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(Alliance News) - Hipgnosis Songs Fund Ltd on Tuesday announced it has introduced a new pro-forma annual revenue measure for reporting its annual and interim accounts.
Pro-forma annual revenue is the royalty revenue earned in a calendar year by the portfolio of songs held by the company at a specific date, based on royalty statements received.
The London-based music royalty investment company said that due to the process of royalty collection, it is "required under International Financial Reporting Standards to accrue for a proportion of its revenue where revenue has been earned, but where cash has not yet been received."
Hipgnosis said in order to support investors' understanding of the underlying annual revenues of its current portfolio of songs, it will provide a PFAR comprising revenue as per royalty statements received. The additional performance disclosures will offer an additional lens to analyse its performance and financial prospects, it added.
The company reported its PFAR of the portfolio owned as at December 31, 2020 for the 2019 calendar year to be USD111.7 million, equal to 11.04 cents per share in issue at that date.
"As we approach our third annual report since launch in 2018, we are committed to providing additional disclosure to our shareholders which seeks to look through our rapid growth, and give a consistent basis to evaluate our performance and prospects. This work, led by our Chief Financial Officer Chris Helm, Chief Operating Officer Bjorn Lindvall and Commercial Finance Director Samantha Garcia, represents an important step in our commitment to improving and delivering best in class market disclosures. This will be enhanced further in the future with the contribution of our new Executive Vice President Richard Rowe," said Merck Mercuriadis, founder of Hipgnosis Songs Fund.
Shares in Hipgnosis Songs Fund were up 0.7% at 117.27 pence in London on Tuesday.
By Zoe Wickens; zoewickens@alliancenews.com
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