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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Mirada Plc | LSE:MIRA | London | Ordinary Share | GB00BK77QQ18 | ORD 100P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.55 | 0.10 | 3.00 | 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
TIDMMIRA
RNS Number : 1487T
Mirada PLC
16 July 2020
Prior to publication, certain information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.
16 July 2020
Mirada plc
("Mirada", the "Company" or the "Group")
Final results for the year ended 31 March 2020
Mirada plc (AIM: MIRA), a leading provider of integrated software and solutions for Digital TV operators and broadcasters, announces its final results for the year ended 31 March 2020.
Financial Highlights
-- Revenue increase of 7% to $13.16 million (2019: $12.32 million). Excluding Mirada Connect (sold in July 2019), revenue increased 13% to $12.96 million (2019: $11.49 million).
-- Adjusted EBITDA (as defined in Note 6 below) increased 207% to $2.50 million (2019: $0.81 million).
-- Gross profit increased 9% to $12.48 million (2019: $11.47 million).
-- Mirada Connect Ltd sold in July 2019 for GBP2.12m (equivalent to $2.61m) providing a one-off net gain of $1.7m.
-- Net profit increased to $0.59 million (2019: loss of $3.11 million).
-- Net debt at 31 March 2020 increased to $5.05 million (2019: $4.86 million). See note 20 for further details.
-- New EUR1.30 million credit facility granted by Leasa Spain, S.L.U.
Operational Highlights
-- Successful development of Mirada's Android TV custom launcher, resulting from close collaboration with Google and izzi Telecom. This will increase Mirada's pipeline by adding Android TV projects.
-- Integration of Netflix within Mirada's Iris multiscreen product and deployment in izzi Telecom's pay TV platform.
-- Deployment of Iris multiscreen licences over new segments of subscribers at izzi Telecom, reaching 2.8 million STBs (Set-Top-Boxes) installed by March 2020.
-- Contract win with Plataforma Multimedia de Operadores in Spain in September 2019, with potential to become Mirada's largest European deployment to date.
-- Successful transition to remote working due to COVID-19 without operational disruption.
Commenting on the outlook for the Group, Jos é Luis V á zquez, CEO of Mirada, said:
"Despite the uncertain impact of COVID-19, Mirada's financial position is continuously improving, reinforced by the support of its largest shareholder. Together, these factors have led to an improved commercial performance, with participation in multiple deals which, combined with the growing pipeline, provide confidence in the Company's ability to secure more contract wins in the coming years."
Annual Report and Accounts
The Company's Annual Report and Accounts are available on the Company website, www.mirada.tv and will be posted to shareholders in the next few weeks, along with notice of the Annual General Meeting.
Enquiries:
Mirada plc +44 (0) 207 868 2104 José Luis Vázquez, Chief Executive investors@mirada.tv Officer Gonzalo Babío, Finance Director Newgate Communications +44 (0) 207 653 9850 Bob Huxford mirada@newgatecomms.com Tom Carnegie Allenby Capital Limited (AIM Nominated Adviser & Broker) Jeremy Porter / Liz Kirchner (Corporate Finance) Guy McDougall (Sales & Corporate Broking) +44 (0) 203 328 5656
About Mirada
Mirada is a leading provider of products and services for Digital TV Operators and Broadcasters. Founded in 2000 and led by CEO José Luis Vázquez, the Company prides itself on having spent almost 20 years as a pioneer in the Digital TV market. Mirada's core focus is on the ever-growing demand for TV Everywhere for which it offers a complete suite of end-to-end modular products across multiple devices, all with innovative state-of-the-art UI designs.
Mirada's products and solutions, acclaimed for unparalleled flexibility and optimal time to market, have been deployed by some of the biggest names in digital media and broadcasting including Televisa, Telefonica, Sky, Virgin Media, BBC, ITV and France Telecom. Headquartered in London, Mirada has commercial representation across Europe, Latin America and Southeast Asia and operates technology centres in the UK, Spain and Mexico. For more
information, visit www.mirada.tv
Chief Executive Officer's Report
Overview
We present the Group's financial results for the year ended 31 March 2020. The year ended during a global pandemic, which is still with us today and continues to have devastating effects across the world. Our thoughts and prayers are with all those affected.
For Mirada, even discounting the one-off effect of the disposal of the non-core parking payment activities of Mirada Connect, last year saw a significant improvement financially, operationally, and commercially. Despite having incurred an operating loss of $1.36m (2019: $2.91m), the Company's performance has dramatically improved over the past 12 months, with remarkable growth in adjusted EBITDA. Operationally, the Group has been able to augment itself to fully deploy its flagship Iris solution across different markets. Commercially, Mirada has benefited from the references provided by its prior successful deployments, which have reinforced the Group's presence and credibility in the market.
