MIRA.L Regulatory News (MIRA)

28 November 2014 mirada plc (AIM: MIRA) ("mirada", "the Company" or "the Group") Interim results for the six months to 30 September 2014 mirada plc, the AIM quoted leading audiovisual content interaction specialist,announces its unaudited interim results for the six months to 30 September2014. This was a busy period for the Company as it continued to strengthen itsproposition for large Tier 1 customers while developing its Over The Top("OTT") service offering. Operational Highlights * On track for full year performance to be in line with market expectations. * Inaugural Tier 1 contract win in May 2014 for the iris/inspire product. * Tier 1 contract represents a minimum of US$15 million in subscriber-based licence fees over a 3 to 5 year period. * Project delivered to Tier 1 customer and commercial launch on course. * First major OTT contract win announced on 18th September 2014. * OTT product development ahead of schedule with commercial launch expected early in the new financial year. Key Points * Revenue of £2.19 million (H1 2013: £2.30 million) during the six months to 30 September 2014. * Adjusted EBITDA* loss of £0.09 million (H1 2013: £0.52 million profit) reflecting costs incurred from delivery of Tier 1 customer project during the first half. * Tier 1 customer licence and professional services fees expected to drive second half revenue higher from commercial launch in December 2014. * Continued investment in product development. * Oversubscribed £3.5 million Placing at 12.5p and strengthened institutional investor base. *Adjusted EBITDA is defined as earnings before interest, tax, depreciation,amortisation and share based payment charges Post period highlights * 96% visibility of full year consensus revenue. * Strengthened the Board with the appointments of José Gozalbo (CTO) as an Executive Director and Matthew Earl as a Non-Executive Director. * New Commercial launch for Telefonica Peru, using mirada's iris technology for its OTT product, Movistar Go. * Company developing relationships with further Tier 1 potential customers to diversify its geographic reach and revenue base. Commenting on the future outlook of the Group, José Luis Vázquez, CEO ofmirada, said: "This was a transformational period for the Company as we proved our ability towin and service Tier 1 customers. Importantly we also launched our presence inthe rapidly growing OTT market and continued to strengthen our product base -ensuring that we are at the forefront of market developments. Additionallythere is a growing global demand for our full suite of products and servicesand we are already having a number of conversations with potential customersoutside of Latin America. "During the period we continued to invest in product development. Some revenueelements from the Tier 1 contract, which implied incurred costs in the firsthalf of the year will be recorded in the second half. This is due to IFRSpolicy on backoffice licences which requires invoicing following commercialdeployment. While this had an impact on our first half numbers, we areconfident that the second half and full year will be in line with marketexpectations. We continue to develop relationships with a number of Tier 1customers and look forward to updating the market in due course. "Our team has performed extremely well by securing a successful deployment ofour technology in a very challenging environment - proving that mirada has oneof the most capable teams in the Digital TV technology world. I am encouragedand extremely grateful for their continued performance, which has beenrecognised by the backing of a new group of institutional investors, who aremaking it possible for the Company to further develop its proposition." Enquiries: mirada plc +44 (0) 203 751 0320José Luis Vázquez, Chief Executive Officer Walbrook PR +44 (0) 207 933 8783Nick Rome/Sam Allenmirada@walbrookpr.com Arden Partners plc (Nomad and Joint Broker) +44 (0) 207 614 5900James Felix (Corporate Finance)Kam Bansil (Corporate Broking) Chief Executive Officer's Statement Overview I am pleased to present the Group's financial results for the six months ended30 September 2014. During this period the Company further strengthened itspresence in the Latin American market while proving its ability to servicelarge Tier 