[ADVERT]
Share Name Share Symbol Market Type Share ISIN Share Description
Digitalbox Plc LSE:DBOX London Ordinary Share GB00BJK9H642 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 6.90 6.80 7.00 6.90 6.90 6.90 0.00 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Media 2.2 -0.5 -0.6 - 8

Digitalbox PLC Interim Results

28/09/2021 7:00am

UK Regulatory (RNS & others)


Digitalbox (LSE:DBOX)
Historical Stock Chart


From Sep 2021 to Oct 2021

Click Here for more Digitalbox Charts.

TIDMDBOX

RNS Number : 1328N

Digitalbox PLC

28 September 2021

28 September 2021

Digitalbox plc

("Digitalbox", the "Group" or the "Company")

Unaudited interim results for the six months ended 30 June 2021

Digitalbox plc, the mobile-first digital media business, which owns leading websites Entertainment Daily, The Daily Mash and The Tab, today publishes its interim results for six months to 30 June 2021.

The Company is also pleased to announce that it will provide a live investor presentation through the Investor Meet Company platform today at 09.30am (further details below).

Financial Highlights

   --      Group revenue of GBP1.3 million, up 37% (H1 2020: GBP1.0 million) 
   --      Gross profit of GBP1.1 million, up 61.5% (H1 2020: GBP0.7million) 
   --      Gross margin of 84% (H1 2020: 71%) 
   --      Adjusted operating profit(1) of GBP0.3 million (H1 2020: GBP0.1 million) 
   --      Profit before taxation of GBP0.1 million (H1 2020: loss of GBP0.1 million) 

-- P ositive total comprehensive income of GBP0.1 million (H1 2020: loss of GBP0.1 million) and positive basic EPS of 0.08 pence (H1 2020: loss of 0.15 pence) for the first time since readmission to AIM in February 2019

   --      Cash generated by operating activities GBP0.2 million (H1 2020: GBP0.7m) 
   --      Cash balance of GBP2.0 million as at 30 June 2021 (31(st) December 2020: GBP1.9m) 

(1.) Adjusted operating profit is stated before amortisation, depreciation, share based payment charges, direct costs associated with business combinations and capital restructure costs.

Operational Highlights

-- Increased auction competition for high-quality mobile inventory has fueled growth in session values across the portfolio

   --      Entertainment Daily session values up 43% 
   --      Entertainment Daily Interactive Advertising Bureau (IAB) ad unit prices up over 30% in Q1 
   --      The Tab website users up 15% to a total of 34 million for the period 

-- The Tab continued to generate an adjusted operating profit through every month in the period

-- The Daily Mash TV show commissioned for nine episodes in H2 2021 compared to six episodes in H2 2020

Current trading and outlook

-- Trading has remained strong since the end of H1 2021, with the positive trend in the ad market continuing alongside some very strong traffic attached to some seasonal TV shows.

-- Building on the strong trading in the first half of 2021, the Group is optimistic regarding the continued trading momentum in the second half of the year, which represents the biggest trading period for the Group.

-- Although there remains some uncertainty in the second half of 2021 due to COVID 19, the full year 2021 outcome is anticipated to be materially ahead of market consensus.

James Carter, CEO, Digitalbox plc, said: "Digitalbox's performance has exceeded our expectations amid the turbulent economic conditions of the first half of 2021, reaching profitability at profit after tax and EPS levels. This is evidence of our resilient operating model and strong management. The success is in part due to the latest addition to our stable, The Tab, validating our buy and build strategy. Our focus on mobile publishing has seen disproportionate growth in advertising revenues. With the excellent trading performance the Group experienced in the first half of the year we expect the shift in advertising budgets to mobile channels to continue and competition for audience share of voice on key platforms such as Google and Facebook to intensify. Whilst the effects of COVID 19 still injects some uncertainty, the Group is optimistic that the continued recovery in the advertising market will benefit revenue in the second half, traditionally the Group's strongest trading period ."

