One Media iP Group PLC Final Results

RNS Number : 3070M

One Media iP Group PLC

29 April 2024

 

29 April 2024

 

 

One Media iP Group Plc

("One Media", "the Company" or the "Group")

 

Audited results for the year ended 31 October 2023

 

Robust results with core music rights business delivering in line with expectations

 

 

One Media iP (AIM: OMIP), the digital media content owner and manager which specialises in the active monetisation of music and video intellectual property rights together with copyright protection technology, announces its audited results for the year ended 31 October 2023.

 

Financial highlights

 

·      5% increase in total revenue to £5.4 million (2022: £5.1 million) and EBITDA of £1.4 million (2022: £1.8 million), driven by organic growth and active portfolio management.

·      5% uplift in net revenues (net of distribution charges, royalty and other costs) to £3.5 million (2022: £3.3 million).

·      Operating profit of £0.5 million (2022: £0.9 million) and EPS of 0.05p (2022:0.20p), reflecting continued investment into TCAT in line with Group strategy.

·      £2.1 million invested, including £1.4 million into new acquisitions matching the Company's appetite for proven, recurring income streams that have the potential for further monetisation.

·      Strong balance sheet with cash balance of £1.2 million (2022: £2.2 million) offering headroom for strategic investment.

·      IFRS NAV per Ordinary Share unchanged at 7p (2022: 7p).

·      Operative NAV per Ordinary Share of 18p ⑴

·      The directors recommend a final dividend of 0.055p per share

 

Operational and portfolio highlights

 

·      Acquisition of licensor's income share of Entertain Me catalogue including songs by Gloria Gaynor, The Drifters, Louis Armstrong, Don Williams and James Brown; funded through existing cash resources at advantageous earnings multiple.

·      Renewal of distribution deal with The Orchard, including US$1.0 million advance.

·      Ongoing active management of music and video rights portfolio, with focus on maximising potential of catalogues which include recorded and/or producers' royalty rights to songs written or performed by Culture Club, Don Williams, Mungo Jerry, José Carreras, Kid Creole, Mago De Oz and the producers royalty on certain Take That tracks.

·      Continued strategic development of the TCAT software initiative, with trials with internationally recognised songwriters and  two major record labels and world's largest digital music distributor.

·      New TCAT product - TCAT Protect aimed at individual artists and composers set to launch in 2024 as an 'App'.

 

Continuing growth of music market underpinned by positive structural trends

 

·      Goldman Sachs' Music in the Air report (June 2023) maintained strong growth outlook for the music industry forecasting global music industry revenues to grow at +7.1% yoy in 2023 (+8% prior), with 2023-2030 CAGR upgraded to +7.3% (+7.1% prior).

·      In March 2024, MIDiA Research reported 9.8% growth in global recorded music revenues in 2023 to $35.1 billion, compared to 7.1% in 2022, meaning the market is now more than double (124.5%) the size it was in 2015.

·      New opportunities to license music and grow royalties continuing to emerge, including in new territories and with new technology advances.

 

⑴ Operative NAV is calculated by using the IFRS NAV, adjusting for the revaluation of catalogues assets to fair value and then adding back the catalogue amortisation

 

 

The consolidated statement of financial position for results for the year to 31 October 2022 have been restated to reflect a prior year adjustment for the Right of Use Asset and its relevant liability.

 

Michael Infante, CEO said: "The founding principle of deriving profitable income from music copyrights continues to be our prime focus. Given our ongoing investment program into TCAT after consultation with advisers and significant shareholders, we have continued to grow our revenues from music rights, delivering a robust set of results despite the challenging conditions presented during 2023. The trajectory for the music industry remains positive and music rights as an asset class continue to prove their resilience to wider markets."

 

This announcement contains inside information for the purposes of UK Market Abuse Regulation. The person who arranged the release of this information is Michael Infante, Chief Executive Officer of the Company.

