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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| One Media Ip Group Plc | LSE:OMIP | London | Ordinary Share | GB00B1DRDZ07 | ORD 0.5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 4.25 | 4.00 | 4.50 | 4.25 | 4.25 | 4.25 | 0.00 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Business Services, Nec | 5.13M | 438k | 0.0020 | 21.25 | 9.45M |
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TIDMOMIP
31 March 2020
One Media IP Group Plc
("One Media", "the Company" or the "Group")
Final Results and Notice of A.G.M.
One Media iP (AIM:OMIP), the digital media content provider which exploits
intellectual digital property rights around music, video and copyright
technology, announces its Full Year Results for the 12-month period ended 31
October 2019.
Financial Highlights
· Revenue increased 30% to GBP3,508,891 (2018: GBP2,702,374)
· EBITDA increased 39% to GBP1,076,724 (2018: GBP773,701)
· Operating profit increased 38% to GBP878,914 (2018: GBP638,758)
· Cash at 31 October 2019 of GBP860,611 (2018: GBP5,576,379)
Operational and Post-Period Highlights
* Completed five acquisitions totalling US $6.9 million
* Catalogue of Locomotive Records for US $750,000
* Publishing and songwriter's rights of Michael Dulaney for US $850,000
* Songwriter's share of Cole Taylor songs for an initial consideration of US
$260,000
* Publishing and songwriter's of 'God's not Dead' by Daniel Bashta for US
$725,000
* Publishing and master rights of Philip Wesley for a total cash
consideration of US $4.25m
* Board re-constitution with the appointments of Claire Blunt, Brian Berg,
Alice Dyson-Jones and Steven Gunning
* Appointment of Cenkos Securities plc as Sole Broker.
Chairman's Statement
The Group achieved strong financial results in 2019, delivering double digit
growth in revenues, operating profit and EBITDA, and made considerable progress
in delivering on its strategy by expanding and diversifying its music library,
with five catalogue acquisitions. These acquisitions were completed between
February 2019 and September 2019 and the Board is very pleased with their
post-acquisition performance. New music rights contributed GBP515,530 and organic
revenues grew by 23.4% in the period.
Having demonstrated its ability to successfully execute these types of
transactions, the Group has now decided to focus on enhancing the value of its
existing catalogue and on leveraging its in-house technical capabilities to
build additional value and profitable revenue streams for the business. Having
already made an impressive start to 2020 and with a solid pipeline of
opportunities ahead, the Group will continue to focus on growth and will look
to maximise its potential in 2020.
Following the recent COVID-19 developments, the Group is confident that
business will continue as normal, subject to ongoing market dynamics, and that
our services will continue uninterrupted with our team working remotely. The
safety and well-being of our employees is paramount and we will adhere to
government and Public Health England guidance at all times. The business is now
successfully operating remote working and sharing regular communications whilst
liaising with customers and suppliers to ensure business continuity.
Claire Blunt
Non-Executive Chair
For further information, please contact:
One Media IP Group Plc
Michael Infante Chief Executive
Tel: +44 (0)175 378 5500
Claire Blunt Chairman
Tel: +44 (0)175 378 5501
Cairn Financial Advisers LLP Nominated Adviser
Liam Murray / Jo Turner / Ludovico Tel: +44 (0)20 7213 0880
Lazzaretti
Cenkos Securities plc Broker
Max Hartley / Max Gould (Corporate Tel: +44 (0)20 7397 8900
Finance)
Michael Johnson (Sales)
Yellow Jersey PR PR and IR
Charles Goodwin / Annabel Atkins Tel: +44 (0)20 3004 9512
Chief Executive's Statement
The Company made significant progress and built further value in 2019. Using
the funds raised in September 2018, One Media completed five acquisitions
totalling US$6.865 million. These acquisitions have considerably grown the
Company's list of music catalogues and have the potential to increase their
streaming revenue due to their popularity and longevity.
