Interim results for the six months to 30 June 2022

RNS Number : 2504B
Immotion Group PLC
30 September 2022
 

 a30 September 2022

 

Immotion Group plc  

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

 

Interim Results

 

Immotion Group plc (AIM:IMMO), the immersive entertainment group, is pleased to announce its unaudited interim results for the six months to 30 June 2022 and an update on trading based on unaudited management estimates. 

 

Highlights

●    H1 2022 revenue from continuing operations showing a 91% increase to £4.4m (H1 2021: £2.3m; H2 2021 £4.1m)

●    H1 2022 EBITDA from continuing operations rose 150% to £0.5m (H1 2021: £0.2m, which included £0.3m of income from COVID government grants)

● Entry into zoo market with three partner site openings:  Milwaukee County Zoo and Pittsburgh Zoo (July) and Chester Zoo (August)

● In principle agreement reached (subject to contract) to sell Uvisan for estimated cash consideration of £100k*  

● In principle agreement for £250k third party investment for the Home Based Entertainment (HBE) business in exchange for 51% ownership of this business*

 

*both deals are expected to complete within next few weeks. Further detailed announcements will be made at that time.

 

Note: Uvisan and HBE now classed as discontinued operations and reported as such for H1.  Continuing operations consist of the Location Based Entertainment (LBE) business along with its direct costs and Group overheads.

 

Current Trading Update

 

We expect revenue from continuing operations in Q3 to be approximately £3.4m and adjusted EBITDA of approximately £0.7m, resulting in total revenue for the 9 months ended 30 September 2022 of approximately £7.8m and EBITDA of £1.2m from continuing operations.

 

Our first three zoo installations featuring our new 'Gorilla Trek' offering - Milwaukee County Zoo, Pittsburgh Zoo and Chester Zoo - launched in July and August 2022. These have been well received by Partners and guests alike and we have learnt a lot from these early installations and will use the knowledge gained to further develop and hone our offering.

 

The second half of 2022, as we expected, started very strongly with excellent trading across the estate in the summer months of July and August. We will of course see the normal seasonal slow-down from September, as school holidays have ended in both the USA and UK.

 

Agreement has been reached, subject to contract, for the disposal of the Uvisan business for cash consideration of circa £100,000, and to raise £250,000 in new funding for the HBE business, in exchange for 51% ownership of this business. Full details of the proposed transactions will be announced when the deals complete, which we expect to be within the next few weeks.

Chairman's Statement

With revenue of £4.4m for the first half of 2022, almost double the same period last year (and exceeding that of our seasonally stronger H2 last year) the strength of our core LBE business is being demonstrated clearly and I am excited by its growth prospects.

The decision to focus all our efforts on LBE is delivering results and with the disposal of Uvisan and the spin out of HBE now agreed in principle we can, as we move through the remainder of H2, focus our planning and resources on accelerating growth of our core LBE partner estate. 

We believe that considerable growth opportunities lie ahead of us in both the aquarium sector, where we are now a well-established player, and in the zoo market where we have taken our initial steps in what should be an even larger market.

Our first three 'Gorilla Trek' zoo installations were completed in July and August 2022, all being 'takeovers' of buildings (or part buildings) of differing sizes. These have been well received by Partners and guests alike.  We have learned a lot from our initial entry into this market and we are further developing our offering to be able to accelerate growth in this exciting market.  This is discussed in more detail in the Chief Executive's review below.

The LBE business has enjoyed a very strong Q3 with revenue expected to be circa £3.4m compared to £2.3m for the same period last year, a 48% increase. We anticipate EBITDA for continuing operations in Q3 to be circa £0.7m, taking the year to date to around £1.2m.

With strong year to date trading, a renewed focus on our core business and plenty of opportunity in our established and new offerings, we look forward with confidence. 

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014 ("MAR") as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

 

Enquiries:

 

 For further information please visit  www.immotion.co.uk , or contact: 

 

Immotion Group

 

Martin Higginson

David Marks

investors@immotion.co.uk

 

 

 

Cenkos

Nicholas Wells

Camilla Hume

Charlie Combe

+44 (0) 20 7397 8900


Chief Executive's Review

 

We are delighted with the performance of the business in H1, delivering £4.4m of revenue from continuing operations (H1 2021: £2.3m).  H1 2022 revenue also exceeded that of H2 2021, which is traditionally our stronger half of the year.

