Blackbird PLC Regulatory News (BIRD)

2 Sep 2005 07:00

Forbidden Technologies PLC02 September 2005 FORBIDDEN TECHNOLOGIES PLC Interim Results for the six months ended 30 June 2005 Forbidden Technologies plc, through its proprietary technologies, has developedand is marketing a range of Internet video sharing platforms for a wide range ofmarket segments in the wired and wireless world. Highlights • FORscene being piloted with major producers and broadcasters• Consumer video sharing platform launch planned for Q4 2005• Loss for the six months was £344,922 (H1 2004: 227,021) reflecting increased expenditure on business and product development• £1.28 million liquid resources compare with £1.61 million at year end 2004 Vic Steel, Chairman, Forbidden Technologies, commented: "The focus in the first half of the year has been on customising our flagshipproduct FORscene for key pilot tests with broadcast producers such as ITV andBBC. We are also delighted to have established a route to the professionalmarket with a new partnership with NATS post production. "As we showcase our tapeless video production process at IBC 2005 conference andplan the consumer launch for later this year, we are increasingly confident ofthe prospects for sales expansion in 2006." 2 September 2005 Enquiries: Forbidden Technologies plc 020 8879 7245 Stephen Streater, Chief Executive Greg Hirst, Business Development Director College Hill 020 7457 2020 Corinna Dorward/Adrian Duffield FORBIDDEN TECHNOLOGIES plc Interim Report 2005 Chairman's statement Sales for the six months ending 30 June 2005 were £17,851 (2004: £46,202). Theloss in the six months was £344,922 (2004: £227,021), reflecting increasedexpenditure on business and product development. The Company continues tomanage resources tightly. Liquid resources at the end of the period were £1.28million compared with £1.61 million at the end of 2004. The sales recorded in the first half of the year mask the exciting developmentswhich have been taking place. Much of the past six months have been concentratedon working in partnership with some of the biggest programme producers. Theirinterest in FORscene has meant that we have been able to focus directly oncreating customised features of relevance to these huge users of post-productionfacilities. We are now progressing into pilot usage over the next few months,and, assuming the pilots are successful, into more widespread use in 2006. FORscene is a web-based video sharing platform, which runs automatically on PCsand Macs. It allows video to be logged, edited, reviewed and published - allfrom a standard computer. All hosting is supported automatically. Forbidden'saccess to its own video compression technology has made it unusually well placedto develop video editing and publishing tools. As no installation is needed torun the software, the number of computers that can run FORscene is vast. Initially we are targeting the large professional video post-production marketand have established a partnership with Nats (as announced at the AGM in June),who are a large, independent, well-respected provider of post-productionfacilities. Although FORscene is designed as a complete, vertically integrated productsuite, initial pilots are being conducted at various points in the productionprocess: logging (as being used by ITV), reviewing (three different BBC pilots)and publishing (on mobile phones via our Italian partners and on the web via ourFinnish partners). In September at IBC 2005 (Europe's largest broadcaster convention), we plan toshow how the recent advances in internet and computer technology can assistvideo production to move to a tapeless process. We believe that FORscene, whichrequires no capital cost from users and cuts out significant distribution andsupport costs and time, has the potential to become the next industry standardpost-production tool. With increasing penetration of high-end PCs and mobile phones, we are planningto complement mobile publishing with photographic and video capture straightfrom high-end mobile phones into FORscene. For the first time this will enableconsumers to create video content on their phones for editing on standard PCsand to publish the resulting video for immediate viewing by friends and family.Our consumer/domestic version of FORscene, separately branded with the name 'Clesh', will be introduced later this year with its own website. Work continues on developing security and surveillance products and these willbe made available to the market in the coming months. As described