Whilst the Company has demonstrated its ability to execute transactions, One
Media has recently begun to reassess its longer-term strategy and debt position
and how best to capitalise on the rapidly evolving music streaming market. The
Board remains unanimous in its view that One Media's global business
environment has changed, and therefore it should adapt the Company's business
model to embrace and maximise the opportunities available, to protect and grow
shareholder value.
Significant advancements were made over the course of 2019 in streamlining our
proprietary copyright technology, Technical Copyright Analysis Tool ("TCAT").
Increased interest in TCAT's features from some of the major players in the
music industry has led the Company to explore various opportunities to enable
further investment in the technology and scale the platform. By leveraging our
technology for wider use across the industry, the Board believes the increase
in recurring revenues will add value to the Group. At the period end, the
carrying value for research and development in TCAT was GBP610,943.
One Media is also looking at possibilities to grant music rights holders'
advanced access to the future earnings of their intellectual property (IP) by
purchasing a portion of their rights upfront. 'Harmony IP' will look at
offering the industry a form of 'asset release' in music IP. This would allow
the Group to spread its investment across many more catalogues and partnering
with artists and composers, while using its expertise and TCAT to expand the
earnings for all parties.
Enhancing the value of our existing catalogue remains core to our business. We
are committed to improving the capabilities of our Creative Technicians to
ensure our tracks have the metadata required to maximise discoverability.
Whilst TCAT optimises the distribution of our content across global markets,
synchronisation deals also offer a further avenue from which to generate
income. In 2019, we licensed songs for synchronisation deals with a number of
TV series, such as NBC show 'Empire', and films, including American thriller
'Ready or Not'.
Acquisitions
In February 2019, the Company acquired the catalogue of Locomotive Records for
US $750,000. This collection of contemporary Spanish progressive rock music
features a number of tracks from the acclaimed band Mägo de Oz, which is
expected to enhance the Group's growth of streaming in territories including
Spain, Latin America and the USA.
In April 2019, the Company acquired the publishing and songwriter's rights to
93 songs written by Grammy nominated country music songwriter, Michael Dulaney,
for US $850,000, who has had major hit songs performed by the likes of Faith
Hill and Jason Aldean.
In May 2019, One Media purchased the songwriter's share of a number of songs
written by Cole Taylor, a country singer-songwriter for a total consideration
of US $260,000 at completion, and a maximum deferred consideration based on
financial performance of US $30,000 within 24 months. The catalogue includes
some of his major hits including two that reached No.1 in the Billboard Cou
ntry charts.
In July 2019, One Media announced the acquisition of the income from the
publishing and songwriter's share of the song 'God's not Dead' by Daniel Bashta
for US $725,000. The song has become the signature tune to the films of the
same name 'God's Not Dead', 'God's Not Dead 2' and 'God's Not Dead: A Light in
Darkness'. The films have grossed close to US $100m. The song was first
released as a single on 12 October 2011, peaking at No. 2 on 9 June 2012 after
spending 22 weeks on the Billboard Hot Christian Songs chart and then charting
again when the film of the same name was released in 2014.
In September 2019, One Media completed its largest IP deal to date, acquiring
the publishing and master rights of the entire catalogue of award-winning
American composer and solo piano artist, Philip Wesley, for a total cash
consideration of US $4.15m. An additional US $100,000 cash consideration will
be payable on the date falling one year from the date of execution of the
agreement, subject to certain deliverables contained within the agreement.
To date, the five catalogues, acquired for a total of US $6.865 million,
represent a blended historical net publisher share multiple of circa 8.7x.
With these acquisitions the Company has now broadened the breadth and depth of
content in the One Media library to include Spanish, Country and New Age music,
areas which are seeing tremendous growth in global consumption. Latin America
has seen the highest rate of music revenue growth globally for four consecutive
years according to research by the International Federation of the Phonographic
Industry, and Country music amassed almost 51 billion streams in 2018, a 46%
growth over the 2017 numbers according to Nielsen Music.