 

 

For further information, please contact:

 

One Media IP Group Plc
Michael Infante	Chief Executive Tel: [phone]
Claire Blunt	Chairman Tel: [phone]
Cairn Financial Advisers LLP	Nominated Adviser
Liam Murray / Jo Turner / Ludovico Lazzaretti	Tel: [phone]
Cavendish Capital Markets Limited	Broker
Giles Balleny, (Corporate Finance) Michael Johnson (Sales)	Tel: [phone]
Claire Turvey, Fourth Pillar [e-mail]	Financial PR Tel: [phone]

 

About One Media iP Group Plc 

One Media is a digital music rights acquirer, publisher and distributor with a diversified catalogue of over 240,000 music tracks. The Group specialises in purchasing and monetising intellectual property rights with proven, repeat income streams.  One Media adds value to its content by maximising its availability in over 600 digital stores globally, including Apple Music, YouTube, Amazon and Spotify.

One Media's music is also widely used for synchronisation in film and TV whilst its video content is primarily viewed on YouTube, where One Media operates over 20 channels as a certified partner. Additionally, its copyright infringement and digital music audit tool software TCAT is used by major record labels and the world leading digital international distributor. Men & Motors, the Company's branded car channel, is now available via YouTube www.youtube.com/channel/UCNLiybn_9jgQaV0NZlSRwCg

One Media is listed on the AIM Market of the London Stock Exchange under the ticker 'OMIP'.

For further information, please visit www.omip.co.uk and www.harmonyip.com/ 

 

 

 

 

 

 

Chairman's Statement

 

The Board is pleased to present a solid set of results for 2023. While last year was a challenging one for markets, with rising interest rates, inflationary pressures and uncertainty created by conflicts in the Middle East and Ukraine, the music industry remained resilient and the growth outlook for the sector continued to improve.

Against this, we have delivered a robust set of results in line with expectations, including increases in total revenue to £5.4 million and an operating profit of £0.5 million, after investments in new music rights and TCAT.

Throughout last year, as communicated, the Company's strategic focus was set towards the growth and development of its proprietary anti-piracy software, TCAT (Technical Copyright Analysis Tool). This followed an assessment of the strategic position of the TCAT business, in conjunction with the Group's advisers and alongside consultation with major shareholders.

As expected, the strategic focus on TCAT has impacted Group profits, but TCAT is pioneering an important service to music rights holders (including One Media) and to the creative community by providing protection from and detection of copyright infringement and loss of due income through the illegal activities of others.

Music rights, which form the core of the Group's investments, are attractive to investors because they generate reliable, uncorrelated returns and the full year results for 2023 reflect this. The portfolio remains in good hands and credit is due to the management team for continuing to navigate the Group to positive results.

The economic outlook has stabilised somewhat compared to last year, with the Bank of England bringing a halt to successive interest rate rises for now, but we retain caution going into 2024 and will continue to consider the market backdrop when making decisions on behalf of shareholders. However, the outlook for the music industry remains positive and revenues continue to grow across the board, alongside the range of opportunities to monetise music.

The Group's ongoing positive performance against this encouraging industry backdrop leaves us optimistic about the year ahead and, importantly, the opportunities that will be available for the Group to continue to showcase its deep expertise in driving revenues from digital copyrights.

 

Claire Blunt

Non-Executive Chairman

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chief Executive's Statement

 

Financial performance

 

Monetisation of intellectual property rights is the Group's primary business mission and the expertise and experience of the team means that it can identify investments that have been undermanaged, but have latent potential due to their lasting appeal to music fans and listeners.

 

This core business of music rights has once again delivered positive results, with a 5% uplift in total revenues to £5.4 million. Net revenues also increased by 5% to £3.5 million (2022: £3.3 million). IFRS NAV per Ordinary Share remained unchanged at 7p with Operative NAV per Ordinary Share of 18p.

 

We have continued to invest into TCAT, following the in-depth strategic review undertaken in 2022/2023, and as a result and as expected, profitability has reduced compared to the prior period. The Group delivered an operating profit of £0.5 million (2022: £0.9 million) and EPS of 0.05p (2022: 0.20p), with the reduction on last year reflecting the diversion of capex into TCAT.

 

£2.1 million was invested overall during the period, including £1.4 million into new acquisitions which meet our strict investment strategy, focused on proven, recurring income streams that have the capacity for growth through our expertise.

 

Further to these investments into new acquisitions and into TCAT, we maintain a healthy cash balance of £1.2 million at the year end.

