Unaudited Interim Results

RNS Number : 2746Y
Digitalbox PLC
08 September 2020
 

8 September 2020

 

Digitalbox plc

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

 

Unaudited interim results for the six months ended 30 June 2020

 

Digitalbox plc, the mobile-first digital media business, which owns leading websites Entertainment Daily and The Daily Mash, today publishes its interim results for six months to 30 June 2020 (the "First Half", the "Period", or "H1 2020").

 

Financial Highlights

· Group revenue of £1.0 million, up 38% year on year.

· Gross profit of £0.7 million, up 74%.

· Gross margin of 71%, up from 56%.

· Adjusted operating profit1 of £0.05 million.

· Loss before taxation of £0.1 million.

· Cash balance of £1.2 million, up from £0.5 million at 31 December 2019.

1.  Adjusted operating profit is stated before amortisation, depreciation, acquisition and listing costs and share options charges.

 

Operational Highlights

· Growth in traffic and revenue in Q1 helped to alleviate the impact of COVID 19 in Q2.

· Entertainment Daily website sessions up 16% to 94 million but session values down.

· Entertainment Daily 6 million users in February 2020, similar to December 2019, typically the site's biggest traffic month.

· Daily Mash saw record traffic during lockdown, likely linked with the nation spending more time online and looking to brighten its mood.

· Record viewing figures for BBC TV's The Mash Report.

· Mitigation measures offset revenue shortfall in order to protect the margin.

· Early signs of Q3 ad revenues recovering.

 

James Carter, CEO, Digitalbox plc, said:  "Digitalbox has exceeded our expectations in these difficult conditions, which is evidence of a resilient operating model and strong management. Our success in the first quarter has positioned us to withstand the challenges presented by COVID 19. We quickly adapted to deal with the new environment, and our content teams made a seamless switch to homeworking. Running a primarily automated commercial operation through programmatic and header bidding solutions has enabled us to continue the trading of our inventory without disruption."

 

"While the lockdown has presented great opportunities for the Daily Mash to showcase the talent of its writers, the flow of news for Entertainment Daily slowed as TV production stopped and celebrities were out of view. We remain cautiously optimistic about the second half of 2020 as big TV shows return to our screens, retail opens up again, and the economy returns to a more positive position."

 

Commenting on the Group's performance and prospects for the year, Chairman Robin Miller said: "We have exceeded our expectations in challenging conditions, clear evidence of a resilient operating model and nimble leadership. The economic impact of Coronavirus and its uncertainty going forward make it impossible to forecast with any accuracy how the remainder of the year will play out. But the advertising market is beginning to show tentative signs of recovery and we are confident the Digitalbox approach will continue to serve us well." 

 

 

 

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) ("MAR") prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
 

Enquiries:

 

Digitalbox

 

c/o Newgate Communications

James Carter, CEO

 

 

WH Ireland (Nomad and Joint Broker)

Tel: 0117 945 3470

Mike Coe / Chris Savidge

 

 

Alvarium Capital Partners (Joint Broker)

Tel: 020 7195 1400

Alex Davies / Hugh Kingsmill Moore

 

 

Newgate Communications

Robin Tozer / Isabelle Smurfit

Tel: 020 3757 6880 digitalbox@newgatecomms.com

 

 

 

About Digitalbox plc

 

Based in Bath, UK, Digitalbox is a 'pure-play' digital media business with the aim of profitable publishing at scale on mobile platforms.


Digitalbox operates two trading brands, "Entertainment Daily" and "The Daily Mash". Entertainment Daily produces and publishes online UK entertainment news covering TV, showbiz and celebrity news. The Daily Mash produces and publishes satirical news content.

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

 

InteriM Statement

 

Overview

 

Despite the impact of COVID 19, the performance of the Group in the first six months has been encouraging and exceeded our expectations. As a result of the Group's strong operating margins, Digitalbox reports adjusted operating profit ahead of management expectations. Furthermore, the cash balance has increased from 0.5 million at 31 December 2019 to 1.2 million at 30 June 2020.

 

Operating Review

 

The two factors that drive revenue are the volume and value of advertising. The volume is reflected in the number of visits (or sessions) that the Group's websites receive from users that come to read the content. The value is the price paid by advertisers to reach these users during these sessions. The number of visits to the Group's websites has increased significantly but this has been offset by the sharp fall in the value per session because of the impact of COVID 19 on advertisers' spending appetite. The Executive team took measures to mitigate the impact of the lockdown to offset the revenue shortfall, which protected the profit margin.

