One Media iP Group PLC Half-year Report

 
TIDMOMIP 
 
One Media iP Group Plc 
 
                  ("One Media", the "Group" or the "Company") 
 
                 UNAUDITED INTERIM RESULTS and DIVID NOTICE 
 
One Media iP Group plc (AIM: OMIP), a digital media content provider that 
exploits intellectual property rights around music and video, is pleased to 
announce its half year results for the period ended 30 April 2016 and an 
interim dividend. 
 
Highlights: 
 
  * Turnover of GBP1,055,693 (2015: GBP1,487,132); 
 
  * Profit before tax of GBP118,721 (2015: GBP270,454); 
 
  * EBITDA of GBP224,143 (2015: GBP384,846); 
 
  * Cash balances of GBP549,888 at 30 April 2016 (GBP816,249 at 31 October 2015); 
 
  * Dividend of 0.071p per ordinary share paid in November 2015 in respect of 
    the year ended 31 October 2015; and 
 
  * Interim dividend declared of 0.071p per ordinary share declared in respect 
    of the six-month period ended 30 April 2016. 
 
    Michael Infante, Chairman and CEO, commented: "The half year point is a 
    barometer for companies for the climate ahead. Our long-term view is that 
    of a continued repositioning of the Group's content in the changing digital 
    marketplace and one of fresh initiatives that bring new areas of 
    monetisation to the Company. Our year-end report of 31st October 2015 
    detailed our repositioning program as we weather the shift in the digital 
    stores (eg. iTunes, Amazon, Spotify and Deezer) changing pattern of 
    exploitation and monetisation of music, from the downloading model to that 
    of streaming. In addition, we manage the digital stores changes in content 
    and genres in which many of them wish to specialise. Six months on, I 
    believe that the seismic change will most affect us this year and into the 
    beginning of the next year. What market intelligence does tell us is that 
    our core business (like the rest of the music industries) is set to reach a 
    hiatus, with recovery expected to commence in Q1 2017. We continue to have 
    confidence in our market approach and our new music and video and technical 
    related initiatives are well positioned to regain our mission of 'IP' 
    exploitation, growth and continued profit." 
 
    For further information, please contact: 
 
One Media iP Group Plc 
 
Chairman and Chief Executive 
Michael Infante                    Tel: [phone] 
 
One Media iP Group Plc 
Financial Controller & Company 
Secretary                          Tel [phone] 
Nigel Smethers 
 
 
One Media iP Group Plc 
Alice Dyson-Jones 
Communications                     Tel [phone] 
 
Cairn Financial Advisers 
LLP                   Nominated 
Adviser 
 
Liam Murray / Jo Turner            Tel: [phone] 
 
Panmure Gordon (UK) Limited 
Broker 
Fred Walsh / Karri Vuori /James    Tel: [phone] 
Greenwood 
 
CHAIRMAN & CHIEF EXECUTIVE'S STATEMENT 
 
In the UK, almost 27bn audio streams were measured by the official charts 
company to December 2015. That's 1,000 streams per UK household (source BPI). 
All of these took place across both free and premium tiers of dedicated audio 
services such as Spotify, Google Play, Napster and Deezer. This excluded 
YouTube. A total increase of 82% on that reported in 2014 (14.8bn). Your 
Group's statistic on Streaming is now 57% of its revenues compared with 44% for 
the same period (H1 2014/15) last year. This is expected to continue to grow 
for the remainder of this year and into the next financial year. Downloading 
(the iTunes model) is beginning to show a stabilisation and even a predicted 
levelling between now and in the first half of next year with growth returning 
to this sector in our opinion. 
 
Managing the changes in our 'core' business income requires a very special 
focus on our music assets positioning within the market place. Our team of 
Creative Technicians have had a clear direction on where best to promote the 
Group's content and given our ten years of digital experience we are confident 
that managing the curve into a future resurgence is underway. It is for this 
reason that we have slowed on our content acquisition program whilst we 
evaluate investment return within the new emerging market. There really are 
times when one sits on ones hands and is not accused of procrastination. Far 
from it, we have never been so motivated by new content initiatives and 
technical development. 
 