 

Unaudited gross profit from continuing operations was £2.0m (being total revenue less partner share and other direct costs of sales, including rent and payroll for our ImmotionVR sites). This is double the same period in 2021, with margins rising to 46% from 44% in H1 2021. EBITDA from continuing operations in the period was £0.5m (H1 2021: £0.2m, which was inclusive of £0.3m of COVID government grants).

 

Total administrative expenses (excluding depreciation, amortisation, share based payments and one-off items) of continuing operations were £1.6m (H1 2021: £1.2m).  Whilst our operating costs are not immune from inflationary pressures, and we have made a small number of new hires as part of our growth planning, we expect operating costs to remain fairly stable and the operational gearing of the business to be demonstrated as revenues grow with the expansion of our estate.

 

The loss before tax from continuing operations narrowed to £0.3m (H1 2021: £1.1m loss).  The H1 2022 result is net of depreciation and amortisation of £0.7m (2021: £1.0m).  The reduction in this charge reflects the prudent approach we have taken historically to depreciation of all plant and equipment, much of which, whilst still in use, has already been fully depreciated.

 

With the benefit of several years of operating experience now under our belt, we are confident that the actual useful life of our key hardware such as motion platforms is comfortably in excess of the three years over which we have been depreciating it in full.  Whilst this cautious approach has much to commend it, we believe on reflection that this has tended to provide an overly pessimistic picture of our trading results at EBIT level and as such we have changed the basis of the VR cinema pod depreciation to a seven-year useful life.

 

This change is based on a combination of historical data and hardware testing and has been applied to relevant assets on hand at or acquired after 1 January 2022. Prior periods have not been restated in respect of this policy change. 

 

During H1, when it became clear that further lockdowns could be taking place in China and that global shipping conditions, though improving, could deteriorate again, we invested further in our stock of motion platforms and headsets. We currently hold 136 motion platform pod seats in stock ready to be deployed.

 

Our estate has grown from 364 headsets (across 48 sites) at the beginning of the year to 414 headsets (across 50 sites) as 30 June 2022.  As at today's date the Group has 476 headsets (across 52 sites). This increase in seats has been driven both by an increase in the number of seats at established sites such as Shark Reef Aquarium at Mandalay Bay, OdySea Aquarium and SEA LIFE London (32 seats in aggregate); and new installations, predominantly the 70 headsets in aggregate installed across our first three zoo partner sites in July and August 2022. With known install opportunities for the remainder of the year, we remain confident of exceeding 500 installed headsets by year end.

 

Our portfolio as at 30 September 2022 is presented in the table below.  

 

 

Total

USA

UK

ROW

 

Sites

Headsets

Sites

Headsets

Sites

Headsets

Sites

Headsets

At 1 January 2022

48

364

26

204

13

105

9

55

 

 

 

 

 

 

 

 

 

Additions at existing sites

-

32

-

18

-

14

-

-

 

 

 

 

 

 

 

 

 

New sites in 2022

8

98

6

86

2

12

-

-

 

 

 

 

 

 

 

 

 

Uninstalled in 2022

(4)

(18)

(2)

(10)

(2)

(8)

-

-

 

 

 

 

 

 

 

 

 

At 30 September 2022

52

476

30

298

13

123

9

55

 

We have learned a lot from our initial entry into the zoo market and it is apparent that in order to maximise the speed of roll-out to a large number of high traffic sites (many of which have no surplus indoor space) we need a standardised 'drop-in' pre-fabricated solution.

This should be capable of being deployed outdoors, balancing the need for ease of installation with capacity to serve large volumes of customers, whilst delivering attractive returns for Immotion and its partners.

With our new solution at an advanced stage of development we are looking to make at least one installation of this format in this calendar year and data from this installation will help drive our accelerated roll-out plan for zoos in 2023 and beyond. We have in the meantime been building interest with zoos in this product and the response has been encouraging.

We will be exhibiting at a number of key industry events in H2 2022 to further stimulate demand in both the aquarium and zoo markets.

 

Discontinued operations

 

Uvisan and HBE have been classed as discontinued operations for the period and historic comparables restated on that basis. In the period, the aggregate revenue from discontinued operations was £0.4m (H1 2021: £0.4m) with an operating loss of £47k (H1 2021: £0.2m).  Aggregate operating cash outflow was £0.2m (H1 2021: £0.4m outflow).

 

We took the decision to dispose of or spin out our HBE division in the early part of 2022 in order to focus our time and resources on our core LBE business. We still believe that the HBE business has potential and we have had some initial success in trials with a major shopping channel and we are seeing other B2B opportunities.

