MIRA.L Regulatory News (MIRA)

12 August 2014 mirada plc (AIM: MIRA) ("mirada", "the Company" or "the Group") Final results for the year ended 31 March 2014 mirada plc, the AIM quoted leading audiovisual content interactionspecialist, announces its final results for the year ended 31 March 2014. Financial Highlights - Revenue: £4.57 million (2013: £4.84 million)- Revenues earned from subscriber-based licence fees increased to £1.74 million (2013: £1.49 million)- Gross profit £4.39 million (2013: £4.63 million)- Gross profit margin remained stable at 96%- Adjusted EBITDA*: £1.02 million (2013: £0.98 million)- Profit for the year: £0.04 million (2013: loss of £0.24 million) *Adjusted EBITDA is defined as earnings before interest, tax, depreciation,amortisation and share based payment charges Operational Highlights - Deployment of user interface for GVT satellite service.- Contract with Millicom - the Group's first project with Motorola set top boxes in Latin America- Oversubscribed placing to raise £2.1 million in October and November 2013 at a price of 8.75p- Conversion of loans into equity - strengthening the Group's balance sheet- Appointments of Javier Casanueva as Non-Executive Chairman and Raúl Labrada Neira as Chief Financial Officer Post period highlights - Inaugural Tier One contract win in Latin America following a USD $1.4 million trial- Strengthened institutional investor base- Placing to raise £3.5 million at a price of 12.5p - providing funds to strengthen the Group's position within the Over The Top ("OTT") market and Latin America Commenting on the future outlook of the Group, José Luis Vázquez, CEO of mirada, said: "We have now entered a new stage in which major players are showingan increased interest in our capabilities. The Company is an advancednegotiations with other potential customers, and we expect to announce newdeals after the summer break. References are key in this market and we are nowwinning really important ones." Enquiries: mirada plc +44 (0) 207 549 5678José Luis Vázquez, Chief Executive Officer Walbrook PR +44 (0) 207 562 3350Nick Rome/Sam Allenmirada@walbrookpr.com Arden Partners plc (Nomad and Joint Broker) +44 (0) 207 614 5900Steve Douglas (Corporate Finance)James Felix (Corporate Finance)Kam Bansil (Corporate Broking) Overview I am pleased to report the Group's financial results for the yearended 31 March 2014. This has been a watershed year for the Company duringwhich we secured our first Tier One customer for our lead product, iris,further justifying management's decision to shift to a product-based model.Despite dedicating significant resources to the trial that led to thisflagship contract win, we generated an operating profit for the year, recordedan increase in our adjusted EBITDA (defined as earnings before interest, tax,depreciation, amortisation and share based payment charges) to £1.02million(2013: £0.98 million) and posted full year net profits after tax of £0.04million (2013: loss of £0.24 million). During the year the focus has been on our ability to secure andservice larger contracts in the developing market place, where Over The Top("OTT") opportunities are expected to drive growth. The benefits of thisstrategy are highlighted by the post-year announcement of the Tier Onecontract win, following the success of the trial during the second half of thereported financial year. Reflecting our strategic investment in this contract, Grouprevenues were slightly lower than last year (£4.57 million, a decrease ofaround 5%). Our Digital TV & Broadcast unit revenues were broadly in line withlast year, equalling £4.15 million, with subscriber-based licence fees, mainlyfor our iris product, growing more than 16%, from £1.49 million to £1.74million. Digital TV & Broadcast revenues from professional services were 17%lower, owing to the diversion of resource into the Tier One trial. Forcommercial reasons this work was carried out at a significantly lowercharge-out rate. Further, the resources diverted into the Tier One trial couldnot capitalise on other business which would have been charged at standardrates, adversely impacting this year's Digital TV & Broadcast revenues. During the year we were pleased to welcome a number of newinstitutional shareholders to the Group, which we consider a significantdemonstration of support for our strategy. In addition, as evidenced by therecently announced fundraising, the Company is now well placed to takeadvantage of the growing OTT market, enabling us to fund new contracts andimprove our product range within demanding time-scales. The team has adaptedwell to the changing environment, and has shown its ability to meet newchallenges. We are grateful for the continued support that we have receivedfrom our stakeholders. Trading