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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Monitise | LSE:MONI | London | Ordinary Share | GB00B1YMRB82 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 3.09 | 3.08 | 3.09 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMMONI
RNS Number : 8636O
Monitise PLC
12 February 2016
12 February 2016
MONITISE plc
Interim results for the six months to 31 December 2015
LONDON -- 12 February 2016 -- Monitise plc (LSE: MONI) ("Monitise" or the "Company") announces its unaudited interim results for the six months ended 31 December 2015, with results in line with the trading update given on 21 January 2016.
Financial Summary and Outlook
-- H1 FY 2016 revenue of GBP33.4m (H1 FY 2015: GBP42.4m), with revenue in the second half anticipated to
be broadly similar
-- EBITDA losses reduced to GBP20.2m (H1 FY 2015: GBP30.8m loss), with existing businesses generating
positive EBITDA going forward
-- Targeted investment in developing our new cloud-based offering, FINkit(R)
-- Decisive action on costs has been taken and a further material reduction in total costs is expected in H2 FY 2016
o Total costs of GBP53.6m in H1 FY 2016 (H1 FY 2015: GBP69.4m) projected to reduce by
approximately GBP3m per month in second half
-- Monitise is projecting H2 FY 2016 to be EBITDA positive
-- Gross cash at 31 December 2015 of GBP53.4m and prospective EBITDA positive trading for H2 FY 2016
means the business is sufficiently well funded to meet its future plans
Exceptional Items
-- A non-cash impairment charge in relation to non-cloud intangible assets of GBP166.8m was made
-- During the period exceptional costs of GBP8.4m have been recognised as part of the business
restructuring. Offsetting exceptional credits of GBP7.4m have been recognised, including GBP5m
following a restructuring of customer contracts
Operational Highlights
-- Our customer relationships have remained strong during this period, our pipeline is robust and
continues to develop, we are well progressed with a number of our existing and prospective
customers who are interested in using our cloud-based offering through FINkit(R), and we have
successfully proven the capabilities of FINkit(R) through a customer proof of concept
-- Tighter cost discipline will be maintained throughout FY 2016 and beyond whilst we continue to
invest in our cloud business, making sure such investment is proportionate to the size and timing
of customer contracts
-- Ongoing cost disciplines have improved transparency and accountability enabling each business
unit to have full ownership of their respective P&Ls
-- We continue to evaluate all assets within the Monitise group to ensure they remain core to our
proposition
Monitise Chairman Peter Ayliffe said: "The essential transition to cloud-based services and sustainable recurring revenues, continues to be very challenging. However, the focus on ensuring we have developed a relevant, market leading proposition whilst also achieving EBITDA profitability for the second half of FY16, means that we enter this next phase in our transition with optimism. We are all now focused on executing our plans with successful delivery of our cloud-based services at the heart of our future."
Monitise CEO Lee Cameron said: "Having taken the tough decisions and defined a clear path to take the business forward, Monitise is not just a leaner business; it is stronger and healthier. We are proud of our market leading technology assets, world class digital experts across our businesses, a strong history and heritage of being trusted to deliver bank grade services to highly regulated organisations and an enviable client list who remain supportive of our strategy.
We have faced many challenges during the last six months, and have further work to do to restore investor confidence in our business, but we are adequately funded and I am confident we will be EBITDA positive in the second half of FY16. Investment in FINkit(R) will be proportionate to the timing and scale of contracts signed and we will continue to evaluate all assets in order to preserve and maximise value for all stakeholders. Our mission is to become the global toolkit that enables smarter and faster innovation for our clients where security, compliance and performance are mandatory."
About Monitise
Monitise plc (LSE: MONI) is a leader in enabling accelerated digital innovation within industries where security, compliance and scalability are mandated. Our platforms, toolkits, products and ideas draw upon over a decade of experience of building and operating world class digital banking, and support all stages of a digital solution from strategy to concept design, development and operations. Find out more at www.monitise.com.
FINkit(R) is designed specifically for financial institutions. It lets customers build and run secure and compliant products and services faster than ever. FINkit(R) is a unique combination of a cloud-based environment, pre-built API-based financial components, and use of the latest secure and agile continuous development methodologies.
For further information:
Monitise plc
Lee Cameron, Chief Executive Officer Tel: +44(0)20 3657 0056
Canaccord Genuity (NOMAD)
Simon Bridges, Cameron Duncan, Emma Gabriel Tel: +44(0)20 7523 8000
Brunswick
Jonathan Glass, Jon Drage Tel: +44(0)20 7404 5959
Chief Executive's Statement
Overview
The six months to 31 December 2015 saw Monitise undergo significant change. There were changes in the management team, a comprehensive restructuring and cost reduction plan, but also a clear and transparent focus on the key drivers of the business going forward. Throughout this period of transition, we have delivered for our existing clients whilst commencing the marketing of FINkit(R), which is at the heart of our strategy going forward. FINkit(R) is our platform designed to enable financial services organisations to increase their pace of innovation in a secure and compliant way. I absolutely recognise that we have some way to go in order to restore investor confidence, but I am encouraged that our clients remain supportive and we are confident that we will be able to successfully deliver our FINkit(R) capabilities to a wide range of customers. As part of the cost reduction measures, we have had to reduce roles across the organisation. This period has been unsettling for the Company as colleagues depart and some people within the organisation sought new opportunities elsewhere. It is important that we have been able to put measures in place to retain and incentivise key personnel. I believe we now have the operational team and stable base to ensure that the Company can capture the opportunities ahead.
Market Review
Monitise has always retained its platform agnostic and interoperable status and we continue to serve a wide range of banks, financial services businesses and other organisations that need to extend their digital reach. The world is moving ever faster to an API economy where collaboration and the value of data are critically important to any successful business. Monitise's experience in delivering bank grade services over the past decade puts us in a strong position from which we can market our cloud-based FINkit(R) business and our existing businesses in order to support and enable our clients' digital strategies.
The drive to open API standards and regulatory changes such as Payment Services Directive 2 ("PSD2") require our clients to increase the pace of innovation in order to defend their position as the trusted source of FinTech services to their customers as well as develop new business models that use digital capability to drive down costs and increase revenues.
Operational Review
Monitise is organised around six key areas, five existing units and our cloud-based FINkit(R) business. Each area is headed up by a key executive responsible and accountable for the performance of the unit. I lead the FINkit(R) business alongside my duties as the Group's CEO. My leadership team is comprised of the other functional unit heads, each of whom is an experienced executive within Monitise. Each business operates both as a single business unit but also works in close collaboration with other units to deliver for clients.
