Last checked at 28 Jul 2014 07:00
Date: | 28 July 2014 |
On behalf of: | Forbidden Technologies plc ("Forbidden", the "Company" or the "Group") |
Embargoed until: | 0700hrs |
Forbidden Technologies plc
Interim Results
Forbidden Technologies plc (AIM: FBT), the AIM-quoted owner and developer of the market leading cloud video platform, Forscene, announces its interim results for six months ended 30 June 2014.
Highlights
· Significantly strengthened workforce including doubling of R&D headcount and recruitment of additional sales and technical support staff
· Good progress in North America with initial sales made and an impressive pipeline
· Establishment of Consumer Products division with social platform on course for Q4 release
· Cash and short term investments of £6,446,339
Commenting on the results, Stephen Streater, Forbidden Technologies CEO, said:
"The industry shift towards cloud-based workflows continues and, with a number of new staff appointments, growing momentum in North America, and the development of an exciting new consumer offering well underway, we remain confident in Forbidden's ability to grow in the second half and beyond."
Enquiries
Forbidden Technologies plc | Tel: +44 (0)20 8879 7245 |
Stephen Streater, CEO |
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Cenkos Securities plc (Nominated Adviser and Broker) | Tel: +44 (0)20 7397 8900 |
Bobbie Hilliam, Corporate Finance |
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Alex Aylen, Sales |
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Redleaf Polhill (Financial PR) | Tel: +44 (0)20 7382 4730 |
Rebecca Sanders-Hewett | Email: forbidden@redleafpr.com |
Dwight Burden |
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David Ison |
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About Forbidden Technologies plc
Forbidden Technologies plc (AIM: FBT, www.forbidden.co.uk) floated in February 2000.
The Company develops and markets the powerful cloud video platform, Forscene, which is used by broadcasters, in professional web video, in education and by consumers. Forscene is one of the world's most advanced browser-based and mobile applications.
Chairman's Statement
The six-month period to 30 June 2014 was one of significant investment into the business following last summer's fundraising activity. As anticipated, operating expenses in the period rose from £538,191 to £1,461,888. Almost half the increase (£474,000) resulted from increased staff costs including the doubling of R&D headcount and the recruitment of additional sales and technical support staff. £184,000 was spent setting up and staffing our new US subsidiary, a venture which is making good progress, while further recruitment costs, professional services, and marketing added a further £356,000. The resulting overall loss was £1,157,890 compared with £189,618 in the corresponding period last year.
Forbidden has led the emergence of cloud in the video editing industry through its disruptive technologies. The cloud is now having a disruptive effect on the video editing market. This has led a historically strong market player to take defensive action. Conservative executives are exercising caution as they decide which way to turn. Partly as a result of this, revenue in the period was £348,077 compared with £401,278 in the corresponding period last year. Later start dates for some major broadcast series and slow take up of new opportunities in Sports have also contributed.
We remain confident that a generational shift to cloud-based workflows is ongoing and that we are taking the right steps to take advantage of this.
The balance sheet remains strong with cash and short term investments of £6,446,339 at the end of the period.
We have continued to improve our flagship product, Forscene, by broadening the technology to include a media asset management interface (to extend access to existing technology within the Forbidden cloud platform), an editor re-skin and third-party integration.
During the period, we have made rapid progress on the design and development of our planned entry into the consumer market with our social platform and its app. In the two months since his appointment as Consumer Products Director, Aziz Musa, has made significant progress including the creation of the brand name "eva" and the obtaining of the web address eva.co. eva has published its initial web page today and visitors are invited to apply to take part in the Alpha testing of the product. A full launch is planned for the fourth quarter making use of a "freemium" business model to acquire a significant number of monthly active users as efficiently as possible.
Although revenue in the period is lower than the previous year, we consider the contributory factors to be short term and remain confident of our strategy. Our pipeline in North America is impressive and initial sales have been made, with significant growth expected in the second half and continuing into 2015.
FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)
UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Unaudited half year to 30 June 2014 | Unaudited half year to 30 June 2013 | Audited year to 31 December 2013 | ||||
£ | £ | £ | ||||
CONTINUING OPERATIONS | ||||||
Revenue | 348,077 | 401,278 | 772,180 | |||
Cost of Sales | (56,038) | (53,581) | (105,078) | |||
GROSS PROFIT | 292,039 | 347,697 | 667,102 | |||
Administrative expenses | (1,461,888) | (538,191) | (1,491,408) | |||
OPERATING LOSS | (1,169,849) | (190,494) | (824,306) | |||
Finance costs | (887) | - | - | |||
Finance income | 12,846 | 876 | 21,528 | |||
LOSS BEFORE INCOME TAX | (1,157,890) | (189,618) | (802,778) | |||
Income Tax | - | - | 5,231 | |||
LOSS FOR THE PERIOD | (1,157,890) | (189,618) | (797,547) | |||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | (1,157,890) | (189,618) | (797,547) | |||
Earnings per share expressed in pence per share: | ||||||
Basic - continuing and total operations | (1.08p) | (0.22p) | (0.74p) |
FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)
UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 JUNE 2014
Unaudited at 30 June 2014 | Unaudited at 30 June 2013 | Audited at 31 December 2013 | ||||
£ | £ | £ | ||||
ASSETS | ||||||
NON-CURRENT ASSETS | ||||||
Intangible assets | 1,459,403 | 1,054,690 | 1,188,960 | |||
Property, plant and equipment | 145,103 | 47,030 | 49,366 | |||
1,604,506 | 1,101,720 | 1,238,326 | ||||
CURRENT ASSETS | ||||||
Inventories | 38,376 | - | 3,274 | |||
Trade and other receivables | 306,248 | 265,451 | 330,637 | |||
Tax receivable | 5,213 | 53,603 | 58,834 | |||
Short-term investment | 2,000,000 | - | 2,000,000 | |||
Cash and cash equivalents | 4,446,339 | 189,488 | 5,839,109 | |||
6,796,176 | 508,542 | 8,231,854 | ||||
TOTAL ASSETS | 8,400,682 | 1,610,262 | 9,470,180 | |||
EQUITY | ||||||
SHAREHOLDERS' EQUITY | ||||||
Called up share capital | 1,054,518 | 698,056 | 1,054,518 | |||
Share premium | 13,317,572 | 5,336,967 | 13,317,572 | |||
Capital contribution reserve | 125,000 | 125,000 | 125,000 | |||
Retained earnings | (6,311,309) | (4,651,946) | (5,206,105) | |||
TOTAL EQUITY | 8,185,781 | 1,508,077 | 9,290,985 | |||
LIABILITIES | ||||||
NON-CURRENT LIABILITIES | ||||||
Trade and other payables | - | - | - | |||
CURRENT LIABILITIES | ||||||
Trade and other payables | 214,901 | 102,185 | 179,195 | |||
TOTAL LIABILITIES | 214,901 | 102,185 | 179,195 | |||
TOTAL EQUITY AND LIABILITIES | 8,400,682 | 1,610,262 | 9,470,180 |
The financial statements were approved by the Board of Directors on 25 July 2014.
............................................................................... ...............................................................................