review Tier One customer Following sustained growth in our subscriber-based licence fees inrecent years, the main goal of management this year was to secure our firstTier One customer. After winning new contracts in Latin America over the lasttwo years and establishing a strong track record on deliveries, we were giventhe opportunity to participate in a much larger tender againstindustry-leading competitors, most much larger than us. The outcome of thisprocess was the offer of a trial period in which to showcase our iris product.In management's opinion, the key to securing the trial derived from thefollowing factors: - Our ability to deliver a finished product faster than our competitors;- The superior architecture of our iris product;- The number of references that mirada had won in the market during the previous few years; and- The high degree of flexibility of iris, which allowed for a more customised proposal. We have now entered a new stage in which other major players in thedigital television market are showing increased interest in our capabilities.The Company is in advanced negotiations with other potential customers, and weexpect to announce new deals after the summer break. References are key inthis market, and we are now winning really important ones. Performance of Installed Base This year has been the second complete year of operations under ourproduct-based model and we now have four customers' platforms generatingsubscriber-based licence fees: GVT in Brazil, on both IPTV (through Ericsson)and DTH (satellite) platforms, and Cablecom and Axtel in Mexico. By the end ofour financial year we should have at least one more, owing to the recent TierOne contract win. GVT in Brazil, owned by the Vivendi Group, is growing well withmore than 750,000 subscribers as of 31 March 2014, yielding around 300,000 newsubscribers during the fiscal year. Most of their growth is driven by theirnew satellite platform, which was launched in August 2013. Axtel is a smallercustomer, although their subscriber base is growing satisfactorily. Cablecomis still waiting for the approval of the Mexican regulators to consolidatetheir integration into the Televisa group, expected during the currentfinancial year. Digital TV and Broadcast unit financial performance It should be noted that for the year under review, we have stoppedsegregating revenues between Digital TV and Broadcast. This is because we havebeen increasingly integrating xplayer functionalities into our larger DigitalTV product (iris and navi) deals. The Group has continued to focus on DigitalTV & Broadcast business, which, with revenues of £4.15 million this year,represented 91% of the Group total (90% last year) and 94% of gross margins(94% last year). Subscriber-based licence fees continued to grow from £1.49million to £1.74 million (up 16%), while the rest of revenues decreased byaround 17% from £2.76 million to £2.40 million owing to the reasons alreadyset out above. Segmental EBITDA remained strong at £1.87 million (2013: £1.97million). Increasing our presence in growing markets represents our mainfocus and, even with the lower trial-related prices for professional servicesin the region this year, Latin America represented 69% of total Group revenues(65% last year). We continue to focus on international activities, withrevenues from the UK and Spanish markets remaining broadly stable at 27% oftotal turnover (25% last year). Appointments During the year we were pleased to welcome Mr. Javier Casanueva tothe role of Non-Executive Chairman. Mr.Raúl Labrada also joined us as our newCFO. Financial overview Owing to the impact of the trial on professional service feerevenue, total turnover decreased by 5% to £4.57 million (2013: £4.84million). Gross profit margin was stable at 96% and adjusted EBITDA for theyear was up 4.5% to £1.02 million, compared to £0.98 million in the prioryear. Amortisation charges increased to £0.92 million from £0.68 millionresulting from increased investment in our iris product. Owing to the improvedperformance and future projections of the Group deferred tax assets of £0.47million were recognised during the year. Adjusted EBITDA is a key performance indicator ("KPI") used bymanagement as it removes the impact of one-off and non-cash transactions.Other KPIs used by management included the following: - Gross profit margin: the concentration of the Group on theDigital TV & Broadcast business has led to a sustained gross profit margin of96%, in line with last year. - Overseas activities (i.e. excluding UK and Spain): total revenuesremained stable in Latin America at £3.14 million compared to £3.16 millionlast year, owing to the effect of the Tier One trial. Latin America nowrepresents 69% of our turnover, up from 65% last year. Overseas