Interim Results

RNS Number : 9052Z

Messaging International Plc

30 September 2009

 



Messaging International Plc / Market: AIM / Epic: MES / Sector: Technology

30 September 2009

  Messaging International Plc

('Messaging International' or 'the Company')

Interim Results

Messaging International Plc, the AIM traded company and provider of converged messaging products and services, announces its results for the six months ended 30 June 2009.

Highlights

• Steady trading with new partnerships agreed and existing alliances strengthened

• Good pipeline of new business opportunities

• Pre-tax loss of £173,224 (2008: loss £199,028) on turnover of £1,122,326 (2008: £727,697)

• Progress expanding into new geographic territories including Russia, Western Europe and South America

• Ongoing research and development - new services include a 'celebrity voices feature' for Text-to-Landline customers

Chairman's Statement

Trading during the first half of 2009 has been steady, having agreed new partnerships, strengthened existing alliances and generated a strong pipeline of new business opportunities. Our existing relationships with major international mobile operators, including the likes of Sprint Nextel, Rogers Wireless, Telus and Bell Canada, also continue to bear fruit as they adopt new add-ons to existing products and expand into new territories.  

Financial Results

The results for the six months ended 30 June 2009 show a pre-tax loss of £173,224 (2008: loss £199,028) on turnover of £1,122,326, which is a 54.2 per cent. increase on last year (2008: £727,697).

The Company's cash position as at 30 June 2009 was £297,669 (2008: £210,383).  

The board does not recommend the payment of an interim dividend.

Operations Review

Our blue-chip client base is undoubtedly impressive, however it is always difficult to gauge how much exact turnover each client will generate. Our relationship with Sprint Nextel ('Sprint'), for example, is very strong, with considerable revenue generated from this affiliation. Due to the popularity of our Text-to-Landline service with Sprint customers, we have launched various additional applications and features exclusively for these users such as the 'Record Your Name' personalisation feature and most recently, a celebrity voices feature whereby personalised messages can be delivered using top voice impersonators of Hollywood stars, which have proved very popular.  

We have made good progress branching out into new geographic territories and signing up additional corporate entities and telecom operators. Early in the year we launched our Text-to-Landline service with Uralsviazinform, considered as one of the four leading mobile operators in Russia. We also signed up various new enterprise customers including Zim, one of the largest global shipping companies, Ramada Hotels and a number of Israeli high schools.  

Our pipeline of new opportunities is strong. During the period we answered many requests for proposals in Europe and hope to convert several of these into new contracts having received positive feedback. We also conducted several trials with major Western European and South American operators, which we are particularly pleased about as they give us direct access into two of the largest mobile markets, where until now, we have only had a limited presence.  

We are constantly evolving and looking for new revenue streams to meet demand. Our research and development division therefore forms a major part of the business as we look to build and sustain competitive advantages. Importantly, to help us in this respect, in June 2009 the Company was approved for a further research project of approximately $250,000 from the Israeli Office of the Chief Scientist to mainly enhance our video streaming and download solutions.

Prospects

With more than half of the world now using mobile phones, mobile messaging is growing at a staggering rate and our Company is at the forefront of the industry. Importantly, we are increasingly being recognised by global mobile operators as a company which can deliver innovative, cost effective solutions to satisfy the needs of their customers. Looking forward, we are confident that this trend will carry on and that the numbers of users will continue to rise throughout the remainder of the year and beyond.  