The main highlights for the year were the integration with Netflix, our new contract win with PMO (Plataforma Multimedia de Operadores) in Spain, and the sale of Mirada Connect, among others. These provide further proof of the quality of our solution and are important steps forward in achieving a greater market footprint and solid financial stability. In addition, we have a growing proportion of recurrent revenues from present customers, and confidence that our operational skills will enable us to continue to deliver for our customers. We therefore view the year ahead with cautious optimism, despite the uncertainties of the present health and economic environment.
Trading Review
This was the first year the Group's sole focus was on its main area of business, the Digital TV sector. In July, the mobile payments for parking division, Mirada Connect, was acquired by PayByPhone, a subsidiary of Volkswagen Financial Services, for a consideration of GBP2.12 million, representing a one-off gain in profit of approximately $1.7 million for the Group. This was an important and positive development for the Company, allowing it to reinforce the balance sheet and to focus the management on the core Digital TV business. Mirada's main product, the Iris platform, continued to gain traction across its installed customer base and the Company was successful in winning new customers during the year. The Company has continued deploying its business model, to benefit from the growth of its customers, and we are pleased to see how our customers' subscriber bases using Mirada's products continue to grow.
Within our largest customer, izzi telecom, based in Mexico, the use of our technology continues to grow rapidly, with more than 2.8 million Linux-based set-top boxes (STBs) deployed at the end of the fiscal year in approximately 1.5 million households. Significantly, more than 1 million households are now using izzi's over-the-top (OTT) product (based on mobile devices and web browsers) supplied by Mirada. While the customer adoption of Mirada's products remains high, there is still a large part of izzi's installed base to cover, as it has in excess of 4.2 million pay TV customers, representing more than 8 million STBs, and our expectation is that nearly two thirds of the installed base will still need to be replaced with Mirada's technology.
During the year, Mirada has also been focused on deploying the next-generation service at izzi, based on Android TV technology, which is likely to become the largest Google-based set-top box deployment in the Americas to date.
Regarding ATN International, our Atlanta-based customer with a footprint in the Caribbean and mainland US, we are happy to have delivered our solution in their Bermuda cable network, One Communications, where our solution now covers the vast majority of households. Mirada is now focused on the deployment in Viya, ATN Internationals' US Virgin Islands network, which will launch our product in the next few weeks.
Regarding Digital TV Edmund, in Bolivia, the customer is slowly solving internal technical problems that delayed the deployment of our solution, and we foresee those being resolved in the next few months. In the meantime, we continue providing support to their operations while they work to fully deploy their pay TV service. Within this customer we are glad to announce the first certifications of our Smart TV technology and our Roku based services.
We are also happy to report a much larger than expected adoption of Iris in SkyTel, our Mongolian customer. Our expectation was to have less than 10,000 of their customers subscribe to our services in the first year of operation. However, by the end of March, in less than nine months, the customer was providing our technology to more than 280,000 subscribers, and our mobile applications in Android and iOS were both number one for the whole country in the Google Play and Apple Store services.
We secured a new customer in September, Plataforma Multimedia de Operadores (PMO), in Spain, which, under the "Zapi" brand, aggregates a substantial number of subscribers across multiple independent telecommunication suppliers in the country. We have been working hard to finalise the integration activities since the contract win and, with integration and deployment timelines improving with each new customer we win, we hope to launch commercially in the next few weeks. Zapi has the potential to reach hundreds of thousands of customers in Spain, becoming our largest deployment of Iris in Europe to date.
The entire Group was able to transition to complete remote working practices at the beginning of March due to the outbreak of COVID-19, and we are satisfied to note that, more than three months into this new scenario, operations remain perfectly normal with no impact on our capability to deliver our products and services. Our customers, which are mostly telecommunications providers of TV services, have become even more invaluable to consumers and have experienced a unprecedented increase of nearly 25% in linear TV consumption and more than 40% for video on-demand (VoD) consumption. In addition, broadband usage has increased over 30% in our customers' networks. This increase in our customers' activities has made our visibility of revenues for the coming year much higher at this stage than in any other prior year. This lends us confidence in our abilities to continue our business without disruption over the coming months.
Our pipeline also remains strong, despite the difficult confinement and uncertain situation imposed by the COVID-19 pandemic, although we are conscious that, until the pandemic resides, there could be delays in decisions from new customers. Although our customers, and the sector at large, are currently benefiting from the sharp rise in demand for audiovisual and connectivity services, it is still too early to predict if the potential reduction in the purchasing power of consumers will have an overall negative impact in the telco and pay TV business.
As part of our SaaS strategy, Mirada has been able to agree long term contracts with key customers, with an increasing recurrent revenue component. This allows our customers to benefit from continuous product improvement and aligns their long-term growth objectives to ours, as we benefit from growth in their subscriber numbers. While it usually means a higher level of investment during the deployment stage, which is not being capitalised, it also provides Mirada with an improved medium and long-term return on investment. The efforts made during prior years on winning and deploying customers are now providing a higher level of recurrent revenue as well as visibility over future revenues. This is ultimately increasing our total turnover, reducing operational losses and allowing the Group to steadily approach a stage of sustained profitability.