1 customers as it secured the first Tier 1 reference of its OTToffering. Our contract win announced on 19 May 2014 was a significant milestone for theCompany reflecting our strategic shift to a scalable subscriber-based licencefee model. This contract alone represents a minimum of US$15 million insubscriber-based licence fees, which will be received during a 3-5 year periodfollowing commercial deployment. This is expected to take place before the endof this calendar year. This contract provided a springboard for the Company to showcase its OTToffering with the Company signing a separate contract to provide the existingTier 1 customer with a TV Everywhere platform. As a result, the customer will benefit from live and on demand contentdistribution, catch-up and start-over capabilities, remote control of the settop box from any of the multi-screen devices, session transfer or multiroomfunction. Management expects that the customer will achieve similar levels ofacceptance of the service as other comparable products in the market. Thisbeing the case, it is expected that the contract could generate revenue inexcess of US$5 million during the three years following the commercialroll-out, which is planned to start at the beginning of the new financial year. Technical resourcing has been completed as planned, and the product developmentprogress is ahead of schedule, allowing the Company to showcase thefully-integrated suite to other relevant customers across the globe.OTT-enabled devices have just reached the 1 billion mark, and nearly 80% of allIP traffic will be IP video by 2018, according to latest market research. More than 50% of Sky subscribers now connect their Sky+ HD box to the internetto access on-demand content, proving that the OTT growth is ahead ofexpectations. With the new functionalities added to our iris platform, miradais in an excellent position to meet customer needs. Having now deployed itstechnology for our first Tier 1 customer, and following today's announcement ofthe commercial launch of Movistar Go with Telefónica Peru using our OTTtechnology, we have two excellent reference points for other customersworldwide. Financial Overview Turnover was £2.19 million (H1 2013: £2.30 million) due to the fact thatcertain backoffice licence revenues related to the deployment of inspire withour Tier 1 Customer will be recognised in the second half of the year. This wasdue to IFRS policy, which states they can only be recognized following thecommercial launch. Overall, the company expects that total revenue for the yearwill be in line with market expectations. Loans and borrowings decreased to £2.26 million (March 2014: £2.63 million) dueto regular debt repayment. In order to speed-up the product development and tofacilitate further growth in the OTT market the Company successfully raised £3.5 million via a placing at 12.5p during the period. The placing also allowedthe Company to reduce its Non-Current Liabilities to £1.80 million (March 2014:£2.04 million), leaving cash and cash equivalents at £1.21 million for theperiod. As such the Company is in an excellent position to focus onstrengthening its OTT offering and taking advantage of growing global demand. Overseas activities remained strong at 61% of the total revenues (H1 2013:68%), which is in line with expectations according to the increased revenue tobe reflected in the second half of the year. It is worth noting that therevenues in Spain were up 67% from the previous period, mostly due to aperceived increase of Digital TV investments in the country. Appointments During the period we were pleased to welcome José Gozalbo (CTO) as an ExecutiveDirector and Matthew Earl as a Non-Executive Director. The addition of two suchhighly experienced individuals to our Board further strengthens our ability togrow our relationships with big telecoms suppliers and our corporategovernance, which will be invaluable as we expand our customer proposition anddevelop our business. Outlook The Company remains on track for full year performance to be in line withmarket expectations with around 96% visibility of full year consensus revenues. In addition, the Company is in conversation with a number of potentialcustomers regarding the provision of its products and expertise. On the back ofthe Company's strengthened