FINkit(R)
This business will be at the heart of Monitise going forward. It leverages the cloud to deliver platform capabilities that have been designed and built to enable our financial services clients to launch FinTech innovation securely with speed. The platform is being marketed to our existing and prospective clients, in partnership with IBM. Feedback from existing clients has been very encouraging and we are in discussions with the majority of our MEP clients with a view to transition to FINkit(R).
IBM continues to work closely with Monitise across its business and, in particular, in joint business development activity to market Monitise's FINkit(R) which was built with the assistance of IBM and resides on IBM's Bluemix solution. Going forward, IBM and Monitise will continue to develop capabilities that are intended to deliver the ability for banks and financial services organisations to benefit from a range of digital services as part of the joint IBM and Monitise offering.
RBS continues to work closely with Monitise exploring opportunities that will ensure their customers have the very best banking experience. Santander continues to support Monitise and is currently evaluating how to leverage the capability of FINkit(R) to enable customers to benefit from a range of digital services as part of the Monitise offering. In addition, we are also exploring ways of embedding MasterCard's market leading APIs within FINkit(R) to enable payments capability and other digital services as part of Monitise's offering to banks and their customers.
Europe
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February 12, 2016 02:00 ET (07:00 GMT)
Our original Enterprise Platform ("MEP") comprises the bulk of our current revenues in our European business. MEP continues to power the mobile banking and other digital services of many UK banks. Our leadership position as an independent business providing bank grade digital services was forged in this unit and it continues to represent a sizeable part of the overall business. Over time, we anticipate that these clients will migrate to our FINkit(R) platform in order to augment the services we currently provide and these new deals will generate new ongoing revenue streams. As some existing MEP contracts come to an end, and while we seek to transition these clients to FINkit(R), we have plans in place to manage the cost base and the potential impact on EBITDA. We continue to work with Visa Europe under the current three-year commercial agreement which runs until 31 March 2016. Our relationship with RBS remains very strong and we continue to support their use of MEP including any change in how their MEP solution is hosted.
Americas
The acquisition of Clairmail in 2012 brought the Vantage Platform to Monitise. Similar to MEP, this powers mobile banking and messaging services for over 40 banks and credit unions across the US and Canada. Headquartered in San Francisco, our team continue to develop the Vantage Platform and support existing clients with associated annuity revenues, while signing new clients. The current Visa Inc contract, as previously announced, will terminate in June 2016 and plans have been implemented to ensure the business is structured appropriately going forward. We expect FINkit(R) sales in North America to follow European contracts, and are developing services today that will leverage the cloud in order to deliver bank grade capability in this market.
MEA
Pozitron was acquired to accelerate geographic expansion into a region bringing many existing bank client relationships and digital capability as a provider of mobile banking services and design and engineering expertise. In H1 FY 2016 MEA launched six new products and signed two new clients including lastminute.com. Whilst our MEA business continues to serve these clients and pursue new ones, they also provide a cost effective, near shore development and engineering resources centre for other business units who require a flexible solution to scaling resources on an as required basis.
Create
The award winning Grapple business provided Monitise with a ready-made and highly regarded full service digital agency capability which continues to provide market leading strategy consultancy, human first digital design and UI/UX expertise to its clients, some of whom are banks and financial services businesses. Following the conclusion of the earn out period, the new management team are focused on sustainably rebuilding momentum with new client wins. So far this year five new client wins have been added.
Content
Markco Media was brought into the group to be the content engine, utilising its network of relationships with retailers, affiliates and ticket agencies in order to provide vouchers, coupons and exclusive ticket offers to mobile banking users which they could redeem at the point of sale online or in store which would generate a commission for Monitise. The business continues to perform well and is showing growth, albeit that it is clearly distinguished from the other units and operates as a standalone business. Content now serves white label solutions to four B2B clients including EE and Nectar. Myvouchercodes.co.uk, the consumer-facing brand of Content, had a strong trading performance over Christmas and finished ahead of target for January, it currently has over 7 million members.
Outlook
Having taken the tough decisions and defined a clear path to take the business forward, Monitise is not just a leaner business; it is stronger and healthier. We are proud of our market leading technology assets and digital expertise, our strong history and heritage of being trusted to deliver bank grade services to highly regulated organisations and our enviable list of clients who are supportive of our strategy.
We have faced many challenges during the last six months, and have further work to do to restore investor confidence in our business, but we are well funded and I am confident that we will be EBITDA positive in the second half of FY16. Investment in FINkit(R) will be proportionate to the timing and scale of contracts signed and we will continue to evaluate all assets in order to preserve and maximise value for all stakeholders. Our mission is to become the global toolkit that enables smarter and faster innovation for our clients where security, compliance and performance are mandatory.
Financial Review
The Group's performance for the six months ended 31 December 2015 reflects a continuation of the transition of our business, with the Group moving away from large upfront licence revenue and engagement in large scale development and integration led projects, but not yet benefiting from sales of the new cloud-based platform and associated revenues. As previously announced, Monitise is focusing on transitioning to a subscription based model and an evolved product architecture which will enable the Group to scale more rapidly.
Revenue
Hot Features
Premium
H1 FY H2 FY H1 FY 2015
2016 % split 2015 GBPm % split GBPm % split
GBPm
--------------------------- ------ --------- ----------- --------- ----------- ---------
Product Licences 0.5 2 7.5 16 4.4 10
--------------------------- ------ --------- ----------- --------- ----------- ---------
Platform Supply &
Transaction fees* 17.1 51 16.9 36 16.2 38
--------------------------- ------ --------- ----------- --------- ----------- ---------
User Generated 17.6 53 24.4 52 20.6 48
--------------------------- ------ --------- ----------- --------- ----------- ---------
Development & Integration 15.8 47 22.9 48 21.8 52
--------------------------- ------ --------- ----------- --------- ----------- ---------
TOTAL 33.4 100 47.3 100 42.4 100
--------------------------- ------ --------- ----------- --------- ----------- ---------
*Previously named "Subscriptions & Transactions"
Group revenue fell 21% year-on-year to GBP33.4m in H1 FY 2016 from GBP42.4m in H1 FY 2015. The decline in licence revenue reflects the fact that Monitise is de-emphasising this line of business. Licence revenue will continue but will increasingly become part of our subscription pricing model, leading to it becoming a significantly lower proportion of the revenue mix than seen in prior periods. The decline in Development & Integration revenue from GBP22.9m in H2 2015 to GBP15.8m in H1 2016 was due to a combination of reduced activity in our Create business following management transition post earn-out completion and lower billings in North America whilst clearing historical contractual commitments. Prospectively the levels of Development & Integration revenues will reflect the ending of the current VISA contracts, offset in part by development work with clients in relation to products that will be provided on our cloud-based platform, FINkit(R).