Investor Presentation - Investor Meet Company

Digitalbox will also provide a live investor presentation through the Investor Meet Company platform today at 09.30am. The presentation is open to all existing and potential shareholders. Questions can be submitted at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add to meet Digitalbox plc via https://www.investormeetcompany.com/digitalbox-plc/register-investor . Investors who have already registered and added to meet the Company will be automatically invited.

Market abuse regulation

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Enquiries:

 
 
   Digitalbox                                 c/o SEC Newgate 
 James Carter, CEO 
 Panmure Gordon (Nominated Advisor,         Tel: 020 7886 2500 
  Financial Advisor and Joint Broker) 
 Alina Vaskina / James Sinclair-Ford 
  (Corporate Advisory) 
  Rupert Dearden (Corporate Broking) 
 Alvarium Capital Partners (Joint Broker)   Tel: 020 7195 1400 
 Alex Davies / Hugh Kingsmill Moore 
 SEC Newgate                                Tel: 020 3757 6880 
  Robin Tozer / Isabelle Smurfit             digitalbox@secnewgate 
                                             .co.uk 
 
 

About Digitalbox plc

Based in Bath, UK, Digitalbox is a 'pure-play' digital media business with the aim of profitable publishing at scale on mobile platforms and seeks to acquire scale through its buy and build strategy.

Digitalbox operates three trading brands, "Entertainment Daily", "The Daily Mash" and "The Tab". Entertainment Daily produces and publishes online UK entertainment news covering TV, showbiz and celebrity news. The Daily Mash produces and publishes satirical news content. The Tab is the UK's biggest youth culture site fueled by students.

Digitalbox generates revenue from the sale of advertising, in and around the content it publishes. The Group's optimisation for mobile enables it to achieve revenues per session significantly ahead of market norms for publishers on mobile.

CHIEF EXECUTIVE'S Statement

Overview

In spite of the aftershocks from last year's market disruption caused by the pandemic, the performance of the Group in the first six months has been encouraging, and the market recovery has exceeded our expectations. As a result of the Group's strong operating margins, Digitalbox has reported an adjusted operating profit of GBP0.3 million, which is ahead of management expectations. Furthermore, the cash balance has increased from GBP1.9 million at 31 December 2020 to GBP2.0 million at 30 June 2021.

Operating Review

The two factors that drive revenue are the volume and value of advertising. The volume is reflected in the number of visits (or sessions) that the Group's websites receive from users that come to read our content. The value is the price paid by advertisers to reach these users during these sessions. The number of visits to the Group's websites significantly increased in the first half, in part as a result of the acquisition of the Tab. While we anticipated continued advertising uncertainty in the first quarter as a result of Brexit and the Spring lockdown, there was strong competition for high quality mobile inventory that saw session values push considerably ahead of management expectations in the first six months.

The delivery of the Group's strategy has progressed in the first six months, and the total audience has grown. Entertainment Daily, which is focused on TV and showbusiness news, had a solid six months with the number of users up 17% on the same period last year. The Daily Mash saw its traffic position normalise after the surge in the consumption of humour within the first lockdown of 2020, while the Tab user base grew by 15%. As a result, Digitalbox's total average monthly unique users for the Period rose to 14 million.

Advertisers across the market re-established their priorities in the second half of 2020 with an acceleration towards mobile advertising inventory. We were further encouraged by how the market adapted at the start of 2021. Session values across the portfolio performed ahead of internal expectations among the challenging UK environment of lockdown combined with Brexit. For example, a segment of Entertainment Daily's inventory - IAB inventory - traded at over 30% up year on year in the first quarter compared to the same pre-pandemic levels of 2020.

The Daily Mash started to develop a paid content offering at the start of the second quarter with some positive early feedback. Testing continues as we look to maintain a direct dialogue with the site's audience base. At the beginning of last year, we were disappointed to learn that the BBC wasn't going to recommission the Mash Report TV show despite its fantastic ratings performance in 2020. Subsequently, we are very pleased that the show has now been commissioned by UKTV/Dave for an Autumn 2021 run of 9 episodes under the new name of Late Night Mash.