activitiesremained at 73% of total Group turnover, a small reduction from 75% last year. - Subscriber-based licence fee revenue included within the DigitalTV & Broadcast segment: revenues from licence fees command higher margins andare key to our return on investment and overall profitability. Total licencefees for the year equalled £1.74 million, a 16.7% increase on the £1.49million earned in the prior period. The Group posted a profit after tax for the year of £0.04 millioncompared to a loss of £0.24 million loss in the prior period althoughmanagement is acutely aware that investment is still ongoing in ensuring thatthe Tier One contract can be executed. This contract should, however, deliverhigher margins like the ones already being received from othersubscriber-based licence fees. The entire convertible loan balance of £975,000 outstanding at 31March 2013 was converted into equity during the year with all conversionstaking place at a price of 10 pence. We believe that this demonstrates theconfidence of the loan note holders in the future performance of the shareprice. Total loans and borrowings decreased from £3.53 million to £2.64million during the period. Additionally, during the financial year, theCompany was able to secure about £2.1 million from both existing and newinstitutional shareholders, with the aim of funding the expected contract winand enhancing our inspire user interface. As detailed in an announcement on 30 July 2014, the has Companyapproved a placing of £3.5 million (before expenses) which will allow theGroup to improve its presence in the OTT market, further reduce its net debtand increase working capital available to fund potential new deals. Operational Review Areas of business mirada is an audiovisual interaction technology company providingboth interactive products and software development services. We trade incomplementary areas around the media business, with some smaller stand-aloneactivities in certain other markets: Digital TV operators: We have nearly 15 years' experience in technologies frominteractive TV to advanced navigational services. We have a solid network ofpartners and we are internationally recognised for our skill base. Ourproducts comprise user interfaces for content navigation and consumption overDigital TV receivers (TV and set-top boxes), personal computers and companiondevices (tablets and smartphones). Our major products are our navigationalsoftware propositions: iris (with our origin and inspire user interfaces) andnavi (in partnership with Ericsson). Other areas: mirada has experience and business activities in other areas,principally broadcast and cashless payment solutions for the car parkingmarket via mirada connect. Broadcast activities have been merged with theDigital TV unit in the year under review, as the group has been increasinglyintegrating the product range of these business units. Mirada connect willremain independent of the rest of the business. Although non-core, it makes apositive contribution to Group EBITDA. Current Trading and Outlook This has been a transformational period for the Group, in which we have provenour ability to deliver on top-level deals. The Group remains in a period ofinvestment and current trading is similar to that stated at financialyear-end. The Group continues to direct resources to the Tier One contract. Weremain confident in the Group's ability to deliver on the Tier One contractand the recent £3.5 million placing strengthens our balance sheet and enablesthe Group to pursue further OTT opportunities in the Latin American market. We expect our performance to be supported by strong subscriber-based licencerevenues deriving from existing installations, the new Tier One contract andfuture contract wins. We believe the Tier One contract will be a significantcatalyst to the Group growing substantially as the product is rolled out overits life from commercial launch later this financial year. The Tier One contract has expanded the pipeline of opportunities in LatinAmerica and beyond. References are key in this market and we are alreadyseeing the benefits as we seek to capitalise on recent successes. The Company expects to benefit from its focus on OTT propositions. We will beinvesting heavily in our technical capabilities and expanding our sales andmarketing efforts in this area. Our team has performed well during the transition from deliveringon small to medium-sized projects to the greater demands and complexities ofmuch bigger Tier One projects. The quality and values of our stakeholders havemade a real difference to their ability to effect such a difficult transition.I cannot be more grateful to them for their hard work and theirprofessionalism. José-Luis VázquezChief Executive Officer11 August 2014 