 

The performance of the Group's online publishing assets has progressed during the period. Entertainment Daily which is focused on TV and showbusiness news, had a solid six months. The number of sessions recorded was up 16% to 94 million compared to the same period last year. In February 2020, Entertainment Daily had more than six million unique users to its site, a similar level to December 2019. December is historically the biggest month of the year for Entertainment Daily. In the second quarter, the lockdown dominated the news agenda and reduced the flow of entertainment news and the value received per session. As a result, overall revenue for Entertainment Daily in the period was flat.

 

The Daily Mash, which the Group acquired in March 2019, has been successfully expanding its user base. The site saw record audience figures through the early stages of lockdown as the nation looked to brighten its mood. Top articles through the period included:  'School kid who didn't revise and prayed for a miracle scared of his own powers' ; 'Waitrose limits food sales to people with detached houses'; and 'Your guide to holding out till midday before starting to drink'. This increase was also helped by The Mash Report TV show which aired on BBC2 through April and May. The show achieved record viewing figures as it successfully adapted its production format. Importantly, its share of the younger audience demographic grew, which is a key metric for the BBC when judging success.

 

 

 

Financial review

 

The Directors are pleased to report strong absolute growth in revenues with a year on year uplift of 38% to £1.0 million driven by a full six months of trading compared to four months last year. More pleasing is the business's ability to trade through the impact of COVID 19 with underlying revenues, on a like for like basis, not losing any ground and remaining flat year on year.

 

Further, gross margins are up from 56% last year to 71% this year serving to highlight the high efficiency of successful digital media businesses like Digitalbox.

 

With adjusted operating profit of £0.05 million, which is the true cash generating indicator for the business, and cash in hand of £1.2 million, the stage is set for the second half of the year, typically the significantly larger trading period.

 

Outlook

 

Digitalbox has delivered strong results despite significant challenges presented by COVID 19. While much uncertainty remains, the Group remains cautiously optimistic that the positive early signs of recovery in the advertising market will continue to benefit revenues through H2, traditionally the Group's strongest trading period.

 

 

 

 

 

 

 

 

 

 

DIGITALBOX PLC

INTERIM CONSOLIDATED INCOME STATEMENT

for the six months ended 30 June 2020
 

 

 

Unaudited

Unaudited

Audited

 

Notes

Six months to

Six months to

12 months to

 

 

30 June 20

30 June 19

31 December 19

 

 

£'000

£'000

£'000

Continuing Operations

 

 

 

 

Revenue

 

983

712

2,240

 

 

 

 

 

Cost of sales

 

(286) 

(311)

(394)

 

 

__________

__________

__________

Gross profit

 

697

401

1,846

 

 

 

 

 

Administrative expenses

 

(818)

(1,113)

(2,303)

Other operating income

 

 18 

-

-

 

 

__________

__________

__________

Operating loss

 

(103)

(712)

(457)

 

 

 

 

 

"Adjusted operating profit" being operating profit before exceptional charges, amortisation and depreciation

 

54

90

525

Depreciation

 

(15)

(5)

(11)

Amortisation

 

(63)

(41)

(133)

Acquisition & listing costs

 

-

(689)

(689)

Share based payment charge

 

(79)

(67)

(149)

 

 

__________

__________

__________

Operating loss

 

(103)

(712)

(457)

 

 

 

 

 

Finance income

 

1

-

-

Finance costs

 

-

(1)

(3)

 

 

__________

__________

__________

Loss before taxation

 

(102)

(713)

(460)

 

 

__________

__________

__________

Tax charge

 

(31)

65

23

 

 

__________

__________

__________

Loss for the period from continuing operations

 

(133)

(648)

(437)

 

 

 

 

 

TOTAL EXPENSE FOR THE

 

(133)

(648)

(437)

PERIOD

 

=============

=============

=============

 

 

 

 

 

OTHER COMPREHENSIVE EXPENSE FOR THE PERIOD

 

-

-

-

 

 

 

 

 

TOTAL COMPREHENSIVE EXPENSE FOR THE PERIOD

 

(133)

(648)

(437)

 

 

=============

=============

=============

Earnings per share

4

 

 

 

 

 

pence

pence

pence

Basic EPS from continuing operations

 

(0.15)

