Vimio PLC
Interim Results
Embargoed for release at 7.00 a.m. on 28 September 2006
Vimio Plc ("the Group" or "the Company")
Interim Results
For the six months ended 30 June 2006
Chairman's Statement
I am pleased to present the interim results of the Group for the six months
ended 30 June 2006.
Turnover for the period was €942,964 (2005: €231,785). Gross profits were €
932,643. As stated below, the group has significantly increased its commercial
activities in a number of territories, leading to a correspondingly larger
level of expenditure. This resulted in a loss before tax of €1,122,312 (2005: €
728,470). The loss per share for the period amounted to 4.38 cents (2005: 9.55
cents). At 30 June 2006 bank balances amounted to €1,926,547 (2004: €58,626).
The Group has made significant progress in the first six months of this year
and this has resulted in a significant uplift in turnover including an initial
contribution from Samsung. We have also seen a substantial increase in
commercial activity and opportunities in all regions and this continues into
the second half of the year.
Most of our revenues to date have been derived from the Middle East. We
continue to make progress in the region and have signed new agreements with
Umniah in Jordan and Al Aqariya, a Dubai-based media organisation, which
streams a range of real estate content to mobile users, both of which will have
a positive impact on our revenues in the future.
In addition, the Group has expanded into new geographical regions including
India and the Caribbean which has resulted in trials and first phase roll outs
of our products and services. Of particular note was our recent announcement
that, in partnership with Indian software group Bharti Telesoft, we have
commenced the implementation of the infrastructure required to deploy live TV
on mobile phones in India, a large and growing market.
The board is pleased with the Group's performance in the first half of the year
and is confident that the strategies being pursued by the Group will result in
accelerated growth and further penetration in existing and new markets. A
number of initiatives are currently ongoing and we expect to be in a position
to announce further agreements in the near future.
David McKenna
Chairman
28 September 2006
ENQUIRIES:
Vimio plc
Padraic Marren, VP Business Tel: +353 1 865 2400 / + 353 87
Development 6980943
Pelham Public Relations Tel: +44 (0) 20 7743 6679
Archie Berens
John East & Partners Limited Tel: +44 (0) 20 7628 2200
Jeffrey Coburn
Consolidated Profit and Loss Account
For the six months ended 30 June 2006
Six months Six months Year ended
ended 30 June
ended 30 June 31 December
2005
2006 2005
(Unaudited)
(Unaudited) (Audited)
€
€ €
Turnover 942,964 231,785 403,785
Cost of sales (10,322) (6,691) (12,642)
Gross profit 932,642 225,094 391,143
Research and development costs (635,121) (449,273) (962,145)
Administration costs (1,478,279) (499,189) (1,743,381)
Operating loss (1,180,758) (723,368) (2,314,383)
Interest receivable 58,630 - 59,210
Interest payable and similar (184) (5,102) (73,935)
charges
Loss on ordinary activities before (1,122,312) (728,470) (2,329,108)
taxation
Taxation on ordinary activities (5,687) - (22,325)
Loss on ordinary activities after (1,127,999) (728,470) (2,351,433)
taxation
Basic loss per share (0.0438) (0.0955) (0.108)
Consolidated Statement of Total Recognised Gains and Losses
For the six months ended 30 June 2006
Six months Six months Year ended
ended 30
ended 30 June June 31 December
2005
2006 2005
(Audited)
(Unaudited) (Unaudited)
€
€ €
Loss retained for the period (1,127,999) (728,470) (2,351,433)
Currency translation effect 766 635 (674)
Total recognised gains and losses for (1,127,233) (727,835) (2,352,107)
the financial period
Consolidated Balance Sheet
As at 30 June 2006
30 June 30 June 31 December
2005
2006 2005
(Audited)
(Unaudited) (Unaudited)
€ € €
Fixed assets
Tangible assets 125,094 52,107 137,149
Current assets
Debtors 2,840,271 254,315 616,782
Cash at bank and in hand 1,929,547 58,626 3,894,203
4,769,818 312,941 4,510,985
Creditors: amounts falling due within (627,197) (1,401,852) (701,202)