Board and Management
One Media was delighted to welcome Alice Dyson-Jones and Steven Gunning to the
Board as Executive Director and Finance Director, respectively, in October
2019. Prior to joining the Board, both Alice and Steve had been instrumental in
the development of the business in their respective roles as Managing Director
and Finance Director. Their wealth of industry experience will serve to
strengthen the Board as we execute our strategy going forwards.
Post period end, in November 2019, Ivan Dunleavy and Lord Michael Grade
resigned as Directors of the Company, whilst Philip Miles also stepped down
from his Board position but remains committed to the Group in his technical
role. Claire Blunt, COO & CFO of Hearst UK, and Brian Berg, Chairman of Eclipse
Global Entertainment and former President of Universal Music Enterprises, were
immediately appointed to the Board as Non-Executive Chair and Non-Executive
Director, respectively. With their extensive industry and financial experience,
the appointments of Claire and Brian have significantly strengthened the Board,
and we now have the perfect blend of skills to take the business forward.
Financial Overview
The year under review has seen revenues grow by 30% up to GBP3,508,891 and our
EBITDA up by 39% to GBP1,076,724 (2018: GBP773,071), driven by increased consumer
demand on streaming platforms and other revenue distributions from digital
platforms. Our operating profit is up to GBP878,913, a notable increase over our
2018 figure of GBP638,738. At the end of the period, our cash balance was GBP
860,611 (2018: GBP5,576,379). Our Gross margin remains robust at 50% and
overheads for the year are reported at GBP1,016,010 (2018: GBP853,229).
A profit after tax attributable to equity shareholders of GBP458,444 (2018: GBP
405,016) is reported for the financial year, reflecting an increase in revenues
and the maintenance of strong margins. The corporation tax expense of GBP88,778
in the period (2018: GBP81,488) includes Research and Development allowances
available to the Group. At the end of the year our cash position is reported at
GBP860,611 (2018: GBP5,576,379).
The board continues to review its dividend policy. Given the current economic
climate, the board believes any future strategy should be reviewed following a
more settled global economic environment.
Outlook
One Media has had a history of acquiring music content, either outright or
under licence. We have acquired over 200 catalogues of music. When we first
initiated this campaign in 2005 the digital music market was less than 2% of
the market.
We are now witnessing the demise of the digital download (MP3 model) and we are
benefiting from the rise of streaming. In a very short period of time,
streaming has begun to globalise how we consume our entertainment in both video
and music, whether on the move or at home. In 2018, the current global spend
for the music industry was USD $19.1 billion. Goldman Sachs now predicts that,
by 2030, the global recorded music industry will be pulling in $45 billion
annually. It also believes that paid streaming will generate $27.5 billion for
labels and artists in that year and that the overall annual global trade
streaming revenues (including ad-funded) will reach $37.2 billion. One Media,
with its various new initiatives, is now coming of age. Its cautious, risk
averse policies, reoccurring revenue model and cash generation will continue to
serve its shareholders as it meets new challenges within this growth market.
One Media enters H1 2020 positively and continues to capitalise on the evolving
music streaming market. We look forward to updating shareholders on progress in
due course as we head into another year of global digital growth.
The COVID-19 virus presents us all with an unprecedented challenge. Our entire
team are now working from home under government guidelines for the duration. We
have a robust reoccurring income model that lends itself to remote working and
our major partners have the same. Whilst none of us can predict whether digital
music consumption will be affected, all our business operations continue to
operate.
