Last checked at 27 Mar 2023 12:34
27 March 2023
Mobile Streams plc
("MOS" or "the Company")
Interim Results to 31 December 2022
Mobile Streams plc, the AIM quoted mobile content and data intelligence company, is pleased to announce its unaudited interim results for the six months ended 31 December 2022 which are now available on the Company's website, www.mobilestreams.com.
Highlights
· Unaudited revenues £1.1m (31 December 2021: £0.3m). All revenue is from continuing operations
· Cash and cash equivalents was £1.6m at 31 December 2022 (Was £1.4m at 31 December 2021)
Post-period end update
· Cash and cash equivalents was £1.4m at 22 March 2023
· Significant upgrade of HeroesNFTclub platform, introduction of card, Google Pay and Apple Pay payments and NFT contract with Cadiz Football Club announced
Trading update
Revenues in the half year to 31 December 2022 were mainly from the major strategic partnership and contract with International Gaming Systems ("IGS"), the extension of which into the current half year was announced on 30 December 2022.
During the period, the Group announced a number of multi-year contracts to be the exclusive global producer and provider of NFTs for several prominent football teams and sports, delivered both through their own websites and our https://heroesnftclub.com/ site. These include the Pumas, Mexican National, Atlante and Nexaca football teams, LPGA golfer Gaby Lopez, and the Africa focused Extreme Fighting Championship (EFC). NFT revenues began in October 2022 and exceeded £0.1m in this interim period.
As previously announced in the annual accounts to 30 June 2022, the Directors assessed the recoverability of the convertible loan made to Quanta Media Group (a £414k loan intended to fund them through their pre-IPO phase) and made a provision in those accounts against the whole amount. As anticipated, Quanta failed to make repayment of the loan on 31 December 2022 as originally expected. Discussions continue to resolve the matter, and although the Company provided against the full value of its loan to Quanta in FY22, the Company remains hopeful that a significant portion can be recovered and will advise Shareholders accordingly. Update for Tappit situation referring back to original agreement announcement along with any other revenues expectations that need to be updated noting those identified in the table sent. Additionally, the contract with Tappit Technologies (UK) announced on 12 July 2021 had been cancelled having not delivered the expected revenue.
Since the period end, the Group has announced a further NFT contract with Cadiz Football Club and the introduction of payments by traditional card as well as Google Pay and Apple Pay to increase the ease of purchase and simplify the user journey for NFT customers and significant upgrades to the HeroesNFTclub technical platform. In addition the number of product lines and price points have been significantly increased. Further potential contracts and partnerships are under negotiation.
The Board believes that the LiveScores services, IGS partnership, Streams Data offering and, in particular, the Group's growing sports NFT business create significant opportunities for the Company to deliver growth in shareholder value via newly developed products and services. Resources are currently focused mainly on our portfolio of licensed NFT brands, which is expected to be the principal source of growth in 2023. The Board continues to examine additional sources to broaden the appeal of its content business.
Mark Epstein, CEO, said:
"Since the announcement of the first NFT contract in July 2022, with initial revenues in October 2022, we have started to generate more meaningful NFT revenues and expect these to increase even more during the year. We expect to see continued significant growth in 2023 through our NFT business both in terms of revenue and product."
