One Media iP Group Plc - Final Results and Notice of A.G.M

23 March 2017

One Media IP Group Plc

(“One Media” or the “Group”)

Final Results and Notice of A.G.M.

One Media iP (AIM: OMIP), the digital media content provider which exploits intellectual digital property rights around music, video and spoken word, is pleased to announce its Final Results for the year ended 31 October 2016.

Financial Highlights

• Revenue £2,045,652 (2015: £2,519,330);
• EBITDA  £242,326 (2015: £670,804);
• Operating profit £28,959 (2015: £445,312);
• Cash balances of £335,664 at 31 October 2016 (2015: £816,249), and;
• Dividends paid in year ending 31 October 2016, totalling £100,896 (2015: £100,647). The first on 20 November 2015 at 0.071p per share and on 22 July 2016 a further dividend of 0.071p per share.

Operational Highlights

• Pursuant to the Half-Year ending 30 April 2016, an interim dividend of 0.071p per share announced.

• Philip Miles appointed to the Main Group PLC board to spearhead TCAT and other OMIP technical developments.

• Nigel Smethers retires and Steve Gunning is appointed Company Secretary and Financial Controller.

• Filming of a video pilot for a new Men & Motors series to be pitched to all major broadcasters both in the UK and on the international broadcast market.

• The Group’s You Tube channels have achieved 2 billion viewed minutes to date.

• Exclusive long-term digital exploitation license agreement with HiBrow Productions on TV & music content.

• Acquired the exclusive ownership to the Owl Music Catalogue on a complete buy-out basis.

One Media CEO & Chairman, Michael Infante, commented

“Our continued fall in turnover and profitability continues to challenge the Group. Brexit and the Sterling drop have not helped us in the year under review.. We are improving the way we market the Group’s new activities which have broadened over the last year, all of which are more clearly defined on the Company’s new web sites. As our Technical Copyright Analysis Tool (TCAT) develops we will become much more than just an audio-visual content business. We intend this technology (TCAT) to meet the changes that we have outlined over the last year by becoming a supplier of ‘data intel’ to the music industry. The shifting audio market continues to take its toll on our audio content sales but as the shift in monetising our music from downloading to streaming gains further traction we anticipate a levelling and repositioning looking ahead. We remain profitable with an EBITDA of £242,000 on a turnover of £2.05m maintaining a gross margin of 44.3%. The uplift in our video viewing on YouTube progresses and our channel management is encouraging with approximately 2 billion minutes of video being viewed from our 25 You Tube channels since 2013. Streaming in both video and audio is now the dominant force with ‘subscription’ and ‘ad-funded’ revenue models. We have entered a different world of music sales, which continues to challenge our previous monetisation model.  My confidence however is high, as this shift comes as no surprise to the Group, as stated previously.  Streaming delivers a continued revenue source on every ‘play’ of the Group’s content. In other words, we generate revenue every time a consumer listens to our music. With the growth of digital stores like Spotify and Apple Music opening new territories globally, this will be good for us in the long term. Previously, when a track was downloaded we received a ‘one off’ payment, with streaming we receive payment every time the recording is played, effectively a digital pension.

The report of the auditor in the Report and Financial Statements for the year ended 31 October 2016 is unqualified and the results announcement can be viewed on the company’s website, http://www.onemediaip.com/, with effect from Wednesday 23 March 2017. Notice of the Annual General Meeting, to be held at 11.00 a.m. on Friday 21 April 2017 will be posted to shareholders on or by Thursday 30 March 2017.

For further information, please contact:

One Media IP Group Plc
Michael Infante	Chairman and Chief Executive Tel: [phone]
Alice Dyson-Jones	Corporate Communications Tel: [phone]
Cairn Financial Advisers LLP	Nominated Adviser
Liam Murray / Jo Turner	Tel: [phone]
Panmure Gordon (UK) Ltd	Broker
Karri Vuori	Tel: [phone]

 

CEO & Chairman’s Statement

If I am in danger of beginning to sound like a worn out record that is being played at 45 rpm to 33 rpm then I fully admit maybe I am. No CEO & Chairman can take pleasure in reporting negative growth and receding profit especially one so invested. This is a storm. And not one for the faint-hearted investor that wants instant results. But continue to invest I do. My time, money and my enthusiasm.

So why the drop?

