Vimio Plc ("the Group" or "the Company")
Unaudited Interim Results
For the six months ended 30 June 2007
CHAIRMAN'S STATEMENT
I am pleased to present the unaudited interim results of the Group for the six
months ended 30 June 2007.
Turnover for the period was €1,434,240 (2006: € 942,964). Gross profits were €
1,431,840 (2006: €932,642) resulting in a loss before tax of €300,619 (2006: €
1,122,312). The loss per share for the period was 1.16 cents (2006: 4.38
cents).
The loss for the year has been reduced due to the increase in turnover combined
with a corresponding reduction in overheads. Earlier this year the board
undertook a strategic review of all operations and has implemented a number of
cost-saving exercises which have resulted in a reduction of monthly overheads.
The cost savings are continuing in the second half of the year. The Group also
incurred significant expenses in the first half of the year, fitting out a data
centre in the Middle East. The data centre has been completed and will
contribute to recurring revenues in the second half of the year.
At 30 June 2007, bank balances amounted to €130,081 (2006: €1,929,547) with a
debtor balance of €1,824,771 (2006: €1,137,614). The board is managing the
Group's debtors and cash flow on an ongoing basis and is confident that the
Group's cash position will improve in the second half of the year.
During the period we signed and implemented a number of contracts in the Middle
East, Russia, Ukraine and the Caribbean. Live TV subscription services have
been launched on Wataniya's network in Kuwait and in the Caribbean through the
Digicel Network. We are currently implementing our systems in Russia and
Ukraine and expect to launch commercially before the year-end.
The board is pleased with the Group's performance in the first half of the
year. We have a strong sales pipeline, however our experience has shown that
there can be a significant lapse of time between contract initiation and
commercial launch. We are confident that the current pipeline will mature into
further sales for the Group in the latter part of this year and in 2008.
Over the past two years the Group has invested heavily in research and
development, and our products are now available on over 250 mobile handset
models worldwide. This milestone has resulted in wider deployment opportunities
and the board is satisfied that this will result in further commercial
opportunities.
David McKenna
Chairman
26 September 2007
ENQUIRIES:
Vimio plc
Padraic Marren, VP Business Development Tel: +353 1 865 2400 / + 353 87 6980943
John East and Partners
Jeffrey Coburn Tel: +44 207 6282200
Consolidated Income Statement
For the six months ended 30 June 2007
Six months Six months Year ended
ended 30 June
ended 30 June 31 December
2007
2006 2006
(Unaudited)
(Unaudited) (Audited)
€
€ €
Revenue 1,434,240 942,964 1,375,972
Cost of sales (2,400) (10,322) (12,632)
Gross profit 1,431,840 932,642 1,363,340
Research and development costs (673,294) (635,121) (1,259,153)
Administration costs (1,058,798) (1,478,279) (3,020,372)
Operating loss (300,252) (1,180,758) (2,916,185)
Interest receivable 2,454 58,630 83,685
Interest payable and similar charges (2,821) (184) (219)
Loss on ordinary activities before (300,619) (1,122,312) (2,832,719)
taxation
Taxation on ordinary activities - (5,687) (9,047)
Loss on ordinary activities after (300,619) (1,127,999) (2,841,766)
taxation
Basic loss per share (0.0116) (0.0438) (0.1098)
Consolidated Statement of Recognised income and expense and statement of
changes in equity for the six months ended 30 June 2007
Six months Six months Year ended
ended 30 June
ended 30 June 31 December
2007 2006
2006
(Unaudited) (Audited)
(Unaudited)
€ €
€
Loss retained for the period (300,619) (1,127,999) (2,841,766)
Exchange differences on translation (3,234) 766 1,744
of foreign operations
Total recognised gains and losses for (303,853) (1,127,233) (2,840,022)
the financial period
Consolidated Balance Sheet
As at 30 June 2007
30 June 30 June 31 December
2006
2007 2006
(Audited)
(Unaudited) (Unaudited)
€
€ €
Assets
Non current assets
Property, plant and equipment 102,599 125,094 104,510
Financial assets 1,448,016 - 1,448,016
Total non-current assets 1,550,615 125,094 1,552,526
Current assets
