MIRA.L Regulatory News (MIRA)

30 September 2013 mirada plc (AIM: MIRA) ("mirada" or "the Company" or "the Group") Results for the year ended 31 March 2013 mirada plc, the AIM-quoted leading audiovisual content interaction specialist,announces its preliminary results for the year ended 31 March 2013. Financial Highlights * Revenue: £4.84 million (2012: £4.35 million) * Gross profit: £4.63 million (2012: £3.78 million) * Gross profit margin: 96% (2012: 87%) * EBITDA: £0.98 million (2012: £0.37 million loss) * Maiden operating profit: £0.24 million (2012: £2.30 million loss) Operational Highlights * Wide recognition of the mirada brand in the fast growing Latin American market where revenues have more than doubled year-on-year from £1.50 million to £3.16 million * The Group is becoming less reliant on mirada's traditional geographical markets with only 25% of turnover coming from the Spanish and UK markets * Digital TV revenues increased 22% from £3.35 million in 2012 to £4.09 million this year and now represents 85% of the total Group turnover * Improvement in performance is largely due to an impressive 137% increase in licence fee revenues, increasing to £1.42 million in the current year compared to £0.60 million in 2012 * Post year end, a new satellite service launched with GVT, a Brazilian telecommunications company * In February, the Company raised £1.47 million to strengthen the balance sheet, help fund ongoing product development and support mirada's rapid growth in Latin America Commenting on the results, José-Luis Vázquez, Chief Executive Officer of miradaplc, said: "This has been a very positive year for the company in which we have recordedan EBITDA of £0.98 million and an operating profit of £0.24 million, the firsttime that mirada has achieved a positive operating result. This improvement hasbeen achieved after completing a successful transition to a product-based modeland a concentration of the Group's activities in its highest growth area, theDigital TV market. "The Group has now started to see a return on the investment it has made in itssuite of products which have been very well received by customers worldwide." --END -- Enquiries: mirada plc +44 (0) 207 549 5678José Luis Vázquez, CEO Bishopsgate Communications +44 (0) 207 562 3350Nick Rome/Sam Allenmirada@bishopsgatecommunications.com Cantor Fitzgerald Europe (Nomad and Joint Broker) +44 (0) 207 894 7000Mark Percy (Corporate Finance)David Banks (Corporate Broking) Peterhouse Corporate Finance (Joint Broker)Jon Levinson +44 (0) 207 469 0937 About mirada mirada creates and manages services which enable consumers to interact with andpurchase digital content on television, mobile, online and bespoke devices.mirada's products and solutions are used worldwide to deliver interactive TV,video on demand, multi-player gaming, digital marketing and payment services.Its products and services have been deployed by some of the biggest names indigital media and broadcasting including Disney International TV, Sky, ITV andMTV Networks. Headquartered in London, mirada has commercial offices acrossEurope and Latin America and operates technical centres in the UK and Spain.For more information, visit www.mirada.tv. Chief Executive Officer's Statement Overview I am pleased to report on the Group's financial results for the year ended 31March 2013. This has been a very positive year for the company in which we haverecorded an EBITDA of £0.98 million and an operating profit of £0.24 million,the first time that mirada has achieved a positive operating result. Thisimprovement has been accomplished after completing a successful transition to aproduct-based model and a concentration of the Group's activities in itshighest growth area, the Digital TV market. The Group has now started to see areturn on the investment it has made in its suite of products which have beenvery well received by customers worldwide. Moreover, the recognition of ourbrand in the fast growing Latin American market is increasing our exposure toestablished digital television operators, which I believe will furtherconsolidate mirada as a leading player in User Interaction products for theDigital TV market. The improvement in performance is largely due to the impressive growth we haveseen in our licence fee revenues which are earned based on the number ofsubscribers signing up to our customers' digital television services. Thelicence fees earned during the year equalled £1.42 million compared to £0.60million in the prior year. This product-based model, where the licence feerevenues are based on the success of our customers, is perfectly aligned to themarket needs and allows the Group to continue to earn revenues long after ourcustomers have launched their services. At the year end we had three customersfrom whom we generate licence fees compared to only one customer at the end ofthe prior year which was GVT, a Brazilian telecommunications company, which wesecured through our partnership agreement with Ericsson. In December 2012 we announced that we had secured a contract for the launch ofa satellite service in Latin America, we can now say that this deal is forGVT's new DTH deployment. This contract was signed directly with GVT withoutany intermediaries. The service was launched in August 2013 and GVT will nowuse mirada's technology to access new customers in regions with a high demandfor Digital TV services which they could not previously access through theirIPTV product. In February 2013 the Company announced that Axtel, one of Mexico's largesttelecommunications operators, had launched their new digital televisionservice, Axtel TV, which incorporates mirada's content navigation tool, Navi.Axtel is the second customer signed through our partnership with Ericsson andanother contract from which licence fees are earned. We are proud to now havetwo successful deployments in Mexico, which is a flagship country in the regionand a fast growing market. Our team has been very active post year end in securing a contract with a largenew customer. This deal involves a paid trial for our iris multi-screen productto test mirada's capability to deploy our iris solution commercially on theclient's existing digital television service. If the trial is successful, andour solution is rolled out across the customer's existing subscriber base, itwill significantly increase the Group's turnover over the coming years. This isa key milestone for the Company and we expect to complete the trial in thefirst quarter of next year. We will keep the market updated with our progressin this project. In February 2013 we announced the completion of a £1.47 million fund raising,which consisted of a placing and the capitalisation of certain convertible loanand creditor balances. The objective of the fund raising was to help strengthenthe Group's balance sheet, to help fund ongoing investment in productdevelopment, and to reinforce our working capital requirements to supportmirada's rapid growth in Latin America. This fund raising, in which we againhad the participation of existing major shareholders and directors, togetherwith the conversion of a substantial proportion of the outstanding convertibleloans shows a strong belief in the capabilities of mirada by our stakeholders.I am really proud of the incredible work of our employees, and I would like tothank them, our customers, shareholders and partners for their continuedsupport of the business. Trading review The main objectives of the management during the year was to consolidatemirada's expansion into emerging markets, especially into Latin America, and tocontinue the evolution of iris as our brand product. Iris is our multi-screenproposition, working on Digital TV set-top-boxes, smartphones, tablets andcomputers. Our first deployment of iris in Latin America was with Cablecom inMexico, this solution is based on mirada's first generation User Interface(UI), origin, which is proving itself to be a very appropriate product for themarket, especially for the mid-to-low range platforms in the area. The Grouphas invested in the development of a brand new UI, named inspire, which worksat the mid-to-high level range of set-top-boxes and is very suitable for thosecustomers wanting to deploy a high quality and innovative user experience. This year has been the first complete year under the product-based model inwhich the Group is benefiting from the growth of its customers through thelicence fees being charged based upon each new subscriber signing up to ourcustomers' digital television services. By the year end mirada had threecustomers from whom we generated licence fees: GVT in Brazil (part of theVivendi group), which increased the subscriber base for their IPTV platform byover 350,000 new subscribers during the year; Axtel in México, who launchedtheir service in February 2013; and Cablecom in Mexico, who launched theservice in July 2012. The numbers of Cablecom subscribers are not