relationship with Digital TV partners in the market,new opportunities have arisen both in Latin America and in other Countries,widening our area of commercial activity faster than expected. We are hopefulof adding further Tier 1 references to our customers list in the near future. I am encouraged and extremely grateful for continued hard work that has ensuredthat mirada is well placed to take advantage of rapid market growth. This hasbeen recognised by the backing of a new group of institutional investors, whoare making it possible for the Company to further develop its proposition. Jose Luis VazquezChief Executive Officer27 November 2014 Consolidated income statement for the six months to 30 September 2014 Note 6 months 6 months Year ended ended ended 31 March 30 September 30 September 2014 2014 2013 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Revenue 2 2,191 2,300 4,572 Cost of sales (124) (95) (182) Gross profit 2,067 2,205 4,390 Depreciation (9) (22) (43) Amortisation (575) (429) (924) Share-based payment charge (31) - (53) Other administrative expenses (2,154) (1,693) (3,366) Total administrative costs (2,769) (2,144) (4,386) Operating (loss)/profit 3 (702) 61 4 Finance income - - 32 Finance expense (185) (234) (422) (Loss)/profit before taxation (822) (173) (386) Taxation - - 427 (Loss)/profit for period (887) (173) 41 (Loss)/earnings per share - basic and diluted 4 (1.0p) (0.3p) 0.1p The above amounts are attributable to the equity holders of the parent. Consolidated statement of comprehensive incomeSix months to 30 September 2014 6 months 6 months Year ended ended ended 31 March 30 September 30 September 2014 2014 2013 (Unaudited) (Unaudited) (Audited) £000 £000 £000 (Loss)/profit for the financial period (887) (173) 41 Currency translation differences (77) 4 (26) Total comprehensive (expense)/income (964) (169) 15for the period Consolidated statement of financial position as at 30 September 2014 30 September 30 September 31 March 2014 2013 2014 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Property, plant and equipment 39 48 37 Goodwill 6,946 6,946 6,946 Intangible assets 2,389 1,955 2,444 Deferred Tax assets 523 - 508 Non-current assets 9,897 8,949 9,935 Trade and other receivables 1,679 1,314 1,781 Cash and cash equivalents 1,218 3 30 Current assets 2,897 1,317 1,811 Total assets 12,794 10,266 11,746 Loans and borrowings (557) (616) (728) Trade and other payables (1,556) (2,874) (2,339) Provisions - (121) (76) Current liabilities (2,113) (3,611) (3,143) Net current Assets/liabilities 784 (2,294) (1,332) Total assets less current 10,681 6,655 8,603liabilities Interest bearing loans and (1703) (2,854) (1,911)borrowings Embedded conversion option - (44) -derivative Other non-current liabilities (96) (163) (129) Non-current liabilities (1,799) (3,061) (2,040) Net assets 8,882 3,594 6,563 Issued share capital and reservesattributable to equity holders ofthe company Share capital 1,141 550 861 Share premium 8,748 3,343 5,776 Other reserves 2,878 3,125 2,955 Accumulated losses (3,885) (3,424) (3,029) Equity 8,882 3,594 6,563 Consolidated statement of changes in equitySix months to 30 September 2014 Profit Share Share Share Foreign Merger and capital premium option exchange reserve loss reserve reserve account Total £000 £000 £000 £000 £000 £000 £000 At 1 April 2014 861 5,776 - 483 2,472 (3,029) 6,563 Profit for the financial - - - - - (887) (887)period Conversion of - - - - - 31 31convertible loans intoshares Issue of shares 280 3,220 - - - - 3,500 Share issue costs - (248) - - - - (248) Movement in foreign - - - (77) - - (77)exchange reserve At 30 September 2014 1,141 8,748 - 406 2,472 (3,885) 8,882 Profit Share Share Share Foreign Merger and capital premium option exchange reserve loss reserve reserve account Total £000 £000 £000 £000 £000 £000 £000 At 1 April 2013 519 3,059 140 509 2,472 (3,234) 3,465 Loss for the financial - - - - - (173) (173)period Conversion of 31 284 - - - (17) 298convertible loans intoshares Movement in foreign - - - 4 - - 4exchange reserve At 30 September 2013 550 3,343 140 513 2,472 (3,424) 3,594 Profit Share Share Share Foreign Merger and capital premium option exchange reserve loss reserve reserve account Total £000 £000 £000 £000 £000 £000 £000 At 1 April 2013 519 3,059 140 509 2,472 (3,234) 