S B Streater - Director P J Madden - Director
FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)
UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Called up share capital | Share premium | Capital contribution reserve | Profit and loss account | Total equity | ||||||
£ | £ | £ | £ | £ | ||||||
Balance at 1 January 2013 | 696,936 | 5,311,637 | 125,000 | (4,505,365) | 1,628,208 | |||||
Changes in equity | ||||||||||
Issue of share capital | 1,120 | 25,330 | - | - | 26,450 | |||||
Share based payment | - | - | - | 43,037 | 43,037 | |||||
Total comprehensive income | - | - | - | (189,618) | (189,618) | |||||
Balance at 30 June 2013 | 698,056 | 5,336,967 | 125,000 | (4,651,946) | 1,508,077 | |||||
Changes in equity | ||||||||||
Issue of share capital | 356,462 | 7,980,605 | - | - | 8,337,067 | |||||
Share based payment | - | - | - | 53,770 | 53,770 | |||||
Total comprehensive income | - | - | - | (607,929) | (607,929) | |||||
Balance at 31 December 2013 | 1,054,518 | 13,317,572 | 125,000 | (5,206,105) | 9,290,985 | |||||
Changes in equity | ||||||||||
Issue of share capital | - | - | - | - | - | |||||
Share based payment | - | - | - | 52,686 | 52,686 | |||||
Total comprehensive income | - | - | - | (1,157,890) | (1,157,890) | |||||
Balance at 30 June 2014 | 1,054,518 | 13,317,572 | 125,000 | (6,311,309) | 8,185,781 |
FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)
UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Unaudited half year to 30 June 2014 | Unaudited half year to 30 June 2013 | Audited year to 31 December 2013 | ||||
£ | £ | £ | ||||
Cash flows from operating activities | ||||||
Cash generated from operations | (917,434) | (112,250) | (581,785) | |||
Tax received | 53,621 | - | - | |||
Net cash from operating activities | (863,813) | (112,250) | (581,785) | |||
Cash flows from investing activities | ||||||
Purchase of intangible fixed assets | (346,000) | (158,835) | (351,106) | |||
Purchase of tangible fixed assets | (195,803) | (26,540) | (72,832) | |||
Purchase of fixed term deposits | - | - | (2,000,000) | |||
Interest received | 12,846 | 876 | 21,528 | |||
Net cash from investing activities | (528,957) | (184,499) | (2,402,410) | |||
Cash flows from financing activities | ||||||
Share issue (net of expenses) | - | 26,450 | 8,363,517 | |||
Net cash from financing activities | - | 26,450 | 8,363,517 | |||
(Decrease)/Increase in cash and cash equivalents | (1,392,770) | (270,299) | 5,379,322 | |||
- | ||||||
Cash and cash equivalents at beginning of the period | 5,839,109 | 459,787 | 459,787 | |||
Cash and cash equivalents at end of the period | 4,446,339 | 189,488 | 5,839,109 |
FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)
NOTES TO THE UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
1. | RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS |
Unaudited half year to 30 June 2014 | Unaudited half year to 30 June 2013 | Audited year to 31 December 2013 | ||||
£ | £ | £ | ||||
Loss before income tax | (1,157,890) | (189,618) | (802,778) | |||
Depreciation charges | 65,947 | (7,308) | 36,648 | |||
Loss on disposal of assets | 34,119 | - | - | |||
Amortisation charges | 75,557 | 58,001 | 116,002 | |||
Employee share option costs | 52,686 | 43,037 | 96,807 | |||
Finance income | (12,846) | (876) | (21,528) | |||
(942,427) | (96,764) | (574,849) | ||||
Decrease/(Increase) in trade and other receivables | 24,389 | (36,178) | (125,520) | |||
(Increase)/Decrease in inventories | (35,102) | - | 20,882 | |||
Increase in trade and other payables | 35,706 | 20,692 | 97,702 | |||
Cash generated from operations | (917,434) | (112,250) | (581,785) |
2. CASH AND CASH EQUIVALENTS
The amounts disclosed on the cash flow in respect of cash and cash equivalents are in respect of these balance sheet amounts:
Unaudited half year to 30 June 2014 | Unaudited half year to 30 June 2013 | Audited year to 31 December 2013 | ||||
£ | £ | £ | ||||
Cash and cash equivalents | 4,446,339 | 189,488 | 5,839,109 |
1. Basis of preparation and accounting policies
These interim statements have been prepared on a basis consistent with International Financial Reporting Standards (IFRS). They do not contain all of the information required for full financial statements and should be read in conjunction with the consolidated financial statements of the Company as at and for the year ended 31 December 2013. These interim financial statements do not constitute statutory accounts within the meaning of the Companies Act.
FORBIDDEN TECHNOLOGIES PLC (REGISTERED NUMBER: 03507286)
NOTES TO THE UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2014 (CONTINUED)
The interim financial information has not been audited. The interim financial information was approved by the Board of Directors on 25 July 2014. The information for the year ended 31 December 2013 is extracted from the statutory financial statements for that year which have been reported on by the Group's auditors and delivered to the Registrar of Companies. The audit report was unqualified and did not contain a statement under s498(2) or 498(3) of the Companies Act 2006.
The accounting policies applied by the Company in these interim financial statements are the same as those applied by the Company in its financial statements for the year ended 31 December 2013.