The Group continues to deliver high quality products for the audiovisual sector, and we are delighted with the growing relevance Mirada is enjoying in the market. There has been a substantial improvement in our EBITDA level, and the Board continues to believe that the Company is close to a point of sustained profitability. In these difficult times we are grateful to be working in a business that can continue providing quality experiences to millions of users, and we would like to express our sincere gratitude to our fantastic group of employees, customers, suppliers, partners and investors.
Financial Overview
Revenue grew to $13.16 million (2019: $12.32 million), a 7% year-on-year increase. Excluding Mirada Connect, which was sold in July 2019, revenue grew to $12.96 million (2019: 11.49 million), a 13% year-on-year increase. Growth in development revenue was $1.47million to reach $7.98 million for the year, driven by the customisation of the Android TV custom launcher for izzi Telecom.
Gross profit grew to $12.48 million (2019: $11.46 million) and operating losses reduced to $1.36 million (2019: $2.91 million). Staff Costs decreased by $0.46 million to $6.79 million (2019: $7.25 million) and other administrative expenses decreased by $0.20 million to $3.20 million (2019: $3.40 million). The improvement in revenues and the reduction in costs led to an adjusted EBITDA (as defined in Note 8) of $2.50 million (2019: $0.81 million). There is a tax credit recognised in the current period of $0.31 million (2019: $0.18 million) as a result of Mirada Iberia's research and innovation tax deductions. As a result, the net impact was the achievement of net profit for the year of $0.59 million (2019: loss of $3.11 million).
Net Debt increased to $5.05 million (2019: $4.86 million). Long term interest-bearing loans and borrowings increased by 40% to $2.40 million (2019: $1.72 million) and short term borrowings and related party loans and interest decreased to $2.85 million (2019: $3.26 million) - see note 20 for further details. Trade receivables increased from $1.89 million to $1.99 million, due to increased revenues and activity at the end of the fiscal year. A new EUR1.30 million credit facility was granted by Leasa Spain, S.L.U., owned by Mr. Ernesto Luis Tinajero Flores, who also owns 87.21% of the voting rights of Mirada plc.
Other intangible assets have increased by $0.78 million, mainly due to the development of our custom launcher for Android TV.
The Group generated $1.80 million of cash in operating activities in the year (2019: cash used in operating activities of $1.24 million), received $2.61 million from the disposal of Mirada Connect and spent a further $4.38 million (2019: $3.07 million) in investing activities. The operating and investing cash flows were funded by the movement in net debt explained above. This resulted in an increase in cash and cash equivalents of $0.06 million.
The General Meeting held on 10 September 2019 approved a 100 to 1 share consolidation. The total outstanding share options on 9 September 2019 was 4,148,316 (4,697,166 at 30 September 2018). Therefore, as of 31 March 2020, the total outstanding share options was 41,483.
The Company has adopted the following new accounting standards with effect from 1 April 2019:
IFRS 16- Leases
IFRIC 23 Uncertainty over Income Tax Treatments
Amendments to IFRS 9 Prepayment Features with Negative Compensation
Amendments to IAS 28 Long-term Interests in Associates and Joint Ventures
Amendments to IAS 19 Employee Benefits
Annual Improvements to IFRS Standards 2015-2017 Cycle
See note 3 to the financial statements for further information on the new IFRS standards.
Current Trading and Outlook
Mirada is focused on the Digital TV segment and is increasing its market reach, with a growing healthy pipeline of opportunities as a result of the successful deployment and a wide appraisal of its Iris multi-platform product for both Linux and Android TV solutions, and the integration of Netflix. The Company is now considered to be a top-end solution for potential customers, with a flexible model that allows audiovisual companies of any size to provide a competitive offering for their subscribers.
Despite the uncertain impact of COVID-19, Mirada's financial position is continuously improving, reinforced by the support of its largest shareholder. Together, these factors have led to an improved commercial performance, with participation in multiple deals, which, combined with the growing pipeline, provides confidence in the Company's ability to secure more contract wins in the coming years.