3,465 Profit for the financial - - - - - 41 41period Conversion of 98 877 - - - (29) 946convertible loans intoshares Share based payment - - - - - 53 53 Transfer between - - (140) - - 140 -reserves Issue of shares 244 1,894 - - - - 2,138 Share issue costs - (54) - - - - (54) Movement in foreign - - - (26) - - (26)exchange reserve At 31 March 2014 861 5,776 - 483 2,472 (3,029) 6,563 Consolidated statement of cash flows six months to 30 September 2014 6 months 6 months Year ended ended ended 31 March 30 September 30 September 2014 2014 2013 (Audited) (Unaudited) (Unaudited) £000 £000 £000 Cash flows from operating activities (Loss)/profit for the period (887) (173) 41 Adjustments for: Depreciation of property, plant and 9 22 43equipment Amortisation of intangible assets 575 429 924 Share based payment charge 31 - 53 Finance income - (32) Finance expense 185 234 422 Taxation - - (427) Operating cash flows before (87) 512 1,024movements in working capital Decrease/(increase) in trade 98 (34) (501)and other receivables Increase in trade and other (802) 82 (484)payables Decrease in provisions (76) (90) (136) Net cash generated from (867) 470 (97)operating activities Cash flows from investingactivities Interest and similar income 2 - 16received Purchases of property, plant (13) (11) (20)and equipment Purchases of other intangible (630) (683) (1,661)assets Net cash used in investing (641) (694) (1,665)activities Cash flows from financingactivities Interest and similar expense (186) (103) (335)paid Issue of share capital 3,500 - 2,036 Costs of share issue (248) - (54) Loans received 233 292 289 Repayment of loans (432) (196) (409) Repayment of capital element - (5) (10)of finance leases Net cash (used in)/generated 2,867 (12) 1,517from financing activities Net (decrease)/increase in 1,359 (236) (245)cash and cash equivalents Cash and cash equivalents at (150) 94 94the beginning of the period Exchange gains on cash and 9 (1) 1cash equivalents Cash and cash equivalents at 1,218 (143) (150)the end of the period Cash and cash equivalents comprise cash at bank less bank overdrafts. Notes to the Accounts 1. Basis of Preparation These interim financial statements have been prepared using policies based onInternational Financial Reporting Standards (IFRS and IFRIC Interpretations)issued by the International Accounting Standards Board ("IASB") as adopted foruse in the EU. They do not include all disclosures that would otherwise berequired in a complete set of financial statements and should be read inconjunction with the 31 March 2013 Annual Report. The financial information forthe half years ended 30 September 2014 and 30 September 2013 do not constitutestatutory accounts within the meaning of Section 434 (3) of the Companies Act2006 and both periods are unaudited. The annual financial statements of Mirada plc are prepared in accordance withIFRS as adopted by the European Union. The comparative financial informationfor the year ended 31 March 2014 included within this report does notconstitute the full statutory Annual Report for that period. The statutoryAnnual Report and Financial Statements for the year to 31 March 2014 have beenfiled with the Registrar of Companies. The independent Auditors' Report on thatAnnual Report and Financial Statement for 2014 was unqualified, did not drawattention to any matters by way of emphasis, and did not contain a statementunder 498 (2) or 498 (3) of the Companies Act 2006. After making enquiries, the directors have concluded that the Group haveadequate resources to continue operational existence for the foreseeablefuture. Accordingly, they continue to adopt the going concern basis inpreparing the half-yearly consolidated financial statements. The same accounting policies, presentation and methods of computation arefollowed in these interim consolidated financial statements as were applied inthe Group's latest annual audited financial statements. In addition, the IASBhave issued a number of IFRS and IFRIC amendments or interpretations since thelast Annual Report was published. It is not expected that any of these willhave a material impact on the Group. The Board of Directors approved thisinterim report on 27 November 2014. 