Half-year Report

RNS Number : 7415F
One Media iP Group PLC
20 July 2021
 

 

One Media iP Group Plc

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

 

Interim Results for the six-months ended 30 April 2021

 

One Media iP (AIM: OMIP), the digital music rights acquirer, publisher and distributor, is pleased to announce its interim results for the six-month period ended 30 April 2021.

 

Financial Highlights

· Revenue increased by 3.5% to £2,102,848 (H1 2020: £2,032,598)

· Gross profit increased 6.7% to £1,066,650 (H1 2020: £999,848)

· Gross profit (excluding Amortisation) increased 5.2% to £1,329,786 (H1 2020: £1,264,359)

· Cash balances of £6,373,525 at 30 April 2021 (H1 2020: £1,076,134, Year End 2020: £6,766,424)

 

Operational Highlights

· Formation of TCAT Ltd as a separate subsidiary

· Acquisition of Take That producer royalties

· Launch of Men & Motors TV channel

· Acquisition of 21 Vision catalogue royalties

· Dividend Declaration

 

Post half year end

 

· Acquisition of Kid Creole and the Coconuts producer royalties

· Acquisition of Steve Levine Producer's Royalties of music performed by Culture Club, Louise, 911 and the Honeyz

· Acquisition of Barry Blues producer Royalties of music performed by Heatwave including Boogie Nights and Always and Forever

· Acquisition of certain composition and recordings rights in over 200 Don Williams tracks

· Blended NPS (Net Publisher Share) multiple of 11.73 and deploying £4m (four million pounds - USD$5.5m) on the six acquisitions to date

 

Michael Infante, CEO of One Media iP, commented:

 

"We are far from 'business as normal' as a country, as the world's press reports and given these extraordinary times I am very pleased with our half year results. Streaming has now replaced nearly all aspects of downloading and with iTunes discontinuing its downloading store, we are set to continue delivering our content with our expert team of Creative Technicians fully experienced in the digital environment now for over a decade. Who would have imagined that vinyl would outlive downloads? We did! We have been talking of streams and the shifting market now for many years.

 

We have seen our acquisition program via Harmony IP gain traction and press acclaim and can report 'face to face' meetings with targets have now resumed.

 

It is a refreshing 'reboot' and many of us will be happy not to see the 'kitchens' and 'lounges' displayed via online conferencing. I have become an expert in interior design!

 

During the period under review the trade and assets of TCAT were transferred into a newly incorporated subsidiary - TCAT Ltd. TCAT's new team is now in place to expand its software offering to the music industry at large.

 

Further information on TCAT can be expected throughout the year.

 

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

 

For further information, please contact:

 

One Media IP Group Plc 


Michael Infante

Chief Executive

Tel: +44 (0)175 378 5500

 

Claire Blunt

Chairman

Tel: +44 (0)175 378 5501

 



Cairn Financial Advisers LLP

Nominated Adviser

Liam Murray / Jo Turner/ Ludovico Lazzaretti

 

Tel: +44 (0)20 7213 0880

 



Cenkos Securities plc

Broker

Max Gould/Giles Balleny/Michael Johnson (Sales)

 

Tel: +44 (0)20 7397 8900



PPR Publicity

 

Tel: +44 (0)7930 304301

About One Media iP Group Plc

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

One Media's music is also widely used for synchronisation in film, TV and digital gaming whilst its video content is primarily viewed on YouTube where One Media operates over 20 YouTube channels as a certified partner.

One Media is listed on the London Stock Exchange on the AIM index, under the symbol 'OMIP'.

For further information on One Media iP:  www.omip.co.uk  

TCAT: www.tcat.media  

 

Harmony IP: www.harmonyip.com

 

 

 

Chairman's Statement

 

Business and Performance Review

The Group delivered pleasing results in H1 2021 and has continued to execute its strategic plans in that period with further acquisitions enhancing the value of its existing catalogue. The six acquisitions made so far this year are delivering a blended NPS (Net Publisher Share) multiple of 11.73 and deploying circa £4m of the Company's cash resource to date. Due to the timing of these acquisitions, they have not contributed to the H1 2021 results yet but will do so in the coming financial periods.