 

However, we do not want to fund this business ourselves going forward and so have agreed (subject to contract) to raise £250K in exchange for a 51% equity stake in this business in order to provide this funding. Immotion will have board representation but day-to-day management will fall to the new partner.

 

The decision to retain a meaningful stake in this business allows the Group to participate in any upside whilst removing the cash and management requirements, allowing us to focus our efforts on the LBE division.

 

Whilst Uvisan has longer-term potential to scale, it does require ongoing investment in stock and it is still establishing its distributor base. As we seek to focus all our resources on our LBE business, we have agreed to sell this business, subject to contract, for circa £100k in cash and will have an option to subscribe for 15% of the equity of the business in the event of a sale or stock market listing.

 

Further information will be provided upon completion of both transactions. 

 

Outlook

 

Having recorded a strong H1 and record Q3 the directors are confident as to the outlook for the full year for the continuing operations. Whilst we are cognisant of the wider economic picture and are not naive enough to believe our consumers will be immune from the cost-of-living crisis, we continue to believe that there are substantial untapped growth opportunities in front of us in both the aquarium and zoo sectors on a global basis.

CONSOLIDATED INCOME STATEMENT

for the six months ended 30 June 2022


 

 

Restated*

Restated*


Notes

Unaudited

Unaudited

Audited


 

6m to 30 June 22

6m to 30 June 21

12m to 31 Dec 21

Continuing operations

 

£'000

£'000

£'000

 

 




Revenue

3

4,420

2,335

6,388






Cost of sales


(2,398)

(1,312)

(3,569)



_______

_______

_______

Gross profit

 

2,022 

1,023 

2,819






Other income

5

26

333

466






Administrative expenses


(2,361)

(2,433)

(5,056)



_______

_______

_______

Operating loss

 

(313) 

(1,077)

(1,771)






Memorandum:

Adjusted EBITDA


 

482 

 

206 

 

946 

Amortisation


(220)

(266)

(548)

Depreciation

Share based payments


(498)

(72)

(786)

(291)

(1,468)

(676)

Impairment of tangible and intangible assets


(1)

(74)

Profit on disposal of fixed assets


11 

18 

One-off costs & income

 

 (13) 

50 

31 



______

______

______

Loss from operations


(1,077)

(1,771)






Finance costs

Finance income


(15) 

-

(26) 

-

(44)

1



______

______

______

Loss before taxation


(1,103)

(1,814)






Tax (charge)/credit


(3) 

12

38



______

______

______

Loss for the period from continuing operations


(331)

(1,091)

(1,776)






Discontinued operations










Loss after tax from discontinued operations

4

(315) 

(324) 

(223) 



________ 

______ 

______

Total expense for the period


(646) 

(1,415)

 (1,999) 



======== 

========

========

Other comprehensive income / (expense) for the period










Profit/(loss) on translation of subsidiary


180 

(20) 

44 



______ 

______

______

Total comprehensive expense for the period


(466) 

(1,435) 

 (1,955)



========

======== 

========






 

 

 








 

 

 






 

* The results for the six months ended 30 June 2021 and the year ended 31 December 2021 have been restated to exclude the results of discontinued operations (refer to note 4).

 

 

 

 

Restated*

Restated*

 

Notes

Unaudited

Unaudited

Audited

 

 

6m to 30 June 22

6m to 30 June 21

12m to 31 Dec 21

Earnings/(loss) per share

6

£'000

£'000

£'000

 

 

 

 

 

From continuing and discontinued operations

 

£0.01

£0.01

£0.01


 




Basic EPS

 

(0.16)

(0.34) 

(0.48)

Diluted EPS

 

(0.16)

(0.34) 

 (0.48)

 

 

 

 

 

From continuing operations

 

 

 

 

 

 

 

 

 

Basic EPS

 

(0.08)

(0.26) 

(0.42)

Diluted EPS

 

(0.08)

(0.26) 

 (0.42)

 

 

 

 

 

 

* The results for the six months ended 30 June 2021 and the year ended 31 December 2021 have been restated to exclude the results of discontinued operations (refer to note 4).