publiclyavailable, however I can say that we are very satisfied with their performance. After the year end it has been publicly announced that Televisa Group, thelargest media corporation in the Hispanic market, has an agreement with theowners of Cablecom to acquire a controlling stake in Cablecom. This isfantastic news for mirada because, if approved by the Mexican authorities, thismeans our Company would be working with the Televisa group. This gives us theopportunity to showcase our capabilities and the potential for an agreement todeploying our technology over more than 5 million cable set-top-boxes in theregion. This year our Digital TV unit has again experienced a substantial growth inrevenues, increasing 22% from £3.35 million in the year ended 31 March 2012 to£4.10 million in the current year, and this unit now represents 85% of thetotal Group turnover. This growth is mainly driven by the increase in licencefees earned, £1.42 million in the current year compared to £0.60 million in theprior year, and we foresee that this growth in licence fees will continue infuture years. The traditional Digital TV revenues streams of professionalservices and support and maintenance have remained relatively constant,totalling £2.68 million this year and £2.75 million last year. It is importantto note that the Digital TV revenues grew without any material change inoperating costs; this has resulted in an increase in EBITDA for the division to£1.76 million compared to £0.79 million in the prior year, an improvement of123%. The performance of the Group is becoming less reliant on mirada's traditionalgeographical markets, with the revenues generated from our internationalactivities (everything outside of the UK and Spain) continuing to increase eachyear, £3.62 million in the current year compared to £2.82 million in the priorperiod. This improvement is mainly due to our increased presence in the LatinAmerican market, with these revenues more than doubling year on year from £1.50million to £3.16 million. We are experiencing strong growth in this region dueto the fact that our initial deployments there were well received by both ourcustomers and their subscribers and these deployments have proved to bevaluable references in the region. Financial overview We are pleased to announce that the year under review has been the first one inwhich the Group has reported an operating profit. We believe this turnaround isdue to a combination of a successful restructuring of the Group, theconcentration of efforts on the profitable Digital TV business, and theadoption of the product-based model resulting in licence fees continuing to beearned long after our customers have launched their services. During the year revenues increased by 11% to £4.84 million, up from £4.35million in the previous year, this combined with the fact that the gross profitmargin has improved from 87% to 96% has led to a 22% increase in gross profitfrom £3.78 million in the prior year to £4.63 million in the current year. Evenwith the increase in revenues there has been a 12% reduction in administrativeexpenses compared to the last year, this has been achievable by focusingattention to the most profitable activities of the Group. The EBITDA for theyear was £0.98 million, compared to a loss of £0.37 million in year ended 31March 2012, and the Group achieved an operating profit of £0.24 million showinga dramatic turn around on the operating loss of £2.30 million shown in theprior year accounts. Earnings before interest, tax, depreciation and amortisation ("EBITDA") is akey performance indicator ("KPI") used by management and removes the impact ofone-off and non-cash transactions. Other KPIs used by management are asfollows: - Gross profit margin: The Group's continued concentration on the Digital TVbusiness has led to an increase in the gross profit margin from 87% in the yearended 31 March 2012 to 96% in the year under review. - Overseas activities (outside of UK and Spain): Due to the increasedactivities in Latin America, the revenues generated from these internationalcustomers increased by 28% to £3.62 million and amounted to 75% of the Group'stotal revenues compared to 65% in the prior year. The highest area of growthhas been in Latin America which now accounts for 65% of the total Groupturnover. - Licence fee revenue: Revenues from licence fees have higher margins and allowthe Group to benefit from multi-year agreements with customers with revenuescontinuing long