José-Luis Vázquez
Chief Executive Officer
15(th) July 2020
Consolidated Statement of Comprehensive Income for the year ended
31 March 2020
Hot Features
Premium
2020 2019
$000 $000
Revenue 13,157 12,322
Cost of sales (676) (857)
Gross profit 12,481 11,465
Depreciation (360) (80)
Amortisation (3,499) (3,578)
Share-based payment charge - (70)
Staff costs (6,790) (7,249)
Other administrative expenses (3,196) (3,402)
Total administrative expenses (13,845) (14,379)
Operating loss (1,364) (2,914)
Gain on disposal of Mirada Connect 1,699 -
Non operating profit 1,699 -
Finance income 65 141
Finance expense (177) (523)
Foreign currency translation differences 52 -
Profit/(loss) before taxation 275 (3,296)
Taxation 313 184
Profit/(loss) for year 588 (3,112)
Other comprehensive income for the period
Amounts that will or may be reclassified
to the profit or loss
Forex on translation of foreign operations 2,888 (565)
Total comprehensive profit/(loss) for
the period 3,476 (3,677)
Earning/(loss) per share Year ended Year ended
31 March 31 March
2020 2019
$ $
Earning/(loss) per share for the year
- basic & diluted 0.001 (0.006)
Consolidated Statement of Financial Position as at 31 March 2020
2020 2019
$000 $000
Goodwill 5,098 5,924
Other Intangible assets 6,631 5,855
Right of use assets 482 -
Property, plant and equipment 228 222
Other Receivables 486 398
Non-current assets 12,925 12,399
Trade & other receivables 6,966 5,421
Cash and cash equivalents 185 117
Current assets 7,151 5,538
Total assets 20,076 17,937
Loans and borrowings (2,820) (3,257)
Related parties loans and interests (7) -
Trade and other payables (2,019) (1,958)
Deferred income (1,785) (1,019)
Lease liabilities (229) -
Current liabilities (6,860) (6,234)
Net current assets/(liabilities) 291 (696)
Total assets less current liabilities 13,216 11,703
Related parties loans (1,210) -
Interest bearing loans and borrowings (1,195) (1,721)
Lease liabilities (259) -
Non-current liabilities (2,664) (1,721)
Total liabilities (9,524) (7,955)
Net assets 10,552 9,982
Issued share capital and reserves
attributable to equity holders
of the company
Share capital 12,015 12,015
Share premium - 15,995
Other reserves 18,286 15,398
Accumulated loss (19,749) (33,426)
Equity 10,552 9,982
Consolidated Statement of changes in equity for the year ended 31 March 2020
Share Share Foreign Merger Accumulated Total
capital premium exchange reserves losses
reserve
$000 $000 $000 $000 $000 $000
Balance at 1 April 2019 12,015 15,995 10,535 4,863 (33,426) 9,982
Profit for the year - - - - 588 588
Other comprehensive income
Movement in foreign exchange - - 2,888 - - 2,888
Total comprehensive income
for the year - - 2,888 - 588 3,476
Transactions with owners
Share premium cancelation - (15,995) - - 13,089 (2,906)
Balance at 31 March 2020 12,015 - 13,423 4,863 (19,749) 10,552
Share Share Foreign Merger Accumulated Total
capital premium exchange reserves losses
reserve
$000 $000 $000 $000 $000 $000
Balance at 1 April 2018 2,261 15,760 11,122 4,863 (30,786) 3,220
Prior Year Adjustment-IFRS
15 (Note 2) - - - - 380 380
Loss for the year - - - - (3,112) (3,112)
Other comprehensive income
Movement in foreign exchange - - (587) - 22 (565)
Total comprehensive loss
for the year - - (587) - (2,710) (3,297)
Transactions with owners
Share-based payment - - - - 70 70
Conversion of convertible
loans into shares 5,858 235 - - - 6,093
Issue of shares 3,896 - - - - 3,896
Balance at 31 March 2019 12,015 15,995 10,535 4,863 (33,426) 9,982
Consolidated Statement of Cash Flows for the year ended 31 March 2020
2020 2019
$000 $000
Cash flows from operating activities
Profit/(loss) after tax 588 (3,112)
Adjustments for:
Depreciation of property, plant and
equipment 360 80
Amortisation of intangible assets 3,499 3,578
Share-based payment charge - 70
Finance income (65) (141)
Finance expense 177 523
Foreign currency translation differences (52) -
Taxation (313) (184)
Gain on disposal of Mirada Connect (1,699) -
Operating cash flows before movements
in working capital 2,495 814
Increase in trade and other receivables (2,011) (1,654)
Increase/(decrease) in trade and other
payables 1,065 (703)
Interest paid (14) -
Taxation received 265 307
Net cash used in operating activities 1,800 (1,236)
Cash flows from investing activities
Interest and similar income received 65 141
Purchases of property, plant and equipment (126) (80)
Purchases of other intangible assets (4,319) (3,127)
Cash proceeds from sale of Mirada Connect 2,605 -
Net cash used in investing activities (1,775) (3,066)
Cash flows from financing activities
Interest and similar expenses paid (163) (523)
Issue of share capital - 3,896
Payment of principal on lease liabilities (242) -
Loans received 1,958 1,201
Related parties loans received 1,210 -
Repayment of loans (2,824) (2,150)
Net cash (used in)/from financing activities (61) 2,424
Net decrease in cash and cash equivalents (36) (1,878)
Cash and cash equivalents at the beginning
of the period 117 1,937
Exchange losses on cash and cash equivalents 104 58
Cash and cash equivalents at the end
of the year 185 117
Selected notes to financial statements year ended 31 March 2020
1. General Information
Mirada plc is a company incorporated in the United Kingdom. The address of the registered office is 68 Lombard Street, London, EC3V 9LJ. The nature of the Group's operations and its principal activities are the provision and support of products and services in the Digital TV and Broadcast markets.