Our confidence remains in recovery as the new formats take further hold of the 
market, but it still has a way to go until more users are persuaded into paying 
for streaming over 'freemium' (the advert funded monetisation revenue system). 
Spotify has long-anticipated '100m active users' announcement on the 21st June 
2016 means the streaming service can enthuse brands with its (just under) 70 
million free users, having separately trumpeted its 30 million paying 
subscribers milestone for the music industry earlier this year. The growth 
further demonstrates the strong shift of public demand for the dominating 
format of streaming. Quite when the monetisation follows through meaningfully 
to the industry to offset revenue falls in downloading will be a matter of time 
and I look forward to updating you as the effects become positive for your 
Company, which they will. 
 
I am pleased to report that our continued development program into our two key 
new initiatives is progressing well. Our Technical Copyright Analysis Tool 
(TCAT) has made great progress and I am pleased to report it is now on test 
with two major music industry companies. TCAT is proving to be a versatile tool 
and is not restricted to just that of searching out tracks on legitimate stores 
on behalf of content owners. Our latest developments and testing is showing 
that TCAT can also identify global retail pricing of a given album across 121 
territories, chart positioning, releasing label, original and cover versions of 
a particular track and territorial public domain status on a 
territory-by-territory basis. In addition, it can identify tracks not being 
offered for digital sale, which assists all labels to maximise their 
exploitation of back-catalogue content that may have been left in the archive. 
We are rightly proud of our developments so far and it further demonstrates the 
in-house technical ability of our team and our in-house developed software. 
Tough times breed the best ingenuity. 
 
Men & Motors has begun a new road trip on the back of its growing YouTube 
viewing figures. As previously reported we are receiving circa half a million 
views per week on the existing YouTube channel established by us in 2013 with 
the archive content. With car viewing programs in the UK being the subject of 
much press we have taken the decision to offer to broadcasters during the next 
12 months the opportunity of licensing a whole new motoring format TV show 
under the brand of Men & Motors. Presenters have been carefully selected 
together with a strong supporting team and a new format never seen previously 
in the form of a motoring/entertainment show has been designed. A short pilot 
will be shot in the 2nd half of this year. We are pleased that 'petrol head and 
ex-British drift-car champion' and Boyzone member, Shane Lynch and Torie 
Campbell (CNBC 'One Second in F1 and Mercedes-Benz automotive journalist) will 
host. At this time no broadcasters have seen the new format but we are 
enthusiastic with the initiative and will report in due course on the progress. 
 
We reached an agreement earlier this year with the "Associated Rediffusion 
Television, Archive footage of 1954 to 1968" controlled by Archbuild Ltd. The 
exclusive distribution agreement includes thousands of hours of television 
footage, broadcast by Reddifusion from the 1950s through to the 1960s.  This is 
an exciting deal that will allow us to make much of this rare and historic 
archive available digitally for the first time. Many of the programs have not 
been seen for over 50 years but will prove to be of great historical importance 
as this archive reflects the development of independent television which 
revolutionised TV broadcasting as we know it today. Programs include TV 
classics such as: The Frost Program, This Week (over 500 hours of international 
current affairs from the era covering the post war changes across the world), 
Various Popular Quiz Shows from the period, Children's of Other Lands, Half 
Hour Story, Intertel, The Levin Interviews, Man of our Times, Peace Keepers, No 
Hiding Place (crime dramas), Play of the Week, Something to Say (interviews 
with the great leaders and celebrities of the time) Do Not Adjust your set, At 
last the 1948 Show, World of Crime series, Out of Step (Dan Farson) and over a 
hundred 'one-off' documentaries from the time period including, the Ideal Home, 
The Queen's Speech, Harrods a Shopping Guide, The Harlem Globetrotters, British 
Communism, The Derby in the 60's, The Budget 1962 and the British Academy 
Awards to just name a few selected titles. It is a vast historic collection of 
TV history memorabilia. 
 