Gross Margins
% H1 H2 FY 2015 H1 FY 2015
FY
2016
------------------------------- ------ ----------- -----------
License 100 100 100
------------------------------- ------ ----------- -----------
Platform supply & transaction
fees 74 72 70
------------------------------- ------ ----------- -----------
Development & Integration 33 22 27
------------------------------- ------ ----------- -----------
TOTAL 55 52 51
------------------------------- ------ ----------- -----------
Group gross margin improved to 55% (H1 FY 2015: 51%). The improving gross margin results from lower high margin licence revenues being offset by improving Development & Integration gross margins. The Development & Integration margins have improved as loss making contracts drop out of the revenue stream.
EBITDA and Operating Costs
The Group EBITDA loss was GBP20.2m in the period (H1 FY 2015: GBP30.8m). Operating costs were GBP38.7m (H1 FY 2015: GBP48.6m*) reflecting the cost reduction exercise undertaken during the period.
H1 FY 2016 H2 FY 2015 H1 FY 2015
GBPm GBPm GBPm
----------------------------- ----------- ----------- -----------
Staff costs and third party
contract resource 35.9 43.1 47.5
----------------------------- ----------- ----------- -----------
Property 3.6 3.9 5.0
----------------------------- ----------- ----------- -----------
Technology and other 14.1 15.2 16.9
----------------------------- ----------- ----------- -----------
Total costs* 53.6 62.2 69.4
----------------------------- ----------- ----------- -----------
Headcount (permanent staff)
- Average 784 949 1059
----------------------------- ----------- ----------- -----------
Headcount (permanent staff)
- Period End 646 850 950
----------------------------- ----------- ----------- -----------
H1 FY 2016 H2 FY 2015 H1 FY 2015
GBPm GBPm GBPm
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February 12, 2016 02:00 ET (07:00 GMT)
----------------- ----------- ----------- ----------- Cost of Sales 14.9 22.5 20.8 ----------------- ----------- ----------- ----------- Operating Costs 38.7 39.7 48.6 ----------------- ----------- ----------- ----------- Total costs* 53.6 62.2 69.4 ----------------- ----------- ----------- -----------
*In order to appropriately reflect the underlying movement in costs, H2 FY 2015 operating costs have been adjusted downwards by GBP3.9m and H1 FY 2015 increased by GBP3.9m in the table and narrative above. This is to remove the effect of non-recurring accrual reversals taken within FY 2015, as set out on page 9 of the 2015 Annual Report.
Two major rounds of restructuring have been undertaken during the six months ended 31 December 2015, with permanent headcount falling from 850 at 30 June 2015 to 545 in February 2016 and additionally a significant reduction in third party contract resource. As a result of this, a number of property leases have become surplus to requirements, which will result in future property cost savings. These changes in conjunction with the introduction of tighter cost controls mean that the cost base for the second half of this financial year is projected to be lower than the first half by approximately GBP3m per month.
Other Movements
Depreciation & Amortisation
Depreciation was GBP2.8m in the period (H1 FY 2015: GBP2.2m). Amortisation of GBP7.3m (H1 FY 2015: GBP10.7m) includes amortisation of acquired intangible assets of GBP5.0m and capitalised development costs of GBP1.0m.
Share-based Payments
The share-based payments charge of GBP10.4m in the period (H1 FY 2015: GBP12.1m) comprises an increase of GBP0.8m for prior business combinations, offset by a reduction of GBP2.5m in respect of the Group's share options. The reduction in relation to share options reflects the lower number of options that are expected to vest following the reduction in head count.
Exceptional costs
Net exceptional charges of GBP1.0m were recorded in the period. This net charge includes credits of GBP7.4m and charges of GBP8.4m. The credits include exceptional income of GBP5.0m in respect of an amount received in relation to a revision to a customer contract and, as a result of successful negotiations, a reduction in the estimated costs in relation to onerous contracts taken in prior periods. The charges relate to the costs of the restructuring exercise comprising principally the cost of reducing headcount and a provision for surplus property arising as a result of the restructuring.
Impairment charges
Following a reassessment of the Group's strategic plan, a further review of intangible assets has been undertaken. The result of the review is a non-cash impairment of GBP166.8m against the value of non-Cloud intangible assets held, and a further GBP3.1m impairment of other assets.
Loss Before Tax
Group loss before tax was GBP210.5m, compared to a loss in H1 FY 2015 of GBP58.4m. The increased loss was driven by the non-cash impairment charge.
Tax
The Group has accounted for a deferred tax credit of GBP5.1m in the period (H1 FY 2014: GBP1.6m), principally relating to non-cash movements on the unwinding of deferred tax recognised on acquired intangible assets.
The Group has unrecognised tax losses of approximately GBP344m which are available for offset against future taxable profits of the companies in which the losses arose. Deferred tax assets have not been recognised in respect of these losses where it is the view of the Directors that future taxable profits are not deemed probable in the short-term to offset against these losses.
Attributable Loss
The reported loss after tax for H1 FY 2016 was GBP205.4m (H1 FY 2015: GBP56.8m).
Gain/Loss on Foreign Exchange
A GBP7.6m gain was recorded in other comprehensive income in the period (H1 FY 2015 gain: GBP14.8m). This is primarily driven by the translation of dollar assets including goodwill, other intangible assets and cash in overseas subsidiaries.
Loss Per Share
The basic and diluted loss per share was 9.3p (H1 FY 2015: 2.8p).
Cash Flow and Funds
The Group ended the half year with a strong balance sheet, holding GBP53.4m of gross cash at 31 December 2015 compared to GBP88.8m at 30 June 2015. Free cash outflow was GBP30.4m, compared to GBP63.5m in H1 FY 2015. The main components of adjusted free cash outflow were capex of GBP7.5m, EBITDA loss of GBP20.2m and a negative working capital movement of GBP2.4m.
In addition to the free cash outflow the Group had net expenditure on exceptional items and onerous contracts of GBP5.9m resulting in a total cash outflow for the period of GBP36.4m.
Capital spending decreased to GBP7.5m from GBP25.9m as the Group approached the conclusion of its investment in the productisation of its technology platform. Capital spending included GBP0.6m (H1 FY 2015: GBP2.6m) of tangible asset purchases, and GBP6.8m (H1 FY 2015: GBP23.3m) of intangible asset purchases and capitalisation.