Michael Infante
Chief Executive and Founder
Consolidated Statement of Comprehensive Income
For the year ended 31 October 2019
Year ended Year ended
31 October 31 October
2019 2018
GBP GBP
Revenue 3,508,891 2,702,374
Cost of sales (1,756,464) (1,325,448)
Gross profit 1,752,427 1,376,926
Administration expenses (873,513) (738,168)
Operating profit 878,914 638,758
Share based payments (142,497) (115,061)
Finance costs (189,322) (37,201)
Finance income 127 8
547,222 486,504
Profit on ordinary activities
before taxation
Tax expense (88,778) (81,488)
Profit for period attributable to 458,444 405,016
equity shareholders and total
comprehensive income for the year
Basic earnings per share 0.34p 0.44p
Diluted earnings per share 0.26p 0.40p
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 2019
Share Share Share Share Retained Total
Capital redemption premium based earnings equity
reserve payment
reserve
GBP GBP GBP GBP GBP GBP
At 1 November 2017 355,268 239,546 1,457,645 107,198 1,576,749 3,736,406
Proceeds from the 322,750 - 2,983,000 - - 3,305,750
issue of new
shares
Fund raise costs - - (126,425) - - (126,425)
Share based - - - 115,061 - 115,061
payment charge
Profit for the - - - - 405,016 405,016
year
At 1 November 2018 678,018 239,546 4,314,220 222,259 1,981,765 7,435,808
Share based - - - 142,497 - 142,497
payment charge
Profit for the - - - - 458,444 458,444
year
At 31 October 2019 678,018 239,546 4,314,220 364,756 2,440,209 8,036,749
Consolidated Statement of Financial Position at 31 October 2019
At At
31 October 31 October
2019 2018
GBP GBP
Assets
Non-current assets
Intangible assets 8,900,408 3,351,304
Property, plant and equipment 7,648 12,221
8,908,056 3,363,525
Current assets
Trade and other receivables 987,054 680,960
Cash and cash equivalents 860,611 5,576,379
Total current assets 1,847,665 6,257,339
Total assets 10,755,721 9,620,864
Liabilities
Current liabilities
Trade and other payables 1,011,131 526,224
Deferred tax 85,573 58,574
Total current liabilities 1,096,704 584,798
Borrowings 1,622,268 1,600,258
Total liabilities 2,718,972 2,185,056
Equity
Called up share capital 678,018 678,018
Share redemption reserve 239,546 239,546
Share premium account 4,314,220 4,314,220
Share based payment reserve 364,756 222,259
Retained earnings 2,440,209 1,981,765
Total equity 8,036,749 7,435,808
Total equity and liabilities 10,755,721 9,620,864
Consolidated Cash Flow Statement
For the year ended at 31 October 2019
Year ended Year ended Year ended Year ended
31 October 31 31 October 31
2019 October 2019 October
Group 2018 Company 2018
Group Company
GBP GBP GBP GBP
Cash flows from
operating activities
Operating profit 547,222 486,505 (70,475) 109,186
before tax
Amortisation 332,423 247,406 - -
Depreciation 7,885 7,653 - -
Share based payments 142,497 115,061 142,497 115,061
Finance income (127) (8) (115) (1)
Finance costs 189,322 37,201 189,322 37,201
(Increase) in (202,155) (4,453,635) (195,110)
receivables (306,094)
Increase/(decrease) 333,210 (87,013) (175,307) (13,472)
in payables
Corporation tax - 27,104 - -
Finance cost paid (99,404) - - -
Net cash inflow 1,146,934 631,754 (4,367,713) 52,865
(outflow) from
operating activities
Cash flows from
investing activities
Investment in (5,881,529) (215,113) - -
intellectual
property rights and
TCAT
Investment in (3,310) (2,904) - -
property, plant and
equipment
Finance income 127 8 115 1
Net cash used in (5,884,712) (218,009) 115 1
investing activities
Cash flows from
financing activities
Proceeds from the - 3,305,750 - 3,305,750
issue of new shares
Share issue costs - (126,425) - (126,425)
Loan notes 22,010 1,600,258 22,010 1,600,258
Net cash inflow 22,010 4,779,583 22,010 4,779,583
(outflow) from
financing activities
Net change in cash (4,715,768) 5,193,328 (4,345,588) 4,832,449
and cash equivalents
Cash at the 5,576,379 383,051 4,894,080 61,631
beginning of the
year
Cash at the end of 860,611 5,576,379 548,492 4,894,080
the year
Notes to the Preliminary Results
Basis of preparation
The Company is a public limited company incorporated and domiciled in England
under the Companies Act 2006. The Board has adopted and complied with
International Financial Reporting Standards (IFRS) as adopted by the European
Union. The Company's shares were admitted for trading on the AIM market of the
London Stock Exchange on 18 April 2013.