CONSOLIDATED INCOME STATEMENT
Unaudited | Unaudited | Audited | |
6 months ended 31 December | 6 months ended 31 December | 12 months ended 30 June | |
2022 | 2021 | 2022 | |
£000's | £000's | £000's | |
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Revenue | 1,069 | 281 | 1,022 |
Cost of sales | (629) | (76) | (572) |
Gross profit | 440 | 205 | 450 |
Selling and marketing costs | (98) | (157) | (264) |
Administrative expenses * | (1,574) | (690) | (2,954) |
Operating Loss | (1,232) | (642) | (2,768) |
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Profit (loss) on derecognition of subsidiaries | - | - | - |
Finance income | 1 | 2 | 4 |
Finance expense | - | - | - |
Loss before tax | (1,231) | (640) | (2,764) |
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Tax expense | - | - | - |
Loss for the period | (1,231) | (640) | (2,764) |
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Attributable to: |
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Attributable to equity shareholders of Mobile Streams plc | (1,231) | (623) | (2,764) |
Non-Controlling interest | - | (17) | - |
(1,231) | (640) | (2,764) | |
* admin expenses including amortisation, depreciation and exchange gain/loss |
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Earnings Per Share |
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Pence per share | Pence per share | Pence per share | |
Basic loss per share | (0.041) | (0.026) | (0.102) |
Diluted loss per share | (0.041) | (0.026) | (0.102) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited | Unaudited | Audited | |
6 months ended | 6 months ended | 12 months ended | |
31-Dec-22 | 31-Dec-21 | 30 June 2022 | |
£000's | £000's | £000's | |
Assets | |||
Non- Current | |||
Goodwill | 360 | 360 | 360 |
Intangible assets | 396 | 474 | 326 |
Other investments | - | 414 | 170 |
756 | 1,248 | 856 | |
Current | |||
Trade and other receivables | 649 | 527 | 162 |
Cash and cash equivalents | 1,597 | 1,412 | 1,675 |
2,246 | 1,939 | 1,837 | |
Total assets | 3,002 | 3,187 | 2,693 |
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Equity | |||
Equity attributable to equity holders of Mobile Streams plc | |||
Called up share capital | 757 | 1,075 | 659 |
Share Premium | 20,752 | 16,786 | 19,334 |
Translation reserve | (3,050) | (3,050) | (3,050) |
Retained earnings | (15,970) | (12,090) | (14,739) |
Non-Controlling interest | - | (16) | - |
Total equity | 2,489 | 2,705 | 2,204 |
Trade and other payables | 469 | 432 | 442 |
Bank debt | 44 | 50 | 47 |
513 | 482 | 489 | |
Total liabilities | 513 | 482 | 489 |
Total equity and liabilities | 3002 | 3,187 | 2,693 |
CONSOLIDATED CASH FLOW STATEMENT
Unaudited | Unaudited | Audited | |
6 months ended 31 December 2022 | 6 months ended 31 December 2021 | 12 months ended 30 June 2022 | |
£000's | £000's | £000's | |
Operating activities |
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Profit before taxation | (1,231) | (640) | (2,764) |
Adjustments: | |||
Amortisation of intangible assets | 111 | 95 | 262 |
Impairment of Intangible assets | - | - | 106 |
Impairment losses of financial assets | - | - | 80 |
Impairment of receivables | - | - | 283 |
Impairment of Convertible Loan | - | - | 414 |
Share based payments expense | - | - | 255 |
Interest received | (1) | (2) | (4) |
Changes in Trade and other receivables | (1,174) | (202) | (120) |
Changes in Trade and other payables | 714 | 79 | 89 |
Loss on Foreign Exchange | (34) | 3 | - |
Interest paid | - | - | - |
Exchange losses | (38) | (3) | 22 |
Total cash utilised in operating activities | (1,653) | (670) | (1,377) |
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Investing Activities |
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Additions to other intangible assets internal | (70) | - | - |
Acquisitions - Other investments | - | - | (414) |
Acquisitions - cash acquired | - | - | (265) |
Other investments | 128 | (164) | - |
Interest received | 1 | 2 | 4 |
Interest paid | - | - | - |
Net Cash generated from investing activities | 59 | (162) | (675) |
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Issue of share capital (net of expenses paid) | 1,516 | 529 | 2,015 |
Bank loan | (3) | - | (3) |
Net Cash generated from financing activities | 1,516 | 529 | 2,012 |
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Net change in cash and cash equivalents | (78) | (303) | (40) |
Cash and cash equivalents at beginning of period | 1,675 | 1,715 | 1,715 |
Exchange (loss)/ gain on cash and cash equivalents | - | - | - |
Cash and cash equivalents, end of period | 1,597 | 1,412 | 1,675 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The interim results of Mobile Streams plc are prepared in accordance with the requirements of IAS 34 Interim Financial Reporting as adopted by the EU and prepared in accordance with the accounting policies set out in the last financial statements for the 12 months ended 30 June 2022.