Condensed Consolidated Statement
of Comprehensive Income
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
-------------------------------------------------- ----- ------------ ------------ ----------
Revenue 4 33,359 42,402 89,700
Cost of sales (14,854) (20,768) (43,227)
-------------------------------------------------- ----- ------------ ------------ ----------
Gross profit 18,505 21,634 46,473
Operating costs before depreciation,
amortisation, impairments and share-based
payments (38,699) (52,457) (88,273)
-------------------------------------------------- ----- ------------ ------------ ----------
EBITDA 6 (20,194) (30,823) (41,800)
Depreciation, amortisation and impairments (179,986) (12,903) (119,196)
-------------------------------------------------- ----- ------------ ------------ ----------
Operating loss before share-based
payments and exceptional items (200,180) (43,726) (160,996)
Share-based payments (10,407) (12,057) (27,977)
Exceptional items 6 (980) (2,289) (34,151)
-------------------------------------------------- ----- ------------ ------------ ----------
Operating loss 5 (211,567) (58,072) (223,124)
Finance income 1,147 225 442
Finance costs (92) (315) (963)
Share of post-tax loss of joint
ventures (29) (224) (3,788)
-------------------------------------------------- ----- ------------ ------------ ----------
Loss before income tax (210,541) (58,386) (227,433)
Income tax 5,133 1,600 3,882
-------------------------------------------------- ----- ------------ ------------ ----------
Loss for the period/year attributable
to the owners of the parent (205,408) (56,786) (223,551)
Other comprehensive income that
may be reclassified subsequently
to profit or loss:
Currency translation differences
on consolidation 7,585 14,852 8,150
-------------------------------------------------- ----- ------------ ------------ ----------
Total comprehensive expense for
the period/year attributable to
the owners of the parent (197,823) (41,934) (215,401)
-------------------------------------------------- ----- ------------ ------------ ----------
Loss per share attributable
to owners of the parent during
the period/year (expressed
in pence per share):
- basic and diluted 7 (9.3p) (2.8p) (10.8p)
-------------------------------------------------- ----- ------------ ------------ ----------
The comparative figures include the effects of the finalisation
of acquisition accounting relating to prior year acquisitions
and a reclassification of service delivery costs from operating
expenses to cost of sales.
Condensed Consolidated Statement
of Financial Position
As at As at As at
31 December 31 December 30 June
2015 2014 2015
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
-------------------------------------- ----- ------------ ------------ ----------
ASSETS
Non-current assets
Property, plant and equipment 3,780 10,203 7,276
Intangible assets 8 57,126 307,027 216,273
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Investments in joint ventures 471 293 500
-------------------------------------- ----- ------------ ------------ ----------
61,377 317,523 224,049
Current assets
Trade and other receivables 23,064 43,858 27,824
Current tax assets - 59 -
Cash and cash equivalents 9 53,367 129,079 88,801
-------------------------------------- ----- ------------ ------------ ----------
76,431 172,996 116,625
-------------------------------------- ----- ------------ ------------ ----------
Total assets 137,808 490,519 340,674
-------------------------------------- ----- ------------ ------------ ----------
LIABILITIES
Current liabilities
Trade and other payables (28,030) (55,235) (34,494)
Current tax liabilities (11) (243) (24)
Provisions (16,341) (313) (14,658)
Financial liabilities 10 (1,023) (8,297) (10,036)
-------------------------------------- ----- ------------ ------------ ----------
(45,405) (64,088) (59,212)
Non-current liabilities
Deferred income and other payables (3,499) (4,289) (3,936)
Provisions (8,002) - (15,200)
Financial liabilities 10 (1,625) (501) (335)
Deferred tax liabilities (5,073) (12,688) (10,208)
-------------------------------------- ----- ------------ ------------ ----------
(18,199) (17,478) (29,679)
Total liabilities (63,604) (81,566) (88,891)
-------------------------------------- ----- ------------ ------------ ----------
Net assets 74,204 408,953 251,783
-------------------------------------- ----- ------------ ------------ ----------
EQUITY
Capital and reserves attributable
to owners of the parent
Ordinary shares 11 22,044 21,357 21,682
Ordinary shares to be issued 11 2,511 2,511 2,511
Share premium 11 383,721 383,505 383,721
Foreign exchange translation reserve 5,073 4,190 (2,512)
Other reserves 262,034 235,661 244,214
Accumulated losses (601,179) (238,271) (397,833)
-------------------------------------- ----- ------------ ------------ ----------
Total equity 74,204 408,953 251,783
-------------------------------------- ----- ------------ ------------ ----------
The comparative figures include the effects of the finalisation
of acquisition accounting relating to prior year acquisitions.