H Furman

Chairman

29 September 2009

For further information visit www.telemessage.com or contact:

Guy Levit	Messaging International Plc	Tel: + 972 3 9225252
Mark Percy	Seymour Pierce Limited	Tel: [phone]
Catherine Leftley	Seymour Pierce Limited	Tel: [phone]
Susie Callear	St Brides Media & Finance Ltd	Tel: [phone]

Consolidated income statement for the six months ended 30 June 2009

	Notes		Unaudited six months ended 30 June 2009		Unaudited six months ended 30 June 2008		Audited year ended 31 December 2008
			£		£		£
Revenues	2		1,122,326		727,697		1,742,632
Cost of revenue			(581,425)		(361,980)		(822,712)
Gross profit			540,901		365,717		919,920
Operating expenses
Research and development			(182,266)		(204,180)		(293,333)
Sales and marketing			(296,251)		(132,992)		(542,283)
Administrative and general costs			(216,124)		(227,573)		(418,210)
Total operating expenses			(694,641)		(564,745)		(1,253,826)
Operating loss			(153,740)		(199,028)		(333,906)
Finance income			-		-		69
Finance cost			(19,484)		-		(33,430)
Loss before taxation			(173,224)		(199,028)		(367,267)
Taxation	3		-		-		-
Loss for the financial period			(173,224)		(199,028)		(367,267)
Loss per share
Basic and diluted loss per share	4		(0.07)p		(0.08)p		(0.15)p

Consolidated statement of comprehensive income for the six months ended 30 June 2009

	Notes		Unaudited six months ended 30 June 2009		Unaudited six months ended 30 June 2008		Audited year ended 31 December 2008
			£		£		£
Exchange difference on translation of foreign operations			39,609		(378)		74,438
Foreign exchange difference arising from restating the carrying value of goodwill associated with foreign operations			-		-		669,645
Loss for the period/year			(173,224)		(199,028)		(367,267)
Total recognised income and expense for the period/year			(133,615)		(199,406)		376,816

Consolidated Statement of financial position as at 30 June 2009

	Notes		Unaudited as at 30 June 2009		Unaudited as at 30 June 2008		Audited as at 31 December 2008
			£		£		£
Non current assets
Goodwill			3,906,262		3,236,617		3,906,262
Tangible assets			48,313		27,210		52,744
Other investments			118,927		107,500		135,330
			4,073,502		3,371,327		4,094,336
Current assets
Cash and cash equivalents			297,669		210,383		300,653
Trade and other receivables			484,791		428,617		576,907
			782,460		639,000		877,560
Total assets			4,855,962		4,010,327		4,971,896
Current liabilities
Trade and other payables			(288,235)		(307,088)		(382,856)
Borrowings			(165,830)		-		(109,282)
			(454,065)		(307,088)		(492,138)
Non current liabilities
Borrowings			(96,879)				(42,174)
Provisions			(145,772)		(121,000)		(165,879)
			(242,651)		(121,000)		(208,053)
Total liabilities			(696,716)		(428,088))		(700,191)
Net assets			4,159,246		3,582,239		4,271,705
Share capital			1,176,900		1,176,900		1,176,900
Share premium account			4,266,227		4,266,227		4,266,227
Revenue reserves			(2,033,194)		(1,826,131)		(1,881,126)
Foreign exchange reserves			749,313		(34,757)		709,704
Shareholders' equity	5		4,159,246		3,582,239		4,271,705

Consolidated cash flow statement for the six months ended 30 June 2009

		Unaudited six months ended 30 June 2009		Unaudited six months ended 30 June 2008		Audited year ended 31 December 2008
		£		£		£
Cash flow from operating activities
Loss before taxation		(153,740)		(199,028)		(333,906)
Adjustments for:
Share based payments		21,156		(2,389)		11,887
Depreciation and amortisation		12,234		6,784		24,896
Amortised finance costs		19,201		-		4,790
Foreign currency translation adjustments		23,938		(378)		43,287
		76,529		4,017		84,860
Operating cash flow before working capital movements		(77,211)		(195,011)		(249,046)
Decrease/(increase) in receivables		92,116		(48,007)		(196,297)
(Decrease)/increase in payables		(94,621)		106,568		182,336
(Decrease)/increase in provisions		-		-		(1,018)
		(2,505)		58,561		(14,979)
Cash outflow from operating activities		(79,716)		(136,450)		(264,025)
Investing activities
Interest paid		(19,484)		-		(5,234)
Purchase of tangible assets  Investment		(14,195) -		(8,947) -		(43,092) 12,946
Net cash used in investing activities		(33,679)		(8,947)		(35,380)
Financing activities
Net borrowings		110,411		-		244,278
Net cash from financing activities		110,411		-		244,278
Net decrease in cash and cash equivalents		(2,984)		(145,397)		(55,127)
Cash and cash equivalents at the beginning of the period/year		300,653		355,780		355,780
Cash and cash equivalents at the end of the period/year		297,669		210,383		300,653