Trade and other receivables 2,011,123 2,840,271 2,264,629
Cash and cash equivalents 135,123 1,929,547 630,480
Total non-current assets 2,146,246 4,769,818 2,895,109
TOTAL ASSETS 3,696,861 4,894,912 4,447,635
EQUITY
Called up share capital 1,300,007 1,300,007 1,300,007
Share premium 8,164,976 8,164,976 8,164,976
Other reserve 460,292 460,292 460,292
Retained losses (7,674,202) (5,657,560) (7,370,349)
Total equity 2,251,073 4,267,715 2,554,926
LIABILITIES
Current liabilities
Trade and other payables 924,927 610,562 1,876,669
Current tax liabilities 15,819 16,635 16,040
Interest bearing loans and borrowings 505,042 - -
Total current liabilities 1,445,788 627,197 1,892,709
TOTAL EQUITY AND LIABILITIES 3,696,861 4,894,912 4,447,635
Consolidated Cash Flow Statement
For the six months ended 30 June 2007
Six months Six months Year ended
ended 30 ended 30 31 December
June 2007 June 2006 2006
(Unaudited) (Unaudited) (Audited)
€ € €
Cash flows form operating activities
Operating loss (300,252) (1,180,758) (2,916,185)
Depreciation 30,759 29,861 62,979
Exchange movement (3,234) 766 (961)
Movement in working capital (698,236) (764,398) (459,887)
(970,963) (1,914,529) (3,314,054)
Interest received 2,454 58,630 83,685
Interest paid (2,821) (184) (219)
Income tax paid (221) (1,163) (5,118)
Net cash outflow from operating (971,551) (1,857,246) (3,235,706)
activities
Investing activities (28,848) (17,086) (27,635)
Purchase of property, plant and equipment - (1,442,585) (1,448,016)
Investment in financial asset
Net cash outflow from investing (28,848) (1,460,391) (1,475,651)
activities
Financing activities
Issue of shares - 1,448,016 1,448,016
Loans advanced to directors - (94,653) (95,000)
Loans repaid by directors - - 95,000
Advance of third party loan notes 500,000 - -
Net cash inflow from financing activities 500,000 1,353,363 1,448,016
Net decrease in cash and cash equivalent (500,399) (1,964,274) (3,263,341)
Cash and cash equivalent at beginning of 630,480 3,893,821 3,893,821
period
Cash and cash equivalent at end of period 130,081 1,929,547 630,480
Notes to the Financial Information
1. Basis of financial information - going concern
The financial information has been prepared on a going concern basis which
assumes that the group will continue to trade for the foreseeable future.
During the period the group incurred losses after taxation of €300,619 and at
the balance sheet date the profit and loss account deficit was €7,674,202.
Additionally, in the two months ended 31 August 2007 the group incurred losses.
The nature and stage of the group's business is such that there can be
considerable unpredictable variations in the timing of cash inflows. During the
period the group has reduced its workforce in Sweden and has carried out a
review of all of its overheads to enable further cost savings to be made.
Additionally the group secured additional unsecured loans during the period.
The directors have prepared projected cash flow information, which incorporates
their best estimate of the timing and value of sales revenue and consequential
external funding requirements. On the basis of these forecasts the directors
expect the group to continue to meet its liabilities as they fall due. On this
basis the directors continue to adopt the going concern basis in preparing
their financial information. This assumes the required levels of sales revenue
and forecast external funding are achieved by the group. The financial
information do not include any adjustments that would result should the group
not generate forecast sales revenue or raise additional finance.
2. Tax on ordinary activities
Six months Six months Year ended 31
ended 30 ended 30 December 2005
June June
(Audited)
2007 2006
€
(Unaudited) (Unaudited)
€ €
Current taxation
Ireland - 5,458 529
Overseas taxation - 229 8,518
- 5,687 9,047
3. Dividends
There being no distributable reserves, no interim dividend can be paid for the
six months to 30 June 2007.
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 26,000,140 (31
December 2006: 25,879,592) ordinary shares of €0.05 each in issue.
5. Interim report
This unaudited interim financial information was approved by the Board of
Directors on 25 September 2007.
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.