(1.03)

(0.57)

 

 

__________

__________

__________

Basic EPS from loss for the period

 

(0.15)

(1.03)

(0.57)

 

 

 

 

 

Diluted EPS from continuing operations

 

(0.15)

(1.03)

(0.57)

 

 

__________

__________

__________

Diluted EPS from loss for the period

 

(0.15)

(1.03)

(0.57)

 

 

__________

__________

__________

 

 

DIGITALBOX PLC
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2020

 

 

 

Share Capital

 

Share Premium reserve

Share based payment reserve

 

Retained earnings

Total

 

 

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

Balance at 1 January 2019

20,488

19,164

32

(39,399)

285

 

 

 

 

 

 

Total comprehensive expense for the period

-

-

-

(648)

(648)

 

 

 

 

 

 

Issue of new shares

843

10,710

-

-

11,553

 

 

 

 

 

 

Share issue costs

-

(117)

-

-

(117)

 

 

 

 

 

 

Share based payment charge

-

-

67

-

67

 

_____

_____

_____

_____

_____

Balance at 30 June 2019

21,331

29,757

99

(40,047)

11,140

 

 

 

 

 

 

Total comprehensive expense for the period

-

-

-

211

211

 

 

 

 

 

 

Share based payment charge

-

-

82

-

82

 

 

 

 

 

 

 

_____

_____

_____

_____

_____

Balance at 31 December 2019

21,331

29,757

181

(39,836)

11,433

 

 

 

 

 

 

Total comprehensive expense for the period

-

-

-

(133)

(133)

 

 

 

 

 

 

Issue of new shares

16

20

-

-

36

 

 

 

 

 

 

Share based payment charge

-

-

79

-

79

 

_____

_____

_____

_____

_____

Balance at 30 June 2020

21,347

29,777

260

(39,969)

11,415

 

_____

_____

_____

_____

_____

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIGITALBOX PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 June 2020


 

 

 

Unaudited

Unaudited

Audited

 

Notes

30 June 20

30 June 19

31 December 19

 

 

£'000

£'000

£'000

ASSETS

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

Property, plant and equipment

 

34

13

49

Intangible assets

5

10,185

10,341

10,248

 

 

______

______

_______

TOTAL NON-CURRENT ASSETS

 

10,219

10,354

10,297

 

 

______

______

_______

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Trade and other receivables

 

556

908

1,407

Cash and cash equivalents

 

1,207

443

477

 

 

______

______

_______

TOTAL CURRENT ASSETS

 

1,763

1,351

1,884

 

 

______

______

_______

TOTAL ASSETS

 

11,982

11,705

12,181

 

 

______

______

_______

LIABILITIES

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade and other payables

 

351

391

488

Lease liabilities

 

14 

-

24

Corporation tax payable

 

70

36

98

 

 

_______

_______

________

TOTAL CURRENT LIABILITIES

 

435

427

610

 

 

_______

_______

________

NON-CURRENT LIABILITIES

 

 

 

 

Other payables

 

-

-

8

Lease liabilities

 

-

-

2

Deferred tax

 

132

138

128

 

 

_______

_______

________

TOTAL NON-CURRENT LIABILITIES

 

132

138

138

 

 

_______

_______

________

TOTAL LIABILITIES

 

567

565

748

 

 

 

 

 

TOTAL NET CURRENT ASSETS

 

1,328

924

1,274

 

 

_______

_______

________

TOTAL NET ASSETS

 

11,415

11,140

11,433

 

 

_______

_______

________

 

 

 

 

 

CAPITAL AND RESERVES

ATTRIBUTABLE TO EQUITY SHAREHOLDERS

 

 

 

 

Issued share capital

6

21,347

21,331

21,331

Share premium account

 

29,777

29,757

29,757

Share based payment reserve

 

260

99

181

Retained earnings

 

(39,969)

(40,047)

(39,836)

 

 

_______

_______

________

 

 

11,415

11,140

11,433

 

 

_______

_______

________

 

 

 

 

 

 

DIGITALBOX PLC

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 30 June 2020

 

 

Unaudited

Unaudited

Audited

 

Six months to

Six months to

Period to

 

30 June 20

30 June 19

31 December 19

 

£'000

£'000

£'000

OPERATING ACTIVITIES

 

 

 

Loss before taxation from ordinary activities

(102)

(713)

(437)

 

 

 

 