In accordance with section 435 of the Companies Act 2006, the Directors advise that the financial information set out in this announcement does not constitute the Group's statutory financial statements for the year ended 31 March 2019 or 2020 but is derived from them. The financial statements for the year ended 31 March 2019 have been audited and filed with the Registrar of Companies. The financial statements for the year ended 31 March 2020 have been audited and will be filed with the Registrar of Companies following the Company's Annual General Meeting. The Independent Auditors Report on the Group's statutory financial statements for the years ended 31 March 2019 and 2020 were unqualified and did not contain statements under Section 498(2) or (3) of the Companies Act 2006.
The financial information included in this announcement has been prepared in accordance with the recognition and measurement requirements of International Financial Repeating Standards as adopted for use in the EU but does not include all of the disclosures required by those standards. The accounting policies used in the preparation of the financial information are consistent with those used in the group's financial statements for the year ended 31 March 2019 and are unchanged from those set out in the financial statements for the period ended 31 March 2019, except for the implementation of the IFRS 16 as described in Note 3.
2. Change in consolidation scope
Main changes for the year ended as at 31 March 2020:
On 5 July 2019, the Group announced the sale of the wholly owned subsidiary Mirada Connect Ltd. to PayByPhone UK Limited (subsidiary of Volkswagen Financial Services, AG), for a consideration of $2.61 million (GBP2.12 million). As a result, the Group recognised a gain of $1.70 million as shown in the Consolidated Income Statement. As a consequence of said disposal, the results of Mirada Connect Ltd are included as part of the consolidation scope from 1 April 2019 to the effective date of disposal. For the purpose of IFRS 5, this is not a discontinued operation.
3. Changes in accounting policies a. Adoption of new and revised standards effective from 1 April 2019
IFRS 16 - Leases
This Standard replaces the following standards: (a) IAS 17 Leases; (b) IFRIC 4 Determining Whether an Arrangement Contains a Lease; (c) SIC-15 Operating Leases - Incentives; and SIC-27 Evaluating the Substance of Transactions in the Legal Form of a Lease.
IFRS 16 establishes that companies that are lessee in lease contracts will recognise in the consolidated balance sheet the liabilities and assets of lease contracts (except short-term and low-value lease agreements). Furthermore, the operating lease expense has been replaced by a charge for straight-line amortisation of right of use assets and an interest expense on lease liabilities.
This standard has not introduced significant changes in the accounting for lease contracts by the lessor.
The Group previously classified leases as operating or finance leases under IAS 17 (refer to Note 26). With respect to the leases classified as finance leases in accordance with IAS 17, the book value of the right of use asset and the lease liability on the date of first-time application will be the carrying amount of the lease asset and the lease liability immediately prior to that date, measured in accordance with IAS 17. With respect to operating leases, the lessee will record the asset by right of use and the lease liability in accordance with this standard as of the date of first-time application.
The Group has opted to apply the modified retrospective approach, without restating the comparative information presented as at 31 March 2019 under the aforementioned standards. On transition to IFRS 16, the Group elected to apply the practical expedient to grandfather the assessment of which transactions are leases. It applied IFRS 16 only to contracts that were previously identified as leases. Under this option, the Group has calculated the lease liability as the current value of the outstanding instalments on the contracts in force at the date of first-time application determined on the basis of the incremental interest rates on the aforementioned date and has recognised the value of the right-of-use asset for the same amount of the lease liability calculated at 1 April 2019.
The average incremental borrowing rates for the main countries affected by this standard, used for calculating the current value of the rights of use and of the operating lease liabilities recognised at the date of first-time application of IFRS 16 are detailed in Note 15.
The right of use and lease liability were defined according to the original contract term.
IFRS 16 establishes two exceptions for the lease recognition that included the low-value lease agreements (amount equal or less than to $5 thousand) and short-term lease agreement (for a period equal or less of 12 months). For these cases, the expenditures are recognised as expense during the term of the lease agreement. The Group has taken advantage of these two practical expedients in determining ROU assets and Lease liability
To calculate this impact, the Group has analysed, among other factors, the duration of the significant leases considering whether the agreements can be terminated early or not and whether or not the durations can be unilaterally extended by the lessee and, in both cases, the degree of certainty, which, in turn, depends on the expected use of the assets located in the underlying properties leased.