Consolidated income statementYear ended 31 March 2014 Note Year ended Year ended 31 March 31 March 2013 2014 £000 £000 Revenue 4 4,572 4,837Cost of sales (182) (207)Gross profit 4,390 4,630 Depreciation 5 (43) (58)Amortisation 5 (924) (683)Share-based payment charge (53) -Other administrative expenses (3,366) (3,649)Total administrative expenses (4,386) (4,390) Operating profit 5 4 240 Finance income 32 137Finance expense (422) (617) Loss before taxation (386) (240) Taxation 6 427 - Profit/(loss) for year 41 (240) Year ended Year ended 31 March 31 March 2013 2014 £Earnings/(loss) per share £Earnings/(loss) per share for the year- basic & diluted 7 0.001 (0.007) Consolidated statement of comprehensive incomeYear ended 31 March 2014 Year ended Year ended 31 March 31 March 2014 2013 £000 £000 Profit/(loss) for the period 41 (240) Other comprehensive loss:Currency translation differences (26) (28)Total other comprehensive loss (26) (28) Total comprehensive income/(loss) for 15 (268)the year Consolidated statements of changes in equityYear ended 31 March 2014 Share Share Foreign Share premium option exchange Merger Retained capital account reserve reserve reserves earnings Total £000 £000 £000 £000 £000 £000 £000 At 1 April 2013 519 3,059 140 509 2,472 (3,234) 3,465Profit for the financial year - - - - - 41 41Movement in foreign exchange reserve - - - (26) - - (26)Share based payment - - - - - 53 53Transfer between reserves - - (140) - - 140 -Conversion of convertible loans 98 877 - - - (29) 946into sharesIssue of shares 244 1,894 - - - - 2,138Share issue costs - (54) - - - - (54)At 31 March 2014 861 5,776 - 483 2,472 (3,029) 6,563 Share Share Foreign Share premium option exchange Merger Retained capital account reserve reserve reserves earnings Total £000 £000 £000 £000 £000 £000 £000 At 1 April 2012 319 1,216 140 537 2,472 (3,026) 1,658Loss for the financial year - - - - - (240) (240)Movement in foreign exchange reserve - - - (28) - - (28)Conversion of convertible loans 45 400 - - - 32 477into sharesIssue of shares 155 1,457 - - - - 1,612Share issue costs - (14) - - - - (14)At 31 March 2013 519 3,059 140 509 2,472 (3,234) 3,465 Consolidated statement of financial positionAs at 31 March 2014 31 March 31 March 2014 2013 Note £000 £000 Property, plant and equipment 37 61Goodwill 6,946 6,946Intangible assets 2,444 1,719Deferred Tax Assets 508 -Non-current assets 9,935 8,726 Trade & other receivables 1,781 1,292Cash and cash equivalents 30 94Current assets 1,811 1,386 Total assets 11,746 10,112 Loans and borrowings (728) (697)Trade and other payables (2,339) (2,725)Provisions (76) (141)Current liabilities (3,143) (3,563) Net current liabilities (1,332) (2,177) Total assets less current 8,603 6,549liabilities Interest bearing loans and borrowings (1,911) (2,767)Embedded conversion optionderivative - (65)Other non-current liabilities (129) (181)Provisions - (71)Non-current liabilities (2,040) (3,084) Total liabilities (5,183) (6,647) Net assets 6,563 3,465 Issued share capital and reservesattributableto equity holders of the companyShare capital 8 861 519Share premium 5,776 3,059Other reserves 2,955 3,121Retained earnings (3,029) (3,234)Equity 6,563 3,465 Consolidated statement of cash flowsYear ended 31 March 2014 Year ended Year ended 31 March 31 March 2014 2013 Note £000 £000Cash flows from operating activitiesProfit/Loss after tax 41 (240)Adjustments for:Depreciation of property,plant and equipment 43 58Amortisation of intangible assets 924 683Share-based payment charge 53 -Finance income (32) (137)Finance expense 422 617Taxation 427 Operating cash flows before movements 1,024 981in working capital Increase/(decrease) in tradeand other receivables (501) 44 (Decrease)/increase in tradeand other payables (484) 21 (Decrease)/increase in provisions (136) (356) Net cash (used in)/generated from (97) 690operating activities Cash flows from investing activitiesInterest and similar income received 16 3 Purchases of property,plant and equipment (20) (8) Purchases of other intangible assets (1,661) (1,116)Net cash used in investing activities (1,665) (1,121) Cash flows from financing activitiesInterest and similar expenses paid (335) (341)Issue of share capital 2,036 1,014Costs of share issue (53) (14)Loans received 289 913Repayment of loans (409) (735)Repayment of capital elementof finance leases (10) (10)Net cash from financing activities 1,517 827 Net (decrease)/increase in cash and (243) 396cash equivalents Cash and cash equivalents at the 94 (299)beginning of the yearExchange gains on cash and cash equivalents (1) (3) Cash and cash equivalents at the 9 (150) 94end of the year Cash and cash equivalents comprise cash at bank less bank overdrafts. 