The Tab has delivered a profit every month since it was acquired in October 2020. The editorial team have remained as engaged as ever on serving the 16-24 student-focused demographic. The commercial operations have pivoted to an automated advertising solution delivered through Digitalbox's Graphene ad stack. This approach has led the site to deliver revenue in a much more efficient manner hence the conversion of the site to a profitable model. This approach forms part of our plan when evaluating future acquisition targets.

Financial review

The Directors are pleased to report strong absolute growth in revenues with a year-on-year uplift of 37% to GBP1.3 million driven by sustained recovery from last year's market disruption and by the addition of The Tab in October 2020. On a like for like basis, excluding The Tab, revenues were flat year on year. In the first quarter, revenue was 21% down, but importantly 39% up in the second quarter. The recovery was evident.

Furthermore, gross margins are up from 71% last year to 84% this year, highlighting the high efficiency of successful digital media businesses like Digitalbox.

The business passed an important milestone in the period, reporting positive total comprehensive income and positive earnings per share for the first time since readmission to AIM in February 2019.

With adjusted operating profit of GBP0.3 million, which is the true cash-generating indicator for the business, and cash in hand of GBP2.0 million, the stage is set for the second half of the year, typically the significantly larger trading period, although there is material uncertainty surrounding the visibility of forecast revenues.

The future

Digitalbox has delivered strong results despite significant challenges presented by the aftershocks from last year's market disruptions resulting from COVID 19. This reinforces the view that the Company's continued focus on mobile content consumption is the right one and that the consumer behaviour that was accelerated by the pandemic is here to stay. Although there remains some uncertainty in the second half of 2021 due to COVID 19, the Directors expect the full year results for 2021 to be materially ahead of the current market consensus.

DIGITALBOX PLC

INTERIM CONSOLIDATED INCOME STATEMENT

for the six months ended 30 June 2021

 
                                                                      Unaudited       Unaudited           Audited 
                                               Notes                 Six months      Six months         12 months 
                                                                             to              to                to 
                                                                     30 June 21      30 June 20     31 December 
                                                                                                         20 
                                                                        GBP'000         GBP'000           GBP'000 
 Continuing Operations 
 Revenue                                                                  1,345             983             2,187 
 
 Cost of sales                                                            (219)           (286)             (529) 
                                                                     __________      __________        __________ 
 Gross profit                                                             1,126             697             1,658 
 
 Administrative expenses                                                (1,028)           (818)           (1,823) 
 Other operating income                                                       5              18                24 
                                                                     __________      __________        __________ 
 Operating profit/(loss)                                                    103           (103)             (141) 
 
 "Adjusted operating profit" being operating 
  profit before exceptional charges, amortisation 
  and depreciation                                                          294              54             305 
 Depreciation                                                              (15)            (15)              (30) 
 Amortisation                                                             (105)            (63)             (149) 
 Share based payment charge                                                (71)            (79)             (140) 
 Direct costs of business combinations                                        -               -              (98) 
 Capital restructure costs                                                    -               -              (29) 
                                                                     __________      __________        __________ 
 Operating profit/(loss)                                                    103           (103)             (141) 
--------------------------------------------  ------  -------------------------  --------------  ---------------- 
 
 Finance income                                                               1               1                 - 
 Finance costs                                                              (5)               -               (2) 
                                                                     __________      __________        __________ 
 Profit/(loss) before taxation                                               99           (102)             (143) 
                                                                     __________      __________        __________ 
 Tax charge                                                                 (8)            (31)              (48) 
                                                                     __________      __________        __________ 
 Profit/(loss) for the period from 
  continuing operations                                                      91           (133)             (191) 
 
 TOTAL INCOME/(EXPENSE) FOR THE                                              91           (133)             (191) 
 PERIOD                                                           =============   =============     ============= 
 
 OTHER COMPREHENSIVE INCOME FOR                                               -               -                 - 
  THE PERIOD 
 
 TOTAL COMPREHENSIVE INCOME/(EXPENSE) 
  FOR THE PERIOD                                                             91           (133)             (191) 
                                                                  =============   =============     ============= 
 
 
   Earnings p er share                             4 
                                                                          Pence           Pence             Pence 
 Basic EPS from continuing operations                                      0.08          (0.15)            (0.20) 
                                                                     __________      __________        __________ 
 Basic EPS from loss for the period                                        0.08          (0.15)            (0.20) 
 