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30 June 2022

(Unaudited)

 


 

 

 

 

 


Share

capital

Share

premium

Retained earnings

Foreign exchange reserve

Total

equity


£'000

£'000

£'000

£'000

£'000







Balance at 31 December 2020

164

20,273

(13,643)

(80) 

6,713







Total expense for the period

-

(1,415)

-

(1,415)







Currency translation of overseas subsidiary

-

-

(20) 

(20) 

Issue of new shares

 

2

298

-

-

300

Issue costs deducted from equity

(14)

-

-

(14)






Share based payment expense

-

291

-

291


_____

_____

_____

_____

_____

Balance at 30 June 2021

166

20,556

(14,767) 

(100) 

5,855


_____

_____

_____

_____

_____







Total expense for the period

-

-

(584)

-

(584)

 






Issue of new shares

 

-

-

-

-

-

Issue costs deducted from equity

-

-

-

-







Share based payment expense

-

-

385

-

385

 

Currency translation of overseas subsidiary

 

-

 

-

 

-

 

64 

 

64 


_____

_____

_____

_____

_____

Balance at 31 Dec 2021

166

20,556

(14,966)

(36)

5,720


_____

_____

_____

_____

_____

 

Total expense for the period

 

-

 

-

 

(646)

 

-

 

(646)







Currency translation of overseas subsidiary

-

-

-

180 

180







Issue of new shares

-

-

-

-







Issue costs deducted from equity

-

-

-







Share based payment expense

-

-

72

-

72








_____

_____

_____

_____

_____

Balance at 30 June 2022

166

20,556

(15,540) 

144 

5,326


_____

_____

_____

_____

_____







 




CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 June 2022

 

 

 

Unaudited

Unaudited

Audited

 

Notes

30 June 2022

30 June 2021

31 Dec 2021

 

 

£'000

£'000

£'000

ASSETS

 




Non-current assets

 




Property, plant and equipment

7

1,547

1,444

1,062

Right of use assets

7

48 

207

126 

Intangible assets

8

3,002

3,448

3,305


 

______

______

______

Total non-current assets

 

4,597

5,099

4,493


 

______

______

______

Current assets

Inventories

 

 

 

163 

 

103

Trade and other receivables

9

1,233

1,412

1,783

Contract assets

 

64 

91 

83

Cash and cash equivalents

 

395

629

1,099


 

______

______

______

Total current assets

 

1,692

2,295

3,068


 




Assets held for sale

4

619

-

-


 

______

______

______

Total assets

 

6,908

7,394

7,561


 

______

______

______

LIABILITIES

 




Current liabilities

 




Trade and other payables

10

(1,113) 

(959) 

(1,103)

Finance leases

 

(61) 

(222) 

(171)

Loans

 

(98) 

(140) 

(130)

Contract liabilities

 

(19) 

(7) 

(278)


 

_______

_______

_______

Total current liabilities

 

(1,291) 

(1,328) 

(1,682)


 

_______

_______

_______

Total current net assets

 

401 

967 

1,386 


 




Non-current liabilities

 




Loans

Finance leases

 

(162) 

(153) 

(58) 

(155)

 (4) 


 

_______

_______

_______

Total non-current liabilities

 

(162) 

(211) 

(159)


 




Liabilities associated with assets held for sale

4

(129)

-

-


 

_______

_______

_______

TOTAL NET ASSETS

 

 5,326 

 5,855 

5,720


 

_______

_______

_______

 

 




CAPITAL AND RESERVES

ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT

 




Issued share capital

11

166

166

166

Share premium account

 

20,556

20,556

20,556

Foreign exchange reserve

 

144 

(100) 

(36)

Retained earnings

 

(15,540)

(14,767)

(14,966)


 

_______

_______

_______

TOTAL EQUITY

 

5,326

_______

5,855

_______

5,720

_______

 

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 30 June 2022

 

 

 

Restated*

Restated*

 

Unaudited

Unaudited

Audited

 

6m to 30 June 2022

6m to 30 June 2021

12m to 31 Dec 2021

 

£'000

£'000

£'000

OPERATING ACTIVITIES




Loss before tax from continuing operations

(328)

(1,103) 

(1,814)

Loss before tax from discontinued operations

(315)

(324)

(223)





Adjustments for:




Share based payments

72

291 

676

Depreciation

501

786 

1,470

Profit on disposal of fixed assets

(8) 

(11) 

(18) 

Amortisation

304 

313 

641

Impairment of intangible assets

-

82

Impairment of assets held for sale

181

-

-

Finance costs

15

26

44

Finance income

-

(1)

Net foreign exchange differences

101 

6

50 

Foreign corporate tax payment

(3) 

Taxation (paid) / refunded

(3)

(3) 

84 


_____ 

____ _ 

_____

Operating profit / (loss) before changes in working capital and provisions

520 

(18) 

988





(Increase) / decrease in inventories

 (124) 

(10) 

49 

(Increase) / decrease in receivables and contract assets

321 

(569) 

(989) 

Increase / (decrease) in payables and contract liabilities

(120) 

(200) 