after the deployment of the customers' digital televisionservices. During the year the total licence fees equalled £1.42 million,showing a 137% increase on the £0.60 million earned in the prior year. Loss for the year equalled £0.24 million which is a significant improvement onthe loss of £3.16 million recorded in the prior year. Management are confidentthat as the licence fees earned continue to grow this positive trend will bereflected in the performance of the Group. In February 2013 the Group completed an equity fundraising for £1.47 millionand in March 2013 convertible loans totalling £175,000 were converted intoordinary shares; this has helped to strengthen the Group's balance sheet withnet assets at the year end equalling £3.47 million, compared to £1.66 millionat 31 March 2012. The net current liabilities position has also improved from £3.16 million in the prior year to £2.18 million in the current year. Althoughthere has been a significant improvement in the balance sheet and the netcurrent liabilities we believe there is still further work to do; primarily theGroup needs to ensure it substantially meets its revenue projections. We arealso currently in negotiations to secure project financing for one of ourlonger term projects. Due to the visibility of potential future contracts andthe continuing increase in licence fee revenue we have found that banks andother financial institutions are very supportive; this has been evidenced bythe fact that post year further long term bank loans totalling £0.30 millionhave already been secured. Operational Review Areas of business mirada is an audiovisual interaction technology company providing bothinteractive products and software development services. We trade incomplementary areas around the media business, with some smaller independentactivities in certain other markets: Digital TV operators: We have more than 10 years of experience in technologies from Interactive TV toadvanced navigational services. We have a solid network of partners and we areinternationally recognised for our skill base. Our products comprise userinterfaces for content navigation and consumption over Digital TV receivers (TVand set-top boxes), personal computers and companion devices (tablets andsmartphones). Our major products are navi, integrated over the Ericsson IAPIPTV platform, and iris, our multi-screen proposition mainly addressed to thecable and satellite television markets. Other areas: mirada has experience and business activities in other areas: broadcast,interactive marketing and mirada connect which provides cashless paymentsolutions for the car parking market. Whilst these activities are expected tocontribute towards the Group's profitability in the medium term managementbelieve that the main areas of growth for the business will be in the DigitalTV business. Outlook The Digital TV business has continued its growth with a 22% increase in theturnover, and it now represents 85% of the Group's turnover and 88% of theGroup's gross margin. This growth shows the returns on the product investmentand the benefits of mirada's expansion into the Latin American market. Now only25% of our turnover is coming from our original Spanish and UK markets, and ourrevenues from the Americas have more than doubled during the last year. We nowhave the products to address the different levels of clients in the region, andwe expect during this fiscal year to announce important news arising fromnegotiations that are currently ongoing with major digital television operatorsin the region. As with the previous business model mirada still receives revenues in relationto set-up fees and professional services for the deployment of our solutioninto our customers' digital television services, the major change under the newproduct-based model is that mirada continues to earn revenues long after thesolution has been deployed through the receipt of licence fees for each newsubscriber signing up to our customers' services. We believe that as we securenew contracts based on this new model our licence fees will continue toincrease resulting in the continued long term improvement in the performance ofthe Group. This year have demonstrated how the investment made in product development by askilled team with more than 10 years' experience in the Digital TV business,has led to the successful turn around in the performance of the Group. Now isthe time to show, through new deals and a healthy growth, how much