Adjustments for:
Share based payment charge

 

79


67

 

149

Amortisation of intangibles

63

41

133

Depreciation on property plant and equipment

15

-

11

Finance costs

-

1

22

Finance income

(1)

-

-

Taxes paid

(55)

-

-

 

_____

_____

_____

Operating loss before changes in working capital and provisions

(1)

(604)

(122)

 

 

 

 

Decrease/(increase) in trade and other receivables

851

412

(86)

Decrease in trade and other payables

(145)

(109)

(100)

 

 

 

 

 

_____

_____

_____

Cash generated by/(used in) working capital

706

303

(186)

 

_____

_____

_____

Cash generated by/(used in) operating activities

705

(301)

(308)

 

_____

_____

_____

INVESTING ACTIVITIES

 

 

 

Purchase of intangible fixed assets

-

(36)

-

Purchase of property, plant and equipment

-

(13)

(13)

Acquisition of subsidiary

-

(993)

(993)

Cash on acquisition of subsidiary

-

433

433

Finance income

1

-

-

 

_____

_____

_____

Cash generated by/(used in) investing activities

1

(609)

(573)

 

_____

_____

_____

FINANCING ACTIVITIES

 

 

 

Proceeds from share issues

36

1,240

1,240

Share issue costs

-

(117)

(117)

Finance costs

-

(1)

(22)

New loans and finance leases

-

-

33

Loan and finance lease repayments

(12)

-

(7)

 

Cash generated by financing activities

_____

24

_____

1,122

_____

1,127 

 

 

 

 

INCREASE IN CASH AND CASH

EQUIVALENTS

---------------

730

---------------
212

---------------
246

 

Cash and cash equivalents brought forward

477

231

231

 

_____

_____

_____

CASH AND CASH EQUIVALENTS CARRIED FORWARD

1,207

443

477

 

_____

_____

_____

Represented by:

 

 

 

Cash at bank and in hand

1,207

443

477

 

========

========

========

 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2020

 

1.  Corporate information

 

The interim consolidated financial statements of the group for the period ended 30 June 2020 were authorised for issue in accordance with a resolution of the directors on 7 September 2020. Digitalbox plc ("the company") is a Public Limited Company listed on AIM, incorporated in England and Wales. The interim consolidated financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.

 

2.  Statement of Accounting policies

 

2.1  Basis of Preparation

The entities consolidated in the half year financial statements of the company for the six months to 30 June 2020 comprise the company and its subsidiaries (together referred to as "the group").

 

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

 

The directors are satisfied that, at the time of approving the consolidated interim financial statements, it is appropriate to adopt a going concern basis of accounting and in accordance with the recognition and measurement principles of International Financial Reporting Standards adopted for use in the European Union ("IFRS"). In reaching this conclusion the directors have considered the financial position of the Group, its cash, liquidity position and borrowing facilities together with its forecasts and projections for a period in excess of 12 months from the date of approval. In particular, the Group has reviewed the current situation with COVID 19 and produced several scenario plans assessing the impact on the Group. The directors believe that they can mitigate the risks arising from COVID 19 to ensure that the Group is able to continue to meet its liabilities as they fall due for the foreseeable future. At the reporting date had £1.2m of cash at bank and in hand providing a strong position to support the continued and future success of the Group.

 

2.2  Accounting Policies

 

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

 

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

 

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

 

 

 

 

 

 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2020

 

3.  Segment Information

 

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

 

Unaudited six months to 30 June 2020

 

 

 

Entertainment Daily

The Daily Mash

Head Office

Total

Six months to 30 June 2020

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

Revenue

826

156

1

983

 

Cost of sales

(180)

(106)

-

(286)

 

Admin expenses*

(227)

(23)

(411)

(661)

 

Other operating income

-

-

18

18

 

 

----------------

----------------

----------------

--------------------

 

Operating profit/(loss)

419

27

(392)

54

 

 

 

 

 

 

 

Amortisation and depreciation

(2)

(61)

(15)

(78)

 

Share based payment charge

-

-

(79)

(79)

 

Finance income

-

-

1

1

 

Tax

-

-

(31)

(31)

 

 

----------------

----------------

----------------

--------------------

 

Profit/(loss) for the period

417

(34)

(516)

(133)

 

 

----------------

----------------

----------------

--------------------

 

 

Unaudited six months to 30 June 2019

 

 

 