215 


_____ 

_____ 

_____

Net cash flows from / (used in) operating activities

597 

(797) 

263 


_____ 

_____ 

_____

INVESTING ACTIVITIES




Purchase of property, plant and equipment

(859) 

(217) 

(425)

Purchase of intangible assets

(274) 

(138) 

 (404)

Disposals of property, plant and equipment

27 

41


_____ 

_____ 

_____

Net cash flows from investing activities

(1,124) 

(328) 

(788)

 




FINANCING ACTIVITIES




Finance costs

(15) 

(26) 

(44) 

Finance income

-

-

1

New Loans and finance leases

101 

116 

119

Loan repayments

(152) 

(154) 

Finance lease repayments

(124) 

(124) 

(405) 

Foreign exchange on retranslation of financing

36 

 (8) 

Issue of ordinary shares

300 

300   

Costs on issue of shares

(14) 

(14)

 

Net cash flows from financing activities

_____

(154)

_____

90 

_____ 

(40)

 

 

 

 

DECREASE IN CASH AND CASH EQUIVALENTS

(681) 

--------------- 

(1,035) 

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

(565)

 --------------- 





Cash and cash equivalents brought forward

1,099 

1,664 

1,664 


_____ 

_____

_____ 

CASH AND CASH EQUIVALENTS CARRIED FORWARD

418 

629 

1,099 


_____ 

_____ 

_____ 

 

* The results for the six months ended 30 June 2021 and the year ended 31 December 2021 have been restated to exclude the results of discontinued operations (refer to note 4).





NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

for the six months ended 30 June 2022

 

1       Corporate information

 

The interim consolidated financial statements of the Group for the period ended 30 June 2022 were authorised for issue in accordance with a resolution of the directors on 30 September 2022. Immotion Group plc ("the Company") is a Public Limited Company quoted 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 interim consolidated financial statements of the Group for the six months ended 30 June 2022 have been prepared in accordance with the UK-adopted International Accounting Standard 34 Interim Financial Reporting.

 

The entities consolidated in the interim financial statements of the Group for the six months to 30 June 2022 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 and should be read in conjunction with the Group's annual audited consolidated financial statements for the year ended 31 December 2021.

 

The directors are satisfied that, at the time of approving the interim consolidated financial statements, it is appropriate to adopt a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards ("IFRS") as adopted by the European Union.

 

In reaching this conclusion, the directors considered the financial position of the Group and prepared forecasts and projections for the next 12 months, taking into account reasonably possible changes in trading performance and capital expenditure requirements.

 

The financial statements do not include any adjustments that would result from the going concern basis of preparation being inappropriate.

 

2.2  Accounting policies

 

The principal accounting policies adopted in the preparation of these interim statements are consistent with those appliedin the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2021 other than:

 

(i)          the Group has adopted amended financial standards effective as of 1 January 2022. None of the amendments adopted on 1 January 2022 have had a material impact on the interim statements of the Group; and

 

(ii)          the Group has changed its depreciation policy in respect of certain VR hardware and VR content to seven years on a straight-line basis.

 

The preparation of these consolidated half year financial statements requires management to make judgments, 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.

 

Discontinued operations and assets held for sale

 

The directors consider it probable that the sale of the Uvisan and Home Based Entertainment (HBE) businesses and net assets will be completed shortly. The Uvisan and HBE results have been separated from those of continuing operations and are shown as discontinued operations within the consolidated income statement. Comparative periods within the consolidated income statement have been restated accordingly. In accordance with IFRS 5, the Uvisan and HBE assets held for sale are valued at the lower of book value and fair value less selling costs. Further information on discontinued operations is contained in note 4.

 

Impairment of intangible assets and goodwill- recoverable amounts are based on value in use calculations using management's best estimate of future performance. On the basis of the forecast cash flows prepared it is concluded

that no impairment of intangible assets and goodwill is required.

 

 

3       Segmental information

 

The Group's primary reporting format for segmental information is business segments which reflect the management reporting structure in the Group. The information for discontinued segments is aggregated and shown as a separate segment.

