Final Results

9 July 2015

mirada plc

(AIM: MIRA)

("mirada", “the Company” or "the Group")

Final Results for the Year Ended 31 March 2015

mirada plc, the AIM quoted leading audiovisual content interaction specialist, announces its final results for the year ended 31 March 2015.

Financial Highlights

  • Revenue increased 24% to £5.66 million (2014: £4.57 million)
  • Revenues earned from licences remained in line with last year to £1.73 million (2014: £1.74 million)
  • Gross profit increased 23% to £5.42 million (2014: £4.39 million)
  • Gross profit margin remained stable at 96%
  • Adjusted EBITDA* increased 50% to £1.54 million (2014: £1.02 million)
  • Pre-tax loss reduced to £0.11 million (2014: loss of £0.39 million)

*Adjusted EBITDA is defined as earnings before interest, tax, depreciation, amortisation and share-based payment charges

Operational Highlights

  • Commercialisation of first Tier One project for Televisa Group with Cablevisión Monterrey deployment commencing in February 2015
  • Oversubscribed placing to raise £3.5 million at a price of 12.5p, providing funds to strengthen the Group’s position within the Over The Top (“OTT”) market and Latin America
  • Inaugural OTT contract win
  • Successful launch of Telefónica’s Movistar Go product
  • Appointments of José Gozalbo (Chief Technology Officer) as Executive Director, Matthew Earl as Non-Executive Director, and Gonzalo Babío as Chief Financial Officer (non Board appointment)

José Luis Vázquez, CEO of mirada, commented: “We have now entered a new stage in which major players are showing increased interest in our capabilities. Having proven our ability to win and deliver Tier One contracts, the Board is encouraged by the prospects that might develop from the continuing discussions with other potential Tier 1 and Tier 2 customers.”

Enquiries:

mirada plc
José Luis Vázquez, Chief Executive Officer
+44 (0) 207 549 5678
Walbrook PR
Nick Rome/Sam Allen
mirada@walbrookpr.com
+44 (0) 207 933 8780
Arden Partners plc (Nomad and Joint Broker)   
Steve Douglas (Corporate Finance)
James Felix (Corporate Finance)
Kam Bansil (Corporate Broking)
+44 (0) 207 614 5900

Overview

I am pleased to report the Group’s financial results for the year ended 31 March 2015. This has been a critical period for the Company during which we have secured and deployed our first Tier One contract. mirada has proven capable of winning and delivering milestone deals competing with the largest players in the Digital TV market. As such, it has established and strengthened its network of relationships and successfully delivered its products in a challenging environment, whilst creating a strong pipeline of potential large-scale contracts.

The Company won its most important contract to date in May 2014 with Televisa Group for its flagship product, iris, a unique TV-everywhere ecosystem featuring the advanced inspire user-experience, which it launched for the first time on Cablevisión Monterrey’s cable network in February this year. Even with a delay in commercial deployment beyond mirada’s control, the Group achieved a healthy growth in revenues of nearly 24% to £5.66 million (2014: £4.57 million). Most of this growth resulted from professional services related to increased functionality and customisation of the Televisa Group deployments, while licence fees remained in line with last year at £1.73 million. The growth resulted in an improvement in adjusted EBITDA (defined as earnings before interest, tax, depreciation, amortisation and share based payment charges) of £1.54 million (2014: £1.02 million), increasing more than 50% from the previous year. The Group was also able to raise operating profit for the year to £0.29 million (2014: £0.004 million). Losses Before Tax were reduced to -£0.11 million (2014: -£0.39 million), with a Net Loss of -£0.18 million (2014: £0.04 million profit) after taxes.

In addition to the Televisa iris contract, the Group also secured its first significant OTT contract, also with Televisa. In addition, we deployed our iris technology with the Telefónica Group in Peru. These milestones demonstrate the competitiveness of mirada for next generation Digital TV products. The team continues to be able to achieve its goal of being at the forefront of OTT technologies, positioning us well to secure larger deals and these milestones have translated into continuing discussions with other Tier One customers.

We have a strongly supportive shareholder base, as demonstrated by the oversubscribed placing of £3.5 million (before expenses) in July 2014, which allowed the Group to secure the OTT deals and substantially strengthen our balance sheet. We remain grateful for their support.