 

Portfolio management & operational update

 

In September 2023, the Group announced the acquisition of the licensor's income share only of the 'Entertain Me' catalogue of rights (the 'Catalogue') on an in-perpetuity basis. Comprising more than 15,000 tracks, the Catalogue includes songs performed by a wide range of high profile and enduring artists such as Dean Martin, The Drifters, Don Williams, Gloria Gaynor, James Brown, Judy Garland, Jose Carreras, Ray Charles, Jacki Wilson, the Royal Philharmonic Orchestra, The New England's Children's Choir and Louis Armstrong. The vintage of the Catalogue's songs range from the 1940s to the 1970s and it is also diversified by genre, including classical, blues, country, children's music, lullabies, jazz, swing and disco. 

 

The transaction supports the Company's strategy of owning and managing evergreen music rights that have a proven track record of delivering long term, recurring income, as well as opportunities to extract additional value via the Company's deep expertise in rights management.

 

The investment was undertaken via One Media's Harmony IP asset release programme, which allows music rights holders advanced access to the future earnings of their intellectual property by purchasing a portion of their rights upfront. The initiative is open to all of the Company's licensor partners and, as evidenced by this deal, has allowed One Media to increase its profitability using its resources to acquire additional royalty streams. 

 

During the year, we also renewed our arrangements with The Orchard (the "Distributor"), our long term distribution partner who we have been working with since 2006. The new agreement included a US$1 million recoupable advance to One Media, which was drawn down by the Company immediately and can be deployed towards catalogue enrichment. The advance is recoupable by the Distributor against future sales by the Company.

 

The Distributor aggregates One Media's content to over 202 territories globally, including to the major Digital Service Providers (DSPs) such as Spotify, Apple Music and Amazon Music, Tidal and Deezer and is responsible for collecting monies in a variety of currencies globally for the Company. They perform a crucial role in the monetisation of the rights in One Media's portfolio.

All of these efforts work towards management's mission of maximising the existing portfolio of music copyrights.

Highlights of proactive music management, generating increased income from the rights held in the portfolio, include the placement of 'String Quartet No. 13 in A minor "Rosamunde": 'Andante' and 'February from The Seasons, Op. 37' from the Point Classics catalogue in American adult animated science fiction drama series Pantheon 101 and 107. The episodes aired on AMC+ on 1 September and 6 October 2023 respectively.

'Concerto for Violin and Orchestra in D Major Op. 61 - Rondo: Allegro' and 'Variations for Violoncello and Orchestra - Adagio from "Kol Nidrei" Op. 47 - Adagio' were placed in American comedy TV series Random Acts of Flyness S2EP01 and S2EP02 respectively. The episodes aired on HBO Max on 6 December 2022.

'Concerto for Violin, Strings and Basso Continuo No. 1 in A minor BWV 1041: Allegro', from the Point Classics catalogue, was placed into an episode of 'Star Trek: Picard'. The episode it featured in (season 3, episode 8) aired on Paramount+ on 6 April 2023.

'The Magic Flute - Dies Bildnis ist bezaubernd schön' from the Point Classics catalogue was placed in American post-apocalyptic drama The Walking Dead: Dead City, S1EP06, which aired on 23 July 2023 on AMC.

'Symphony No. 6 "Pathetique": Allegro con grazia' from the Point Classics catalogue was placed in the popular American TV series Riverdale (S7EP18), which aired on CW and Netflix on 9 August 2023.

Beyond the core focus of the business, we continued with the strategic allocation of cash towards TCAT, stemming from our objective to expand our investment into the proprietary software platform to grow its brand and customer base at this important juncture for the industry.

Our investments into research and development have continued to yield innovative solutions, enabling the whole Group to respond to evolving digital technology market demands with even more effectiveness.

Strategy and outlook

 

One Media derives the majority of its revenue from royalties collected from the licensing and use of the Company's content, which we enhance by actively seeking out and leveraging a range of opportunities around the world. These include improving its availability globally across over 600 streaming stores (also known as Digital Service Providers ("DSPs")) including Apple Music, YouTube, Amazon Music and Spotify, while also working to identify opportunities to drive royalty revenue via the placement of our music in films, adverts and television series.

 

Our focus on more mature compositions with proven durability underpins the delivery of reliable, long term and secure income from an extensive portfolio of over 240,000 music tracks, diversified across a range of genres including pop, rock, country and classical. Thanks to this strategy, around 97% of our income is recurring. 