I have spoken in my previous statements about the ‘long term’. Who is in charge of the ‘long term’ and how can I speed up the change and what do I mean by ‘long term’. The definition of ‘long-term’ according to an online dictionary is “evolving, maturing after, or being in effect for a long term” it does not state a period of time. A long-term mortgage can be greater than 25 years, a long-term marriage can suffer an ‘itch’ after 7 years! I am pleased to say that my long-term plans reflect neither of these two time scales.

The drop was expected and predicted and indeed outlined by a Panmure Gordon’s ‘brokers note’ at the beginning of the year under review. Unfortunately, currency issues and Brexit have added to our pain, as we do after all pay royalties on a US Dollar basis. Currency is a big part of our world as dealing in over 120 territories globally everything ends up getting converted to US dollars and then back to British Sterling, even our UK sales. Our royalty Advance-recouping process (monies received in US dollars from our US based distributor) has contributed largely to us incurring a foreign exchange loss of £59,081. In addition, we have made cautious provisions for some non-material bad debts and carried the expense of employee change with the associated costs.

At the end of calendar year 2016 the music industry proudly announced that it was on the mend. Global figures stated by the British Phonographic Industry (BPI) saw a rise to $15bn in global sales. Let’s not forget that back in 2002 (pre digital monetisation) this was $42bn. Of course this figure was entirely based on the physical medium of CD and cassettes being manufactured and distributed for every track of music sold. Now digital sales are outselling physical for the first time with 55% of UK sales in digital format. Physical sales have been given a boost by the occasional flash back to nostalgic vinyl LPs in which you are being led to believe is a ‘new musical coming’. I will believe that when I see a record player in every new Tesla sold.

My market overview below will provide a greater in-depth look at the state of the global music market.

Our acquisition program has definitely slowed by design. We have signed several new deals and renewed certain exclusive licenses that have come up for review. We are renewing deals in line with digital store policy to meet the ever-increasing quality assurance store guidelines as laid down by our primary retail partners. The Group is well equipped to meet the meticulous ‘meta-data’ requirements carried out by our team of Creative Technicians with whom the Group trains in all the best practices of digital ingestion. We maintain our corporate YouTube partner accreditation for which our team participate in an annual exam to remain current and accredited.

On YouTube, our content has exceeded 2 billion minutes of all time viewing. This (ad-funded) business model continues to grow for the Group. Our Creative Technicians are all trained in YouTube best practices to grow this emerging content exploitation and monetisation.

Being based at Pinewood Studios we continue to focus on exploiting our music on both TV and film.  In the year under review our music has featured in TV shows such as ‘Mozart of the Jungle’, ‘Agents of Shield’, ‘Sleepy Hollow’, ‘The Discovery’, ‘Code Black’, ‘Nashville’, ‘Pure Genius’, ‘Falling Water’ and ‘Westworld’ to name just a few.

During the year under review TCAT (Technical Copyright Analysis Tool) has seen us continue investment in developing the ‘Software as a Service’ (SAAS) tool. It has been presented to a careful selection of major record labels and trials continue. The evolution of this software is gradual and the Group is now dedicating further financial resource and personnel to its continued development. We have identified initial client requirements during the last year, working with and testing TCAT with a few chosen major labels. We have made significant advances in TCATs ability to ‘crawl’ music sites and handle millions of lines of data, which is expanding its role as a tool for the music industry. We have produced a trade video for the purpose of demonstration, which outlines the many facets that TCAT can offer. The TCAT service is we believe, both unique and a first. Copyright control on legitimate digital stores has been widely overlooked by the industry with all eyes on global piracy, which is an ever-moving target. We have chosen to create a tool that focuses on content policing and auditing on the most popular legitimate stores such as iTunes, Apple Music and Spotify. During 2017 & 2018 the Group will continue with its chosen major label partners to test TCAT’s services. I will keep you informed as to further developments as the Group pioneers ground breaking data research to further TCAT’s future as a copyright control and audio exploitation analysis tool. Full details of this service can be found at http://www.tcat.media/.

Financial Overview

This has been, as predicted, a difficult year for us and as a consequence we have seen our revenue fall  with a final reported figure of £2,045,652, a decrease of 18.8% on the £2,519,330 from last year, but in line with market expectation.  Despite the decline in revenue we have been able to hold our gross margins at 44.3%, 7.0% behind 2015. Operating profit before tax is reported at £28,959, compared to the equivalent 2015 figure of £445,312. Aware of the fall in revenue we have kept strict control of our overheads, reporting at £876,742 and achieving a minimal increase of £29,925 on the £846,817 reported for 2015. This was achieved despite incurring a foreign exchange loss of £59,081 down £36,527 on the 2015 figure of £95,608. This demonstrates the operational leverage within our business whilst maintaining tight control of administrative costs.