 Diluted EPS from continuing operations                                    0.08          (0.15)            (0.20) 
                                                                     __________      __________        __________ 
 Diluted EPS from loss for the period                                      0.08          (0.15)            (0.20) 
                                                                     __________      __________        __________ 
 

DIGITALBOX PLC

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30 June 2021

 
                                   Share   Share Premium   Share based    Retained     Total 
                                 Capital         reserve       payment    earnings 
                                                               reserve 
                                 GBP'000         GBP'000       GBP'000     GBP'000     GBP'000 
 
 Balance at 1 January 
  2020                            21,331          29,757           181    (39,836)      11,433 
 
 Total comprehensive expense 
  for the period                       -               -             -       (133)       (133) 
 
 Issue of new shares                  16              20             -           -          36 
 
 Share based payment charge            -               -            79           -          79 
                                   _____           _____         _____       _____       _____ 
 Balance at 30 June 2020          21,347          29,777           260    (39,969)      11,415 
 
 Total comprehensive expense 
  for the period                       -               -             -        (58)        (58) 
 
 Issue of new shares                 244             956             -           -       1,200 
 
 Share issue costs                     -            (84)             -           -        (84) 
 
 Capital reduction              (20,428)        (19,500)             -      39,928           - 
 
 Share based payment charge            -               -            61           -          61 
 
                                   _____           _____         _____       _____       _____ 
 Balance at 31 December 
  2020                             1,163          11,149           321        (99)      12,534 
 
 Total comprehensive income 
  for the period                       -               -             -          91          91 
 
 Share based payment charge            -               -            71           -          71 
                                   _____           _____         _____       _____       _____ 
 Balance at 30 June 2021           1,163          11,149           392         (8)      12,696 
                                   _____           _____         _____       _____       _____ 
 
 
 

DIGITALBOX PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 June 2021

 
                                                  Unaudited                Unaudited         Audited 
                                         Notes   30 June 21               30 June 20     31 December 
                                                                                                  20 
                                                    GBP'000                  GBP'000         GBP'000 
 ASSETS 
 NON-CURRENT ASSETS 
 Property, plant and equipment                           61                       34              19 
 Intangible assets                           5       10,741                   10,185          10,839 
                                                     ______                   ______         _______ 
 TOTAL NON-CURRENT ASSETS                            10,802                   10,219          10,858 
                                                     ______                   ______         _______ 
 
 CURRENT ASSETS 
 Trade and other receivables                            951                      556           1,047 
 Cash and cash equivalents                            2,042                    1,207           1,853 
                                                     ______                   ______         _______ 
 TOTAL CURRENT ASSETS                                 2,993                    1,763           2,900 
                                                     ______                   ______         _______ 
 TOTAL ASSETS                                        13,795                   11,982          13,758 
                                                     ______                   ______         _______ 
 LIABILITIES 
 CURRENT LIABILITIES 
 Trade and other payables                               269                      351             449 
 Lease liabilities                                       28                       14               2 
 Bank loans                                              71                       -               25 
 Corporation tax payable                                 55                       70              51 
                                                    _______                  _______        ________ 
 TOTAL CURRENT LIABILITIES                              423                      435             527 
                                                    _______                  _______        ________ 
 NON-CURRENT LIABILITIES 
 Lease liabilities                                       17                        -               - 
 Bank loans                                             423                        -             465 
 Deferred tax                                           236                      132             232 
                                                    _______                  _______        ________ 
 TOTAL NON-CURRENT LIABILITIES                          676                      132             697 
                                                    _______                  _______        ________ 
 TOTAL LIABILITIES                                    1,099                      567           1,224 
 
 TOTAL NET CURRENT ASSETS                             2,570                    1,328           2,373 
                                                    _______                  _______        ________ 
 TOTAL NET ASSETS                                    12,696                   11,415          12,534 
                                                    _______                  _______        ________ 
 