Condensed Consolidated Statement of Changes
in Equity
Share-based
Ordinary Reverse Foreign
Ordinary shares Share Merger acquisition payment Accumulated exchange
to
shares be premium reserve reserve reserve losses reserve Total
issued
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ --------- --------- -------- -------- ------------ ------------ ------------ --------- ----------
Six months to 31
December 2014
Balance at
1 July 2014 19,448 2,511 336,990 221,539 (25,321) 20,823 (182,019) (10,662) 383,309
Loss for the
period - - - - - - (56,786) - (56,786)
Other
comprehensive
income - - - - - - - 14,852 14,852
------------------ --------- --------- -------- -------- ------------ ------------ ------------ --------- ----------
Total
comprehensive
(expense)/income - - - - - - (56,786) 14,852 (41,934)
Issue of Ordinary
shares (net
of expenses) 1,613 - 45,963 - - - - - 47,576
Issue of Ordinary
shares relating
to prior year
business
combinations 214 - - 8,026 - (929) - - 7,311
Share-based
payments - - - - - 12,057 - - 12,057
Exercise of
share options 82 - 552 - - (534) 534 - 634
------------------ --------- --------- -------- -------- ------------ ------------ ------------ --------- ----------
Balance at
31 December
2014 21,357 2,511 383,505 229,565 (25,321) 31,417 (238,271) 4,190 408,953
------------------ --------- --------- -------- -------- ------------ ------------ ------------ --------- ----------
Twelve months to
30 June 2015
Balance at
1 July 2014 19,448 2,511 336,990 221,539 (25,321) 20,823 (182,019) (10,662) 383,309
Loss for the
year - - - - - - (223,551) - (223,551)
Other
comprehensive
income - - - - - - - 8,150 8,150
------------------ --------- --------- -------- -------- ------------ ------------ ------------ --------- ----------
Total
comprehensive
(expense)/income - - - - - - (223,551) 8,150 (215,401)
Issue of Ordinary
shares (net
of expenses) 1,614 - 46,014 - - - - - 47,628
Issue of Ordinary
shares relating
to prior year
business
combinations 458 - - 7,133 - (151) - - 7,440
Share-based
payments - - - - - 27,928 - - 27,928
Exercise of
share options 162 - 717 - - (7,737) 7,737 - 879
------------------ --------- --------- -------- -------- ------------ ------------ ------------ --------- ----------
Balance at
30 June 2015 21,682 2,511 383,721 228,672 (25,321) 40,863 (397,833) (2,512) 251,783
------------------ --------- --------- -------- -------- ------------ ------------ ------------ --------- ----------
Six months to 31
December 2015
Balance at
1 July 2015 21,682 2,511 383,721 228,672 (25,321) 40,863 (397,833) (2,512) 251,783
Loss for the
period - - - - - - (205,408) - (205,408)
Other
comprehensive
income - - - - - - - 7,585 7,585
------------------ --------- --------- -------- -------- ------------ ------------ ------------ --------- ----------
Total
comprehensive
income/(expense) - - - - - - (205,408) 7,585 (197,823)
Issue of Ordinary - - - - - - - - -
shares (net
of expenses)
Issue of Ordinary
shares relating
to prior year
business
combinations 357 - - 9,511 - (36) - - 9,832
Share-based
payments - - - - - 10,407 - - 10,407
Exercise of
share options 5 - - - - (2,062) 2,062 - 5
------------------ --------- --------- -------- -------- ------------ ------------ ------------ --------- ----------
Balance at
31 December
2015 22,044 2,511 383,721 238,183 (25,321) 49,172 (601,179) 5,073 74,204
------------------ --------- --------- -------- -------- ------------ ------------ ------------ --------- ----------
The comparative figures include the effects of the
finalisation of acquisition accounting relating
to prior year acquisitions.
Condensed Consolidated Cash
Flow Statement
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
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Note 2015 2014 2015
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
-------------------------------------- ----- ------------ ------------ ----------
Cash flows used in operating
activities
Cash used by operations 12 (22,321) (38,012) (50,345)
Exceptional expenses (net) (5,921) (3,669) (9,491)
Net income tax (paid)/received (29) 146 (141)
-------------------------------------- ----- ------------ ------------ ----------
Net cash used in operating
activities (28,271) (41,535) (59,977)
Investing activities
Investments in joint ventures (500) - (1,244)
Interest received 191 239 447
Purchases of property, plant
and equipment (649) (2,639) (4,135)
Purchase and capitalisation
of intangible assets (6,803) (23,288) (40,821)
-------------------------------------- ----- ------------ ------------ ----------
Investment in short-term investments (7,761) (25,688) (45,753)
Financing activities
Proceeds from issuance of ordinary
shares (net of expenses) 39 48,620 46,995
Share options and warrants
exercised 5 634 879
Interest paid (67) (110) (164)
Repayments of finance lease
liabilities (355) (138) (277)
-------------------------------------- ----- ------------ ------------ ----------
Net cash (used in)/from financing
activities (378) 49,006 47,433
-------------------------------------- ----- ------------ ------------ ----------
Net decrease in cash and cash
equivalents (36,410) (18,217) (58,297)
Cash and cash equivalents at
beginning of the period/year 88,801 146,828 146,828
Effect of exchange rate changes 976 468 270
-------------------------------------- ----- ------------ ------------ ----------
Cash and cash equivalents at
end of the period/year 53,367 129,079 88,801
-------------------------------------- ----- ------------ ------------ ----------
Notes to the Condensed Consolidated Financial Statements
1. General information
Monitise plc ('the Company'), and its subsidiaries (together
'the Group') is a cloud and digital technology group enabling
accelerated digital innovation within industries where security,
compliance and scalability are mandated. The Group is headquartered
in the UK and operates ventures in the UK, US and Turkey.
The Company is a public limited company incorporated and domiciled
in England and Wales whose shares are publicly traded on the
Alternative Investment Market ('AIM') of the London Stock Exchange.
The condensed consolidated interim financial information was
approved for issue by the Board on 11 February 2016.
This condensed consolidated interim financial information does
not comprise statutory accounts within the meaning of Section
434 of the Companies Act 2006. Statutory accounts for the year
ended 30 June 2015 were approved by the Board on 8 September
2015 and delivered to the Registrar of Companies. The Auditors'
report on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under Section 498 of the Companies Act 2006.
The condensed consolidated interim financial information is neither
audited nor reviewed by the auditors and the results of the operations
for the six months ended 31 December 2015 are not necessarily
indicative of the operating results for future operating periods.
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation
of these consolidated financial statements are set out below.
The policies have been applied consistently unless otherwise
stated. They are the same as those used in preparing the consolidated
financial statements at 30 June 2015.
2.1. Basis of preparation
The condensed consolidated interim financial information has
been prepared under the measurement principles of International
Financial Reporting Standards ('IFRS') as adopted by the European
Union ('IFRS as adopted by the EU'), using accounting policies
and methods of computation consistent, except as noted below,
with those set out in the Company's 2015 Annual Report and Accounts.
The financial statements have been prepared under the historical
cost convention, as modified, where applicable, by the revaluation
of financial assets and financial liabilities (including derivatives)
at fair value through profit or loss. As permitted by AIM rules,
the Group has not applied IAS 34 'Interim reporting' in preparing
this interim report.
Based on projections prepared of the Group's anticipated future
results, the Directors have reasonable expectations that the
Group will have adequate resources to continue in existence for
the foreseeable future. Therefore, the Directors continue to
adopt the going concern basis in preparing this financial information.
2.2. Accounting policies
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 30 June 2015, as
described in those annual financial statements.
There are currently no other new standards, amendments to standards
and interpretations that are mandatory for the first time for
the financial year beginning 1 July 2015.