The interim results, which are not audited, do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.
The comparative financial information for the twelve months ended 30 June 2022 has been extracted from the statutory accounts for that period. In addition, the financial information for the 6 months ended 31 December 2021 has been extracted from the unaudited Interim results. The full audited accounts of the Group for the 12 months ended 30 June 2022 were prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the UK and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. All references to IFRS in these statements refer to IFRS as adopted by the UK, and have been delivered to the Registrar of Companies. The auditor's report on these financial statements was unqualified and did not contain statements under S498 (2) or S498 (3) of the Companies Act 2006.
The financial statements have been prepared on a going concern basis, which assumes that the Group and the company will continue in operational existence for the foreseeable future, as outlined in note 4.
2. SEGMENT REPORTING
As at 31 December 2022, the Group was organised into four geographical segments: Europe, North America, Latin America, and Asia Pacific. Revenues were from external customers only and generated from three principal business activities: Streams Data services (including NFT related revenues), the sale of mobile content through MNO's (Mobile Operator sales) and the provision of consulting and technical services (Other Service Fees).
All operations are continuing and all inter-segment transfers are priced and carried out at arm's length.
The segmental results for the 6 months ended 31 December 2022 are as follows:
£000's | Europe
| Asia Pacific | North America | Latin America | Group |
Streams Data (IGS and NFT) | 823 | - | - | 105 | 928 |
Mobile Operator sales | - | 2 | - | 139 | 141 |
Other service fees | - | - | - | - | - |
Total Revenue | 823 | 2 | - | 244 | 1,069 |
Cost of sales | (573) | - | - | (56) | (629) |
Gross profit | 250 | 2 | - | 188 | 440 |
Operating expenses | (1,377) | (8) | - | (176) | (1,561) |
EBITDA* | (1127) | (6) | - | 12 | (1,121) |
Depreciation, amortisation | (111) | - | - | - | (111) |
Share based compensation | - | - | - | - | - |
Revenue/expense intercompany | - | - | - | - | - |
Finance income | - | - | - | 1 | 1 |
Profit/(Loss) before tax | (1238) | (6) | - | 13 | (1,231) |
Income tax expense | - | - | - | - | - |
Profit/(Loss) after tax | (1238) | (6) | - | 13 | (1,231) |
*Calculated as profit before tax, interest, amortization, depreciation, share compensation expense and impairment of assets. | |||||
The segmental results for the 6 months ended 31 December 2021 were as follows:
£000's | Europe | Asia Pacific | North America | Latin America | Group | |||||||||||||||||||||||||||||||||||||||||
Streams Data | 125 | - | - | - | 125 | |||||||||||||||||||||||||||||||||||||||||
Mobile internet sales | - | 7 | - | 149 | 156 | |||||||||||||||||||||||||||||||||||||||||
Other service fees | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||
Total Revenue | 125 | 7 | - | 149 | 281 | |||||||||||||||||||||||||||||||||||||||||
Cost of sales | 18 | (3) | - | (91) | (76) | |||||||||||||||||||||||||||||||||||||||||
Gross profit | 143 | 4 | - | 58 | 205 | |||||||||||||||||||||||||||||||||||||||||
Operating expenses | (682) | (6) | (2) | (62) | (752) | |||||||||||||||||||||||||||||||||||||||||
EBITDA* | (539) | (2) | (2) | (4) | (547) | |||||||||||||||||||||||||||||||||||||||||
Depreciation, amortisation | (95) | - | - | - | (95) | |||||||||||||||||||||||||||||||||||||||||
Share based compensation | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||
Revenue/expense intercompany | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||
Finance income | - | - | - | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||
Profit/(Loss) before tax | (634) | (2) | (2) | (2) | (640) | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||
Profit/(Loss) after tax | (634) | (2) | (2) | (2) | (640) | |||||||||||||||||||||||||||||||||||||||||
*Calculated as profit before tax, interest, amortisation, depreciation, share compensation expense and impairment of assets. | ||||||||||||||||||||||||||||||||||||||||||||||
3. EARNINGS PER SHARE | ||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share | ||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share is calculated by dividing the(loss)/profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.