Entertainment Daily

The Daily Mash

Head Office

Total

Six months to 30 June 2019

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

Revenue

625

75

12

712

 

Cost of sales

(243)

(68)

-

(311)

 

Admin expenses*

(120)

-

(191)

(311)

 

 

----------------

----------------

----------------

--------------------

 

Operating profit/(loss)

262

7

(179)

90

 

 

 

 

 

 

 

Amortisation and depreciation

(5)

(36)

(5)

(46)

 

Acquisition and listing costs

-

-

(689)

(689)

 

Share based payment charge

-

-

(67)

(67)

 

Finance costs

-

-

(1)

(1)

 

Tax

-

-

65

65

 

 

----------------

----------------

----------------

--------------------

 

Profit/(loss) for the period

257

(29)

(876)

(648)

 

 

----------------

----------------

----------------

--------------------

 

 

 

 

 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2020

 

3.  Segment Information (continued)

 

12 months to 31 December 2019

 

 

 

Entertainment Daily

The Daily Mash

Head Office

Total

Year to 31 December 2019

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

Revenue

1,864

358

18

2,240

 

Cost of sales

(263)

(131)

-

(394)

 

Admin expenses*

(288)

(60)

(973)

(1,321)

 

 

----------------

----------------

----------------

--------------------

 

Operating profit/(loss)

1,313

167

(955)

525

 

 

 

 

 

 

 

Amortisation and depreciation

-

-

(144)

(144)

 

Acquisition and listing costs

-

-

(689)

(689)

 

Share based payment charge

-

-

(149)

(149)

 

Finance costs

-

-

(3)

(3)

 

Tax

-

-

23

23

 

 

----------------

----------------

----------------

--------------------

 

Profit/(loss) for the period

1,313

167

(1,917)

(437)

 

 

----------------

----------------

----------------

--------------------

 

  * Admin expenses exclude share option charge, amortisation, depreciation and acquisition and listing costs.

 

  External revenue by location of customer

 

Six months to 30 June 2020

Six months to 30 June 2019

Year to 31 December 2019

United Kingdom

473

468

1,434

Europe

356

188

612

Rest of World

154

56

194

 

________

________

________

Total

983

712

2,240

 

________

________

________

 

 

 

 

 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2020

 

4.  Earnings per share


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

 

 

Unaudited

Unaudited

Audited

 

 

Six months to

Six months to

12 months to

 

 

30 June 20

30 June 19

31 December 19

 

 

£'000

£'000

£'000

 

The earnings per share is based on the following:

 

 

 

 

 

 

 

 

 

Continuing earnings post tax loss attributable to shareholders

(133)

(648)

(437)

 

 

 

 

 

 

 

 

 

 

 

 

==========

==========

==========

 

Basic Weighted average number of shares

91,370,626

62,717,686

76,597,859

 

Diluted Weighted average number of shares

91,699,911

68,419,804

76,597,859

 

 

==========

==========

==========

 

 

 

 

 

 

 

pence

pence

pence

 

Basic earnings per share

(0.15)

(1.03)

(0.57)

 

Diluted earnings per share

(0.15)

(1.03)

(0.57)

 

 

==========

==========

==========

 

 

 

 

 

 

 

 

 

 

 

Earnings per ordinary share has been calculated using the weighted average number of shares in issue during the year. The weighted average number of equity shares in issue was 91,370,626. IAS 33 requires presentation of diluted EPS when a company could be called upon to issue shares that would decrease earnings per share or increase the loss per share. The exercise price of the outstanding share options is significantly more than the average and closing share price. Therefore, as per IAS 33 the potential ordinary shares are disregarded in the calculation of EPS.


 

 

 

 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2020

 

5.  Intangible Assets

 

   

 

 

 

 

 

 

 

Other Intangible Assets

Goodwill arising on consolidation

Development costs

 

 

 

 

 

 

 

Total

 

£'000

£'000

£'000

 

£'000

 

 

 

 

 

 

Cost

 

 

 

 

 

At 1 January 2020 and 30 June 2020

854

9,492

35

 

10,381

 

_____

_____

_____

 

_____

 

 

 

 

 

 

Amortisation

 

 

 

 

 

At 1 January 2020

(102)

-

(31)

 

(133)

 

 

 

 

 

 

Charge for the period

(61)

-

(2)

 

(63)

 

_____

_____

_____

 

_____

At 30 June 2020

(163)

-

(33)

 

(196)

 

_____

_____

_____

 

_____

 

 

 

 

 

 

Net book value

 

 

 

 

 

 

 

 

 

 

 

30 June 2020

691

9,492

2

 

10,185

 

_____

_____

_____

 

_____

 

 

 

 

 

 

31 December 2019

752

9,492

4

 

10,248

 

_____

_____

_____

 

_____

 

 

 

 

 

 

 

 

 

 

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

 

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

 

 

 

 

 

 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2020

 

6.  Share capital

 

Allotted, issued and fully paid

 

 

No.