The following new standards, amendments to standards and interpretations
are mandatory for the first time for the financial year beginning
1 July 2016:
Effective
date
---------------------------------------------------------------- -----------------
-- Amendments to IAS 1: "Presentation of financial 1 January
statements" on the disclosure initiative 2016
-- Amendment to IAS 16 "Property, Plant and Equipment" 1 January
and IAS 38 "Intangible assets" on depreciation 2016
and amortisation
-- Amendments to IAS 27: Equity Method in Separate 1 January
Financial Statements 2016
-- Amendment to IFRS 11 "Joint Arrangements on Acquisition 1 January
of an Interest in a Joint Operation" 2016
-- IFRS 14 "Regulatory Deferral Accounts" 1 January
2016
-- Amendment to IFRS 10, IFRS 12 and IAS 28 "Investment 1 January
Entities": Applying the Consolidation Exception 2016
-- Annual improvements to IFRSs 2012-2014 1 January
2016
-- Amendments to IFRS 10 and IAS 28: Sale of Contribution 1 January
of Assets between an Investor and its Associate 2016
or Joint Venture
-- Amendments to IAS 16 and IAS 41: Bearer Plants 1 January
2016
The Directors do not anticipate that the adoption of any of the
above standards, amendments or interpretations will have a material
impact on the Group's financial statements on initial application.
The following new standards, amendments to standards and interpretations
have been issued but will not be effective until financial years
beginning on or after 1 July 2017:
Effective
date
(subject to
EU endorsement)
---------------------------------------------------------------- -----------------
-- IFRS 15 "Revenue from Contracts with Customers" 1 January
2018
-- IFRS 9 "Financial Instruments" 1 January
2018
-- IFRS 16 "Leases" 1 January
2019
The Group is currently assessing the impact of the other standards
listed above on its results, financial position and cash flows.
The Group continues to monitor the potential impact of other new
standards and interpretations which may be endorsed by the European
Union and require adoption by the Group in future accounting periods.
3. Critical accounting estimates and judgements
The preparation of the financial statements requires the Group
to make estimates, judgements and assumptions that affect the
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reported amounts of assets, liabilities, revenues and expenses
and related disclosure of contingent assets and liabilities. The
Directors base their estimates on historical experience and various
other assumptions that they believe are reasonable under the circumstances,
the results of which form the basis for making judgements about
the carrying value of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these
estimates under different assumptions or conditions.
In the process of applying the Group's accounting policies, management
has made a number of judgements and estimations, which have been
consistent with those set out in the Company's 2015 Annual Report
and Accounts.
3.1. Revenue recognition
Revenue comprises the fair value of the consideration received
or receivable for the sale of goods and services provided within
the Group's ordinary activities, net of discounts and sales taxes.
It comprises user generated revenues, product licences and development
and integration services.
User generated revenue relates to revenue generated from all types
of end-user activity and may take various forms including per
user fees, click fees, commissions and revenue share, and includes
associated managed services. This revenue is recognised as the
services are performed.
Product licences are sales where the customer has the ability
to exploit the licenced functionality upon delivery and include
both certain term-based and perpetual licences. These licence
revenues are recognised as a sale of a good once all of the below
recognition criteria have been met:
-- the Group has transferred to the buyer the significant risks
and rewards of ownership of the licence;
-- the Group retains neither continuing managerial involvement
to the degree usually associated with ownership nor effective
control over the goods sold;
-- the amount of revenue can be measured reliably;
-- it is probable that the economic benefits associated with
the transaction will flow to the Group; and
-- the costs incurred or to be incurred in respect of the transaction
can be measured reliably.
Revenue relating to development and integration services contracted
on a time and materials basis is recognised as the services are
performed. Revenue relating to development and integration services
identified as a service contract, provided over a specified time
period, is recognised on a straight-line basis. Development and
integration service revenue delivered under a fixed price contract
is recognised on a percentage-of-completion basis, based on the
extent of work completed as a percentage of overall estimated
project cost, when the outcome of a contract can be estimated
reliably. Determining whether a contract's outcome can be estimated
reliably requires management to exercise judgement and estimates
are continually reviewed as determined by events or circumstances.
Provision is made as soon as a loss is foreseen.
Typically, a number of the above elements may be sold together
as a bundled contract. Revenue is recognised separately for each
component if it is considered to represent a separable good or
service and a fair value can be reliably established. The Group
may derive fair value for its services based on a reliable cost
estimate plus an appropriate market-based margin. Where a product
licence is included within a bundled arrangement, the residual
value of the contract is ascribed to the product licence after
a fair value has been allocated to all other components.
Amounts which meet the Group's revenue recognition policy which
have not yet been invoiced are accounted for as accrued income
whereas amounts invoiced which have not met the Group's revenue
recognition criteria are deferred and are accounted for as deferred
income until such time as the revenue can be recognised. Management
makes an assessment of the certainty of any accrued revenue amounts
in determining how much revenue to recognise.
3.2. Share-based payments
Judgement and estimation is required in determining the fair value
of shares at the date of award. The fair value is estimated using
valuation techniques which take into account the award's term,
the risk-free interest rate and the expected volatility of the
market price of the Company's shares. Judgement and estimation
is also required to assess the number of options expected to vest.
3.3. Going concern
The Directors have prepared projections of the Group's anticipated
future results based on their best estimate of likely future developments
within the business and therefore believe that the assumption
that the Group is a going concern is valid. The financial information
has therefore been prepared on the 'going concern' basis.
3.4. Development costs
The Group has capitalised internally generated intangible assets
as required in accordance with IAS 38. Management have assessed
expected contribution to be generated from these assets and deemed
that no adjustment is required to the carrying value of the assets.
The recoverable amount of the assets has been determined based
on value in use calculations which require the use of estimates
and judgements. Management reviews the assets for impairment on
a regular basis.
3.5. Impairment of assets
IFRS requires management to undertake an annual test for impairment
of assets with indefinite lives, including goodwill and, for assets
with finite lives, to test for impairment if events or changes
in circumstances indicate that the carrying amount of an asset
may not be recoverable.
Impairment testing is an area involving management judgement,
requiring assessment as to whether the carrying value of assets
can be supported by the fair value less costs to sell or net present
value of future cash flows derived from such assets using cash
flow projections which have been discounted at an appropriate
rate. In calculating the net present value of the future cash
flows, certain assumptions are required to be made in respect
of highly uncertain matters including management's expectations
of growth and discount rates. Changing the assumptions selected
by management could significantly affect the Group's impairment
evaluation and, hence, results. The Group's review includes the
key assumptions related to sensitivity in the cash flow projections.
Further details are provided in note 8.
3.6. Deferred tax
Deferred tax assets and liabilities require management judgement
in determining the amounts to be recognised. In particular, judgement
is used when assessing the extent to which deferred tax assets
should be recognised, with consideration given to the timing and
level of future taxable income.
3.7. Acquisition accounting and goodwill -
Where the Group undertakes business combinations, the cost of
acquisition is allocated to identifiable net assets and contingent
liabilities acquired and assumed by reference to their estimated
fair values at the time of acquisition. The remaining amount is
recorded as goodwill. Identifiable net assets are valued using
external valuation providers and involve an element of judgement
related to projected results. Fair values that are stated as provisional
are not finalised at the reporting date and final fair values
may be determined that are materially different from the provisional
values stated.