 CAPITAL AND RESERVES 
  ATTRIBUTABLE TO EQUITY SHAREHOLDERS 
 Issued share capital                        6        1,163                   21,347           1,163 
 Share premium account                               11,149                   29,777          11,149 
 Share based payment reserve                            392                      260             321 
 Retained earnings                                      (8)                 (39,969)            (99) 
 
                                                    _______                  _______        ________ 
                                                     12,696                   11,415          12,534 
                                                    _______                  _______        ________ 
 
 

DIGITALBOX PLC

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 30 June 2021

 
                                                    Unaudited              Unaudited           Audited 
                                                   Six months             Six months         Period to 
                                                           to                     to 
                                                   30 June 21             30 June 20       31 December 
                                                                                                    20 
                                                      GBP'000                GBP'000           GBP'000 
 OPERATING ACTIVITIES 
 Profit / (loss) from ordinary activities                  91                  (133)             (191) 
 
 
 Adjustments for:                                                         4-4-458547 
  Tax expense                                               8                     31                48 
 Share based payment charge                                71                     79               140 
 Amortisation of intangibles                              105                     63               149 
 Depreciation on property, plant and 
  equipment                                                15                     15                30 
 Finance costs                                              5                      -                 2 
 Finance income                                           (1)                    (1)                 - 
 Taxes paid                                                 -                   (55)             (109) 
                                                        _____                  _____             _____ 
 Operating profit/(loss) before changes 
  in working capital and provisions                       294                    (1)                69 
 
 Decrease in trade and other receivables                   96                    851               518 
 Decrease in trade and other payables                   (185)                  (145)             (205) 
 
                                                        _____                  _____             _____ 
 Cash generated by/(used in) working 
  capital                                                (89)                    706               313 
                                                        _____                  _____             _____ 
 Cash generated by operating activities                   205                    705               382 
                                                        _____                  _____             _____ 
 INVESTING ACTIVITIES 
 Acquisition of subsidiary                                  -                      -             (841) 
 Cash on acquisition of subsidiary                          -                      -               269 
 Purchase of intangible assets                            (7)                      -                 - 
 Finance income                                             1                      1                 - 
                                                        _____                  _____             _____ 
 Cash generated by/(used in) investing 
  activities                                            ( (6)                      1             (572) 
                                                        _____                  _____             _____ 
 FINANCING ACTIVITIES 
 Proceeds from share issues                                 -                     36             1,236 
 Share issue costs                                          -                      -              (84) 
 Finance costs                                              -                      -               (2) 
 New loans                                                  -                      -               440 
 Loan and finance lease repayments                       (10)                   (12)              (24) 
                                                        _____                  _____             _____ 
   Cash (used in)/generated by financing                 (10)                     24             1,566 
   activities 
 
 INCREASE IN CASH AND CASH                    ---------------        ---------------   --------------- 
  EQUIVALENTS                                             189                    730             1,376 
 Cash and cash equivalents brought forward              1,853                    477               477 
                                                        _____                  _____             _____ 
 CASH AND CASH EQUIVALENTS CARRIED FORWARD              2,042                  1,207             1,853 
                                                        _____                  _____             _____ 
 Represented by: 
 Cash at bank and in hand                               2,042                  1,207             1,853 
                                                     ========               ========          ======== 
 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2021

   1.   Corporate information 

The interim consolidated financial statements of the group for the period ended 30 June 2021 were authorised for issue in accordance with a resolution of the directors on 27 September 2021. Digitalbox plc ("the company") is a Public Limited Company listed on AIM, incorporated in England and Wales. The interim consolidated financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.

   2.   Statement of Accounting policies 

2.1 Basis of Preparation

The entities consolidated in the half year financial statements of the company for the six months to 30 June 2021 comprise the company and its subsidiaries (together referred to as "the group").

The interim consolidated financial statements do not include all the information and disclosures required in the annual financial statements.