 

6 months to 30 June 2022


 

 

 

LBE 

 

 

 

HO

Total continuing operations

6m to 30 June 

 2022 

Discontinued operations

6m to 30 June

2022 

Total

operations

6m to 30 June 2022 


   '000 

     '000

         '000 

  £'000 

       '000 

Revenue

4,360 

60

4,420 

432 

4,852 

Cost of sales

(2,398)

-  

  (2,398)

(321) 

(2,719) 


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

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

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

---------------  

---------------  

Gross profit

1,962

60 

2,022 

111    

2,133







Other income

6

20

26

-  

26

Admin expenses*

(953)

(612) 

(1,566)

(158) 

(1,724)


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

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

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

---------------  

---------------  

Operating profit / (loss)

1,015

(532) 

482 

(47)    

435







Amortisation

(180)

(40) 

(220)

(84) 

(304)

Depreciation

(444)

(54) 

(498)

(3)

(501)

Impairment of assets held for sale

-

             -      

-

(181)

(181)

Profit on disposal of fixed assets

             -      

One-off costs & income

(7)

(6)    

(13) 

(13) 

Finance costs

-

(15) 

(15)

(15)

Share based payments

-

(72) 

(72)

(72)

Taxation

(3)

-  

(3)

(3)


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

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

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

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

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

Profit / (loss) for the period

388 

(719) 

(331)

(315) 

(646) 


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

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

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

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

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

 

LBE -Location Based Entertainment

HO -Head Office

 

 

The segments discontinued in the 6 months to 30 June 2022 were Uvisan, the sale of UV-C cleansing equipment and Home Based Entertainment (HBE) - the sale of in-home virtual reality equipment and experiences.

 

*Administrative expenses exclude depreciation, amortisation, impairment, loss on disposal, one-off costs and share based payments.

 

The segmental analysis above reflects the parameters applied by the Board when considering the Group's monthly management accounts.

 

Geographical disclosures

 

Continuing operations

 

The geographical breakdown of the Group's revenue, assets and net tangible capital expenditure for continuing operations is as follows. The comparative amounts for the period to 30 June 2021 and the year to 31 December 2021 are restated.

 


External revenue by location of customer

Location of assets

Net tangible capital

expenditure by location

 of assets

 

30 Jun

2022

30 Jun

2021

31 Dec

2021

30 Jun 2022

30 Jun 2021

31 Dec 2021

30 Jun 2022

30 Jun 2021

31 Dec 2021

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 










USA & Canada

3,210

1,956

4,731

2,724

1,920

1,969

792

182

340

UK

922

199

1,341

4,160

5,361

5,542

61

29

75

Australia

167

115

146

5

26

10

6

6      

3

Rest of Europe

28

2

23

15

15      

10

7

China

63

32

86

-

6      

3

-

Middle East

30

31

61

4

66

27

-  

-


_____

_____

_____

_____

_____

_____

_____

_____

_____

Total

4,420

2,335

6,388

6,908

7,394

7,561

859

217

425

 

_____

_____

_____

_____

_____

_____

_____

_____

_____

                       

The Group had certain customers whose revenue individually represented 10% or more of the Group's total revenue.  For the six months ended 30 June 2022, two customers accounted for 37% and 28% of the revenue respectively.

 

 


4         Discontinued operations and assets held for sale

 

The Uvisan and HBE businesses and net assets are in the process of being sold with the sales expected to take place within the next few weeks. They are deemed to be discontinued operations as they represent separate major lines of business. The results for these businesses have been excluded from the continuing results of the Group for the period ended 30 June 2022. The results for the period ended 30 June 2021 and the year ended 31 December 2021 have been restated to exclude the results of these businesses from the continuing operations of the Group in those periods. 

 

Summary income statement

 

The results for Uvisan and HBE included in the income statement as discontinued operations are as follows:

 


 

 

 

 

Uvisan

 

 

 

 

HBE

 

Unaudited

 Total

6m to

 30 June 2022

Restated

Unaudited

Total

6m to

           30 June 2021 

Restated

Audited

Total

12m to

31 Dec 2021

Discontinued operations

   '000

     '000

         '000

  £'000  

       '000







Revenue

329

103

432

425  

3,003

Cost of sales

(152)

(169)    

  (321)

(468)  

(2,626)

Government grants

-

-  

66  

66

Admin expenses

(108)

(50) 

(158)

(261) 

(481)


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

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

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

---------------  

---------------  

Operating profit / (loss)

69

(116) 

(47)

(238)  

(38)







Amortisation

(14)

(70) 

(84)

(47) 

(93)

Depreciation

(2)

(1) 

(3)

(1) 

(2)

Impairment of assets held for sale

(26)

(155)

(181)

-  

(8)

One-off costs & income

-

(39) 

(82)    


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

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

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

-------------  

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

Profit / (loss) for the period from discontinued operations

27 

(342)    

(315)

(324) 

(223)    


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

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

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

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

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

 

Uvisan -ultra violet disinfection equipment

HBE -Home Based Entertainment

 