ourstakeholders can benefit from this strategy. José-Luis VázquezChief Executive Officer29 September 2013 Consolidated income statement Year ended 31 March 2013 Year ended Year ended 31 March 2013 31 March 2012 Note £000 £000 Revenue 4 4,837 4,346 Cost of sales (207) (562) Gross profit 4,630 3,784 Depreciation (58) (106) Amortisation (683) (733) Impairment of goodwill - (560) Restructuring costs - (528) Other administrative expenses (3,649) (4,156) Total administrative expenses (4,390) (6,083) Operating profit/(loss) 5 240 (2,299) Finance income 137 4 Finance expense (617) (867) Loss before taxation (240) (3,162) Taxation 6 - - Loss for year (240) (3,162) Loss per share Year ended Year ended 31 March 2013 31 March 2012 £ £ Loss per share for the year 7 (0.01) (0.11) - basic & diluted The above amounts are attributable to the equity holders of the parent. Consolidated statement of comprehensive income Year ended 31 March 2013 Year ended Year ended 31 March 31 March 2013 2012 £000 £000 Loss for the period (240) (3,162) Other comprehensive loss: Currency translation differences (28) (306) Total other comprehensive loss (28) (306) Total comprehensive loss for the (268) (3,468)year Consolidated statement of changes in equity Year ended 31 March 2013 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) 1,658 Loss for the - - - - - (240) (240)financial year Movement in foreign - - - (28) - - (28)exchange reserve Conversion of 45 400 - - - 32 477convertible loansinto shares Issue of shares 155 1,457 - - - - 1,612 Share issue costs - (14) - - - - (14) At 31 March 2013 519 3,059 140 509 2,472 (3,234) 3,465 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 2011 213 273 2,109 843 2,472 (1,833) 4,077 Loss for the - - - - - (3,162) (3,162)financial year Movement in - - - (306) - - (306)foreign exchangereserve Transfer between - - (1,969) - - 1,969 -reserves Issue of shares 106 960 - - - - 1,066 Share issue costs - (17) - - - - (17) At 31 March 2012 319 1,216 140 537 2,472 (3,026) 1,658 Consolidated statement of financial position 31 March 2013 As restated 31 March 31 March 2013 2012 Note £000 £000 Property, plant and equipment 61 112 Goodwill 6,946 6,946 Intangible assets 1,719 1,295 Non-current assets 8,726 8,353 Trade & other receivables 1,292 1,324 Cash and cash equivalents 94 35 Current assets 1,386 1,359 Total assets 10,112 9,712 Loans and borrowings (697) (1,095) Trade and other payables (2,725) (3,088) Provisions (141) (338) Current liabilities (3,563) (4,521) Net current liabilities (2,177) (3,162) Total assets less current 6,549 5,191liabilities Interest bearing loans and (2,767) (2,817)borrowings Embedded conversion option (65) (292)derivative Other non-current liabilities (181) (194) Provisions (71) (230) Non-current liabilities (3,084) (3,533) Total liabilities (6,647) (8,054) Net assets 3,465 1,658 Issued share capital andreserves attributable toequity holders of the company Share capital 8 519 319 Share premium 3,059 1,216 Other reserves 3,121 3,149 Retained earnings (3,234) (3,026) Equity 3,465 1,658 Consolidated statement of cash flows Year ended 31 March 2013 Year ended Year ended 31 March 2013 31 March 2012 Note £000 £000 Cash flows from operating activities Loss for the year (240) (3,162) Adjustments for: Depreciation of property, plant and 58 106equipment Amortisation of intangible assets 683 733 Impairment of goodwill - 560 Finance income (137) (4) Finance expense 617 867 Operating cash flows before movements in 981 (900)working capital Decrease in trade and other receivables 44 152 Increase/(decrease) in trade and other 21 (56)payables (Decrease)/increase in provisions (356) 216 Net cash generated from/(used in) operating 690 (588)activities Cash flows from investing activities Interest and similar income received 3 4 Purchases of property, plant and equipment (8) (41) Purchases of other intangible assets (1,116) (828) Net cash used in investing activities (1,121) (865) Cash flows from financing activities Interest and similar expenses paid (341) (307) Issue of share capital 1,014 843 Costs of share issue (14) (17) Loans received 913 1,246 Repayment of loans (735) (239) Repayment of capital element of finance (10) (27)leases Net cash from financing activities 827 1,499 Net increase in cash and cash equivalents 396 46 Cash and cash equivalents at the beginning (299) (366)of the year Exchange gains on cash and cash equivalents (3) 21 Cash and cash equivalents at the end of the 9 94 (299)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. 