Notes to the interim report

For the six months ended 30 June 2009

1.    Basis of preparation and consolidation 

The financial information contained in the interim results has been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union. It has been prepared in accordance with IAS 34 - Interim Financial Reporting and does not include all of the information required for full annual financial statements.

The financial information contained in these interim results for the six months ended 30th June 2009 and 30th June 2008 are un-audited. The comparative figures for the year ended 31st December 2008 do not constitute statutory financial statements of the group within the definition of S434 of the Companies Act 2006. Full audited accounts of the group in respect of that financial period prepared in accordance with IFRS, which we received an unqualified audit opinion have been delivered to Registrar of Companies.

The interim results have been drawn up using accounting policies and presentation consistent with those disclosed and applied in the annual report and accounts for the year ended 31 December 2008 except for the adoption of the following new and amended reporting standards, which are effective for periods commencing on or after 1 January 2009:

• IAS1 (revised) - 'Presentation of Financial Statements'

A new primary statement, 'Consolidated Statement of Changes in Equity' is required containing information previously disclosed in the notes to the accounts. In addition, the Consolidated Statement of Recognised Income and Expense is replaced with the Consolidated Statement of Comprehensive Income, which may be shown separately or combined with the Income Statement.

• IFRS8 - 'Operating Segments' 

This standard replaces IAS14 - 'Segment Reporting' which required operating segments to be analysed into Primary (business) and Secondary (geographical) segments. IFRS8 requires that operating segments should be aligned with those reviewed by the 'Chief Operating Decision Maker' which is considered to be the Board of Directors. 

Various other amendments to standards and interpretations of standards are effective for periods commencing on or after 1 January 2009 as detailed in the 2008 Annual Report, none of which have any impact on reported results.

The accounting policies used in the interim statement are consistent with those used in the financial statements for the year ended 31 December 2008 and are in accordance with International Financial Reporting Standards. 

The consolidated income statement and balance sheet include the financial statements of the Company and its subsidiary undertakings up to 30 June 2009.

2.  Turnover

		Unaudited six months ended 30 June 2009		Unaudited six months ended 30 June 2008		Audited year ended 31 December 2008
		£		£		£
North America		980,939		528,410		1,246,099
Rest of the World		141,387		199,287		496,533
		1,122,326		727,697		1,742,632

3    No provision has been made for taxation as the group has losses available to carry forward against future trading profits. No deferred tax asset has been recognised in accordance with International  Accounting Standard 12.

4.   Basic and diluted loss per share

 The calculation of the loss per ordinary share is based on the loss after taxation for the six month   period     to 30 June 2008 of £173,224 (2008: £199,028) and 235,380,000 ordinary shares being the weighted    verage number of shares in the period. (2008: 235,380,000).

 

5.     Movement to shareholders' equity

		Unaudited six months ended 30 June 2009		Unaudited six months ended 30 June 2008		Audited Year ended 31 December 2008
		£		£		£
Loss for the period		(173,224)		(199,028)		(367,267)
Foreign Exchange reserves movements		39,609		(378)		744,083
Equity settled share based payments		21,156		(2,389)		110,855
		(112,469)		(201,795)		487,671
Equity at the beginning of the period		4,271,705		3,784,034		3,784,034
Equity at the end of the period		4,159,246		3,582,239		4,271,705

 

END

 

 

IR SEWFWUSUSESU