A profit after tax attributable to equity shareholders of £62,871 is reported for the financial year. Down from the £356,738 in 2015 and due to the combined effects of the revenue fall and reduced margin. The corporation tax credit of £32,852 in the period (2015: charge of £92,031) is mainly as a result of the Research and Development allowances available to the Group (£38,812 prior year and £43,200 current year) and fixed asset timing differences, meaning a deferred tax liability of £5,960 has been recognised.

EBITDA, calculated on profit from continuing activities before interest, tax, depreciation and amortisation is £242,326 (2015: £670,804).

At the end of the year our cash position is reported at £335,664 (2015: £816,249). Due to the uncertainties in our business, mentioned elsewhere in this report, we have been careful over the investment in content and rights with this year showing a spend of only £280,176, reduced from the £325,568 for 2015. However, we maintained our dividend policy with total dividends virtually unchanged at £100,896 (2015: £100,647).

We continue to operate a steady, considered approach with our acquisition programme. We will broaden our search for IP content and technical development, considering forums, avenues and methods of exploitation outside of the traditional music platforms.

Content Update and Rights Acquisition

We continue to make content acquisitions and strategic distribution deals. As we have in the audio business we look to acquire legacy content in the video market. This is a ‘fit’ with our growing YouTube channel initiative.

On the 15 March 2016 we entered an exclusive digital exploitation agreement with the "Associated Rediffusion Television, Archive footage of 1954 to 1968” controlled by Archbuild Ltd.  The distribution agreement includes thousands of hours of television footage, broadcast by Rediffusion from the 1950s through to the 1960s. 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 broadcast 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 TV 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 and over a hundred of 'one-off' documentaries from the time period including, the Ideal Home, The Queens 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 name just a few selected titles. It is a vast historic collection of TV history memorabilia. The library is archived with the British Film Institute (BFI) and we have been in active discussions as to how we best digitally transpose this most historical collection from their original format into a digital format for distribution.

On the 28 June 2016 we entered an exclusive long-term digital exploitation license agreement with HiBrow Production's TV & music catalogue for an Advance of £21,000 ($26,000 USD) recoupable against future royalties.  The film director Don Boyd founded Hibrow Productions in 2008. It gathered a wide eclectic range of prestigious professionals from within the international arts industries (the Hibrow 'Curators') in order to create high quality arts content. The company's experienced film-making teams have produced over 200 hours of original 'high-definition' broadcast quality digital videos featuring numerous internationally acclaimed artists, authors, Hollywood actors, dancers, choreographers, conductors, musicians, directors and designers. It has enjoyed successful associations and partnerships with broadcasters including the BBC and Sky Arts where its content was regularly broadcast.  One Media will further exploit the Hibrow content primarily via its digital audio and video routes to market such as YouTube, Amazon and its 600 digital stores such as iTunes, Spotify, Deezer and Google Play.

On the 24 August 2016 we acquired the exclusive rights and ownership to the Owl Music Catalogue on a complete buy-out basis for €21,000 (twenty one thousand Euros). The Owl catalogue comprises of over 1,100 original Irish folk and Celtic music recordings. The tracks have been marketed by One Media since 2008 on a royalty sharing basis. Owl Records, was established in 1997. It developed a diverse catalogue of over 90 albums, mainly in the Celtic folk, traditional and new age genres. Original percussive arrangements of best-loved classical compositions are also included in the catalogue. There is additionally a varied range of Christmas albums. Unique to the catalogue is the 'Counties of Ireland' series, a 350 strong collection of songs drawn from the 32 counties of Ireland. Dagda's four Celtic new age albums spent over 100 weeks in the American New Age radio charts and provided the trailer sound track for an Oscar winning film. Their only dance album is 'Raverdance ­Celtic Clubland'. Rob Strong, father of Commitments star Andrew Strong has two albums in the catalogue which also includes some childrens' story collections. Each of Owl's six Mystical Ireland albums reached gold or platinum status in Ireland. Artists include Owl's founder and director Reg Keating, who is also the man behind Dagda, soul singer Rob Strong, popular Irish crooner Sonny Knowles, New Ireland Orchestra and balladeer/troubadour Tom Donovan. All Owl recordings were produced in its own studio in Ireland.