Trading review

First Tier One customer

The primary focus of the Group over the year was to secure the deployment of our inaugural Tier One contract, which was awarded to us by Televisa in May 2014. The first such commercial deployment commenced in February 2015 for Televisa’s regional network, Cablevisión Monterrey. The first months of the deployment have gone well, with technical and commercial performance surpassing expectations. As announced in December and January, issues beyond mirada's control have delayed commercial deployment in the other Televisa networks to the end of the current financial year. Following the acquisition of Cablecom and Telecable during the period under review, Televisa now owns five cable networks, all of which the Company expects to adopt the iris/inspire software.

During the period, there have been significant improvements to the software, and mirada has faced the additional challenge of integrating its product in a complex multi-network environment in the middle of a consolidation process. Substantial progress has been made and the Company is ready to launch the products across the rest of the cable networks as required by the customer.

Performance of Installed Base

The period under review generated licence fees from the following main sources: GVT in Brazil, and Cablecom, Axtel and the Televisa Group in Mexico.

During the year Telefónica acquired GVT, and has stated that it intends to merge GVT's activities with Telefónica Brazil. This merger generated around 190,000 new subscribers during the period, comprised of additional hybrid (IPTV) and satellite (DTH) operations, with GVT subscribers accounting for around 940,000 in total. However, GVT has reached relative maturity and, with its impending consolidation process, mirada is conservative about its growth and direction with respect to user-experience software.

Axtel in Mexico continues to grow, reaching nearly 100,000 subscribers for the Navi solution, a user-friendly tool for finding and purchasing programming on IPTV, at the end of the period. The Company continues invoicing new licence batches and earning managed service through our long established relationship with Ericsson Mexico.

In August 2014, the Televisa Group completed its acquisition of Cablecom. As the operational merger concludes, management expects that subscribers from the cable network will adopt the iris/inspire solution. In the meantime, mirada continues to offer managed services to Cablecom for their already deployed iris/origin solution. With respect to the commercial deployment of the iris/inspire solution, mirada was able to invoice one-off back-office licence fees and the first batch of subscriber-based licence fees at the end of the period as expected.

Digital TV and Broadcast unit financial performance

The Group has continued to concentrate on Digital TV & Broadcast business, which accounted for 92.5% of total turnover (2014: 90.7%) and 95.4% of gross margin (2014: 94%). Owing to the consolidation of the business and the successful transition of the Digital TV model, growing with our customers’ success based on a subscriber-based licence fees agreements, revenues from the unit reached £5.23 million (2014: £4.15 million), representing 26% growth year-on-year. Licence fees remained flat, mainly due to the delays in the Tier One commercial launch, while most of the growth came from professional services, with sales of £3.50 million (2014: £2.41 million), some of which derived from the Televisa contract. Segmental EBITDA also increased to £2.09 million (2014: £1.87 million).

The major source of revenues – mainly US dollar denominated – continued to be Latin America, which accounted for 72% of sales (2014: 69%), while the Company strengthened its pipeline elsewhere in the world. Turnover from the UK and Spain increased to £1.55 million (2014: £1.22 million), amounting to 27% of total turnover, in line with last year’s percentage.

Mobile unit financial performance

Revenues from the mobile unit remained stable at £0.43 million (2014: £0.42 million). The business, comprising mainly cashless parking, is active in the UK.

Appointments

During the year we were pleased to welcome Matthew Earl to the role of Non-Executive Director and José Gozalbo (CTO) to the role of Executive Director. Gonzalo Babío, an experienced professional formerly working for Electronic Arts and Disney, also joined as our new CFO (non board position) at the end of the financial year.

Financial overview

Revenue grew to £5.66 million (2014: £4.57 million), mainly from Digital TV & Broadcast activities. Gross profit margin remained stable at 96% and adjusted EBITDA for the year increased 50.7% to £1.54 million (as disclosed in note 6) compared to £1.02 million in the prior year. Amortisation charges increased to £1.19 million from £0.92 million as a result of increased investment in iris, especially in the inspire user-experience and the OTT features. Based on the Group’s improved performance and future projections, a deferred tax asset of £0.04 million was recognised during the year.

Adjusted EBITDA is a key performance indicator (“KPI”) used by management as it removes the impact of one-off and non-cash transactions. Other KPIs used by management include the following:

- Gross profit margin: the Group’s focus on Digital TV & Broadcast business, in which cost of sales are minimal, delivered a gross profit margin of 96%, in line with last year.