1. General information mirada plc is a company incorporated in the United Kingdom. The address of theregistered office is New City Cloisters, 196 Old Street, London, EC1V 9FR. Thenature of the Group's operations and its principal activities are theprovision and support of products and services in the Digital TV and Broadcastmarkets. 2. Basis of preparation The financial information set out in this document does not constitute theCompany's statutory accounts for year to 31 March 2013 and 2014. Statutoryaccounts for the years ended 31 March 2013 and 31 March 2014 have beenreported on by the Independent Auditors. The Independent Auditor's Reports onthe Annual Report and Financial Statements for each of 2013 and 2014 wereunmodified and did not contain statements under sections 498(2) or 498(3) ofthe Companies Act 2006. However, the audit report for the year ended 31 March2013, drew attention to an emphasis of matter due to the uncertainty overgoing concern. Statutory accounts for the year ended 31 March 2013 have been filed with theRegistrar of Companies. The statutory accounts for the year ended 31 March2014 will be delivered to the Registrar in due course, and will be availablefrom the Company's registered office at New City Cloisters, 196 Old Street,London, EC1V 9FR and from the Company's website www.mirada.tv/corporate. The financial information set out in these preliminary results has beenprepared using the recognition and measurement principles of InternationalAccounting Standards, International Financial Reporting Standards andInterpretations adopted for use in the European Union (collectively AdoptedIFRSs). The accounting policies adopted in these preliminary results have beenconsistently applied to all the years presented and are consistent with thepolicies used in the preparation of the statutory accounts for the periodended 31 March 2014. The principal accounting policies adopted are unchangedfrom those used in the preparation of the statutory accounts for the periodended 31 March 2013. New standards, amendments and interpretations to existingstandards, which have been adopted by the Group have not been listed, sincethey have no material impact on the financial statements 3. Significant accounting policies Going concern policy The directors have prepared a cash flow forecast covering a period extendingbeyond 12 months from the date of these financial statements. The forecastcontains certain assumptions about the performance of the business. Theseassumptions are the directors' best estimate of the future development of thebusiness, including consideration of cash reserves required to support workingcapital and its new growth initiatives. The directors completed a fund raisingin July 2014 in order to secure £3.5m for the Group. Based on shareholderapproval received at the general meeting on 30 July 2014, the directors have areasonable expectation that the Group has adequate resources to continue inoperational existence for the foreseeable future. For these reasons, theycontinue to adopt the going concern basis of accounting in preparing theannual financial statements. 4. Segmental reporting Reportable segments The chief operating decision maker for the Group is ultimately the board ofdirectors. For financial and operational management the board considers theGroup to be organised into two operating divisions based upon the varyingproducts and services provided by the Group - Digital TV & Broadcast andMobile. The Digital TV & Broadcast segment has been created in 2014, followingthe merger of the Digital TV and Broadcast & Content segments during the year.The segment headed other relates to corporate overheads, assets andliabilities. Segmental results for the year ended 31 March 2014 are as follows: Digital TV & Broadcast Mobile Other Group £'000 £'000 £'000 £'000 Revenue - external 4,149 423 - 4,572Gross profit 4,120 270 - 4,390Profit/(loss) before interest, tax,depreciation, amortisation &shared based payments 1,871 53 (900) 1,024Depreciation (23) - (20) (43)Amortisation (864) (26) (34) (924)Share-based payment charge - - (53) (53)Finance income - - 32 32Finance expense - - (422) (422)Taxation 375 52 - 427Segmental profit/(loss) 1,358 79 (1,396) 41 The segmental results for the year ended 31 March 2013, presented on therevised basis, are as follows: Digital TV & Broadcast Mobile Other Group £'000 £'000 £'000 £'000 Revenue - external 4,367 470 - 4,837Gross profit 4,331 299 - 4,630Profit/(loss) before interest, tax,depreciation, amortisation &shared based payments 1,974 57 (1,050) 981Impairment of goodwill - - - -Depreciation (33) - (25) (58)Amortisation (615) (34) (34) (683)Finance income - - 137 137Finance expense - - (617) (617)Segmental profit/(loss) 1,326 23 (1,589) (240) There is no material inter-segment revenue included in the segments which isrequired to