 

Our catalogue includes different types of copyrights associated with high profile artists, including producer's royalties from certain recordings by Take That, Culture Club, Heatwave, and Kid Creole. We also own master rights (recordings) and writers' royalties (compositions) for Don Williams, Mago De Oz, Philip Wesley, as well as thousands of other income producing royalties derived from our global exploitation of music via our many distribution partners in both audio and video.

 

Leveraging its expansive industry relationships, the Company is able to identify proven content which it believes is undervalued or has latent potential, which we then seek to crystallise on behalf of shareholders. The Group also comprises complementary initiatives that support the delivery of our core strategy while also providing additional, diversified sources of revenue.

 

Harmony IP was established in 2020 and enables composers and master rights owners to release portions of equity from their music, giving artists greater flexibility to access future earnings while retaining majority ownership of their much-loved intellectual property. From a One Media perspective, it supplements our existing revenue streams and creates opportunities for us to build strongly aligned partnerships and relationships with rights owners, putting us in a favourable position to increase our exposure to their assets further down the line.

 

Finally, the Group's Technical Copyright Analysis Tool ("TCAT"), now accessed via an online portal on an ongoing subscription basis centrally hosted by TCAT using AWS in the cloud.  Developed by One Media, it is a proprietary, specialist anti-piracy tool which identifies illegal or unlicensed use of digital music (copyright infringement), helping to maximise revenue for record labels and also for One Media.

 

The moving landscape of AI in music brings a new era of challenges to the industry. Technology it is thought cannot compete with human creativity however as the new disrupter, as it is in many industries, its power and our understanding of where it goes is still to be fully understood. Reengineering all music technology within our industry from the recording studio, concerts, digital platforms in streaming are affected.  Meeting the demands will be challenging for tech-based companies and one that we will continue to appraise investment wise on our own technology.

 

The success of our Group strategy is underpinned by the positive structural trends that the music industry has enjoyed over the last number of years.

 

Despite wider geopolitical challenges and some economic uncertainty, the outlook for the music business continues to be positive with companies across the sector reporting record results and research indicating significant future growth potential.

 

In June 2023, Goldman Sachs' published its annual Music in the Air report, with the bank's equity research team maintaining their strong growth outlook for the music industry. The report forecast global music industry revenues to grow at +7.1% yoy in 2023 (+8% prior), with an upgraded 2023-2030 CAGR of +7.3% (+7.1% prior). In March 2024, MIDiA Research reported 9.8% growth in global recorded music revenues in 2023 to $35.1 billion, compared to 7.1% in 2022, meaning the market is now more than double (124.5%) the size it was in 2015.

New opportunities to license music and grow royalties are emerging all the time, including in new territories and with new technology advances. It is an exciting time for the music business and we are pleased to be in a position to both contribute to and benefit from the creative industries.

Finally, I am grateful for the ongoing support of our Staff, Board and Advisors and in particular our shareholders, as we continue to work hard on their behalf to generate value.

 

 

 

 

Michael Infante

Chief Executive and Founder

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of Comprehensive Income

For the year ended 31 October 2023

 

			Year ended  31 October 2023		Year ended  31 October 2022
			£		£
Revenue			5,363,434		5,128,840
Distribution charges			(1,134,118)		(1,090,703)
Royalty costs			(420,736)		(459,115)
Other costs			(314,523)		(253,334)
Net revenue			3,494,057		3,325,688
Amortisation of catalogues			(853,215)		(806,082)
Administration expenses			(2,111,708)		(1,604,863)
Foreign exchange (losses)/gains			(30,996)		34,365
Operating profit			498,138		949,108
Share based payments			(68,634)		-
Finance costs			(139,996)		(384,416)
Finance income			-		-
Profit on ordinary activities before taxation			289,508		564,692
Tax expense			(184,597)		(126,442)
Profit for period attributable to equity shareholders and total comprehensive income for the year			104,911		438,250
Attributable to:
-       Equity holders of the parent			142,927		463,061
-       Non-controlling interests			(38,016)		(24,811)
			104,911		438,250
Basic earnings per share			0.05p		0.20p
Diluted earnings per share			0.04p		0.16p

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of Changes in Equity

For the year ended 31 October 2023

 

 