Summary cash flow statement

 

The results for Uvisan and HBE included in the cash flow statement are as follows:

 


 

 

 

 

Uvisan

 

 

 

 

HBE

 

Unaudited

 Total

6m to

 30 June 2022

Restated

Unaudited

Total

6m to

           30 June 2021 

Restated

Audited

Total

12m to

31 Dec 2021

Discontinued operations

   '000

     '000

         '000

  £'000  

       '000







Operating activities






Cash generated from / (used in) operating activities

23

(176)    

  (153)

(412)  

(50)


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

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

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

---------------  

---------------  

Investing activities




 

 

Purchase of property, plant and equipment

(10)

(10)

(2) 

(7)

Purchase of intangible assets

(10)

(10)

(5) 

(6)


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

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

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

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

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

Cash consumed by investing activities

(20)    

(20)

(7) 

(13) 


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

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

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

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

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

Net cash flows from discontinued operations for the period

3

(176)    

  (173) 

(419)  

37

 

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

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

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

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

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


 

Net assets held for sale:

 

The major classes of assets and liabilities classified as held for sale are as follows:

 


 

 

 

Uvisan

 

 

 

HBE

Unaudited

 Total

6m to

 30 June 2022

Discontinued operations

   '000

     '000

         '000





Assets




Property, plant and equipment

14

-

 14

Intangible assets

38

250

288 

Cash and cash equivalents

-

23

23

Other assets

131

343

474 

Impairment of assets held for sale

(26)

(155)

(181)


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

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

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

Assets held for sale

157

461

618 


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

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

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

Liabilities




Liabilities directly associated with assets held for sale

(57)

(72)

(129)


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

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

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

Net assets held for sale

100 

389 

489 


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

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

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

 

Other assets comprise inventories and receivables. Liabilities comprise payables, accruals and deferred income.

 

 

5         Other income

           

 

Unaudited

Unaudited

Audited

 

Six months to

Six months to

12 months to

 

30 June 22

30 June 21

31 Dec 21

Continuing operations

£'000

£'000

£'000

 




UK and USA national & local government COVID-19 relief programmes

318 

437 

Property rentals

20 

15 

29 


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

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

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


26 

333 

466 


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

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

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

The Group is satisfied that it has met all the conditions relating to grants received and that no liability for repayment of any of the grants exists.

 

 

 

6         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 22

30 June 21

31 Dec 21

 

£'000

£'000

£'000

The earnings per share is based on the following:




 




Continuing earnings post tax attributable to shareholders

(331) 

(1,091)

(1,776) 





Discontinued earnings post tax attributable to shareholders

(315)      

(324)      

(223)  


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

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

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

Total earnings post tax attributable to shareholders

(646)

(1,415)

(1,999)


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

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

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

Basic weighted average number of shares

415,538,083

412,738,083

414,140,823

Diluted weighted average number of shares

475,078,483

470,478,783

472,053,826


              ========= =====    

              ==============  

                 ==============      

From continuing and discontinued operations





£0.01

£0.01

£0.01

Basic earnings per share

(0.16)

(0.34)

(0.48)

Diluted earnings per share

(0.16)

(0.34)

(0.48)


=========

=========

=========

From continuing operations








Basic earnings per share

(0.08)

(0.26)  

(0.42)  

Diluted earnings per share

(0.08)

(0.26)  

(0.42)  


=========

=========

=========

 

Earnings per ordinary share has been calculated using the weighted average number of shares in issue during the period. The weighted average number of equity shares in issue in the period to 30 June 2022 was 415,538,083.

 

 

 


 

7         Tangible assets

 

 

Leasehold property

IFRS16 Right-of-use assets

Fixtures, fittings and equipment

Total

 

£'000

£'000

£'000

£'000






Cost





At 1 January 2022

379

642

2,699

3,720

Additions

14

-

845

859

Disposals

(9) 

-

(76)            

(85)  

Foreign exchange adjustment

-

39

208  

247  

Assets held for sale

-

-

(18)

(18)


_____

_____

_____

_____

At 30 June 2022

384

681

3,658

4,723


_____

_____

_____

_____

Depreciation





At 1 January 2022

315

516

1,701

2,532

Charge

39

83

379

501

Disposals

(7)    

-

(77)  

(84)    

Foreign exchange adjustment

-

34

149      

183      

Assets held for sale

-

-

(4)  

(4)    


_____

_____

_____

_____

At 30 June 2022

347

633

2,148

3,128


_____

_____

_____

_____






Net book value





 





30 June 2022

37

48

1,510

1,595

 