above, the exciting progress being made in both the professionalmarket with FORscene and the consumer market with Clesh, give us high confidencethat they will provide significant sales expansion in 2006 and beyond. Profit and loss accountFor the six months ended 30 June 2005 Unaudited Unaudited Audited half year to half year to year to 30 June 30 June 31 December 2005 2004 2004 £ £ £Turnover 17,851 46,202 76,788 Administrative expenses (401,493) (311,510) (787,563)Operating loss (383,642) (265,308) (710,775) Interest receivable 38,720 38,287 68,259Loss on ordinary activities before taxation (344,922) (227,021) (642,516) Tax on loss on ordinary activities --- - 28,389Loss for the period (344,922) (227,021) (614,127) Basic and diluted loss per ordinary0.8 pence share (0.46p) (0.30p) (0.81p) Reconciliation of movements in shareholders' fundsFor the six months ended 30 June 2005 Unaudited Unaudited Audited Half year to half year to year to 30 June 30 June 31 December 2005 2004 2004 £ £ £Loss for the period (344,922) (227,021) (614,127)New share capital subscribed(net of issue costs) --- - 5,625Net reduction in shareholders' funds (344,922) (227,021) (608,502)Opening shareholders' funds 1,692,477 2,300,979 2,300,979Closing shareholders' funds 1,347,555 2,073,958 1,692,477 A statement of recognised gains and losses has not been included as part of thisinterim report as the Company made no gains or losses in the year other than as disclosed in the Profit and Loss Account. The results stated above are all derived from continuing operations. Cash flow statementAs at 30 June 2005 Unaudited Unaudited Audited half year to half year to year to 30 June 30 June 31 December 2005 2004 2004 £ £ £Reconciliation of operating loss to netcash outflow from operating activitiesOperating loss (383,642) (265,308) (710,775)Depreciation charges 11,484 9,089 30,130Decrease/(increase) in debtors 768 (40,505) 27,163Increase/(decrease) in creditors 33,553 (22,883) (12,193)Net cash outflow from operating activities (337,837) (319,607) (665,675) Cash flow statement Cash flow from operating activities (337,837) (319,607) (665,675) Returns on investment and servicing of finance 23,787 11,318 68,882Taxation --- - 25,277Capital expenditure (14,312) (22,458) (32,124)Cash outflow before managementof liquid resources (328,362) 330,747 (603,640)Management of liquid resources 338,128 282,988 589,945Financing --- - 5,625Increase/(decrease) in cash in the period 9,766 (47,759) (8,070) Reconciliation of net cash flowto movement in net fundsIncrease/(decrease) in cash in the period 9,766 (47,759) (8,070) Cash outflow from liquid resources (338,128) (282,988) (589,545)Movement in net funds in the period (328,362) (330,747) (598,015) Net funds at the start of the period 1,606,903 2,204,918 2,204,918Net funds at the end of the period 1,278,541 1,874,171 1,606,903 Balance sheetAs at 30 June 2005 Unaudited Unaudited Audited half year to half year to year to 30 June 30 June 31 December 2005 2004 2004 £ £ £Fixed assetsTangible assets 18,640 27,187 15,812Current assets Debtors 167,481 234,698 142,551Cash --- - ---Liquid resources 1,280,451 1,913,860 1,606,903 1,447,932 2,148,558 1,749,454Creditors: amounts falling due within one year (119,017) (101,787) (72,789)Net current assets 1,328,915 2,046,771 1,676,665 Net assets 1,347,555 2,073,958 1,692,477 Capital and reservesCalled up share capital 605,300 603,800 605,300Share premium account 2,925,375 2,921,250 2,925,375Capital contribution reserve 125,000 125,000 125,000Profit and loss account (2,308,120) (1,576,092) (1,963,198)Equity shareholders' funds 1,347,555 2,073,958 1,692,477 This interim report was approved by the board of directors on 1 September 2005and was signed on their behalf by: Stephen StreaterDirector Basis of preparation The interim report for the six months ended 30 June 2005 and 2004 is unauditedand does not constitute statutory accounts within the meaning of Section 240 ofThe Companies Act 1985. They have been prepared under the historical costconvention and on a basis consistent with the accounting policies for the yearended 31 December 2004. The results for the year ended 31 December 2004 and the balance sheet of thatdate are an extract from the statutory financial statements for that year, whichhave been filed with the Registrar of Companies and on which the Company'sauditors gave an unqualified report and did not contain a statement underSection 237 (2) or (3) of that Act. This information is provided by RNS The company news service from the London Stock Exchange