be eliminated. The Group has three major customers in the Digital TV and Broadcast segment (amajor customer being one that generates revenues amounting to 10% or more oftotal revenue) that account for £0.86 million (2013: £1.37 million), £0.83million (2013: £0.48 million) and £0.67 million (2013: £0.48 million) of thetotal Group revenues respectively. The segment assets and liabilities at 31 March 2014 are as follows: Digital TV - Broadcast Mobile Other Group £'000 £'000 £'000 £'000 Additions to non-current assets 2,132 54 3 2,189 Total assets 10,947 732 67 11,746Total liabilities (4,280) (57) (846) (5,183) Capital expenditure comprises additions to property, plant and equipment and intangible assets. The segment assets and liabilities at 31 March 2013, presented on a revised basis, are as follows: Digital TV - Broadcast Mobile Other Group £'000 £'000 £'000 £'000 Additions to non-current assets 1,087 23 14 1,124 Total assets 9,085 688 339 10,112Total liabilities (2,141) (97) (4,409) (6,647) Segment assets and liabilities are reconciled to the Group's assets and liabilities as follows: Assets Liabilities Assets Liabilities 31 March 31 March 31 March 31 March 2014 2014 2013 2013 £'000 £'000 £'000 £'000 Segment assets and liabilities 11,679 4,337 9,773 2,238 Other:Intangible assets - - 89 -Property, plant & equipment 2 - 19 -Other financial assets & liabilities 65 846 231 4,409 Total other 67 846 339 4,409 Total Group assets and liabilities 11,746 5,183 10,112 6,647 Assets allocated to a segment consist primarily of operating assets such asproperty, plant and equipment, intangible assets, goodwill and receivables. Liabilities allocated to a segment comprise primarily trade payables and otheroperating liabilities. Geographical disclosures External revenue Non-current assets by location by location of customer of assets 31 March 31 March 31 March 31 March 2014 2013 2014 2013 £000 £000 £000 £000 UK 563 743 3,041 3,063Spain 650 473 6,894 5,663Continental Europe 218 465 - -Latin America 3,141 3,156 - - 4,572 4,837 9,935 8,726 5. Operating profit The operating profit is stated after charging the following: Year ended Year ended 31 March 31 March 2014 2013 £000 £000 Depreciation of owned assets 43 35Depreciation of assets held - 23under finance leaseAmortisation of intangible assets 924 683Operating lease charges 233 200Research and development costs - 220 Reconciliation of operating profit for continuing operations to loss beforeinterest, taxation, depreciation and amortisation: Year ended Year ended 31 March 31 March 2014 2013 £000 £000 Operating profit 4 240Depreciation 43 58Amortisation 924 683Share-based payment charge 53 - Operating profit before interest, 1,024 981taxation, depreciation, amortisationand share-based payment charge 6. Taxation The tax assessed on the loss on ordinary activities for the period differsfrom the standard rate of tax of 23%. The differences are reconciled below: Year ended Year ended 31 March 31 March 2014 2013 £000 £000 Loss before taxation (386) (240) Loss on ordinary activities (89) (58)multiplied by 23% (2013: 24%)Effect of expenses not deductible 52 23for tax purposesEffect of non-taxable income - (32)Losses carried forward - 67Losses Utilised 37 - Total current tax - - Origination and reversal of (35)temporary differencesRecognition of previously (392) -un recognised deferred tax assets Total deferred tax (427) - Total tax expense (427) - Deferred taxation Deferred tax assets have been recognised in respect of all tax losses forMirada Connect Limited, research and development investment for FreshInteractive Technologies S.A and other temporary differences giving rise todeferred tax assets where the directors believe it is probable that theseassets will be recovered. The Directors believe that the deferred tax assetsare recoverable given the increasing profitability of Fresh InteractiveTechnologies S.A and Mirada Connect Limited over recent years, combined withthe forecasts for future periods. The movements in deferred tax assets and liabilities (prior to the offsettingof balances within the same jurisdiction as permitted by IAS 12) during theperiod are shown below. (Charged)/ Charged/ credited to credited to Asset Liability profit & loss Equity 31 March 31 March 31 March 31 March 2014 2014 2014 2014Group £000 £000 £000 £000 Tax credit for losses 52 - 52 -Other tax credits 421 340Other temporary 35 - 35 -deductible differences Tax asset 508 - 427 - Deferred tax asset of £11,000 as at 31 March 2013 is included within trade andother receivables. Deferred taxation amounts not recognised are as follows: Year ended Year ended 31 March 31 March 2014 2013Group £000 £000 Depreciation in excess 1,587 1,582of capital allowanceLosses 9,830 10,196Unrecognised tax credit 1,839 1,623 13,256 13,401 The gross value of tax losses carried forward at 31 March 2014equals £57.6 million (2013: £58.3 million). 