The directors are satisfied that, at the time of approving the consolidated interim financial statements, it is appropriate to adopt a going concern basis of accounting and in accordance with the recognition and measurement principles of International Financial Reporting Standards adopted for use in the European Union ("IFRS"). In reaching this conclusion the directors have considered the financial position of the Group, its cash, liquidity position and borrowing facilities together with its forecasts and projections for a period in excess of 12 months from the date of approval. In particular, the Group has reviewed the current situation with COVID 19 and produced several scenario plans assessing the impact on the Group. The directors believe that they can mitigate the risks arising from COVID 19 to ensure that the Group is able to continue to meet its liabilities as they fall due for the foreseeable future. At the reporting date the Group had GBP2.0m of cash at bank and in hand providing a strong position to support the continued and future success of the Group.

2.2 Accounting Policies

The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to all the years presented, unless otherwise stated.

The interim results announcement has been prepared in accordance with International Financial Reporting Standards ("IFRS"), International Accounting Standards and Interpretations issued by the International Accounting Standards Board as adopted by the European Union ("IFRSs") and with those parts of the Companies Act 2006 applicable to companies preparing their accounts under IFRSs. The consolidated financial statements have been prepared under the historical cost convention.

The preparation of these consolidated half year financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates in preparing these consolidated half year financial statements.

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2021

   3.   Segment Information 

The Group's primary reporting format for segment information is business segments which reflect the management reporting structure in the Group and of its core media assets.

Unaudited six months to 30 June 2021

 
                       Entertainment          The Daily            The Tab        Head Office                  Total 
                               Daily               Mash                                                   Six months 
                                                                                                          to 30 June 
                                                                                                                2021 
                             GBP'000            GBP'000            GBP'000            GBP'000                GBP'000 
 
  Revenue                        917                 95                333                  -                  1,345 
  Cost of sales                (105)               (84)               (30)                  -                  (219) 
  Admin expenses*              (221)               (39)              (142)              (435)                  (837) 
  Other operating 
   income                          -                  -                  -                  5                      5 
                    ----------------   ----------------   ----------------   ----------------   -------------------- 
  Adjusted 
   operating 
   profit/(loss)                 591               (28)                161              (430)                    294 
 
  Amortisation 
   and 
   depreciation                   -)                 -)                 -)              (120)                  (120) 
  Share based 
   payment 
   charge                         -)                 -)                 -)               (71)                   (71) 
  Finance income                  -)                 -)                 -)                  1                      1 
  Finance costs                    -                  -                  -                (5)                    (5) 
  Tax                             -)                 -)                 -)                (8)                    (8) 
                    ----------------   ----------------   ----------------   ----------------   -------------------- 
  Profit/(loss) 
   for 
   the period                    591               (28)                161              (633)                     91 
                    ----------------   ----------------   ----------------   ----------------   -------------------- 
 

Unaudited six months to 30 June 2020

 
                                      Entertainment          The Daily        Head Office                  Total 
                                              Daily               Mash                                Six months 
                                                                                                      to 30 June 
                                                                                                            2020 
                                            GBP'000            GBP'000            GBP'000                GBP'000 
 
  Revenue                                       826                156                  1                    983 
  Cost of sales                               (180)              (106)                  -                  (286) 
  Admin expenses*                             (227)               (23)              (411)                  (661) 
  Other operating income                          -                  -                 18                     18 
                                   ----------------   ----------------   ----------------   -------------------- 
  Adjusted operating 
   profit/(loss)                                419                 27              (392)                     54 
 
  Amortisation and depreciation                 (2)               (61)               (15)                   (78) 
  Share based payment 
   charge                                         -                  -               (79)                   (79) 
  Finance costs                                   -                  -                  1                      1 
  Tax                                             -                  -               (31)                   (31) 
                                   ----------------   ----------------   ----------------   -------------------- 
  Profit/(loss) for 
   the period                                   417               (34)              (516)                  (133) 
                                   ----------------   ----------------   ----------------   -------------------- 
 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2021

   3.   Segment Information (continued) 

12 months to 31 December 2020

 
                       Entertainment          The Daily            The Tab        Head Office                  Total 
                               Daily               Mash                                                      Year to 
                                                                                                         31 December 
                                                                                                                2020 
                             GBP'000            GBP'000            GBP'000            GBP'000                GBP'000 
 