2. Segmental reporting For management purposes the Group is currently organised into two operatingdivisions based upon the varying products and services provided by the Group-Digital TV & Broadcast and Mobile (which includes Interactive Marketing andMirada Connect). The segment headed other relates to corporate overheads. Segmental results for the 6 months ended 30 September 2014 are as follows: Digital TV & Broadcast Mobile Other Group £000 £000 £000 £000 Revenue - external 1,978 195 18 2,191 Gross profit 1,934 115 18 2,067 Profit/(loss) before 91 54 (233) (87)interest, tax,depreciation &amortisation Depreciation (7) - (2) (9)Amortisation (547) (12) (15) (575) Share Option charges - - (31) (31) Finance income - - - - Finance expense - - (185) (185) Segmental profit/ (463) 41 (466) (887)(loss) Segmental results for the 6 months ended 30 September 2013 are as follows: Digital TV & Broadcast Mobile Other Group £000 £000 £000 £000 Revenue - external 2,073 227 - 2,300 Gross profit 2,053 152 - 2,205 Profit/(loss) before 923 9 (420) 512interest, tax,depreciation &amortisation Depreciation (11) - (11) (22) Amortisation (398) (14) (17) (429) Finance income - - - - Finance expense - - (234) (234) Segmental profit/(loss) 514 (5) (682) (173) 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 - 4,572 Gross profit 4,120 270 - 4,390 Profit/(loss) 1,871 53 (900) 1,024before interest,tax, depreciation &amortisation Depreciation (23) - (20) (43) Amortisation (864) (26) (34) (924) Share based payment - - (53) (53)charge Finance income - - 32 32 Finance expense - - (422) (422) Taxation 375 52 - 427 Segmental profit/ 1,358 79 (1,396) 41(loss) Revenue by location of customer 6 months 6 months Year ended ended ended 31 March 30 September 30 September 2014 2014 2013 (Unaudited) (Unaudited) (Audited) UK 327 329 563 Spain 463 278 650 Continental Europe 46 136 218 Americas 1,355 1,557 3,141 Total 2,191 2,300 4,572 3. Operating profit Reconciliation of operating profit to profit before interest, taxation,depreciation and amortisation: 6 months 6 months Year ended ended ended 31 March 30 September 30 September 2014 2014 2013 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Operating profit (702) 61 4 Depreciation 9 22 43 Amortisation of deferred development 575 429 924costs Share-based payment charge 31 - 53 Profit before interest, taxation, dep (87) 512 1,024reciation and amortisation 4. (Loss)/earnings per share 6 months 6 months Year ended ended ended 31 March 30 September 30 September 2014 2014 2013 (Unaudited) (Unaudited) (Audited) (Loss)/profit for period (£887,041) (£173,000) £41,000 Weighted average number of shares 90,353,585 52,592,314 65,233,761 Basic earnings/(loss) per share (1.0p) (0.3p) 0.1p Adjusted earnings per share Adjusted earnings per share is calculated by reference to the profit fromcontinuing activities before interest, taxation, amortisation and depreciation(see note 3). 6 months 6 months Year ended ended ended 31 March 30 September 30 September 2014 2014 2013 (Unaudited) (Unaudited) (Audited) Adjusted profit for period (£87,283) £512,000 £1,024,000 Basic adjusted earnings/(loss) per (0.1p) 1.0p 1.6pshare Diluted adjusted earnings/(loss) per (0.09p) 0.9p 1.4pshare The Company has 5,602,555 (2013: 301,327) potentially dilutive ordinary sharesarising from share options issued to staff. 5. Related party transactions Transactions between the company and its subsidiaries, which are relatedparties, have been eliminated on consolidation and are not disclosed in thisnote. There were no material transactions between the Group and the relatedparties during the period. 6. Cautionary statement Mirada plc has made forward-looking statements in this press release, includingstatements about the market for and benefits of its products and services,financial results, the potential benefits of business relationships with thirdparties and business strategies. These statements about future events aresubject to risks and uncertainties that could cause Mirada plc's actual resultsto differ materially from those that might be inferred from the forward-lookingstatements. Mirada plc can make no assurance that any forward-lookingstatements will prove correct. 7. Other Copies of unaudited interim results have not been sent to shareholders, howevercopies are available on request from the Company Secretary at the Company'sregistered office, 69 Old Street, London, EC1V 9HX.