The following table shows the impact on the consolidated statement of financial position at 1 April 2019 of application of the standard:
IFRS 16
at 1 April 2019
$000
Lease liabilities 492
Right-of-use assets 492
The following table reflects a reconciliation between the operating lease commitments presented at 31 March 2019 and the lease liabilities recognised at 1 April 2019:
1 April 2019
$000
Operating lease commitments at 31.03.2019
as reported in the Statements of Financial
Position (Note 26) 960
Impact due to the discount of the future
payments using the incremental borrowing
rate at 1 April 2020 (19)
Recognition exemption for short-term
at transition (246)
Recognition exemption for low value
at transition (203)
Lease liabilities recognised at 1 April
2019 492
Current Lease liabilities recognised
at 1 April 2019 207
Non-current Lease liabilities recognised
at 1 April 2019 285
There was no material impact on the Consolidated Statement of Cashflows.
Other new amended standards and Interpretations issued by the IASB that apply to the financial statements do not impact the Group as they are either not relevant to the Group's activities or require accounting which is consistent with the Group's current accounting policies. These standards are:
IFRIC 23 - Uncertainty over Income Tax Treatments
Amendments to IFRS 9 - Prepayment Features with Negative Compensation
Amendments to IAS 19 - Employee Benefits
Annual Improvements to IFRS Standards 2015-2017 Cycle
b. Adoption of new and revised standards effective from 1 April 2020
New Standards, interpretations and amendments not yet effective
There are a number of standards and amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the group has decided not to adopt early. The most significant of these are as follows, effective for the period beginning 1 April 2020. The Group is currently assessing the impact of these new standard and amendments. The Group does not expect any other standards issued by the IASB, but not yet effective, to have a material outcome on the group.
Amendments to IAS 1 and IAS 8
Definition of materiality or with relative importance. This amendment clarifies the definition of materiality or relative importance and how it should be applied by introduction in the definition of guides that until now have been addressed in other parts of the IFRS Standards; improving the explanations that accompany the definition and ensuring that the definition of materiality or with relative importance is consistent throughout all IFRS Standards. The Group will consider the new definition of materiality and do not foresee significant impact in the preparation of the consolidated financial statement.
Amendments to IFRS 3 - Business combinations
At the date of authorisation for issue of these consolidated financial statements, the amendments to IFRS 3 - Business combinations have been approved by the International Accounting Standards Board (IASB).
Amendments to IFRS 3 - Business combinations. IFRS 3 is amended to limit and clarify the definition of a business, and to enable a simplified evaluation of whether a set of activities and assets acquired is a group of assets instead of a business.
4. Significant accounting policies a. Basis of accounting
These Group financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations issued by the International Accounting Standards Board as adopted by European Union ("IFRSs") and with those parts of the Companies Act 2006 applicable to companies preparing their accounts under IFRSs.
b. Going concern
These financial statements have been prepared on the going concern basis. The Directors have reviewed the Company and Group's going concern position taking account of its current business activities, budgeted performance and the factors likely to affect its future development, which are set out in this Annual report, and include the Group's objectives, policies and processes for managing its capital, its financial risk management objectives, its exposure to credit and liquidity risks and the impact of the COVID-19 pandemic.
As at 31 March 2020, the Group had cash and cash equivalents of $0.19m (2019: $0.12m), had net current assets of $0.29m (2019: net current liabilities of $0.70m) and net assets of $10.55m (2019: $9.98m.). In the year ended 31 March 2020, the Group generated net cash from operating activities of $1.80m (2019: net cash used in operating activities $1.24m), realised a profit for the year of $0.59m (2019: a loss of $3.11m). Subsequent to the year end, the Directors are pleased to announce that they have secured the following additional funding for the business:
-- EUR1.6m of new loans obtained between April 2020 and June 2020 from banks with 80% of these loans guaranteed by the Spanish government under the COVID-19 relief scheme.
-- An extension to the term of its EUR1.30 million credit facility has been granted by Leasa Spain, S.L.U.The term of the Facility has been extended by 12 months and now expires on 30 November 2021.
The Directors have prepared detailed cash flow forecasts for the period to at least 31 December 2021. The Directors regularly review the detailed forecasts of sales, costs and cash flows. The assumptions underlying the forecasts are challenged, varied and tested to establish the likelihood of a range of possible outcomes, including reasonable cash flow sensitivities. The expected figures are carefully monitored against actual outcomes each month and variances are highlighted and discussed at Board level. However, the uncertain impact of COVID-19 introduces more risks and uncertainty into this year's review. The Group has seen limited impact of COVID-19 on the operational capability of the business. From a technology point of view, the Group is also offering and developing the most advanced features in the market, providing services to a growing subscriber base in our core markets. To this end a base case cash flow forecast has been prepared which takes into account the following key assumptions:
-- The continued availability of the Group's invoice discounting facility throughout the foreseeable future.
-- An average revenue growth of 13% in the foreseeable future, which Directors believe, comprise of revenue that is substantially already secured under signed contracts.