All of the footage is carefully curated and stored at the British Film 
Institute (BFI) archives and will be made available to One Media under the 
Archbuild deal and the trans-coding process from the original formats will be 
undertaken throughout the term of the deal to allow both audio and visual 
digital exploitation of the content. The transcribing of the content is a 
complicated specialist process, we are currently in discussions with the BFI as 
how best to approach this delicate procedure. Being based at Pinewood Studios 
again affords us all the technical skills to administer this transformation. 
The content will be made available for exploitation via One Media's digital 
channels and chosen partners such as YouTube and via podcasting so that 
monetisation via the ad-funded model and subscription can be achieved. 
 
In April this year I announced the appointment of Philip Miles as a director to 
the board of One Media iP Group Plc. Philip joined the company in 2006 and was 

appointed as a director of One Media iP Limited in April 2007.  His area of 
expertise has been in technical development for the Company on its internal 
ingestion systems and most recently on TCAT (Technical Copyright Analysis 
Tool). 
 
Nigel Smethers, our Finance Director retired under rotation at the AGM in May 
2016.  Nigel will stay with the Group as Company Secretary and Financial 
Controller until a new Finance Director is appointed. A further strategic 
realignment of the Group saw Alice Dyson-Jones promoted to Commercial director 
to the One Media iP Limited subsidiary board and Mary Kuehn has left the 
subsidiary board as a Non-Executive Director and taken up the role as the 
Executive Sales Consultant for North America.  As our Group enters a new stage 
of digital development we must put into place the skill sets that will serve 
the Group moving forward. Nigel's retirement from the full responsibilities of 
a director will require a candidate with a specialist skill set to meet our new 
challenges. Nigel's relentless energy and involvement in the Group's founding 
development cannot be more appreciated and respected by me for which I thank 
him. 
 
Results 
 
The Group has continued to manage its financial position over the 6 month 
period to 30 April 2016 with profitable operations, no debt and maintenance of 
the Group's dividend policy. 
 
Group consolidated turnover was GBP1,055,693 for the 6 months ended 30 April 2016 
(2015: GBP1,487,132). 
 
Profit before tax and interest was GBP118,530 (2015 GBP269,955). 
 
Cash balances at 30 April 2016 continued to remain strong at GBP549,888. 
 
During the period, the Company has not issued new shares as consideration for 
acquisitions and has used existing cash resources as consideration. 
 
Litigation 
 
The Company continues its collection of monies awarded to it regarding its 
copyright infringement case against Henry Hadaway, HHO Licensing Ltd and Henry 
Hadaway Organisation Ltd ("Hadaway"). In May 2016 further to the various 
announcements by the Group in Nashville Tennessee USA and the Group's 
successful judgement in its favour on 17 September 2015 in the sum of USD 
$781,846.32  against Hadaway (which includes costs of USD $9,928.82) for the 
willful infringement of 1,466 recordings from the Point Classics catalogue 
owned exclusively by One Media, we updated the market in May 2016 on the 
progress of the claim.  One Media was informed by the Criminal Investigator's 
office of the United States Marshal of the Southern District of New York that 
it has successfully intercepted USD $44,585.94 of income due to Hadaway by its 
New York-based distributor from its on-going digital music exploitation within 
the United States.  The Company is aware that Hadaway is now attempting to 
re-litigate the aforementioned judgment in Nashville Tennessee. We remain 
robust in our collection on the Judgement and will continue to make all 
representations necessary to see the continue enforcement. 
 
Dividend 
 
A dividend payment of 0.071p per share was made in November 2015. The Board 
further announces that it is making an interim dividend payment of 0.071p per 
ordinary share in respect of the 6 month period ended 30 April 2016. The 
ex-dividend date of this payment is 7 July 2016, the record date is 8 July 2016 
and the expected payment date on or by 22 July 2016. This further demonstrates 
the Boards confidence in the Group's ability to manage the current transitional 
period. 
 
