,268		3,932,175
Current assets
Trade and other receivables			1,030,883		611,863		845,225
Cash and cash equivalents			393,311		235,483		357,319
			1,424,194		847,346		1,202,544
Total assets			5,351,252		4,637,614		5,134,719
Current liabilities
Trade and other payables			(586,745)		(354,630)		(464,449)
Borrowings			-		(133,731)		(44,737)
			(586,745)		(488,361)		(509,186)
Non current liabilities
Other payables			(39,693)		-		(39,582)
Employee provisions			(229,521)		(189,781)		(237,861)
			(269,214)		(189,781)		(277,443)
Total liabilities			(855,959)		(678,142)		(786,629)
Net assets			4,495,293		3,959,472		4,348,090
Equity
Share capital			1,179,400		1,179,400		1,179,400
Share premium account			4,298,727		4,298,727		4,298,727
Foreign currency translation reserve			362,800		335,575		390,561
Revenue reserves			(1,345,634)		(1,854,230)		(1,520,598)
Shareholders' equity			4,495,293		3,959,472		4,438,090

Consolidated cash flow statement for the six months ended 30 June 2011

		Unaudited six months ended 30 June 2011		Unaudited six months ended 30 June 2010		Audited year ended 31 December 2010
		£		£		£
Cash flow from operating activities
profit before taxation		181,904		45,515		371,535
Adjustments for:
Share based payments		4,563		1,815		21,331
Depreciation and amortisation		13,484		4,326		30,756
Foreign currency translation adjustments		(26,862)		(2,927)		(8,169)
		(8,815)		3,214		43,918
Operating cash flow before working capital movements		173,089		48,729		415,453
(Increase)/decrease in receivables		(185,658)		14,243		(236,619)
Increase in payables		122,407		41,449		190,849
Increase in provisions		-		-		57,628
		(63,251)		55,692		11,858
Cash inflow from operating activities		109,838		104,421		427,311
Investing activities
Finance costs		(11,503)		(19,887)		(22,130)
Investments		-		-		(48,800)
Purchase of property, plant and equipment		(17,606)		(7,328)		(30,163)
Net cash used in investing activities		(29,109)		(27,215)		(101,093)
Financing activities
Net repayments		(44,737)		(44,414)		(171,590)
Net cash used from financing activities		(44,737)		(44,414)		(171,590)
Net increase in cash and cash equivalents		35,992		32,792		154,628
Cash and cash equivalents at the beginning of the period/year		357,319		202,691		202,691
Cash and cash equivalents at the end of the period/year		393,311		235,483		357,319

Notes to the interim report

For the six months ended 30 June 2011

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 2011 and 30th June 2010 are un-audited. The comparative figures for the year ended 31st December 2010 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 and methods of computation used in the interim statement are consistent with those used in the financial statements for the year ended 31 December 2010 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 2011.

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 27 September 2011.

2.       Turnover

		Unaudited six months ended 30 June 2011		Unaudited six months ended 30 June 2010		Audited year ended 31 December 2010
		£		£		£
North America		1,370,917		1,120,578		2,442,306
Europe and Middle East		287,815		106,469		437,824
Rest of the World		25,622		7,795		21,855
		1,684,354		1,234,842		2,901,985

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

For the six months ended 30 June 2011 and 30 June 2010, basic earnings per share has been calculated on the group's profit attributable to owners the company of £170,401 (2010: £25,628) and on the weighted average number of shares in issue during the year, which was 235,880,000.

Diluted earnings per share has been calculated on the group's profit of £170,401 which in addition to 235 million ordinary shares in issue, takes into account £100,000 worth of warrants and 23 million options to subscribe for ordinary shares.

For the year ended 31 December 2010, basic earnings per share has been calculated on the group's profit attributable to owners of the  company of £357,245 and on the weighted average number of shares in issue during the year, which was 235,880,000.

Diluted earnings per share has been calculated on the group's profit for the year ended 31 December 2010 of £357,245 which in addition to 235 million ordinary shares in issue, takes into account £100,000 worth of warrants and 23 million options to subscribe for ordinary shares.

 

END

 

 

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