- Overseas activities (i.e. excluding UK and Spain): total revenues from Latin America increased to £4.06 million (2014: £3.14 million), representing 72% of our turnover, up from 69% last year. Overseas activities remained at 73% of total Group turnover, the same percentage as last year.

- Subscriber-based licence fee revenue included within the Digital TV & Broadcast segment: revenues from licence fees command higher margins and are key to our return on investment and overall profitability. Total licence fees for the year equalled £1.73 million, in line with £1.74 million in the prior period.

The Group posted a loss before tax for the year of £0.11 million compared to a loss of £0.39 million in the prior period. The Televisa contract-related professional services led to increased revenues, EBITDA and operational profit, although management expect subscriber-based licence fees to drive overall profitability of the contract, once the commercial launch takes place across the rest of the Customer’s cable networks.

Total borrowings remained at a similar level to last year totalling £2.81 million (2014: £2.64 million). Long term interest bearing loans and borrowings reduced 30% to £1.35million (2014: £1.91 million) and short term borrowings increased from £0.73 million to £1.47 million due to working capital needs related to delays on the Televisa commercial deployment, including factoring facilities at £0.44 million. Trade receivables were exceptionally high at the end of the period at £2.19 million (2014: £0.79 million) due to invoicing in March of licence fees related to the commercial launch of the contract. In July 2014, the Company completed the equity funding of £3.5 million (before expenses), which enabled successful OTT product development and improved the Net Asset position.

During the year to March 2015, it was concluded that Mirada should have raised a provision for dilapidations on a long-term lease. As a result the consolidated balance sheets as at 31 March 2013 and 31 March 2014 have been restated to reflect the liability of a £500k lease provision. The restatement does not affect the Income Statement or the Statement of Cashflows.

Operational Review

Areas of business

mirada is an audiovisual interaction technology company providing both interactive products and software development services. We trade in complementary areas around the media business, with some smaller stand-alone activities in certain other markets:

Digital TV & Broadcast:

We have more than 15 years’ experience in technologies from interactive TV to advanced navigational services and synchronisation technologies and have a solid network of partners and we are internationally recognised for our skill base. Our products comprise user interfaces for content navigation and consumption over Digital TV receivers (TV and set-top boxes), personal computers and companion devices (tablets and smartphones). Our major products are our navigational software propositions: iris (with our origin and inspire user interfaces), navi (in partnership with Ericsson) and xplayer for Broadcasters.

Other areas:

mirada has experience and business activities in other areas, principally broadcast and cashless payment solutions for the car parking market via mirada connect. mirada connect will remain independent from the rest of the business. Although non-core, it makes a positive contribution to Group EBITDA.

Current Trading and Outlook

This year has seen the consolidation of the Company as a significant contender in the Digital TV world, winning contracts generally only awarded to much larger players. The contract awarded in May 2014 and the later deployment at the first cable network, Cablevisión Monterrey, further confirmed mirada's capability to deliver complex projects on a multi-network Tier One scale.

The Group suffered from third-party related delays that postponed the receipt of further subscriber-based licence fees in the year under review, although Professional Services at normal market rates increased Revenues more than 25% on a year-to-year basis. Subscriber-based licence fees will further improve the profitability from contracts already won, as our return on investment benefits from the growth of our Customers’ installed subscriber bases.

This has been the first commercial launch for our iris-inspire user experience, and we are glad to confirm that the deployment of the solution went smoothly, without noticeable technical problems, and the commercial rollout at Monterrey is progressing ahead of expectations. The Company continues integrating the solution with additional features at two additional cable networks in the customer, including the new OTT solution, with an expectation to start the commercial roll-out in those areas during the coming months. While the final date for the delivery will rely on the progress of the customer’s technical team, I am very satisfied with the performance of our engineers, who continue to enhance the solution, thereby generating increased revenues from professional services.

The Company secured the funds and other resources to accelerate the availability its OTT full product proposition, securing a large contract with one of the largest players in the market. This reference, for both the DVB technologies and OTT propositions, has delivered new leads and translated into continuing discussions with other Tier One customers..

I would like to thank all our stakeholders, who have demonstrated their belief in our capabilities and have contributed so much to the transformation of our business .We look forward with great optimism.