News, Content Exploitation and Acquisitions 
 
Working on our in-house developments and investing in technical developments 
such as TCAT and Men & Motors has been a priority. As previously stated 
realigning our existing content to meet the demands of the changing digital 
market place has also been a time consuming business. I again reiterate that 
buying more content whilst we adjust to the new demands of the digital market 
place at acquisition prices out of kilter with the market place would be ill 
timed. I believe opportunities will present themselves in the very near future 
to acquire catalogues at more advantageous prices and/or on various other terms 
and conditions. 
 
Outlook 
 
I continue to be very enthusiastic about our business. I have previously stated 
and will now reiterate that this is a journey that requires the ability to 
react and adopt change. The music industry in the UK as a whole shrank by 1% 
last year and that's with all the big chart hits, major spend on video 
campaigns, Concerts, Film and TV shows and the reintroduction of Vinyl records, 
which is like the Stevenson Rocket being put back into service for National 
Rail. 
 
Our continued TCAT development program and TV aspirations are important to the 
company as will a return to content acquisition as the market realigns. The 
mission remains the same, exploit IP (Intellectual Copyright), whether it be 
content or brands or technical software development. We are a strong team, well 
motivated and with a confused market ahead of us, what more could a company ask 
for? 
 
MICHAEL INFANTE 
CHAIRMAN AND CHIEF EXECUTIVE 
 
27 June 2016 
 
 
Unaudited Consolidated Statement of Comprehensive Income 
For the six months ended 30 April 2016 
 
                            Unaudited     Unaudited     Audited 
 
                            6 months      6 months      12 months 
                            ended         ended         ended 
                            30 April 2016 30 April 2015 31 October 2015 
 
                            GBP             GBP             GBP 
 
Revenue                     1,055,693     1,487,132     2,519,330 
 
Cost of sales               (601,080)     (788,655)     (1,227,201) 
 
                            _________     _________     _________ 
 
                            454,613       698,477       1,292,129 
 
Administrative expenses     (336,083)     (428,522)     (846,817) 
 
                            _________     _________     _________ 
 
Operating profit            118,530       269,955       445,312 
 
Finance income              191           499           3,457 
 
                            _________     _________     _________ 
 
Profit on ordinary          118,721       270,454 
activities before                                       448,769 
taxation 
 
Taxation                    (23,744)      (56,682)      (92,031) 
 
                            _________     _________     _________ 
 
Profit for period 
attributable to equity      94,977        213,772       356,738 
shareholders 
 
                            =========     =========     ========= 
 
Basic adjusted earnings     0.13P         0.30P         0.50p 
per share 
 
                            =========     =======       ========= 
 
 
Unaudited Consolidated Statement of Financial Position 
As at 30 April 2016 
 
                                Unaudited     Unaudited     Audited 
 
                                30 April 2016 30 April 2015 31 October 
                                                            2015 
 
                                GBP             GBP             GBP 
 
Assets 
 
Non-current assets 
 
Intangible assets               3,338,237     3,230,098     3,323,323 
 
Property, plant and             7,787         9,257 
equipment                                                   8,017 
 
                                _________     _________     _________ 
 
                                3,346,024     3,239,355     3,331,340 
 
                                _________     _________     _________ 
 
Current assets 
 
Trade and other                 478,174       623,651       440,252 
receivables 
 
Cash and cash                   549,888       1,016,994     816,249 
equivalents 
 
                                _________     _________     _________ 
 
Total current assets            1,028,062     1,640,645     1,256,501 
 
                                _________     _________     _________ 
 
Total assets                    4,374,086     4,880,000     4,587,841 
 
                                =========     =========     ========= 
 
Liabilities 
 
Current liabilities 
 
Trade and other                 869,999       1,549,767     1.143,883 
payables 
 
                                _________     _________     _________ 
 
                                _________     _________     _________ 
 
Total liabilities               869,999       1,549,767     1,143,883 
 
                                _________     _________     _________ 
 
Equity 
 
Called up share                 355,268       353,518       355,268 
capital 
 
Share redemption                239,546       239,546       239,546 
reserve 
 
Share premium account           1,457,645     1,452,895     1,457,645 
 
Share based payment             59,097        28,791        43,497 
reserve 
 
Retained earnings               1,392,531     1,255,483     1,348,002 
 
                                _________     _________     _________ 
 
Total equity                    3,504,087     3,330,233     3,443,958 
 
                                _________     _________     _________ 
 
                                _________     _________     _________ 
 
Total equity and                4,374,086     4,880,000     4,587,841 
liabilities 
 