Financial pressure from the weaker USD Dollar against GBP has impacted revenues but the underlying growth remains strong. The impact of COVID-19 has continued to present challenges in terms of the rate of acquisitions but the Group has been able to continue to fully employ all its staff and to work efficiently on a remote and hybrid working basis.

The Group's subsidiary, TCAT Limited, continues to operate successfully in further developing its anti-piracy tool, with a team of 7 staff and has received HMRC approval for VCT/EIS funding facilitating TCAT Limited to seek new sources of funding.

COVID-19

 

The ongoing global disruption caused by Covid-19 is continually monitored and the Group is confident that business will continue as normal and that our services will remain uninterrupted. The business has a robust recurring income model that lends itself to remote working, much like its major partners. As a result of a planned disaster recovery process all of the Group's business operations continue as normal. However, the Group understands that it cannot control the effects on third parties and their business operations. In the event of a material drop in revenue the Group has significant cash reserves that enables it to continue to operate during this period without any adverse impact on the business. The directors have reviewed the Group's assets and believe this current event will not require any impairment, this is based on a review of the performance of the Group's historical catalogue as well as the detailed due diligence on the income profile of recent acquisitions.

 

Financial Overview

The Group has continued to manage its financial position over the six-month period to 30 April 2021 with profitable operations. Group consolidated revenue was £2,102,848 for the six-months ended 30 April 2021 (30 April 2020: £2,032,598).

Profit before tax amounted to £359,117 (30 April 2020: £399,236) with an EBITDA figure of £722,761 (2020: £757,678). Gross profit increased by 6.7% to £1,066,650 (2020: £999,848) and Gross Profit (excluding Amortisation) increased by 5.2% to £1,329,786 (2020: £1,264,359).

The Group receives the majority of its income in US Dollars. Recent movements in exchange rates have been unfavourable however the Board carefully monitors exchange rates to ensure the Company can seek to take advantage of the best exchange rates available. One Media deals in a worldwide market and needs to convert its digital income from the many territories' currencies in which it operates on a monthly basis. All of these local currencies are converted to US Dollars which ultimately are reported in Pounds Sterling.

The USD performance of the Company's main distributors (c. 80% of the income) has shown a positive Year on Year increase of 9%.

During the period, the Company has not issued new shares as consideration for acquisitions and has used existing cash resources as consideration. Cash balances at 30 April 2021 were £6,373,525 (30 April 2020: £1,076,134).

Dividend

 

On 31 March 2021 the Group declared a final dividend of 0.055p per ordinary share, which was paid in May 2021. The Board continues to review its policy regarding dividends and has established that the objective of its Dividend Distribution Policy continues to maintain an equilibrium between retention of profit to finance long-term growth plans whilst rewarding shareholders for their support.

 

Industry and Outlook

Despite significant uncertainty caused by COVID-19, the global recorded music market has demonstrated resilience and a recent report from Goldman Sachs predicts the global market to grow from $20.5bln to $37bln in 2030. The Group is confident that with its scalable business model, its track record of acquiring assets with recurring revenue streams it will continue to capitalise on the growth of global streaming and deliver increasing shareholder value.

The Board looks forward to updating shareholders on progress in due course.

Claire Blunt

Chair of One Media

 

 

 

 

 

Unaudited Consolidated Statement of Comprehensive Income

For the six months ended 30 April 2021

 

 

Unaudited

Unaudited

Audited

6 months ended

30 April 2021

6 months ended

30 April 2020

12 months ended  31 October 2020

£

£

£

Revenue

2,102,848

2,032,598

4,005,385

Cost of sales

(1,036,198)

(1,032,750)

(2,069,203)

_________

_________

_________

Gross profit

1,066,650

999,848

1,936,182

Administrative expenses

(584,452)

(436,591)

(916,298)

_________

_________

_________

Operating profit

482,198

563,257

1,019,884


Share based payments

(30,125)

(73,570)

(62,465)

Finance costs

(92,956)

(90,459)

(223,384)