Value

£

 

 

 

 

Ordinary shares of 0.01p each

 

91,842,662

918,427

Deferred shares of 0.0499p each

 

386,907,464

19,306,682

Deferred shares of 0.01p each

 

112,176,000

1,121,760

 

 

---------------------------

-------------------------

Total

 

590,926,126

21,346,869

 

 

=============

============

 

 

Shares issued in the 6-month period to 30 June 2020:

  Date

Description

No shares

Price/ share

Gross share value

Cash received

Total consideration

 

 

24.02.20

 

 

Issue of 1p shares

 

 

1,590,936

 

Pence

2.28

 

£

15,909

 

£

36,275

 

£

36,275

 

 

 

 

-----------------------

 

---------------------

---------------------

---------------------

 

 

 

1,590,936

 

15,909

36,275

36,275

 

 

 

===========

 

==========

==========

==========

 

  As at 30 June 2020

590,926,126

 

21,346,868

 

 

 

 

 

 

 

 

 

 

  As at 31 December 2019

589,335,190

 

21,330,959

 

 

 

 

 

 

 

 

 

 

 

 

 

7.  Related party transactions

 

At 30 June 2020, the Group was due £172k (30 June 2019: £171k, 31 December 2019: £171k) from James Carter and Jim Douglas, two Directors of the company. The outstanding balance is split equally between the directors and is included within trade and other receivables. The amounts are repayable either on sale of shares by the Directors, by prior charge over the proceeds of dividends or distributions due to the directors' net of tax or by prior charge over remuneration payments in excess of a pre-determined level. Interest is charged at 0.75% per annum.

 

During the period, Integral2 Limited charged £27k (30 June 2019: £24k, 31 December 2019: £43k) to the Group, a company related by virtue of David Joseph being a common director. As at 30 June 2020, £5k (30 June 2019: £2k, 31 December 2019: £5k) was owed to Integral2 Limited.

 

During the period, the Group received revenue of £2k (30 June 2019: £13k, 31 December 2019: £17k) from Immotion Group plc, a company related by virtue of Martin Higginson being a common director. As at 30 June 2020, £nil (30 June 2019: £7k, 31 December 2019: £2k) was owed to the Group.

 

During the period, M Capital Investment Partners (Holdings) Limited billed £15k (30 June 2019: £5k, 31 December 2019: £23k) to the Group, a company related by virtue of Martin Higginson being a common director. As at 30 June 2020, £3k (30 June 2019: £nil, 31 December 2019: £nil) was owed to M Capital Investment Partners (Holdings) Limited.

 

During the period, Robin Miller Consultants Limited billed £9k (30 June 2019: £4k, 31 December 2019: £10k) to the Group, a company related by virtue of Robin Miller being a common director. As at 30 June 2020, £nil (30 June 2019: £1k, 31 December 2019: £nil) was owed to Robin Miller Consultants Limited.

 

 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2020

 

7.  Related party transactions (continued)

 

The key management personnel are considered to be the Board of Directors, and were remunerated £191k in the period (30 June 2019: £170k, 31 December 2019: £444k).

 

The key management personnel were provided 3,008,808 share options resulting in a charge of £47k in the period (30 June 2019: £47k, 31 December 2019: £93k).

 

 

8.  Seasonality

 

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

 

 

9.  Events after the reporting date

 

On 20 May 2020 the shareholders resolved to cancel the Company's deferred shares as disclosed in note 6, and to reduce the share premium account by £19.5m. These resolutions were designed to simplify the capital structure of the Group and will give rise to a much-improved retained earnings position to enable the Board to make future dividend distributions as they consider appropriate. The Court approved this capital restructure on 30 July 2020, and this was subsequently certified at Companies House on 31 July 2020. Accordingly, this will be reflected in the annual report for the year ending 31 December 2020.

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