3.8. Fair value estimation for financial instruments
The fair value of financial instruments that are not traded in
an active market, for example over-the-counter derivatives and
contingent consideration liabilities, are estimated using valuation
techniques. Management uses judgement to select a variety of methods
and make assumptions that are based on market conditions existing
at the end of the reporting period as well as internal information
regarding a variety of probable outcomes. Holding trade receivables
and payables at their amortised cost less impairment provision
for trade receivables is deemed to approximate their fair values.
3.9. Provisions
Management uses judgement to estimate the consideration required
to settle the present obligation at the end of the reporting period,
taking into account the risks and uncertainties surrounding the
obligation.
4. Segmental information
Reportable segment
Monitise's operating segment is reported based on the information
reviewed by the chief operating decision maker for the purposes
of allocating resources and assessing performance. The Board of
Directors is the Group's chief operating decision maker.
The Board of Directors considers revenue, cost of sales, operating
costs, exceptional costs and a measure of adjusted EBITDA of the
Group as a whole when assessing the performance of the business
and making decisions about the allocation of resources. In addition,
the Board reviews revenue split by products and geographies to
assist with the allocation of resources. Accordingly, the Group
had one reportable operating segment for the year ended 30 June
2015. The operating segment derives revenues from delivering mobile
banking, payments and commerce networks worldwide. Segmental reporting
will be reviewed for the year ended 30 June 2016 in line with
changes underway in the reporting of operating segments.
Products and services 6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
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GBP'000 GBP'000 GBP'000
---------------------------------------- ----- ------------ ------------ --------
Product licences 468 4,356 11,875
Product supply and transaction
fees 17,063 16,201 33,089
---------------------------------------- ----- ------------ ------------ --------
User generated revenue 17,531 20,557 44,964
Development and integration services 15,828 21,845 44,736
---------------------------------------- ----- ------------ ------------ --------
Total Revenue 33,359 42,402 89,700
---------------------------------------- ----- ------------ ------------ --------
Product licences are sales where the customer has the ability to
exploit the licensed functionality upon delivery and include certain
term-based and perpetual licences.
5. Operating loss
This is stated after charging:
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
Note GBP'000 GBP'000 GBP'000
---------------------------------------- ----- ------------ ------------ --------
Depreciation 2,784 2,197 4,204
Impairment of property, plant
and equipment 2,630 - 1,501
Amortisation 8 7,274 10,706 20,671
Impairment of intangible assets 8 166,798 - 92,380
Impairment of investment in joint
venture 500 - 440
Share based payments 10,407 12,057 27,977
Exceptional items 6 980 2,289 34,151
---------------------------------------- ----- ------------ ------------ --------
6. EBITDA
EBITDA is defined as operating loss before exceptional items, depreciation,
amortisation, impairments and share-based payments charge.
Exceptional items comprise: 6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
GBP'000 GBP'000 GBP'000
---------------------------------------- ----- ------------ ------------ --------
Exceptional income (5,000) - -
Onerous contracts (2,382) - 28,475
Surplus property costs 2,312 - 1,817
Adjustment to contingent consideration - - 1,314
Restructuring costs 5,964 2,610 4,485
Strategic Review and corporate
development costs 86 (321) 1,945
Release of acquisition-related
liabilities - - (3,885)
---------------------------------------- ----- ------------ ------------ --------
Total exceptional items 980 2,289 34,151
---------------------------------------- ----- ------------ ------------ --------
The exceptional income relates to an amount received in respect of
a revision to a customer contract.
The charge for onerous contracts relates to those contracts under
which the unavoidable costs of meeting the obligations under the
contract exceed the economic benefit expected to be received under
it. In particular, obligations associated with a number of contracts
with a third party IT and business services provider have been provided
and have been adjusted in the current period to reflect successful
negotiation of the onerous obligations. Additionally, a number of
restructuring activities were undertaken which resulted in several
onerous property lease contracts.
Adjustments to contingent consideration reflect the recalculation
of amounts owed to former shareholders of the acquired businesses
based on performance related criteria in accordance with acquisition
related contracts.
Restructuring costs are associated with a number of restructuring
activities undertaken and principally relate to redundancy and termination
costs.
Strategic Review and corporate development costs related primarily
to professional advisor fees incurred in respect of Monitise's review
of its strategy and ownership structure announced on 22 January 2015
and costs associated with a number of corporate development projects.
The release of acquisition-related acquired liabilities relates to
the settlement of a number of historic patent claims associated with
the previous acquisition of Monitise Americas, Inc. (formerly Clairmail,
Inc.).
7. Loss per share
Basic and diluted
Basic loss per share is calculated by dividing the loss attributable
to owners of the parent by the weighted average number of Ordinary
shares in issue during the year. As the Group is loss-making, any
share options in issue are considered to be 'anti-dilutive'. As such,
there is no separate calculation for diluted loss per share.