Synchronisation, the placing of music in films, TV shows and video, has seen an increasing number of ‘tune placings’ over the last year. We have been successful in placing music from our own library, and that of our strategic partners, in some high profile broadcast opportunities, including adverts for BMW and Toyota. From the world of TV and Film, we have had placings in the Minions Movie, a track in the American series ‘Nashville’, ‘The Messengers’, ‘The Originals’, ‘Flash’, ‘Stereotypically You’, ‘Anitra's Dance’, ‘Looking’ and a show on Fox/FX Networks called ‘Wayward Pines’ among many others. Monetising music through Film & TV is a strong way to get our content noticed and it assists in our digital exploitation opportunities via music stores, especially if the tracks are relatively unknown.

The Men and Motors TV content that we acquired from Granada/ITV has continued to be exploited via YouTube and some minor third party licensing. During the year under review the Group invested a further £25,000 in the preparation of a new TV format trailer. In October 2016, we attended the Mip Com exhibition to present our newly formatted vision for a new Men & Motors TV show to broadcasters. Continued interest is expressed and any deals will be announced as they occur. Additionally we continue to offer the 3,400 archived shows to potential broadcast partners running legacy channels. Men & Motors now has over 70,000 subscribers and receives circa 500,000 views a week on its dedicated YouTube channel operated by the Group and is monetised via ad-funded revenues. We remain positive that the brand has value and will suit broadcast in the future.

Market Overview

The British Phonographic Industry (BPI) stated that underlining the growing ascendancy of streams as the format of choice for many fans, December 2016 witnessed the key milestone of one billion UK based audio streams taking place for the first time in a single week. To set this growth in context, weekly streams totalled less than 200 million at the start of 2014.  As a result of this dramatic increase, audio streaming now accounts for well over a third (36.4 per cent) of all UK music consumption. Downloaded albums and singles continued their downward trend as streaming takes over as the main digital platform, now accounting for just over a fifth (22.6 per cent) of music consumption volume in the UK.

The International Federation of the Phonographic Industry (IFPI) reported that digital sales now contribute 45 per cent of the global industry revenue, this has overtaken physical's 39 per cent market share. Streaming revenues globally are up 45.2 per cent, helping to drive 3.2 per cent global growth. The global music market achieved a key milestone in 2015 when digital became the primary revenue stream for recorded music, overtaking sales of physical formats for the first time. This growth of 3.2 percent led to the industry's first significant year-on-year growth in nearly two decades, taking revenue to US$ 15.0 billion. Digital revenues now account for more than half the recorded music consumed in 19 markets. However, The IFPI reports that there is a fundamental weakness underlying this recovery. Music is being consumed at record levels, but this explosion in consumption is not returning a fair remuneration to artists and record labels at this time. This is because of a market distortion resulting in a "value gap" which is depriving artists and labels of a fair return for their work. Streaming remains the industry's fastest-growing revenue source. Helped by the spread of smartphones, increased availability of high-quality subscription services and connected fans migrating onto licensed music services, streaming has grown to represent 19 per cent of global industry revenues, up from 14 per cent in 2014. Streaming now accounts for 43 per cent of digital revenues and is close to overtaking downloads (45 per cent) to become the industry's primary digital revenue stream. Premium subscription services have seen a dramatic expansion in recent years with an estimated 68 million people now paying a music subscription where available. This figure is up from 41 million in 2014 and just eight million when data was first compiled in 2010.

So when I talk of the long-term, we are amidst the change that will see a return to value moving forward as the market continues to shift to streaming. This is a global market with currently over 3.2 billion people now using the Internet via all routes of connection whether mobile or static according to the United Nations agency that oversees international communications.

Employees

Our headcount as of 31 October 2016 was 13 including all executive and non-executive directors (Group and Subsidiaries) and one technical consultant. The Group would like to thank all the directors and staff for their hard work during the year under review. The board will be undertaking a strategic review to ensure that the correct skill sets are in place in line with the changing trends of the market.

Litigation

In May 2015 the Group announced it had filed proceedings in the USA pursuant to its belief that its music rights had been exploited without authorisation. The Nashville Court ruled in the Group’s favour with regard to the actions by HHO Licensing Ltd, Henry Hadaway Organisation Ltd and Henry Hadaway personally. One Media announced that this litigation was concluded. On 17 September 2015 the Federal Court in Nashville Tennessee issued a judgment in the sum of $781,846 USD against Henry Hadaway, HHO Licensing Ltd and Henry Hadaway Organisation Ltd (which includes costs of $9,929 USD) for the wilful infringement of 1,466 recordings from the Point Classics catalogue owned exclusively by One Media. On the 7 February 2017 after an application from the Hadaway defendants the Group was informed that the Nashville Court had retracted its jurisdiction over the Hadaway defendants and vacated its judgement. The Group has therefore decided to return the monies received to date from the original Nashville judgement to  HHO Licensing Ltd, Henry Hadaway Organisation Ltd and Henry Hadaway pending an appeal. The Group will consider its position and issue a statement once it has further reviewed the situation.