  Revenue                      1,641                334                208                  4                  2,187 
  Cost of sales                (307)              (192)               (30)                  -                  (529) 
  Admin expenses*              (447)               (40)               (71)              (819)                (1,377) 
  Other operating 
   income                          -                  -                  -                 24                     24 
                    ----------------   ----------------   ----------------   ----------------   -------------------- 
  Adjusted 
   operating 
   profit/(loss)                 887                102                107              (791)                    305 
 
  Amortisation 
   and 
   depreciation                    -                  -                  -              (179)                  (179) 
  Acquisition and 
   listing 
   costs                           -                  -                  -               (98)                   (98) 
  Capital 
   restructure 
   costs                           -                  -                  -               (29)                   (29) 
  Share based 
   payment 
   charge                          -                  -                  -              (140)                  (140) 
  Finance costs                    -                  -                  -                (2)                    (2) 
  Tax                              -                  -                  -               (48)                   (48) 
                    ----------------   ----------------   ----------------   ----------------   -------------------- 
  Profit/(loss) 
   for 
   the period                    887                102                107            (1,287)                  (191) 
                    ----------------   ----------------   ----------------   ----------------   -------------------- 
 

* Admin expenses exclude share-based payment charges, amortisation, depreciation and acquisition and listing costs.

External revenue by location of customer

 
                    Six months    Six months   Year to 31 
                    to 30 June    to 30 June     December 
                          2021          2020         2020 
                       GBP'000       GBP'000      GBP'000 
 United Kingdom            572           473        1,024 
 Europe                    313           356          704 
 Rest of World             460           154          459 
                      ________      ________     ________ 
 Total                   1,345           983      ) 2,187 
                      ________      ________     ________ 
 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2021

   4.   Earnings per share 

The calculation of the group basic and diluted loss per ordinary share is based on the following data:

 
                                            Unaudited           Unaudited            Audited 
                                           Six months          Six months          12 months 
                                                   to                  to                 to 
                                           30 June 21          30 June 20        31 December 
                                                                                          20 
                                              GBP'000             GBP'000            GBP'000 
  The earnings per share is based 
   on the following: 
 
  Continuing earnings post tax 
   profit/(loss) attributable to 
   shareholders                                    91               (133)              (191) 
 
 
                                           ==========         ========= =         ========== 
  Basic Weighted average number 
   of shares                              116,332,457          91,370,626         96,425,598 
  Diluted Weighted average number 
   of shares                              116,332,457          91,699,911         96,425,598 
                                           ==========          ==========         ========== 
 
                                                pence               pence              pence 
  Basic earnings per share                       0.08              (0.15)             (0.20) 
  Diluted earnings per share                     0.08              (0.15)             (0.20) 
                                           ==========          ==========         ========== 
 
 
 

Earnings per ordinary share has been calculated using the weighted average number of shares in issue during the relevant financial periods. IAS 33 requires presentation of diluted EPS when a company could be called upon to issue shares that would decrease earnings per share or increase the loss per share. The exercise price of the outstanding share options is significantly more than the average and closing share price. Therefore, as per IAS 33 the potential ordinary shares are disregarded in the calculation of diluted EPS.

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2021

   5.    Intangible Assets 
 
 
                               Other Intangible            Goodwill   Development 
                                         Assets             arising         costs 
                                                   on consolidation 
                                                                                      Total 
                                        GBP'000             GBP'000       GBP'000   GBP'000 
 
      Cost 
      At 1 January 2021                   1,476               9,610            35    11,121 
 
      Additions                               -                   -             7         7 
                                          _____               _____         _____     _____ 
      At 30 June 2021                     1,476               9,610            42    11,128 
 
      Amortisation 
      At 1 January 2021                     247                   -            35       282 
 
      Charge for the period                 105                   -             -       105 
                                          _____               _____         _____     _____ 
      At 30 June 2021                       352                   -            35       387 
                                          _____               _____         _____     _____ 
 
      Net book value 
 
      30 June 2021                        1,124               9,610             7    10,741 
                                          _____               _____         _____     _____ 
 
      31 December 2020                    1,229               9,610             -    10,839 
                                          _____               _____         _____     _____ 
 

The other intangible assets are being amortised over a period of 7 years.