                                =========     =========     ========= 
 
 
 
Unaudited Consolidated Statement of Changes in Equity 
For the six months ended 30 April 2016 
 
              Share    Share      Share     Share     Retained  Total 
              capital  redemption premium   based     earnings  equity 
                       reserve              payment 
                                            reserve 
 
              GBP        GBP          GBP         GBP         GBP         GBP 
 
At 1 November 353,518  239,546    1,452,895 21,215    1,091,911 3,159,085 
2014 
 
Profit for    -        -          -         -         213,772   213,772 
the six 
months to 
30 April 2015 
 
Share option  -        -          -         7,576     -         7,576 
charge 
 
Dividends     -        -          -                 - (50,200)  (50,200) 
 

              ________ _________  _________ _________ _________ _________ 
 
At 30 April   353,518  239,546    1,452,895 28,791    1,255,483 3,330,233 
2015 
 
Issue of      1,750    -          4,750     -         -         6,500 
share capital 
 
Profit for    -        -          -         -         142,966   142,966 
the six 
months to 
31 October 
2015 
 
Share based   -        -          -         14,706    -         14,706 
payment 
charge 
 
 
Dividends     -        -          -         -         (50,447)  (50,447) 
 
              ________ _________  _________ _________ _________ _________ 
 
At 31 October 355,268  239,546    1,457,645 43,497    1,348,002 3,443,958 
2015 
 
Profit for    -        -          -         -         94,977    94,977 
the six 
months to 
30 April 2016 
 
Share option  -        -          -         15,600    -         15,600 
charge 
 
Dividends     -        -          -         -         (50,448)  (50,448) 
 
              ________ _________  _________ _________ _________ _________ 
 
Balance at 30 355,268  239,546    1,457,645 59,097    1,392,531 3,504,087 
April 2016 
 
              ======== =========  ========= ========= ========= ========= 
 
There has been no issue of shares in the six months ended 30 April 2016. 
 
 
Unaudited Consolidated Cash Flow Statement 
For the six months ended 30 April 2016 
 
                              Unaudited      Unaudited      Audited 
 
                              6 months       6 months       12 months 
                              ended          ended          ended 
                              30 April 2016  30 April 2015  31 October 
                                                            2015 
 
                              GBP              GBP              GBP 
 
Cash flows from operating 
activities 
 
Profit before taxation        118,721        270,454        448,769 
 
Amortisation                  103,633        111,014        216,989 
 
Depreciation                  1,980          3,877          8,503 
 
Share based payments          15,600         7,576          22,282 
 
Finance income                (191)          (499)          (3,457) 
 
(Increase)/decrease in        (37,922)       (106,396)      77,003 
receivables 
 
(Decrease)/increase in        (297,628)      (310,607)      (734,154) 
payables 
 
Corporation tax paid          -              -              (17,686) 
 
                              _________      _________      _________ 
 
Net cash inflow from 
operating activities          (95,807)       (24,581)       18,249 
 
                              _________      _________      _________ 
 
Cash flows from investing 
activities 
 
Investment in copyrights      (118,547)      (126,368)      (325,568) 
 
Investment in fixed assets    (1,750)        (1,822)        (5,208) 
 
Finance income                191            499            3,457 
 
Corporation tax paid 
 
                              _________      _________      _________ 
 
Net cash used in investing    (120,106)      (127,691)      (327,319) 
activities 
 
                              _________      _________      _________ 
 
Cash flow from financing 
activities 
 
Proceeds from the issue of                   -              6,500 
new shares 
 
Dividend paid                 (50,448)       (50,200)       (100,647) 
 
                              _________      _________      _________ 
 
Net cash outflow from 
financing activities          (50,448)       (50,200)       (94,147) 
 