Taxation
Year ended Year ended
31 October 31 October
2019 2018
GBP GBP
Analysis of the charge for the year
Adjustments to tax charge in - 2,272
respect of prior years
UK corporation tax charge 61,779 55,018
Deferred tax 26,999 24,198
88,778 81,488
The standard rate of tax for the year, based on the UK standard rate of
corporation tax is 19% (2018: 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 Year ended
31 October 31 October
2019 2018
GBP GBP
Profit on ordinary activities before 547,221 486,504
tax
Tax on profit on ordinary activities 103,972 92,436
at 19% (2018: 19%)
Effects of:
Non-deductible expenses 29,624 24,660
Adjustments to tax charge in respect 1,696 1,878
of previous periods
Fixed asset timing differences 26,999 24,198
Depreciation in excess of capital
allowances (4,109) 520
Share scheme deduction -
Research and development (69,404) (62,204)
Total tax charge 88,778 81,488
Earnings per share
The weighted average number of shares in issue for the basic earnings per share
calculations is 135,603,699 (2018: 92,244,794) and for the diluted earnings per
share assuming the exercise of all warrants and share options is 173,237,032
(2018: 100,714,200).
The calculation of basic earnings per share is based on the profit for the
period of GBP458,433 (2018: GBP405,016). Based on the weighted average number of
shares in issue during the year of 135,603,699 (2018: 92,244,794) the basic
earnings per share is 0.34p (2018: 0.44p). The diluted earnings per share is
based on 173,237,032 shares (2018: 100,714,200) and is 0.26p (2018: 0.40p).
EBITDA
Profit from continuing activities before interest, tax, depreciation and
amortisation for the twelve months ended 31 October 2019 was GBP1,076,724 (2018:
GBP773,071).
Amendment of option agreement with director
Michael Infante, a director of the Company, has an option over 500,000 ordinary
shares in the Company exercisable at a price of 2.75 pence per share for an
exercise period to 6 March 2020. The Company has agreed to amend the terms of
this option agreement by extending the exercise date to 6 March 2021. All other
terms of the option agreement remain unchanged.
Directors' responsibilities
The Annual Report, including the financial information contained therein, is
the responsibility of, and was approved by the directors on 30 March 2020.
Availability of Report and Accounts and Notice of the Annual General Meeting
Copies of the Company's Report and Accounts together with the Notice of the
Annual General Meeting, will be posted to shareholders shortly. Please note
that arrangements for the AGM this year are different from those of previous
years. As we expect significant restrictions on personal movement to still be
in place due to Covid-19, we are utilising provisions in our articles of
association, and certain associated discretionary powers for the orderly
conduct of meetings, to facilitate the holding of the meeting on an electronic
platform. Accordingly, this year's AGM will be an electronic meeting only. All
voting at the resolutions at the AGM will be conducted on a poll which means
that you should submit your proxy as soon as possible. We ask that all question
which shareholders wish to raise be submitted to agm@onemediaip.com in advance.
The platform that we will be using will allow shareholders the option to submit
a separate poll card as they "exit" the electronic meeting but, to ease
administration, we request that proxies be lodged in advance wherever possible.
Full details of the operation and arrangements for the AGM are set out in the
Notice of AGM. We do not intend to make this arrangement permanent, as we value
the opportunity to meet our shareholders in person. To that end we anticipate
organising an informal shareholder meeting once restrictions on movement are
lifted and it is safe to do so. 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.
This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014.
END
(END) Dow Jones Newswires
March 31, 2020 02:00 ET (06:00 GMT)
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