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Adjusted earnings per share | ||||||||||||||||||||||||||||||||||||||||||||||
Adjusted earnings per share is calculated to reflect the underlying profitability of the business by excluding non-cash charges for depreciation, amortisation, impairments and share compensation charges. | ||||||||||||||||||||||||||||||||||||||||||||||
6 months ended 31 December 2022 | 6 months ended 31 December 2021 | 12 months ended 30 June 2022 |
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£000's | £000's | £000's |
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Loss for the period | (1,231) | (623) | (2,764) |
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Add back: share compensation expense | - |
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Add back: depreciation and amortisation | 111 | 95 | 262 |
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Adjusted Loss for the period | (1,120) | (528) | (2,247) |
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Pence per share | Pence per share | Pence per share |
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Adjusted loss per share | (0.038) | (0.022) | (0.092) |
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Adjusted diluted loss per share | (0.038) | (0.022) | (0.092) |
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Weighted average number of shares |
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6 months ended 31 December 2022 | 6 months ended 31 December 2021 | 12 months ended 30 June 2022 |
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Basic | 2,983,500,771 | 2,392,874,506 | 2,707,045,225 |
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Exercisable share options | - | - | - |
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Diluted | 2,983,500,771 | 2,392,874,506 | 2,707,045,225 |
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Diluted (loss)/earnings per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has only one category of ordinary shares.
The adjusted EPS has been calculated to reflect the underlying profitability of the business by excluding non-cash charges for depreciation, amortisation, impairments and share compensation charges.
4. GOING CONCERN
The Group had cash balances of £1.6m at 31 December 2022 (30 June 2021: £1.4m). Having reviewed cash flow forecasts and budgets for a year ahead the Directors have a reasonable expectation that the Group has resources to continue in operational existence for the foreseeable future.
5. FOREIGN CURRENCY TRANSLATION
(a) Presentational currency
The consolidated financial statements are presented in British Pounds, which is also the functional currency of the parent entity.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date the transaction occurs. Any exchange gains or losses resulting from these transactions and from the translation of monetary assets and liabilities at the balance sheet date are reported in the income statement except when these represent a net investment in a subsidiary when they are charged or credited to equity.
Foreign currency balances are translated at the balance sheet date using exchange rates prevailing at the period end.
(c) Group companies
The financial results and position of all group entities that have a functional currency different from the presentational currency of the Group are translated into the presentational currency as follows:
i. assets and liabilities for each balance sheet are translated at the closing exchange rate at the date of the balance sheet
ii. income and expenses for each income statement are translated at average exchange rates (unless it is not a reasonable approximation to the exchange rate at the date of transaction)
iii. all resulting exchange differences are recognised as a separate component of equity (translation reserve)
iv. The exchange rates used in respect of Argentinean Pesos are the official published exchange rates.
6. Other Investments
Other investments had a zero balance at December 31 2022. (30 June 2021: 414k).
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
For further information, please contact:
Mobile Streams plc
Nigel Burton, Adviser
+44 77 8523 4447
www.mobilestreams.com
Beaumont Cornish (Nominated Adviser)
James Biddle and Roland Cornish
+44 (0) 20 7628 3396
Peterhouse Capital Limited (Broker)
Lucy Williams and Duncan Vasey
+44 (0) 20 7469 0930