Finance income

-

8

8

_________

_________

_________

Profit on ordinary activities before taxation

359,117

399,236

734,043

Tax expense

(61,780)

(69,078)

(103,846)

_________

_________

_________

Profit for period attributable to equity shareholders and total comprehensive income for the year

297,337

330,158

 

 

 

630,197

=========

=========

=========

Basic earnings per share

0.15p

0.24p

0.42p

=========

=========

=========

 

 

 

Unaudited Consolidated Statement of Financial Position

As at 30 April 2021

 

Unaudited

Unaudited

Audited

  30 April 2021

  30 April 2020

31 October 2020

£

£

£

Assets

Non-current assets

Intangible assets

8,432,165

8,788,257

8,884,158

Investments

971,679

-

-

Property, plant and equipment

86,849

4,166

91,260

_________

_________

_________

9,490,693

8,792,823

8,975,418

_________

_________

_________

Current assets

Trade and other receivables

1,385,946

1,095,899

1,141,555

Cash and cash equivalents

6,373,525

1,076,134

6,766,424

_________

_________

_________

Total current assets

7,759,471

2,172,033

7,907,979

_________

_________

_________

Total assets

17,250,164

10,964,856

16,883,397

=========

=========

=========

Liabilities

Current liabilities

Trade and other payables

821,704

820,622

823,151

Deferred tax

117,356

83,128

117,356

_________

_________

_________

939,060

903,750

940,507

Borrowings

1,724,243

1,637,848

1,697,241

_________

_________

_________

Total liabilities

2,663,303

2,541,598

2,637,748

_________

_________

_________

Equity

Called up share capital

1,112,231

678,018

1,109,731

Share redemption reserve

239,546

239,546

239,546

Share premium account

9,484,577

4,314,220

9,473,327

Share based payment reserve

457,346

438,326

427,221

Retained earnings

3,293,161

2,753,148

2,995,824

_________

_________

_________

Total equity

14,586,861

8,423,258

14,245,649

_________

_________

_________

_________

_________

_________

Total equity and liabilities

17,250,164

10,964,856

16,883,397

=========

=========

=========

Unaudited Consolidated Statement of Changes in Equity

For the six months ended 30 April 2021

 

Share capital

Share redemption reserve

Share premium

Share based payment reserve

Retained earnings

Total equity

£

£

£

£

£

£

At 1 November 2019

678,018

239,546

4,314,220

364,756

2,440,209

8,036,749

Profit for the six months to

30 April 2020

-

-

-

-

330,158

330,158

Share based payment charge

-

-

-

73,570

-

73,570

________

_________

_________

_________

_________

_________

At 30 April 2020

678,018

239,546

4,314,220

438,326

2,770,367

8,440,477

Proceeds from the issue of new shares

431,713

-

5,159,107

-

-

5,590,820

Dividends paid

-

-

-

-

(74,582)

(74,582)

Profit for the six months to

31 October 2020

-

-

-

-

300,039

300,039

Share based payment charge

-

-

-

(11,105)

-

(11,105)

________

_________

_________

_________

_________

_________

At 31 October 2020

1,109,731

239,546

9,473,327

427,221

2,995,824

14,245,649

Proceeds from the issue of new shares

2,500

-

11,250

-

-

13,750

Profit for the six months to

30 April 2021

-

-

-

-

297,337

297,337

Share based payment charge

-

-

-

30,125

-

30,125

________

_________

_________

_________

_________

_________

Balance at 30 April 2021

1,112,231

239,546

9,484,577

457,346

3,293,161

14,586,861

========

=========

=========

=========

=========

=========

 

 

 

 

Unaudited Consolidated Cash Flow Statement

For the six months ended 30 April 2021

 

Unaudited

Unaudited

Audited

6 months

ended 

  30 April 2021

6 months

ended 

  30 April 2020

12 months ended

31 October 2020

£

£

£

Cash flows from operating activities

Profit before taxation

386,118

399,236

734,043

Amortisation

240,411

245,018

523,170

Depreciation

7,552

3,372

18,504

Share based payments

30,125

73,570

62,465

Finance income

-

(8)

(8)