7. Earnings per share Year ended Year ended 31 March 31 March 2014 2013 Total Total Profit/(loss) for year £41,000 (£240,000) Weighted average number of shares 65,233,761 34,612,552 Basic earnings/(loss) per share £0.001 (£0.007) Diluted earnings/(loss) per share £0.001 (£0.007) Adjusted earnings per share Adjusted loss per share is calculated by reference to the loss from continuingactivities before interest, taxation, share-based payment charges,depreciation and amortisation (see note 5). Year ended Year ended 31 March 31 March 2014 2013 Total Total Adjusted profit after tax for year £1,024,000 £981,000 65,233,761 34,612,552Weighted average number of shares Basic adjusted earnings per share £0.016 £0.028 Diluted adjusted earnings per share £0.014 £0.022 The Company has 5,602,555 (2013: 301,327) potentially dilutive ordinary sharesarising from share options issued to staff. At 31 March 2014 the Company hadno potentially dilutive ordinary shares arising from the convertible loan(2013: 9,750,000). For the comparatives for year ended 31 March 2013 thesehave not been included in calculating the diluted earnings per share as theeffect is anti-dilutive, although they have been included in calculating theadjusted earnings per share. 8. Share capital A breakdown of the authorised and issued share capital in place as at 31 March2014 is as follows: 31 March 31 March 31 March 31 March 2014 2014 2013 2013 Number £000 Number £000Allotted, called up and fully paidOrdinary shares of £0.01 each 86,057,695 861 51,927,793 519 Share issues During the year the following share issues took place: - On 15 July 2013 £315,000 of the convertible loan balance was converted into3,150,000 £0.01 ordinary shares at £0.10 per share. - On 9 October 2013 the Company completed a placing for cash raising grossproceeds of £1,000,000 via the issue of 11,428,571 £0.01 ordinary shares at aprice of £0.0875 each. - On 19 November 2013 the Company raised £1,104,398 via the issue of12,621,688 £0.01 ordinary shares at a price of £0.0875 each. The issue ofshares consisted of a placing for cash raising gross proceeds of £1,036,531 bythe issue of 11,846,066 ordinary shares, and 775,622 ordinary shares wereissued to capitalise certain creditor balances totalling £67,866.53. Theseshare based payments to creditors were measured at the market value of theservices rendered. - On 23 December 2013 £170,000 of the convertible loan balance was convertedinto 1,700,000 £0.01 ordinary shares at £0.10 per share. As part of thisconversion, Asesoría Digital S.L., which is owned by Rafael Martín Sanz andhis wife, received 900,000 shares. - On 11 February 2014 4,229,643 £0.01 ordinary shares were issued at a priceof £0.10 each via the conversion of a convertible loan balance of £390,000 andthe capitalisation of interest owed on this convertible loan of £32,964. - On 3 March 2014 the remaining convertible loan balance of £100,000 wasconverted into 1,000,000 £0.01 ordinary shares at £0.10 per share. 9. Notes supporting cash flow statement Cash and cash equivalents comprise: 31 March 31 March 2014 2013 £000 £000 Cash available on demand 30 94Overdrafts (180) - (150) 94 Net cash (decrease)/increase (244) 393in cash and cash equivalents Cash and cash equivalents 94 (299)at beginning of year Cash and cash equivalents (150) 94at end of year Cash and cash equivalents Cash and cash equivalents are held in the following currencies: 31 March 31 March 2014 2013 £000 £000 Sterling 4 42Euro 26 52 Total 30 94 Cash and cash equivalents comprise cash held by the Group and short-term bankdeposits with an original maturity of three months or less. The carryingamount of these assets approximates their fair value. Significant non-cash transactions are as follows: 31 March 31 March 2014 2013 £000 £000 Financing activities:Convertible loans converted into equity 975 445Accrued convertible loan interest 33 412paid by issue of equityCreditor balances paid by issue of equity 68 186 Total 1,076 1,043 10. Events after the reporting date On 7 July 2014 the Company announced a proposed placing to raise £3.5 million(before expenses) by way of a placing of 28,000,000 £0.01 ordinary shares at12.5 pence per share, subject to shareholder approval being obtained at aGeneral Meeting held on 30 July 2014. All resolutions proposed at the GeneralMeeting were passed and the shares were issued on 5 August 2014. Post theplacing there are 114,057,695 ordinary shares of £0.01 each in issue. 11. Availability of report and accounts Copies of the report and accounts for the year ended 31 March 2014 are beingposted to shareholders and will be available on the Company's websitewww.mirada.tv.