	Share Capital	Share redemption reserve	Share premium	Share based payment reserve	Retained earnings	Total	Non-controlling interests	Total
	£	£	£	£	£	£	£	£
At 1 November 2021	1,112,231	239,546	9,484,577	504,399	3,418,054	14,758,807	-	14,758,807
Proceeds from the issue of new shares	-	-	-	-	-	-	-	-
Share based payment charge	-	-	-	-	-	-	-	-
Profit for the year	-	-	-	-	463,061	463,061	(24,811)	438,250
Dividends paid	-	-	-	-	(122,345)	(122,345)	-	(122,345)
At 1 November 2022	1,112,231	239,546	9,484,577	504,399	3,758,770	15,099,523	(24,811)	15,074,712
Share based payment adjustment	-	-	-	(144,826)	144,826	-	-	-
Share based payment charge	-	-	-	68,634	-	68,634	-	68,634
Profit for the year	-	-	-	-	142,927	142,927	(38,016)	104,911
Dividends paid	-	-	-	-	(122,345)	(122,345)	-	(122,345)
At 31 October 2023	1,112,231	239,546	9,484,577	428,207	3,924,178	15,188,739	(62,827)	15,125,912

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Consolidated Statement of Financial Position

At 31 October 2023

 

			At 31 October 2023		At 31 October 2022
			£		£
Assets					As restated
Non-current assets
Intangible assets			15,723,653		14,438,031
Property, plant and equipment			55,650		47,267
			15,779,303		14,485,298
Current assets
Trade and other receivables			1,614,573		1,472,369
Cash and cash equivalents			1,243,445		2,175,663
Total current assets			2,858,018		3,648,032
Total assets			18,637,321		18,133,330
Liabilities
Current liabilities
Trade and other payables			1,662,034		1,027,915
Borrowings			380,000		380,000
Deferred tax			236,468		158,253
Total current liabilities			2,278,502		1,566,168
Non-current liabilities
Borrowings			1,117,970		1,492,450
Other payables			114,937		-
Total non-current liabilities			1,232,907		1,492,450
Total liabilities			3,511,409		3,058,618
Equity
Called up share capital			1,112,231		1,112,231
Share redemption reserve			239,546		239,546
Share premium account			9,484,577		9,484,577
Share based payment reserve			428,207		504,399
Retained earnings			3,924,178		3,758,770
Capital and reserves attributable to equity holders of the Company			15,188,739		15,099,523
Non-controlling interests			(62,827)		(24,811)
Total equity			15,125,912		15,074,712
Total equity and liabilities			18,637,321		18,133,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated and Company Cash Flow Statement

For the year ended 31 October 2023

 

	Year ended  31 October 2023 Group		Year ended  31 October 2022 Group		Year ended  31 October 2023 Company		Year ended  31 October 2022 Company
	£		£		£		£
Cash flows from operating activities
Operating profit/(loss) before tax	289,508		564,692		125,012		(49,801)
Amortisation	853,215		806,082		-		-
Depreciation	59,568		40,577		-		-
Share based payments	68,634		-		68,634		-
Finance income	-		-		-		-
Finance costs	139,996		384,416		-
Increase receivables	(152,021)		(24,879)		(490,654)		(414,111)
Increase/(decrease) in payables	783,172		(175,323)		(33,835)		23,402
Corporation tax paid	(144,866)		(14,926)		-		-
Net cash inflow/(outflow) from operating activities	1,897,206		1,580,639		(330,843)		(440,510)
Cash flows from investing activities
Investment in intellectual property rights and TCAT	(2,138,836)		(1,760,036)		-		-
Investment in property, plant and equipment	(67,950)		(9,569)		-		-
Finance income	-		-		-		-
Net cash used in investing activities	(2,206,786)		(1,769,605)		-		-
Cash flows from financing activities
Net proceeds from the issue of new shares	-		-		-		-
Finance cost paid	(125,813)		(205,554)		-		-
Bank loan	-		1,900,000		-		1,900,000
Loan notes repayment	(374,480)		(1,900,000)		(374,480)		(1,900,000)
Loan notes	-		126,715		-		126,715
Dividend paid	(122,345)		(122,345)		(122,345)		(122,345)
Net cash (outflow)/inflow from financing activities	(622,638)		(201,184)		(496,825)		4,370
Net change in cash and cash equivalents	(932,218)		(390,150)		(827,668)		(436,140)
Cash at the beginning of the year	2,175,663		2,565,813		1,878,513		2,314,653
Cash at the end of the year	1,243,445		2,175,663		1,050,845		1,878,513

 

 

 

 

Notes to the Preliminary Results

 

1.   Basis of preparation

 

The Company is a public limited company incorporated and domiciled in England under the Companies Act 2006. The Board has adopted and complied with International Financial Reporting Standards (IFRS) as adopted by the European Union. The Company's shares were admitted for trading on the AIM market of the London Stock Exchange on 18 April 2013.