Outlook

We have a continued period of change ahead of us as the remodelling from downloading to streaming revenues fully matures. I look forward to us developing our new technical initiatives and monetising them.   In addition, I believe that the market will begin to perceive us as more than just an audio distribution content business. Our video, brands and technical creativeness will be playing a greater role for the Group in the future. They say you have to move with the times, our challenge is to move ahead of the times. This we can do. We will be strengthening, investing and marketing certain Group activities during 2017. This is to align us with the changing landscape and to make the Group better understood within the space that we occupy. My team of directors and I remain committed to delivering value and will continue to meet the challenges that our industry faces. Thank you for your continued support.

Michael Infante JP
Chairman and CEO
23 March 2017

Consolidated Statement of Comprehensive Income
For the year ended 31 October 2016

			Year ended  31 October 2016		Year ended  31 October 2015
			£		£
Revenue			2,045,652		2,519,330
Cost of sales			(1,139,951)		(1,227,201)
Gross profit			905,701		1,292,129
Administration expenses			(876,742)		(846,817)
Operating profit			28,959		445,312
Finance income			1,060		3,457
Profit on ordinary activities before taxation			30,019		448,769
Tax credit / (expense)			32,852		(92,031)
Profit for period attributable to equity shareholders and total comprehensive income for the year			62,871		356,738
Basic earnings per share			0.09p		0.50p
Diluted earnings per share			0.08p		0.47p

The Consolidated Statement of Comprehensive Income has been prepared on the basis that all operations are continuing activities.

Consolidated Statement of Changes in Equity
For the year ended 31 October 2016

	Share Capital	Share redemption reserve	Share premium	Share based payment reserve	Retained earnings	Total equity
	£	£	£	£	£	£
At 1 November 2014	353,518	239,546	1,452,895	21,215	1,091,911	3,159,085
Proceeds from the issue of new shares	1,750	-	4,750	-	-	6,500
Share based payment charge	-	-	-	22,282	-	22,282
Profit for the year	-	-	-	-	356,738	356,738
Dividends	-	-	-	-	(100,647)	(100,647)
At 1 November 2015	355,268	239,546	1,457,645	43,497	1,348,002	3,443,958
Share based payment charge	-	-	-	30,943	-	30,943
Profit for the year	-	-	-	-	62,871	62,871
Dividends	-	-	-	-	(100,896)	(100,896)
At 31 October 2016	355,268	239,546	1,457,645	74,440	1,309,977	3,436,876

As detailed in note 15 Share capital the following transactions were undertaken:

For the year ending 31 October 2015:

• On 12 May 2015 one employee exercised options on 100,000 ordinary shares of 0.5p each at 2.75p per share. The difference between the total consideration received of £2,750 and the nominal value of the shares issued of £500 has been transferred to the share premium account.

• On 27 July 2015 an employee exercised their right to convert 250,000 1.5p warrants in ordinary shares of 0.5p each. The difference between the amount raised of £3,750 and the nominal value of the shares issued of £1,250 has been transferred to the share premium account.

 

Consolidated Statement of Financial Position at 31 October 2016

			At 31 October 2016		At 31 October 2015
			£		£
Assets
Non-current assets
Intangible assets			3,394,134		3,323,323
Property, plant and equipment			6,452		8,017
			3,400,586		3,331,340
Current assets
Trade and other receivables			463,574		440,252
Cash and cash equivalents			335,664		816,249
Total current assets			799,238		1,256,501
Total assets			4,199,824		4,587,841
Liabilities
Current liabilities
Trade and other payables			756,988		1,143,883
Deferred tax			5,960		-
Total liabilities			762,948		1,143,883
Equity
Called up share capital			355,268		355,268
Share redemption reserve			239,546		239,546
Share premium account			1,457,645		1,457,645
Share based payment reserve			74,440		43,497
Retained earnings			1,309,977		1,348,002
Total equity			3,436,876		3,443,958
Total equity and liabilities			4,199,824		4,587,841