2. Basis of preparation The financial information set out in this document does not constitute theCompany's statutory accounts for year to 31 March 2012 and 2013. Statutoryaccounts for the years ended 31 March 2012 and 31 March 2013 have been reportedon by the Independent Auditors. The Independent Auditors' Reports on theAnnual Report and Financial Statements for each of 2012 and 2013 wereunmodified and did not contain statements under sections 498(2) or 498(3) ofthe Companies Act 2006. However, consistent with prior years, the audit reportfor the year ended 31st March 2013, drew attention to an emphasis of matter dueto the uncertainty over going concern, further details are included in note 3. Statutory accounts for the year ended 31 March 2012 have been filed with theRegistrar of Companies. The statutory accounts for the year ended 31 March 2013will be delivered to the Registrar in due course, and will be available fromthe 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 period ended31 March 2013. The principal accounting policies adopted are unchanged fromthose used in the preparation of the statutory accounts for the period ended 31March 2012. 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 The Group's business activities, together with the factors likely to affect itsfuture development, performance and position are set out in the Chief ExecutiveOfficer's Report. The financial position of the Group, its cash flows,liquidity position and borrowing facilities are described in the Director'sreport. In addition, note 19 to the financial statements includes the Group'sobjectives, policies and processes for managing its capital, its financial riskmanagement objectives, details of its financial instruments and exposures tocredit risk and liquidity risk. The consolidated statement of financial position as at 31 March 2013, being theCompany's year-end, shows a net current liability position of £2,177,000 (2012:£3,162,000). Subsequent to the reporting date, the Group has been able tosecure additional long term bank loans totalling £295,000. The Company is,however, reliant on its ability to achieve its revenue projections and if theseprojections are not met in the short term further funds may be required. Assuch, the Directors are currently in negotiations to secure additional projectfinancing and are confident that these negotiations will be concludedsatisfactorily. The Directors have concluded that the need to generate future funds from eitherfurther financing or from trading activities to satisfy the settlement of itsongoing and future liabilities represents a material uncertainty, which maycast significant doubt upon the Group's and the Company's ability to continueas a going concern. Nevertheless after making enquiries and considering this uncertainty and themeasures that can be taken to mitigate the uncertainty, the Directors have areasonable expectation that the Group and the Company will have adequateresources to continue in existence for the foreseeable future. For thesereasons they continue to adopt the going concern basis in preparing the annualreport and accounts. The financial statements do not include any adjustmentsthat would result if the Group and Company was unable to continue as a goingconcern. Prior year restatement Following a review of the maturity of the onerous lease obligation, theStatement of Financial Position as at 31 March 2012 has been restated toreclassify £338,000 from non-current provisions to current provisions. Therestatement does not impact on total liabilities, net assets or retainedearnings and equally does not affect the Income Statement or the Statement ofCashflows. A restatement of £171,000 from non-current provisions to currentprovisions is also required in the Statement of Financial Position as at 31March 2011. As the restatement is only limited to a reclassification ofnon-current provisions to current provisions in all periods affected, noStatement of Financial Position as at the beginning of the comparative periodhas been presented. 