José-Luis Vázquez
Chief Executive Officer
8 July 2015


 

Consolidated income statement

Year ended 31 March 2015

Note Year ended
31 March 2015
£000
Year ended
31 March 2014
£000
Revenue 4 5,657 4,572
Cost of sales (234) (182)
Gross profit 5,423 4,390
Depreciation (21) (43)
Amortisation (1,187) (924)
Share-based payment charge (61) (53)
Other administrative expenses (3,869) (3,366)
Total administrative expenses (5,138) (4,386)
Operating profit 5 285 4
Finance income 38 32
Finance expense (436) (422)
Loss before taxation (113) (386)
Taxation 6 (62) 427
Profit/(loss) for year (175) 41
(Loss)/Earnings per share Year ended
31 March 2015                         p
Year ended
31 March 2014                          p
(Loss)/Earnings per share for the year
- basic & diluted
7
(0.2)

0.1

Consolidated statement of comprehensive income

Year ended 31 March 2015

Year ended
31 March 2015
Year ended
31 March 2014
£000 £000
Loss/(Profit) for the period (175) 41
Other comprehensive loss:
Currency translation differences (225) (26)
Total other comprehensive loss (225) (26)
Total comprehensive (loss)/income for the year (400) 15


 

Consolidated statements of changes in equity

Year ended 31 March 2015



Share capital
£000
Share premium account
£000

Share
option
reserve
£000

Foreign
exchange
reserve
£000
Merger
reserves
£000
Retained earnings
£000



Total
£000
Restated Balance at 1 April 2014 861 5,776 - 483 2,472 (3,529) 6,063
Loss for the financial year - - - - - (175) (175)
Movement in foreign exchange reserve - - - (225) - - (225)
Share based payment - - - - - 61 61
Issue of shares 280 3,220 - - - - 3,500
Share issue costs - (248) - - - - (248)
Balance at 31 March 2015 1,141 8,748 - 258 2,472 (3,643) 8,976

   

Note

Share capital
£000
Share premium account
£000

Share
option
reserve
£000

Foreign
exchange
reserve
£000
Merger
reserves
£000
Retained earnings
£000



Total
£000
 Balance at 1 April 2013, as previously reported 519 3,059 140 509 2,472 (3,234) 3,465
Prior year restatement 3 - - - - - (500) (500)
Restated Balance 1 April 2013 519 3,059 140 509 2,472 (3,734) 2,965
Profit for the financial year - - - - - 41 41
Movement in foreign exchange reserve - - - (26) - - (26)
Share based payment - - - - - 53 53
Transfer between reserves - - (140) - - 140 -
Conversion of convertible loans into shares 98 877 - - - (29) 946
Issue of shares 244 1,894 - - - - 2,138
Share issue costs - (54) - - - - (54)
Restated Balance at 1 April 2014 861 5,776 - 483 2,472 (3,529) 6,063


 

Consolidated statement of financial position

As at 31 March 2015


 

Note
31 March
2015
£000

31 March
2014
£000

31 March
2013
£000
As restated As restated
Property, plant and equipment 41 37 61
Goodwill 6,946 6,946 6,946
Other Intangible assets 2,843 2,444 1,719
Deferred Tax Assets 543 5088 508 -
Non-current assets 10,373 9,935 8,726
Trade & other receivables 3,565 1,781 1,292
Cash and cash equivalents 9 206 30 94
Current assets 3,771 1,811 1,386
Total assets 14,144 11,746 10,112
Loans and borrowings (1,467) (728) (697)
Trade and other payables (1,790) (2,339) (2,725)
Provisions 3 (500) (576) (141)
Current liabilities (3,757) (3,643) (3,563)
Net current assets / (liabilities) 14 (1,832) (2,177)
Total assets less current liabilities 10,386 8,103 6,549
Interest bearing loans and borrowings (1,345) (1,911) (2,767)
Embedded conversion option derivative - - (65)
Other non-current liabilities (66) (129) (181)
Provisions 3 - - (571)
Non-current liabilities (1,411) (2,040) (3,584)
Total liabilities (5,168) (5,683) (7,147)
Net assets 8,976 6,063 2,965
Issued share capital and reserves attributable to equity holders of the company
Share capital 8 1,141 861 519
Share premium 8,748 5,776 3,059
Other reserves 2,730 2,955 3,121
Retained earnings (3,643) (3,529) (3,734)
Equity 8,976 6,063 2,965