 

2.  Segmental Analysis

 

IFRS 8 'Operating Segments' requires the Group's segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Operating Decision Maker to allocate resources to the segments and to assess their performance. The Chief Operating Decision Maker is considered to be the Chief Executive Officer of One Media IP Group Plc.

 

The Chief Operating Decision Maker receives and reviews segmental operating profit. Certain central administrative costs including Group Directors' salaries are included within the Group's Licenses result. This is consistent with the results as reported to the Chief Operating Decision Maker.

 

Each segment is shown net of intercompany transactions and balances within that segment. The eliminations remove intercompany transactions and balances between the different segment which primarily relate to the net draw down of loans and short-term working capital funding provided by One Media IP Group Plc to the other company in the Group. Inter-segment transactions are undertaken in the ordinary course of business on arm's length terms.

 

Information regarding the Group's reportable operating segments for the year ended 31 October 2023 is shown below:

 

Income statement	Licenses £	TCAT £	Total £
Revenue	5,027,137	336,297	5,363,434
Distribution charges	(1,134,118)	-	(1,134,118)
Royalty costs	(420,736)	-	(420,736)
Other costs	(111,012)	(203,511)	(314,523)
Net revenue	3,361,271	132,786	3,494,057
Amortisation	(767,864)	(85,351)	(853,215)
Administration expenses	(1,505,720)	(605,988)	(2,111,708)
Foreign exchange gains	(22,917)	(8,079)	(30,996)
Operating profit/(loss)	1,064,770	(566,632)	498,138
Share based payments			(68,634)
Finance costs			(139,996)
Profit before taxation			289,508
Tax expense			(184,597)
Profit for the period			104,911

 

 

 

 

Total assets and liabilities	Licenses £	TCAT £	Eliminations £	Total £
Total assets	18,225,523	3,199,369	(2,867,700)	18,557,192
Total liabilities	(3,357,620)	(2,941,361)	2,867,700	(3,431,281)
Total segment net assets	14,867,903	258,008	-	15,125,911

 

 

 

 

 

Geographical information

 

Revenue is the amount attributable to the Group's principal activity undertaken in the United Kingdom. The geographic split of Group revenue is as follows:

 

Revenue			Year ended  31 October 2023		Year ended  31 October 2022
			£		£
United Kingdom			300,472		345,121
North America & rest of world			4,199,367		4,244,479
Europe			863,595		539,240
			5,363,434		5,128,840

 

The Group considers it has two business segments with its Profit from the acquisition and exploitation of mixed media intellectual property rights for distribution and a SAAS platform, ultimately earned from its sole activity in the United Kingdom.

Revenue by segment					Year ended  31 October 2023		Year ended  31 October 2022
					£		£
Licenses and other media intellectual property					5,027,137		4,761,943
TCAT					336,297		366,897
					5,363,434		5,128,840

 

Included in revenues for the year ended 31 October 2023 it is estimated that £783,000 (2022: £819,000) is from its largest ultimate customer and £330,000 (2022: £410,000) from its second largest ultimate customer. Together these represent 21% (2022: 24%) of the total Group revenue for the year. In addition, the Company relies on a distribution aggregator (The Orchard) who channels approximately 52% (2022: 51%) of the Group's turnover.

 

 

3.  Taxation

 

			Year ended  31 October 2023		Year ended  31 October 2022
			£		£
Analysis of the charge for the year
UK corporation tax charge			131,477		105,703
Deferred tax			53,120		20,739
			184,597		126,442

The standard rate of tax for the year, based on the UK standard rate of corporation tax is 22.14% (2022: 19%). The actual tax charge for the periods is different than the standard rate for the reasons set out in the following reconciliation:

 

Reconciliation of current tax charge			Year ended  31 October 2023		Year ended  31 October 2022
			£		£
Profit on ordinary activities before tax			289,508		564,692
Tax on profit on ordinary activities at 22.14% (2022: 19%)			64,097		107,292
Effects of:
Non-deductible expenses			36,225		13,619
Adjustments to tax charge in respect of previous periods			17,117		-
Fixed asset timing differences			73,959		8,225
Depreciation in excess of capital allowances			(1,412)		5,719
Research and development			(5,389)		(8,413)
Total tax charge			184,597		126,442