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 three operating divisions based upon the varyingproducts and services provided by the Group - Digital TV, Broadcast & Contentand Mobile. The products and services provided by each of these divisions aredescribed in the CEO Statement on page 3. The segment headed other relates tocorporate overheads, assets and liabilities. Segmental results for the year ended 31 March 2013 are as follows: Digital Broadcast TV & content Mobile Other Group £'000 £'000 £'000 £'000 £'000 Revenue - external 4,094 273 470 - 4,837 Gross profit 4,074 257 299 - 4,630 Profit/(loss) before 1,761 213 57 (1,050) 981interest, tax,depreciation &amortisation Impairment of goodwill - - - - - Depreciation (33) - - (25) (58) Amortisation (615) - (34) (34) (683) Finance income - - - 137 137 Finance expense - - - (617) (617) Segmental profit/(loss) 1,113 213 23 (1,589) (240) The segmental results for the year ended 31 March 2012 are as follows: Digital Broadcast TV & content Mobile Other Group £'000 £'000 £'000 £'000 £'000 Revenue - external 3,346 594 406 - 4,346 Gross profit 3,165 420 199 - 3,784 Profit/(loss) before 792 323 (61) (1,426) (372)interest, tax,depreciation &amortisation Impairment of goodwill - - (560) - (560) Restructuring costs - - - (528) (528) Depreciation (53) - - (53) (106) Amortisation (707) - (18) (8) (733) Finance income - - - 4 4 Finance expense - - - (867) (867) Segmental profit/(loss) 32 323 (639) (2,878) (3,162) 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 segment (a major customerbeing one that generates revenues amounting to 10% or more of total revenue)that account for £1.37 million (2012: £0.79 million), £0.48 million (2012: £0.63 million) and £0.48 million (2012: £0.47 million) of the total Grouprevenues respectively. The segment assets and liabilities at 31 March 2013 are as follows: Digital Broadcast TV & content Mobile Other Group £'000 £'000 £'000 £'000 £'000 Additions to non-current 1,087 - 23 14 1,124assets Total assets 7,146 1,939 688 339 10,112 Total liabilities (1,969) (172) (97) (4,409) (6,647) Capital expenditure comprises additions to property, plant and equipment andintangible assets. The segment assets and liabilities at 31 March 2012 are as follows: Digital Broadcast TV & content Mobile Other Group £'000 £'000 £'000 £'000 £'000 Additions to 680 - 67 122 869non-current assets Total assets 6,302 1,940 1,104 366 9,712 Total liabilities (1,647) (214) (162) (6,031) (8,054) Segment assets and liabilities are reconciled to the Group's assets andliabilities as follows: Assets Liabilities Assets Liabilities 31 March 31 March 31 March 31 March 2013 2013 2012 2012 £'000 £'000 £'000 £'000 Segment assets and liabilities 9,773 2,238 9,346 2,023 Other: Intangible assets 89 - 109 - Property, plant & equipment 19 - 41 - Other financial assets & 231 4,409 216 6,031liabilities Total other 339 4,409 366 6,031 Total Group assets and 10,112 6,647 9,712 8,054liabilities 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 by Non-current assets by location of customer location of assets 31 March 31 March 31 March 31 March 2013 2012 2013 2012 £000 £000 £000 £000 UK 743 908 3,063 3,119 Spain 473 615 5,663 5,234 Continental Europe 465 1,319 - - Americas 3,156 1,504 - - 4,837 4,346 8,726 8,353 5. Operating profit The operating profit is stated after charging the following: Year ended Year ended 31 March 31 March 2013 2012 £000 £000 Depreciation of owned assets 35 83 Depreciation of assets held under finance lease 23 23 Amortisation of intangible assets 683 733 Impairment of goodwill - 560 Operating lease charges 200 264 Restructuring costs (see below) - 528 Research and development costs 220 239 Reconciliation of operating profit for continuing operations to loss beforeinterest, taxation, depreciation and amortisation: Year ended Year ended 31 March 31 March 2013 2012 £000 £000 Operating profit/(loss) 240 (2,299) Depreciation 58 106 Amortisation 683 733 Restructuring costs - 528 Impairment of goodwill - 560 Operating profit/(loss) before interest, 981 (372)taxation, depreciation, amortisation, impairmentof goodwill and restructuring costs During the year ended 31 March 2012 the Group incurred restructuring costs of £528,000 comprising £440,000 relating to an onerous lease commitment and £88,000relating to redundancy costs. 