Consolidated statement of cash flows

Year ended 31 March 2015

Year ended Year ended
31 March 2015 31 March 2014
Note £000 £000
Cash flows from operating activities
Profit/(loss) after tax (175) 41
Adjustments for:
Depreciation of property, plant and equipment 21 43
Amortisation of intangible assets 1,187 924
Share-based payment charge 61 53
Profit on disposal of fixed assets (11) -
Finance income (38) (32)
Finance expense                      436 422
Taxation 62 (427)
Operating cash flows before movements in working capital 1,543 1,024
(Increase)/decrease in trade and other receivables                      (2,144) (501)
(Decrease)/increase in trade and other payables (444) (484)
(Decrease)/increase in provisions                    (76) (136)
Net cash (used in)/generated from operating activities (1,121) (97)
Cash flows from investing activities
Interest and similar income received 8 16
Cash payments for financial investments assets (132) -
Receipts for financial investment assets 23 -
Proceeds from disposal of property, plant and equipment 11 -
Purchases of property, plant and equipment (29) (20)
Purchases of other intangible assets (1,795) (1,661)
Net cash used in investing activities (1,914) (1,665)
Cash flows from financing activities
Net payment to settle derivative (121) -
Interest and similar expenses paid (420) (335)
Issue of share capital 3,500 2,036
Costs of share issue (248) (54)
Loans received 1,254 289
Repayment of loans (570) (409)
Repayment of capital element of finance leases             - (10)
Net cash from financing activities 3,395 1,517
Net (decrease)/increase in cash and cash equivalents 360 (245)
Cash and cash equivalents at the beginning of the year 24 (150) 94
Exchange (losses)/gains on cash and cash equivalents (4) 1
Cash and cash equivalents at the end of the year 24 206 (150)

Cash and cash equivalents comprise cash at bank less bank overdrafts.


 

mirada plc

Notes to consolidated financial statements

Year ended 31 March 2015

1. General information

mirada plc is a company incorporated in the United Kingdom. The address of the registered office is 69 Old Street, London, EC1V 9HX.  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.

2. Basis of preparation

The financial information set out in this document does not constitute the Company's statutory accounts for year to 31 March 2014 and 2015.  Statutory accounts for the years ended 31 March 2014 and 31 March 2015 have been reported on by the Independent Auditors.  The Independent Auditor’s Reports on the Annual Report and Financial Statements for each of 2014 and 2015 were unmodified and did not contain statements under sections 498(2) or 498(3) of the Companies Act 2006.

Statutory accounts for the year ended 31 March 2014 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 March 2015 will be delivered to the Registrar in due course, and will be available from the Company's registered office at 69 Old Street, London, EC1V 9HX and from the Company's website www.mirada.tv/corporate.

The financial information set out in these preliminary results has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively Adopted IFRSs). The accounting policies adopted in these preliminary results have been consistently applied to all the years presented and are consistent with the policies used in the preparation of the statutory accounts for the period ended 31 March 2015.  The principal accounting policies adopted are unchanged from those used in the preparation of the statutory accounts for the period ended 31 March 2014. New standards, amendments and interpretations to existing standards, which have been adopted by the Group have not been listed, since they have no material impact on the financial statements

3. Significant accounting policies

Going concern policy

The directors have prepared a cash flow forecast covering a period extending beyond 12 months from the date of these financial statements. The forecast contains certain assumptions about the performance of the business. These assumptions are the directors’ best estimate of the future development of the business, including consideration of cash reserves required to support working capital and its new growth initiatives. Based on this cash flow forecasts, directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Prior year restatement

As disclosed in the overview section, during the year to March 2015, Mirada received a dilapidation claim.

It was concluded that Mirada should have raised a dilapidation provision for the Wapping offices totalling £500k. As a result the consolidated balance sheet as at 31 March 2014 has been restated to reflect the post balance sheet liability of the lease provision. This restatement was also required for the balance sheet as at 31 March 2013. The restatement does not affect the Income Statement or the Statement of Cashflows.

4. 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 on page 6. The segment headed other relates to corporate overheads, assets and liabilities.