-- Additional net funding of US$1.4m from lenders
-- An expected receipt of US$0.3m of Research and Development tax credit in March 2021 from Spanish tax authorities.
The Directors have also considered a number of downside scenarios, including a scenario where all revenue growth from new customers is removed, a scenario where no further funding is obtained in the period and a reverse stress test. The purpose of the reverse stress test for the Group is to test at what point the cash facilities would be fully utilised if the assumptions in the Director's base case forecasts are altered. This reverse stress test includes both a removal of all revenue growth from new customers and a reduction of contracted revenue from existing customers for the forecast period, resulting in an overall reduction of revenue of c.20%, as well as the removal of any potential future funding and the receipt of the US$0.3m Research and Development tax credits anticipated. In the event that the performance of the Group is not in line with the projections, and more akin to one of our downside scenarios, including the worst case scenario, action will be taken by management immediately to address any potential cash shortfall for the foreseeable future. The actions that could be taken by the Directors include both a review and restructuring of employment related costs, including the deferral of any potential bonuses due to employees. These measures alone could save at least $1.0m in operating costs and therefore cash flows. Further, the Directors could also negotiate access to other sources of finances from our lenders. Given the Director's current relationship with lenders and their recent success in negotiations with these financial institutions, whilst there are no binding agreements currently in place, negotiations are in very advanced stages for additional funding. Therefore, they Directors are confident that any additional funding required would be obtained.
Whilst the cash flow forecasts prepared have been sensitised to consider a number of downside scenarios, including the reverse stress test, the Directors are pleased to note that the post year end performance of the Group has exceeded the original forecast for April and May 2020. Therefore demonstrating that the Group has not suffered negatively from the impact of COVID-19 and is in a strong place to meet the base case forecasts.
Overall, the sensitised cash flow forecasts demonstrate that the Group will be able to pay its debts as they fall due for the period to at least 31 December 2021. The Directors are, therefore, satisfied that the financial statements should be prepared on the going concern basis.
5. Revenue from contracts with customers
Year to 31 March 2020 Development Transactions Licenses Managed Total
services
$000 $000 $000 $000 $000
Mexico 5,642 - 2,945 1,101 9,688
Europe 627 193 10 109 939
Other Americas 1,046 - 569 - 1,615
Asia 668 - 247 - 915
7,983 193 3,771 1,210 13,157
Revenue recognised
over a period 7,923 - - 1,210 9,133
Revenue recognised
at a point in time 60 193 3,771 - 4,024
7,983 193 3,771 1,210 13,157
Year to 31 March 2019
$000 $000 $000 $000 $000
Mexico 5,065 - 3,964 769 9,798
Europe 381 833 73 159 1,446
Other Americas 913 - 17 - 930
Asia 148 - - - 148
6,507 833 4,054 928 12,322
Revenue recognised
over a period 6,182 - - 928 7,110
Revenue recognised
at a point in time 325 833 4,054 - 5,212
6,507 833 4,054 928 12,322
Licenses revenue are including both contract licenses and SaaS revenue.
Contract balances
The following table provides information about contract assets (included as accrued income) and contract liabilities (included as deferred income) from contracts with customers:
31 March 31 March 2019
2020
$000 $000
Contract assets (accrued
income) 3,478 1,891
Contract liabilities (deferred
income) 1,785 1,019
5,263 2,910
The movement in the contract assets and liabilities during the year is set out below:
Contract assets
31 March 31 March
2020 2019
$'000 $'000
At 1 April 1,891 989
Transfers in the period from contract
assets to trade receivables (1,891) (989)
Excess of revenue recognised over cash
(or rights to cash) 3,478 1,891
recognised during the period
At 31 March 3,478 1,891
Contract liabilities
31 March 31 March
2020 2019
$'000 $'000
At 1 April 1,019 1,360
Amounts included in contract liabilities
recognised (1,019) (1,360)
as revenue in the period
Cash received in advance of performance
and not recognised 1,785 1,019
as revenue during the period
At 31 March 1,785 1,019
Contract assets ('accrued income') and contract liabilities ('deferred income') are included within 'Trade and other receivables' and 'deferred income' respectively on the face of the Statement of Financial Position. They arise from the Group's revenue contracts, where work has been performed in advance of invoicing customers, and where revenue is received in advance of work performed. Cumulatively, payments received from customers at each balance sheet date do not necessarily equate to the amount of revenue recognised on the contracts.
6. Segmental reporting
Reportable segments
The chief operating decision maker for the Group is ultimately the board of directors. For financial and operational management, the board considers the Group to be organised into two operating divisions based upon the varying products and services provided by the Group - Digital TV & Broadcast and Mobile. The products and services provided by each of these divisions are described in the Strategic Report. The segment headed other relates to corporate overheads, assets and liabilities.