Amortisation is charged to administrative costs in the Statement of Comprehensive Income.

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2021

   6.    Share capital 
 
        Allotted, issued and                             No.             Value 
         fully paid                                                     GBP'000 
 
      Ordinary shares of 
       0.01p each                                116,332,457                       1,163 
                                 ---------------------------   ------------------------- 
      Total                                      116,332,457                       1,163 
                                               =============                ============ 
 

No shares issued in the 6-month period to 30 June 2021.

   7.    Related party transactions 

At 30 June 2021, the Group was due GBP171k (30 June 2020: GBP172k, 31 December 2020: GBP171k) from James Carter and Jim Douglas, two Directors of the company. The outstanding balance is split equally between the directors and is included within trade and other receivables. The amounts are repayable either on sale of shares by the Directors, by prior charge over the proceeds of dividends or distributions due to the directors net of tax, or by prior charge over remuneration payments in excess of a pre-determined level. Interest is charged at 0.75% per annum.

Prior to the readmission of Digitalbox plc (formerly Polemos plc) onto AIM, and its subsequent acquisition of Digitalbox Publishing Holdings Ltd, James Carter and Jim Douglas each held shares in Digitalbox Publishing Holdings Ltd. It was agreed by the then board that these shares would form the basis for their physical shareholding in Digitalbox plc once the acquisition had completed and that the loans would transfer to the plc. The loan facility from the Company was part of a package to ensure key management were sufficiently incentivised and locked into the success of the business. Where any individuals' personal bonus payment exceeds GBP100,000 in a calendar year, the excess will be used to pay down these loans. The current board of Directors view this arrangement as satisfactory and believe it has served well to incentivise management.

During the period, Integral 2 Limited charged GBP26k (30 June 2020: GBP27k, 31 December 2020: GBP57k) to the Group, a company related by virtue of David Joseph, a member of key management personnel, having control over the entity. As at 30 June 2021, GBP5k (30 June 2020: GBP5k, 31 December 2020: GBP5k) was owed to Integral 2 Limited.

During the period, the Group received revenue of GBPnil (30 June 2020: GBP2k, 31 December 2020: GBP1.5k) from Immotion Group plc, a company related by virtue of Martin Higginson being a member of key management personnel of both entities. As at 30 June 2021, GBPnil (30 June 2020: GBPnil, 31 December 2020: GBPnil) was owed to the Group.

During the period, M Capital Investment Partners (Holdings) Limited billed GBP12.5k (30 June 2020: GBP15k, 31 December 2020: GBP25k) to the Group, a company related by virtue of Martin Higginson, a member of key management personnel, having control over the entity. As at 30 June 2021, GBPnil (30 June 2020: GBP3k, 31 December 2020: GBP2.5k) was owed to M Capital Investment Partners (Holdings) Limited.

During the period, Robin Miller Consultants Limited billed GBP6k (30 June 2020: GBP9k, 31 December 2020: GBP17k) to the Group, a company related by virtue of Robin Miller, a former member of key management personnel, having control over the entity. As at 30 June 2021, GBPnil (30 June 2020: GBPnil, 31 December 2020: GBP1.7k) was owed to Robin Miller Consultants Limited.

The key management personnel are considered to be the Board of Directors, and were remunerated GBP196k in the period (30 June 2020: GBP191k, 31 December 2020: GBP382k).

The key management personnel were provided 3,008,808 share options contributing to a charge of GBP71k in the period (30 June 2020: GBP47k, 31 December 2020: GBP99k).

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2021

   8.    Seasonality 

The Group's activities are not subject to significant seasonal variation outside the normal parameters of a consumer media business.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR LRMRTMTBTBLB

(END) Dow Jones Newswires

September 28, 2021 02:00 ET (06:00 GMT)

1 Year Digitalbox Chart

1 Year Digitalbox Chart

1 Month Digitalbox Chart

1 Month Digitalbox Chart
ADVFN Advertorial
Your Recent History
LSE
DBOX
Digitalbox
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20211026 16:33:24