Segmental results for the year ended 31 March 2015 are as follows:

Digital TV & Broadcast Mobile Other Group
£'000 £'000 £'000 £'000
Revenue - external 5,232 425 - 5,657
Gross profit 5,175 248 - 5,423
Profit/(loss) before interest, tax, depreciation, amortisation & share based payments 2,086 91 (634) 1,543
Depreciation (17) (1) (3) (21)
Amortisation (1,162) (25) - (1,187)
Profit on sale - - 11 11
Share-based payment charge - - (61) (61)
Finance income - - 38 38
Finance expense - - (436) (436)
Taxation (62) - - (62)
Segmental profit/(loss) 845 65 (1,085) (175)

The segmental results for the year ended 31 March 2014, presented on the revised basis, are as follows:

Digital TV & Broadcast Mobile Other Group
£'000 £'000 £'000 £'000
Revenue - external 4,149 423 - 4,572
Gross profit 4,120 270 - 4,390
Profit/(loss) before interest, tax, depreciation, amortisation & share based payments 1,871 53 (900) 1,024
Depreciation (23) - (20) (43)
Amortisation (864) (26) (34) (924)
Share-based payment charge - - (53) (53)
Finance income - - 32 32
Finance expense - - (422) (422)
Taxation 375 52 - 427
Segmental profit/(loss) 1,359 79 (1,397) 41

There is no material inter-segment revenue included in the segments which is required to be eliminated.

The Group has two major customers in the Digital TV and Broadcast segment (a major customer being one that generates revenues amounting to 10% or more of total revenue) that account for  £2.16 million (2014: £0.83 million) and £0.84 million (2014: £ Nil) of the total Group revenues respectively.

The segment assets and liabilities at 31 March 2015 are as follows:

Digital TV - Broadcast Mobile Other Group
£'000 £'000 £'000 £'000
Additions to non-current assets 1,887 - 1 1,888
Total assets 13,210
,00(
714 220 14,144
Total liabilities (4,029) (134) (1,005) (5,168)

Capital expenditure comprises additions to property, plant and equipment and intangible assets.

The segment assets and liabilities at 31 March 2014, presented on a revised basis, are as follows:

Digital TV - Broadcast Mobile Other Group
£'000 £'000 £'000 £'000
Additions to non-current assets 2,132 54 3 2,189
Total assets 10,947
,00(
732 67 11,746
Total liabilities (4,280) (57) (1,346) (5,683)

Segment assets and liabilities are reconciled to the Group’s assets and liabilities as follows:

Assets
31 March
2015
Liabilities
31 March
2015
Assets
31 March
2014
Liabilities
31 March
2014
£'000 £'000 £'000 £'000
Digital TV - Broadcast & Mobile 13,924 4,163 11,679 4,337
Other:
Intangible assets - - - -
Property, plant & equipment 2 - 2 -
Other financial assets & liabilities 218 1,005 65 1,346
Total other 220 1,005 67 1,346
Total Group assets and liabilities 14,144 5,168 11,746 5,683

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 by location of customer Total assets by
location of assets
31 March
2015
31 March
2014
31 March
2015
31 March
2014
£000 £000 £000 £000
UK 593 563 3,323 3,041
Spain 953 650 10,820 6,894
Rest of Continental Europe 52 218 - -
Latin America 4,059 3,141 - -
5,657 4,572 14,143 9,935
 
Revenues by Product
31 March
2015
Digital TV & Broadcast
31 March
2015
Mobile
31 March
2014
Digital TV & Broadcast
31 March
2014
Mobile
£000 £000 £000 £000
Development 2,949

1,914

Self Billing - 410 - 310
Licenses 1,730 20 1,739 15
Managed Services 552 (4) 496 98
5,231 426 4,149 423

5.             Operating profit

The operating profit is stated after charging the following:

Year ended
31 March
2015
£000
Year ended
31 March
2014
£000
Depreciation of owned assets 21 43
Amortisation of intangible assets 1,187 924
Operating lease charges 250 233
Research and development costs - -
Operating Foreign Exchange (gains)/losses (141) 33

Reconciliation of operating profit for continuing operations to adjusted earnings before interest, taxation, depreciation and amortisation:

Year ended
31 March
2015
£000
Year ended
31 March
2014
£000
Operating profit 285 4
Depreciation 21 43
Amortisation 1,187 924
Share-based payment charge 61 53
Foreign Exchange - -
Profit on disposal (11) -
Operating profit before interest, taxation, depreciation, amortisation and share-based payment charge  (Adjusted EBITDA) 1,543 1,024

 

 

6.        Taxation

The tax assessed on the loss on ordinary activities for the period differs from the standard rate of tax of 21%. The differences are reconciled below:

Year ended
31 March
2015
£000
Year ended
31 March
2014
£000
Loss before taxation (113) (386)
Loss on ordinary activities multiplied by 21% (2014: 23%) (24) (89)
Effect of expenses not deductible for tax purposes 21 52
Losses carried forward 3 37
Witholding Taxes 159 -
Total current tax 159 -
Origination and reversal of temporary differences 31 (35)
Recognition of previously un recognised deferred tax assets (128) (392)
Total deferred tax (97) (427)
Total tax expense 62 (427)

Deferred taxation

Deferred tax assets have been recognised in respect of tax losses for Mirada Connect Limited, research and development investment for Fresh Interactive Technologies S.A and other temporary differences giving rise to deferred tax assets where the directors believe it is probable that these assets will be recovered. The Directors believe that the deferred tax assets are recoverable given the increasing profitability of Fresh Interactive Technologies S.A and Mirada Connect Limited over recent years, combined with the forecasts for future periods.