 

4. Employee information

 

			Year ended  31 October 2023		Year ended  31 October 2022
			£		£
Directors' emoluments - excluding applicable share option and pension charges			538,347		485,292
Loss of office			104,325		-
Fees paid to directors			79,200		69,274
Share option charge			68,634		-
TCAT staff payroll and expenses			338,451		318,243
Wages and salaries			174,259		188,589
Social security			73,969		46,540
Pension			29,420		8,340
			1,406,605		1,116,278

The average monthly number of Group employees (excluding non-executive directors) during the year was as follows:

 

			Year ended  31 October 2023		Year ended  31 October 2022
Technical, creative technicians and management			12		12
Developers and management (TCAT Ltd)			10		9

 

 

5.  Earnings per share

 

The weighted average number of shares in issue for the basic earnings per share calculations is 222,446,249 (2022: 222,446,249) and for the diluted earnings per share assuming the exercise of all warrants and share options is 261,079,582 (2022: 267,779,582).

 

The calculation of basic earnings per share is based on the profit for the period of £104,911 (2022: £438,251). Based on the weighted average number of shares in issue during the year of 222,446,249 (2022: 222,446,249) the basic earnings per share is 0.05p (2022: 0.20p). The diluted earnings per share is based on 261,079,582 shares (2022: 267,779,582) and is 0.04p (2022: 0.16p).

 

 

 

 

6.  EBITDA

 

Profit from continuing activities before interest, tax, depreciation and amortisation for the twelve months ended 31 October 2023 was £1,410,921 (2022: £1,795,768).

 

 

7.  Intangible assets - Group

 

			Licenses and other intangibles		TCAT		Total Intangible assets
			£		£		£
Cost
At 1 November 2021			15,559,106		854,472		16,413,578
Additions			1,225,577		534,459		1,760,036
Disposals			-		-		-
At 31 October 2022			16,784,683		1,388,931		18,173,614
Additions			1,464,058		674,778		2,138,836
Adjustments			(971,679)		971,679		-
At 31 October 2023			17,277,062		3,035,388		20,312,450
Amortisation
At 1 November 2021			2,883,701		45,800		2,929,501
Charge for the year			720,635		85,447		806,082
Disposals			-		-		-
At 31 October 2022			3,604,336		131,247		3,735,583
Charge for the year			767,864		85,351		853,215
Adjustments			(100,338)		100,338		-
At 31 October 2023			4,271,861		316,936		4,588,798
Net book value
At 31 October 2023			13,005,201		2,718,452		15,723,653
At 31 October 2022			13,180,347		1,257,684		14,438,031

 

 

8.  Property, plant and equipment - Group

 

	Office equipment		Fixtures and fittings		Right of Use assets		Total
	£		£		£		£
Cost
At 1 November 2021	73,836		11,294		98,692		183,822
Additions	9,569		-		-		9,569
Disposals	-		-		-		-
At 31 October 2022	83,405		11,294		98,692		193,391
Additions	6,482		7,751		87,986		102,219
Disposals	-		-		(132,961)		(132,961)
At 31 October 2023	89,887		19,045		53,717		162,649
Depreciation
At 1 November 2021	69,074		11,294		59,447		139,815
Charge for the year	4,190		-		36,388		40,578
Disposals	-		-		-		-
At 31 October 2022	73,264		11,294		95,835		180,393
Charge for the year	6,051		1,077		52,440		59,568
Disposals	-		-		(132,962)		(132,962)
At 31 October 2023	79,315		12,372		15,312		106,999
Net book value
At 31 October 2023	10,572		6,673		38,405		55,650
At 31 October 2022	10,141		-		2,857		12,998

 

Directors' responsibilities

 

The Annual Report, including the financial information contained therein, is the responsibility of, and was approved by the directors on 26 April 2024.

 

Availability of Report and Accounts

 

Copies of the Company's Report and Accounts will be posted to shareholders shortly. Copies of the Company's Report and Accounts will also be available at the registered office of the Company and can be viewed on the Company's website, www.omip.co.uk.

 

Caution regarding forward looking statements

 

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities.

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END

 

 

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