6. Taxation The tax assessed on the loss on ordinary activities for the period differs fromthe standard rate of tax of 24%. The differences are reconciled below: Year ended Year ended 31 March 31 March 2013 2012 £000 £000 Loss before taxation (240) (3,162) Loss on ordinary activities multiplied by 24% (58) (822)(2012: 26%) Effect of expenses not deductible for tax purposes 23 252 Effect of non-taxable income (32) - Losses carried forward 67 570 Current period tax - - Deferred taxation Deferred taxation provided in the financial statements is £nil (2012: £nil) andthe amounts not recognised are as follows: Group Year ended Year ended 31 March 31 March 2013 2012 £000 £000 Depreciation in excess of capital allowances 1,582 1,782 Losses 10,185 11,440 11,767 13,222 The gross value of tax losses carried forward at 31 March 2013 equals £51.2million (2012: £50.9 million). Deferred tax asset The deferred tax asset has not been recognised due to the uncertaintysurrounding the timescale as to its recoverability. The asset would start tobecome potentially recoverable if, and to the extent that, the Group were togenerate taxable income in the future. 7. Loss per share Year ended Year ended 31 March 31 March 2013 2012 Total Total Loss for year (£240,000) (£ 3,162,000) Weighted average number of shares 34,612,552 29,050,700 Basic & diluted loss per share (£0.01) (£0.11) Adjustedearnings/(loss )per share Adjusted loss per share is calculated by reference to the loss from continuingactivities before interest, taxation, impairment of goodwill, depreciation andamortisation (see note 6). Year ended Year ended 31 March 31 March 2013 2012 Total Total Adjusted profit/(loss) after tax for £981,000 (£372,000)period Basic adjusted earnings/(loss) per £0.03 (£0.01)share Diluted adjusted earnings/(loss) per £0.02 (£0.01)share The Company has 301,327 (2012: 302,370) potentially dilutive ordinary sharesarising from share options issued to staff. The Company also has 9,750,000(2012: 14,200,000) potentially dilutive ordinary shares arising from theconvertible loan, see note 19. These have not been included in calculating thediluted earnings per share as the effect is anti-dilutive, although they havebeen included in calculating the adjusted earnings per share. 8. Share capital A breakdown of the authorised and issued share capital in place as at 31 March2013 is as follows: 31 March 31 March 31 March 31 March 2013 2013 2012 2012 Number £000 Number £000 Allotted, called up and fully paid Ordinary shares of £0.01 each 51,927,793 519 31,973,423 319 Share issues During the year the following share issues took place: - On 15 November 2012 3,509,273 £0.01 ordinary shares were issued at £0.1175each to capitalise all convertible loan interest due and payable for the periodfrom the creation of the convertible loan up to 31 March 2013, equating to £412,339. As part of this capitalisation, Asesoría Digital S.L., which is ownedby Rafael Martín Sanz and his wife, received 232,305 shares. - On 27 February 2013 the Company raised £1,469,509 via the issue of 14,695,097£0.01 ordinary shares at a price of £0.10 each. The issue of shares consistedof a placing for cash raising gross proceeds of £1,014,000 by the issue of10,140,000 ordinary shares, £270,000 of the convertible loan balance wasconverted into 2,700,000 ordinary shares, and 1,855,097 ordinary shares wereissued to capitalise certain creditor balances totalling £185,509. These sharebased payments to creditors were measured at the market value of the servicesrendered. The directors who participated in this fund raising and the number ofordinary shares subscribed for were, Richard Alden; 626,667 shares and FrancisColes; 183,613 shares. - On 28 March 2013 £175,000 of the convertible loan balance was converted into1,750,000 £0.01 ordinary shares at £0.10 per share. 9. Notes supporting cash flow statement Cash and cash equivalents comprise: 31 March 31 March 2013 2012 £000 £000 Cash available on demand 94 35 Overdrafts - (334) 94 (299) Net cash increase in cash and cash equivalents 393 67 Cash and cash equivalents at beginning of year (299) (366) Cash and cash equivalents at end of year 94 (299) Cash and cash equivalents Cash and cash equivalents are held in the following currencies: 31 March 31 March 2013 2012 £000 £000 Sterling 42 - Euro 52 35 Total 94 35 Cash and cash equivalents comprise cash held by the Group and short-term bankdeposits with an original maturity of three months or less. The carrying amountof these assets approximates their fair value. Significant non-cash transactions are as follows: 31 March 31 March 2013 2012 £000 £000 Financing activities: Convertible loans converted into equity 445 - Accrued convertible loan interest paid by issue of equity 412 - Creditor balances paid by issue of equity 186 224 Total 1,043 224 10. Availability of report and accounts Copies of the report and accounts for the year ended 31 March 2013 are beingposted to shareholders and are available on the Company's websitewww.mirada.tv.