The movements in deferred tax assets and liabilities during the period are shown below.

Group
Asset
31 March
2015
£000

Asset
31 March
2014
£000
(Charged)/credited to profit & loss
31 March
2015
£000
Tax credit for losses 52 52 -
Other tax credits 484 421 128
Other temporary deductible differences 7 35 (31)
Tax asset 543 508 97

Reconciliation of deferred tax asset and liabilities:

Asset
£000
Balance at 1 April 2014 508
Tax Credit for Losses -
Other Tax Credit 128
Other Temporary Deductible differences (31)
Forex (62)
Balance at the end of year 543

Deferred taxation amounts not recognised are as follows:

Group Year ended
31 March
2015
£000
Year ended
31 March
2014
£000
Depreciation in excess of capital allowance 429 1,587
Losses 9,515 9,830
Unrecognised Tax Credit 2,199 1,839
12,143 13,256

The gross value of tax losses carried forward at 31 March 2015 equals £57.8 million (2014: £57.6 million).

7.             Earnings per share

Year ended 31 March 2015 Year ended 31 March 2014
Total Total
Loss/(Profit) for year £(175,078) £41,000
Weighted average number of shares 104,315,229 65,233,761
Basic (loss)/earnings per share £(0.002) £0.001
Diluted (loss)/earnings per share £(0.002) £0.001

Adjusted (loss)/earnings per share

Adjusted loss per share is calculated by reference to the loss from continuing activities before interest, taxation, share-based payment charges, depreciation and amortisation (see note 6).

Year ended 31 March 2015 Year ended 31 March 2014
Total Total
Adjusted profit after tax for year £1,543,178 £1,024,000

Weighted average number of shares
104,315,229 65,233,761
Basic adjusted earnings per share £0.015 £0.016
Diluted adjusted earnings per share £0.014 £0.014

The Company has 5,602,238 (2014: 5,602,555) potentially dilutive ordinary shares arising from share options issued to staff. Share options have been included in calculating the diluted earnings.

8.      Share capital

A breakdown of the authorised and issued share capital in place as at 31 March 2015 is as follows:

31 March
2015
Number
31 March
2015
£000
31 March
2014
Number
31 March
2014
£000
Allotted, called up and fully paid
Ordinary shares of £0.01 each 114,057,695 1,141 86,057,695 861

Share issues

During the year the following share issues took place:

- On 5 August 2014 the Company completed a placing for cash raising gross proceeds of £3,500,000 via the issue of 28,000,000 £0.01 ordinary shares at a price of £0.125 each.

9.       Notes supporting cash flow statement

Cash and cash equivalents comprise:

31 March
2015
£000
31 March
2014
£000
Cash available on demand 206 30
Overdrafts - (180)
206 (150)
Net cash increase/(decrease) in cash and cash equivalents 356 (244)
Cash and cash equivalents at beginning of year (150) 94
Cash and cash equivalents at end of year 206 (150)

Cash and cash equivalents

Cash and cash equivalents are held in the following currencies:

31 March
2015
£000
31 March
2014
£000
Sterling 9 4
Euro 197 26
Total 206 30

Cash and cash equivalents comprise cash held by the Group and short–term bank deposits with an original maturity of three months or less. The carrying amount of these assets approximates their fair value.

Significant non-cash transactions are as follows:

31 March
2015
£000
31 March
2014
£000
Financing activities:
Convertible loans converted into equity - 975
Accrued convertible loan interest paid by issue of equity - 33
Creditor balances paid by issue of equity - 68
Total - 1,076

10.       Events after the reporting date

There are no material reportable post balance sheet.

11.      Availability of report and accounts

Copies of the report and accounts for the year ended 31 March 2015 are being posted to shareholders and will be available on the Company’s website www.mirada.tv.


 

Companies

Mirada (MIRA)
UK 100

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