Finance costs

92,455

90,459

223,384

(Increase)/decrease in receivables

(252,240)

(95,304)

(162,150)

(Decrease)/increase in payables

(94,780)

(276,957)

(238,909)

Corporation tax paid

-

(59,433)

(127,735)

_________

_________

_________

Net cash inflow from operating activities

409,641

379,953

1,032,764

_________

_________

_________

Cash flows from investing activities

Investment in copyrights / licenses

(303,733)

(133,154)

(506,919)

TCAT Funding

(456,362)

-

-

Investment in fixed assets

(3,141)

-

(102,117)

Finance income

-

8

8

_________

_________

_________

Net cash used in investing activities

(763,236)

(133,146)

 

(609,028)

_________

_________

_________

Cash flow from financing activities

Proceeds from the issue of new shares

13,750

-

5,590,820

Finance cost paid

(53,054)

(55,790)

(109,136)

Loan notes

-

24,506

74,975

Dividend paid

-

-

(74,582)

_________

_________

_________

Net cash inflow from financing activities

(39,304)

(31,284)

5,482,077

_________

_________

_________

Net change in cash and cash equivalents

(392,899)

215,523

5,905,813

Cash at the beginning of the period

6,766,424

860,611

860,611

_________

_________

_________

Cash at end of the period

6,373,524

1,076,134

6,766,424

=========

=========

=========

Notes to the Interim Report

For the six months ended 30 April 2021

 

1.  Nature of operations and general information

 

One Media iP Group Plc and its subsidiaries' ("the Group") principal activities are the acquisition and licensing of audio-visual intellectual copyrights and publishing for distribution through the digital medium and to a lesser extent through traditional media outlets.

 

One Media iP Group Plc is the Group's ultimate parent company incorporated under the Companies Act in England and Wales. The address of One Media iP Group Plc registered office is 623 East Props Building, Goldfinger Avenue, Pinewood Road, Iver Heath, Buckinghamshire, SL0 0NH.

 

The financial information set out in this Interim Report does not constitute statutory accounts. The Group's statutory financial statements for the year ended 31 October 2020 are available from the Group's website. The auditor's report on those financial statements was unqualified.

 

2.  Accounting Policies

 

Basis of Preparation

 

These interim consolidated financial statements are for the six months ended 30 April 2021. They have been prepared following the recognition and measurement principles of IFRS. They do not include all the information required for full annual statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 October 2020.

 

This unaudited interim statement has not been subject to a review by the Group's auditors James Cowper Kreston.

 

Comparatives

 

The comparative periods represent the unaudited results for the six months period ended 30 April 2021 and the audited twelve months figures for the year ended 31 October 2020.

 

3.  Earnings per share

 

The calculation of the earnings per share is based on the profit for the financial period divided by the weighted average number of shares in issue during the period.

Unaudited

Unaudited

Audited

Basic earnings per share

6 months ended

30 April 2021

6 months ended

30 April 2020

12 months ended

31 October 2020

Profit for period attributable to equity shareholders

297,337

330,158

630,197

Weighted average number of shares in issue at period end

192,069,005

135,603,699

149,252,562

_________

_________

_________

Basic earnings per share

0.15p

0.24p

0.42p

=========

=========

=========

 

The diluted earnings per share would be lower than the basic profit per share as the exercise of warrants and options would be dilutive.

 

 

4.  Share capital

 

 

Unaudited

Unaudited

Audited

  30 April 2021

30 April 2020

31 October 2020

Group and company

£

£

£

Authorised:

200,000,000 ordinary shares of 0.5p each

1,000,000

1,000,000

1,000,000

==========

==========

==========

Issued:

Ordinary shares of 0.5p each

222,449,249 (H1 2020: 135,603,699, FY 2020: 221,946,249) ordinary shares of 0.5p each

1,112,231

678,018

1,109,731

==========

==========

==========

 

 

5.  Interim statement

 

Copies of this statement are available from the Group's registered Office at:

 

623 East Props Building, Goldfinger Avenue, Pinewood Road, Iver Heath, Buckinghamshire, SL0 0NH.

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