                              _________      _________      _________ 
 
Net change in cash and cash   (266,361)      (202,472)      (403,217) 
equivalents 
 
Cash at the beginning of the  816,249        1,219,466      1,219,466 
period 
 
                              _________      _________      _________ 
 
Cash at end of the period     549,888        1,016,994      816,249 
 
                              =========      =========      ========= 
 
Notes to the Interim Report 
 
For the six months ended 30 April 2016 
 
1.     Nature of operations and general information 
 
One Media iP Group Plc and its subsidiaries' ("the Group") principal activities 
are the acquisition and licensing of audio-visual intellectual copyrights and 
publishing for distribution through the digital medium and to a lesser extent 
through traditional media outlets. 
 
One Media iP Group Plc is the Group's ultimate parent company incorporated 
under the Companies Act in England and Wales. The address of One Media iP Group 
Plc registered office is 623 East Props Building, Goldfinger Avenue, Pinewood 
Road , Iver Heath, Buckinghamshire, SL0 0NH. 
 
The financial information set out in this Interim Report does not constitute 
statutory accounts. The Group's statutory financial statements for the year 
ended 31 October 2014 are available from the Group's website. The auditor's 
report on those financial statements was unqualified. 
 
2.     Accounting Policies 
 
Basis of Preparation 
 
These interim consolidated financial statements are for the six months ended 30 
April 2015. They have been prepared following the recognition and measurement 
principles of IFRS. They do not include all the information required for full 
annual statements, and should be read in conjunction with the consolidated 
financial statements of the Group for the year ended 31 October 2014. 
 
This unaudited interim statement has not been subject to a review by the 
Group's auditors James Cowper Kreston. 
 
Comparatives 
 
The comparative periods represent the unaudited results for the six months 
period ended 30 April 2014 and the audited twelve months figures for the year 
ended 31 October 2014. 
 
3.     Earnings per share 
 
The calculation of the earnings per share is based on the profit for the 
financial period divided by the weighted average number of shares in issue 
during the period. 
 
                      Unaudited          Unaudited        Audited 
 
Basic earnings per    6 months ended     6 months ended   12 months 
share                 30 April 2016      30 April 2015    ended 
                                                          31 October 
                                                          2015 
 
Profit for period     94,977             213,772 
attributable to                                           356,738 
equity shareholders 
 
Weighted average      71,053,698 
number of shares in                      70,703,698       70,817,534 
issue at period end 
 
                      _________          _________        _________ 
 
Basic earnings per    0.13p              0.30p            0.50p 
share 
 
                      =========          =========        ========= 
 
The diluted earnings per share would be lower than the basic profit per share 
as the exercise of warrants and options would be dilutive. 
 
4.     Share capital 
 
                               Unaudited     Unaudited    Audited 
 
                               30 April 2016 30 April     31 October 
                                             2015         2015 
 
Group and company              GBP             GBP            GBP 
 
Authorised: 
 
200,000,000 ordinary shares of 1,000,000     1,000,000    1,000,000 
0.5p each 
 
                               ==========    ==========   ========== 
 
Issued: 
 
Ordinary shares of 0.5p each 
 
71,053,698 ordinary shares of 
0.5p each at  30 April 2016 
and 31 October 2015 and        355,268       353,518      355,268 
70,703,698 at 30 April 2015 
 
                               ==========    ==========   ========== 
 
5.     Dividend 
 
The directors are pleased to announce a second dividend for the year of GBP50,448 
(0.071p per share) following the dividend announced on 12 November 2015 of GBP 
50,448 (0.071p per share). Our intention as always is to reward those investors 
that have been loyal and to further demonstrate that One Media is an investable 
opportunity proving a return that will enhance shareholder value. 
 
6.     Interim statement 
 
Copies of this statement are available from Group's registered Office at: 
 
623 East Props Building, Goldfinger Avenue, Pinewood Road, Iver Heath, 
Buckinghamshire, SL0 0NH. 
 
 
 
END 
 

(END) Dow Jones Newswires

June 27, 2016 02:00 ET (06:00 GMT)