Consolidated Cash Flow Statement
For the year ended at 31 October 2016

	Year ended  31 October 2016 Group		Year ended  31 October 2015 Group		Year ended  31 October 2016 Company		Year ended  31 October 2015 Company
	£		£		£		£
Cash flows from operating activities
Operating profit before tax	30,019		448,769		262,899		280,657
Amortisation	209,365		216,989		-		-
Depreciation	4,002		8,503		-		-
Share based payments	30,943		22,282		30,943		22,282
Finance income	(1,060)		(3,457)		(174)		(765)
Decrease/(increase) in receivables	(23,320)		77,003		(276,743)		(362,391)
Increase/(decrease) in payables	(290,186)		(734,154)		4,509		(4,575)
Corporation tax paid	(57,900)		(17,686)		-		-
Net cash inflow(outflow) from operating activities	(98,137)		18,249		21,434		(64,792)
Cash flows from investing activities
Investment in intellectual property rights	(280,176)		(325,568)		-		-
Investment in property, plant and equipment	(2,436)		(5,208)		-		-
Finance income	1,060		3,457		174		765
Net cash used in investing activities	(281,552)		(327,319)		174		765
Cash flows from financing activities
Proceeds from the issue of new shares	-		6,500		-		6,500
Share issue costs	-		-		-		-
Dividends paid	(100,896)		(100,647)		(100,896)		(100,647)
Net cash inflow(outflow) from financing activities	(100,896)		(94,147)		(100,896)		(94,147)
Net change in cash and cash equivalents	(480,585)		(403,217)		(79,288)		(158,174)
Cash at the beginning of the year	816,249		1,219,466		110,771		268,945
Cash at the end of the year	335,664		816,249		31,483		110,771

Notes to the Preliminary Results

Basis of preparation

The Company is a public limited company incorporated and domiciled in England under the Companies Act 2006. The board has adopted and complied with International Financial Reporting Standards (IFRS) as adopted by the European Union. The Company’s shares are listed on the AIM Market (a share trading platform of the London Stock exchange).

Taxation

			Year ended  31 October 2016		Year ended  31 October 2015
			£		£
Analysis of the charge for the year
Adjustments to tax charge in respect of prior years			(38,812)		(5,801)
UK corporation tax charge			-		97,832
Deferred tax			5,960		-
			(32,852)		92,031

The standard rate of tax for the year, based on the UK standard rate of corporation tax is 20% (2015: 20%). The actual tax charge for the periods is different than the standard rate for the reasons set out in the following reconciliation:

Reconciliation of current tax charge			Year ended  31 October 2016		Year ended  31 October 2015
			£		£
Profit on ordinary activities before tax			30,019		448,769
Tax on profit on ordinary activities at 20% (2015: 20%)			6,004		89,754
Effects of:
Non-deductible expenses			8,942		8,954
Adjustments to tax charge in respect of previous periods			(38,812)		(5,801)
Fixed asset timing differences			34,499		-
Depreciation in excess of capital allowances			(285)		3,174
Share scheme deduction			-		(4,050)
Research and development			(43,200)		-
Total tax (credit) / charge			(32,852)		92,031

Earnings per share     

The weighted average number of shares in issue for the basic earnings per share calculations is 71,053,698 (2015: 70,817,534) and for the diluted earnings per share assuming the exercise of all warrants and share options is 77,035,890 (2015: 75,595,068).

The calculation of basic earnings per share is based on the profit for the period of £62,871 (2015: £356,738). Based on the weighted average number of shares in issue during the year of 71,053,698 (2015: 70,817,534) the basic earnings per share is 0.09p (2015: 0.50p). The diluted earnings per share is based on 77,035,890 shares (2015: 75,595,068) and is 0.08p (2015: 0.47p).

EBITDA

Profit from continuing activities before interest, tax, depreciation and amortisation for the twelve months ended 31 October 2016 was £242,326 (2015: £670,804).

Directors’ responsibilities

The Annual Report, including the financial information contained therein, is the responsibility of, and was approved by the directors on 22 March 2017.

Availability of Report and Accounts and Notice of the Annual General Meeting

Copies of the Company’s Report and Accounts together with the Notice of the Annual General Meeting, to be held at 11.00 a.m. on Friday 21 April 2017 will be posted to shareholders on or by Thursday 30 March 2017. Copies of the Company’s Report and Accounts will also be available at the registered office of the Company and can be viewed on the company’s website, http://www.onemediaip.com/.

623 East Props Building

Pinewood Studios

Pinewood Road

Iver Heath

Buckinghamshire

SL0 0NH

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