_____

_____

_____

_____






31 December 2021

64

126

998

1,188

 

_____

_____

_____

_____







 

 

The method of depreciation for each class of depreciable asset is:

 

Leasehold property                                                      - Over term of lease

IFRS 16 right of use assets                                          - Over term of lease

Fixtures, fittings and equipment                                 - two to seven years on a straight-line basis

 


8           Intangible assets

 


Other intangible assets

Goodwill acquired on acquisition

Development costs

Total


£'000

£'000

£'000

£'000






Cost





At 1 January 2022

568

2,438

2,467

5,473

Additions

14

-

260

274

Foreign exchange adjustment

-

-

54  

54  

Assets held for sale

(17)

-

(465)

(482)


_____

_____

_____

_____

At 30 June 2022

565

2,438

2,316

5,319


_____

_____

_____

_____

Amortisation





At 1 January 2022

545

-

1,623

2,168

Charge

10

-

294

304

Foreign exchange adjustment

-

-

39  

39      

Assets held for sale

(5)

-

(189)

(194)


_____

_____

_____

_____

At 30 June 2022

550

-

1,767

2,317


_____

_____

_____

_____






Net book value





 





30 June 2022

15

2,438

549

3,002

 

_____

_____

_____

_____






31 December 2021

23

2,438

844

3,305

 

_____

_____

_____

_____







 

Development costs are comprised of software and VR content.  Software is amortised on a straight-line basis over 3 years. VR content historically has been amortised on a straight-line basis over 3 years but the Group has changed its accounting policy for new projects effective from 1 January 2022 to amortise VR content over 7 years on a straight-line basis.  For projects which are still underway and are not ready to be used no amortisation has been charged.

 

Other intangible assets comprise website development and trademark costs. Website development costs are amortised over 3 years and trademark costs over 2 years.

 

Goodwill is not amortised.

 

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


 

9        Trade and other receivables

 

 

Unaudited

Unaudited

Audited

 

Six months to

Six months to

12 months to

 

30 June 22

30 June 21

31 Dec 21

 

£'000

£'000

£'000

 




Trade receivables

815

630

836

Accrued income

47

24

45

Prepayments

262

599

663

Corporation tax

23

81

22

Other receivables

86

78

217


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

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

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


1,233

1,412

1,783


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

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

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

 

 

10         Trade and other payables

 

 

Unaudited

Unaudited

Audited

 

Six months to

Six months to

12 months to

 

30 June 22

30 June 21

31 Dec 21

 

£'000

£'000

£'000

 




Trade payables

467

500

548

Accruals

310

280

352

Taxation and social security

175

50

95

Other payables

161

129

108


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

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

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


1,113

959

1,103


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

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

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

 

11         Share capital

 

Called up share capital

Allotted, issued and fully paid


No.

Value

£'000  

 


 

 

 




Ordinary shares of 0.040108663 pence each


415,538,083

166    



=============        

==========          

 

No shares were issued in the 6 month period to 30 June 2022.



12         Related party transactions

 

M J Higginson, a director of Immotion Group plc, is a director and controlling shareholder of M Capital Investment Properties Limited. Services to the value of £6k (year to 31 December 2021: £64k) were invoiced in the period by M Capital Investment Properties Limited to Immotion Group plc. At 30 June 2022, Immotion Group plc owed £Nil (31 December 2021: £Nil) to M Capital Investment Properties Limited.

 

R Miller, a director of Immotion Group plc, is a director of Robin Miller Consultants Ltd. In the period, services totalling £8k (year to 31 December 2021: £15k) were billed to Immotion Group plc from Robin Miller Consultants Ltd. At 30 June 2022, £1k (31 December 2021: £1k) was owing from Immotion Group Plc to Robin Miller Consultants Ltd.

 

M J Higginson, a director of Immotion Group plc, is a director and shareholder in Huddled Group Limited. Services to the value of £14k (year to 31 December 2021: £40k) were invoiced in the period by Huddled Group Limited to the Group. At 30 June 2022, the Group owed £2k (31 December 2021: £8k) to Huddled Group Limited.

 

D Marks, a director of Immotion Group plc, was advanced a loan in a prior period by the subsidiary Immotion Studios Limited. Interest is currently charged on the loan at 2% per annum. At 30 June 2022, D Marks owed £16k (31 December 2021: £16k) inclusive of interest, to the Group.

 

The total amounts paid to key management personnel during the period was £386k (year to 31 December 2021: £616k). The key management personnel are considered to be the directors of Immotion Group plc.

 

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