Reconciliations of the loss and weighted
average number of shares used in the
calculation are set out below:
6 months 6 months Year
ended ended ended
31 December 31 December 30
June
2015 2014 2015
------------------------------------------ ------------ ------------ ---------------
Loss for the period/year (GBP'000) (205,408) (56,786) (223,551)
Weighted average number of shares in
issue ('000) 2,199,414 1,993,438 2,069,164
------------------------------------------- ------------ ------------ ---------------
Basic and diluted loss per share (pence) (9.3p) (2.8p) (10.8p)
------------------------------------------- ------------ ------------ ---------------
8. Intangible
assets
Purchased
Intellectual and acquired Capitalised
Customer property Acquired software development
Goodwill contracts rights technology licences costs Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- --------- ---------- ------------- ----------- ------------- ------------ --------
Cost:
As at 1 July 2014 196,394 45,694 277 26,744 16,986 36,383 322,478
Exchange differences 12,130 2,826 - 1,087 (135) 289 16,197
Additions - - 30 - 2,317 12,708 15,055
Acquisitions (4,642) 3,447 - 1,269 - - 74
Disposals - (2) - - (773) (3) (778)
---------------------- --------- ---------- ------------- ----------- ------------- ------------ --------
As at 31 December
2014 203,882 51,965 307 29,100 18,395 49,377 353,026
---------------------- --------- ---------- ------------- ----------- ------------- ------------ --------
Accumulated amortisation
and impairment:
As at 1 July 2014 1,546 7,997 222 6,936 4,164 13,846 34,711
Exchange differences - 688 - 741 (139) 67 1,357
Charge - 3,155 23 2,607 2,575 2,346 10,706
Disposals - (2) - - (773) - (775)
---------------------- --------- ---------- ------------- ----------- ------------- ------------ --------
As at 31 December
2014 1,546 11,838 245 10,284 5,827 16,259 45,999
---------------------- --------- ---------- ------------- ----------- ------------- ------------ --------
Net book value:
As at 1 July 2014 194,848 37,697 55 19,808 12,822 22,537 287,767
---------------------- --------- ---------- ------------- ----------- ------------- ------------ --------
As at 31 December
2014 202,336 40,127 62 18,816 12,568 33,118 307,027
---------------------- --------- ---------- ------------- ----------- ------------- ------------ --------
Cost:
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As at 1 July 2014 196,394 45,694 277 26,744 16,986 36,383 322,478
Exchange differences 8,536 473 - 333 (147) 179 9,374
Additions - - - - 3,051 29,611 32,662
Disposals - - - - (2,007) - (2,007)
---------------------- --------- ---------- ------------- ----------- ------------- ------------ --------
As at 30 June
2015 204,930 46,167 277 27,077 17,883 66,173 362,507
---------------------- --------- ---------- ------------- ----------- ------------- ------------ --------
Accumulated amortisation
and impairment:
As at 1 July 2014 1,546 7,997 222 6,936 4,164 13,846 34,711
Exchange differences 1 368 (1) 226 (146) 31 479
Charge - 6,601 31 5,026 3,803 5,210 20,671
Impairment 40,223 1,853 - 3,365 9,533 37,406 92,380
Disposals - - - - (2,007) - (2,007)
---------------------- -------- ------- --------- --------- ------------ ------------ ---------
As at 30 June
2015 41,770 16,819 252 15,553 15,347 56,493 146,234
---------------------- -------- ------- --------- --------- ------------ ------------ ---------
Net book value:
As at 1 July 2014 194,848 37,697 55 19,808 12,822 22,537 287,767
---------------------- -------- ------- --------- --------- ------------ ------------ ---------
As at 30 June
2015 163,160 29,348 25 11,524 2,536 9,680 216,273
---------------------- -------- ------- --------- --------- ------------ ------------ ---------
Cost:
As at 1 July 2015 204,930 46,167 277 27,077 17,883 66,173 362,507
Exchange differences 7,989 1,478 - 649 1 570 10,687
Additions - - - - 1,695 4,966 6,661
Disposals - - (13) - (1,517) - (1,530)
---------------------- -------- ------- --------- --------- ------------ ------------ ---------
As at 31 December
2015 212,919 47,645 264 27,726 18,062 71,709 378,325
---------------------- -------- ------- --------- --------- ------------ ------------ ---------
Accumulated amortisation
and impairment:
As at 1 July 2015 41,770 16,819 252 15,553 15,347 56,493 146,234
Exchange differences 1,066 747 - 458 11 141 2,423
Charge - 2,906 8 2,082 1,282 996 7,274
Impairment 157,060 7,464 - 2,200 74 - 166,798
Disposals - - (13) - (1,517) - (1,530)
---------------------- -------- ------- --------- --------- ------------ ------------ ---------
As at 31 December
2015 199,896 27,936 247 20,293 15,197 57,630 321,199
---------------------- -------- ------- --------- --------- ------------ ------------ ---------
Net book value:
As at 1 July 2015 163,160 29,348 25 11,524 2,536 9,680 216,273
---------------------- -------- ------- --------- --------- ------------ ------------ ---------
As at 31 December
2015 13,023 19,709 17 7,433 2,865 14,079 57,126
---------------------- -------- ------- --------- --------- ------------ ------------ ---------
9. Net funds
31 December 31 December 30 June
2015 2014 2015
GBP'000 GBP'000 GBP'000
---------------------------------------------------- --------- ------------ ------------ ---------
Cash at bank and in hand 53,367 129,079 88,801
Finance leases (2,648) (740) (596)
---------------------------------------------------- --------- ------------ ------------ ---------
Net funds 50,719 128,339 88,205
---------------------------------------------------- --------- ------------ ------------ ---------
10. Financial liabilities
31 December 31 December 30 June
2015 2014 2015
GBP'000 GBP'000 GBP'000
---------------------------------------------------- --------- ------------ ------------ ---------
Due within one year
Financial liabilities at fair value
through profit or loss - 8,058 9,775
Finance leases 1,023 239 261
---------------------------------------------------- --------- ------------ ------------ ---------
Financial liabilities due within one
year 1,023 8,297 10,036
---------------------------------------------------- --------- ------------ ------------ ---------
Due after one year
Finance leases 1,625 501 335
---------------------------------------------------- --------- ------------ ------------ ---------
Financial liabilities due after one
year 1,625 501 335
---------------------------------------------------- --------- ------------ ------------ ---------
Total financial liabilities 2,648 8,798 10,371
---------------------------------------------------- --------- ------------ ------------ ---------
11. Ordinary shares, share premium
and other reserves
Allotted and fully paid GBP0.01 nominal
value shares
Ordinary Share
Number shares premium
of shares GBP'000 GBP'000
---------------------------------------------------- ----------------------- ------------ ---------
As at 1 July 2014 1,944,806,182 19,448 336,990
Issue of new shares 207,269,385 2,072 47,639
Exercise of share options and warrants 16,155,869 162 717
Cost of share issue - - (1,625)
---------------------------------------------------- ----------------------- ------------ ---------
As at 1 July 2015 2,168,231,436 21,682 383,721
Issue of new shares 35,629,905 357 -
Exercise of share options and warrants 526,371 5 -
---------------------------------------------------- ----------------------- ------------ ---------
As at 31 December 2015 2,204,387,712 22,044 383,721
---------------------------------------------------- ----------------------- ------------ ---------
As at 1 July 2014 1,944,806,182 19,448 336,990
Issue of new shares 182,714,084 1,827 47,593
Exercise of share options and warrants 8,157,425 82 552
Cost of share issue - - (1,630)
---------------------------------------------------- ----------------------- ------------ ---------
As at 31 December 2014 2,135,677,691 21,357 383,505
---------------------------------------------------- ----------------------- ------------ ---------
Reconciliation
of shares issued
Ordinary
Number of Ordinary shares Share Merger
to
shares shares be premium reserve Total
issued
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- ----------------- --------- --------- ------------ ------------ ---------
As at 1 July 2014 1,944,806,182 19,448 2,511 336,990 221,539 580,488
December 2014
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