Segmental results for the year ended 31 March 2020 are as follows:
March 2020
Digital Mobile Other Group
TV & Broadcast
$000 $000 $000 $000
Revenue 12,963 194 - 13,157
Segmental profit/(loss) 2,392 16 87 2,495
(Adjusted EBITDA, see note
7)
Gain on disposal of Mirada
Connect - 1,699 - 1,699
Finance income - - 65 65
Finance expense - - (177) (177)
Depreciation (358) (2) - (360)
Amortisation (3,499) - - (3,499)
Foreign currency translation
differences - - 52 52
Profit / (Loss) before
taxation (1,465) 1,713 27 275
$ 0.087 million (2019: $0.100 million) disclosed as "Other" comprises employment, legal, accounting and other central administrative costs incurred at a Mirada Plc level.
The segmental results for the year ended 31 March 2019 are as follows:
March 2019
Digital Mobile Other Group
TV & Broadcast
$000 $000 $000 $000
Revenue - 11,490 832 - 12,322
Segmental profit/(loss) 1,905 171 (1,262) 814
(Adjusted EBITDA, see note
7)
Finance income - - 141 141
Finance expense - - (523) (523)
Depreciation (70) (10) - (80)
Amortisation (3,578) - - (3,578)
Share-based payment charge - - (70) (70)
Profit / (Loss) before
taxation (1,743) 161 (1,714) (3,296)
There is no material inter-segment revenue.
The Group has a major customer in the Digital TV and Broadcast segment that generates revenues amounting to 10% or more of total revenue that account for $9.5 million of $13.16m total revenue. This is approximately 72% of all revenue (2019: $9.7 million, out of $12.4m) of the total Group revenues.
Segment assets and liabilities are reconciled to the Group's assets and liabilities as follows:
Assets Liabilities Assets Liabilities
2020 2020 2019 2019
$000 $000 $000 $000
Digital TV - Broadcast
& Mobile 14,488 9,328 11,360 7,675
Other:
Goodwill 5,098 - 5,924 -
Other financial assets
& liabilities 490 196 653 279
Total other 5,588 196 6,577 279
Total Group assets and
liabilities 20,076 9,524 17,937 7,954
Assets allocated to a segment consist primarily of operating assets such as property, plant and equipment, intangible assets, goodwill and receivables.
Liabilities allocated to a segment comprise primarily trade payables and other operating liabilities.
Geographical
disclosures
External revenue Total assets by
by location of
customer
location of assets
2020 2019 2020 2019
$000 $000 $000 $000
Mexico 9,688 9,799 34 23
Europe 939 1,445 20,042 17,914
Other Americas 1,615 930 - -
Asia 915 148 - -
13,157 12,322 20,076 17,937
Revenues by
Products:
Digital Mobile Digital Mobile
TV & Broadcast 2020 TV & Broadcast 2019
2020 2019
$000 $000 $000 $000
Development 7,983 - 6,508 -
Transactions 193 - 832
Licenses 3,771 - 4,054 -
Managed Services 1,210 - 928 -
12,964 193 11,490 832
7. Operating loss
This has been arrived at after charging:
2020 2019
$000 $000
Depreciation of owned assets 360 80
Amortisation of intangible assets 3,499 3,578
Operating lease charges 339 596
Total R&D expenditure capitalised as intangible assets amounts to $4.35m (2019: $3.12m).
The total lease expense not subject to IFRS 16 for short-term as well as low-value leases amounts to $0.339 (refer to Note 15).
Analysis of auditors' remuneration is as follows:
2020 2019
$000 $000
Fees payable to the company's auditor
for the audit of the company's annual
accounts 65 119
Audit of the account of subsidiaries 25 36
Reconciliation of operating profit for continuing operations to adjusted earnings before interest, taxation, depreciation and amortisation:
2020 2019
$000 $000
Operating loss (1,364) (2,914)
Depreciation 360 80
Amortisation 3,499 3,578
Operating profit before interest,
taxation, depreciation, amortisation,
impairment (EBITDA) 2,495 744
Share-based payment charge - 70
Adjusted EBITDA 2,495 814
8. Earnings per share
Year ended Year ended
31 March 31 March
2020 2019
Total Total
Profit/(loss) for year $588,607 $(3,111,688)
Weighted average number
of shares 890,843,408 520,652,606
Basic loss per share $0.001 $(0.006)
Diluted loss per share $0.001 $(0.006)
After the cancellation of share premium approved by the General Meeting on 10 September 2019, the Company has 41,483 (2019: 4,697,166) potentially dilutive ordinary shares arising from share options issued to staff. However, i n 2020 and 2019 the profit/(loss) attributable to ordinary shareholders and weighted average number of ordinary shares for the purpose of calculating the diluted earnings per ordinary share are identical to those used for basic earnings per ordinary share. This is because the exercise of share options would have the effect of reducing the loss per ordinary share and is therefore anti-dilutive.
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.
END
FR DBGDRRUBDGGU
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July 16, 2020 02:05 ET (06:05 GMT)
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