one year
Net current assets/(liabilities) 4,142,621 (1,088,911) 3,809,783
Total assets less current liabilities 4,267,715 (1,036,804) 3,946,932
Creditors: Amounts falling due after - (408,952) -
more than one year
Net assets 4,267,715 (1,445,756) 3,946,932
Capital and reserves
Called up share capital 1,300,007 1,000,007 1,280,007
Share premium 8,164,976 - 6,736,960
Merger reserve 460,292 460,292 460,292
Profit and loss account (5,657,560) (2,906,055) (4,530,327)
Shareholders funds /(deficit) - equity 4,267,715 (1,445,756) 3,946,932
Consolidated Cash Flow Statement
For the six months ended 30 June 2006
Six months Six months Year ended
ended 30 ended 30 31 December
June 2006 June 2005 2005
(Unaudited) (Unaudited) (Audited)
€ € €
Net cash outflow from operating (1,914,529) (758,788) (2,601,848)
activities
Returns on investment and servicing of
finance
Interest received 58,630 - 59,210
Interest paid (184) (5,102) (73,935)
58,446 (5,102) (14,725)
Taxation
Corporation tax paid (1,163) (5,190) (10,988)
Capital expenditure and financial
investment
Purchase of tangible assets (17,806) (5,747) (136,555)
Advance of third party loan (1,442,585) - -
(1,460,391) (5,747) (136,555)
Cash outflow before use of liquid (3,317,637) (774,827) (2,764,116)
resources and financing
Financing
Capital element of finance lease payments - (5,016) (11,562)
Loan advanced (to)/by director (94,653) 68,966 (339,986)
Advance of third party loan - 751,762 761,762
Repayment of third party loan - - (761,762)
Issue of shares 1,448,016 - 8,247,927
Share issue costs - - (1,230,967)
Net cash inflow from financing activities 1,353,363 815,712 6,665,412
Movement in cash (1,964,274) 40,885 3,901,296
Notes to the Financial Information
1. Basis of Preparation
The financial statements are prepared under the historical cost convention and
in accordance with financial reporting standards promulgated in Ireland by the
Institute of Chartered Accountants in Ireland.
The group financial information consolidates the financial information of Vimio
plc and all of its subsidiary undertakings made up to 30 June 2006.
The results of subsidiary undertakings acquired or disposed of in the period
are included in the consolidated profit and loss account from the date of
acquisition or up to the date of disposal. Upon the acquisition of a business,
fair values are attributed to the identifiable net assets acquired.
The combination of the businesses, Vimio plc, Vimio (Ireland) Limited, Vimio AB
and Vimio (China) Limited under the criteria of Financial Reporting Standard
No. 6 "Acquisitions and Mergers", has been included in the consolidated
financial statements using merger accounting rules. The results, assets and
liabilities of companies accounted for under these provisions are incorporated
in the financial statements as if these entities had been combined throughout
the entire period, albeit the transaction took place on 22 April 2005. The
merger adjustment, which is the difference between the fair value of the shares
issued to effect the merger and the nominal value of the shares acquired, is
dealt with on consolidation through reserves. All inter-group transactions and
balances are eliminated on consolidation.
2. Tax on ordinary activities
Six months Six months Year ended 31
ended 30 ended 30 December 2005
June 2006 June 2005
(Audited)
(Unaudited) (Unaudited)
€
€ €
Current taxation
Ireland 5,458 - 14,791
Overseas taxation 229 - 7,534
5,687 - 22,325
3. Dividends
There being no distributable reserves, no interim dividend can be paid for the
six months to 30 June 2006.
4. Loss per share
The calculation of the loss per share is based on the loss attributable to the
ordinary equity shareholders divided by the weighted average of 25,757,046 (31
December 2005: 21,841,236) ordinary shares of €0.05 each in issue.
5. Interim report
This interim financial information was approved by the Board of Directors on 28
September 2006.
6. Copies of the interim financial statements
Copies of the interim financial statements are available on request from the
Company's registered office at Block F2, Eastpoint Business Park, Fairview,
Dublin 3, Ireland.