17 Sep 2010 13:13
17 September 2010
Motive Television PLC
("Motive", "the Company" or "the Group")
Half-yearly results for the six months ended 30 June 2010 and appointment of adviser
The Board of Motive, (MTV) the AIM quoted media investment Company specialising in television technology, rights and production, is pleased to announce its interim results for the period ended 30 June 2010.
Highlights
·; Revenue from continuing operations up 35 per cent. to £370,818 (2009: £273,934)
·; Gross profit from continuing operations up 238 per cent. to £87,421 (2009: £25,824)
·; Loss attributable to continuing activities £(535,894) after exceptional administrative expenses of £275,988
·; Completed strategic shift from television production into the provision of digital terrestrial television technology to broadcasters around the world
·; Jendens Securities Limited appointed as joint broker
Post Year End
·; Successfully acquired the assets of NXVision - Motive intends to synergise this with BesTV®
·; Agreement reached with Antenna Hungaria ZRT to test Bestv® in a pilot programme
·; Pilot agreement with TV Nova in the Czech Republic, the largest operation of Central European Media Enterprises Limited
·; Motive is currently in negotiations with a number of broadcasters in both Europe and the USA, and hopes to make further announcements on new pilot schemes shortly
Commenting on the results, Motive Chairman, Mick Pilsworth, said:
"Motive has now successfully completed its transition from investing in television production to being a global provider of technology and solutions to Digital Terrestrial Television Broadcasters.
"We have seen accelerating interest and progress in our new strategy. Post year end, we have successfully implemented our first two pilot schemes in Central Europe, made a complementary acquisition and identified potential growth areas. We believe that the Company is now well positioned to take advantage of the opportunities that arise and we look forward to the future with great confidence."
Contact:
| Motive Television plc Mick Pilsworth
| T: 020 3080 9430 |
| Merchant Securities Limited (Nominated Adviser) Simon Clements / Virginia Bull
| T: 020 7628 2200 |
| Hybridan LLP (Joint Broker) Claire Noyce
| T: 020 7947 4350 |
| Jendens Securities Limited (Joint Broker) Jeremy Read / Justine Waldisberg
| T: 0203 372 2586 |
| Bishopsgate Communications Gemma O'Hara / Siobhra Murphy
| T:0 20 7562 3350 |
Chairman's Statement
Overview
During the period under review Motive successfully completed its strategic shift from television production into the provision of digital terrestrial television technology to broadcasters around the world.
As announced on 29 June 2010, Motive disposed of its 49.9 per cent. interest in Brown Eyed Boy Limited, which was our last remaining UK television production investment. This transaction completed our disposal programme, and, as announced, we will keep the Dublin-based production arm, Motive Television Limited, due to its recurring revenues through its long term multi-year sports contracts with TV3, one of Ireland's leading television broadcasters.
During the period, progress has been made in marketing BesTV® Push Video on Demand ("PVOD") software to broadcasters around the world, with pilot tests in two key markets in Central Europe and strong interest from broadcasters in the USA.
On 15 September 2010 the acquisition of the assets of NXVision Limited (in liquidation) was announced. The Board believes that NXVision's software could be easily integrated with the Bestv® technology and is excited by the possibilities the combination could offer.
Current trading
Digital Television Technology
Motive owns the global distribution rights to BesTV® technology, outside of Spain and Italy, and is continuing to discuss its use as a Business-to-Business solution for broadcasters in Europe, the USA and Asia.
In Hungary, Motive has reached an agreement with Antenna Hungaria ZRT ("Antenna Hungaria"), a fully-owned subsidiary of Groupe TDF, to test its BesTV® technology in a pilot programme. Antenna Hungaria has evaluated the technology since August 2010.
This pilot agreement follows a similar pilot agreement with TV Nova in the Czech Republic, the largest operation of Central European Media Enterprises Limited, and, the Directors' believe, provides further evidence of accelerating interest and progress in Motive's new strategy as a provider of technology and services to the digital broadcasting sector.
Motive is currently in negotiations with a number of broadcasters in both Europe and in the USA and hopes to make further announcements on new pilot schemes shortly.
With the Antenna Hungaria and Nova pilot implementations, and with negotiations underway with a number of international broadcasters, the Board is hopeful that Motive will be providing BesTV® technology and the Company's supporting services in a number of TV markets in the coming months.
Television Production
Motive's Irish television production company, Motive Television Limited, produced 11 live Gaelic Athletics Association matches during the period and reached an agreement with TV3 for the production of 62 Champions League and Europa League matches for 2010-2012. "On Hallowed Ground", a sports documentary on the history of the former Lansdowne Road stadium was commissioned by RTÉ and broadcast in April 2010 to coincide with the transformation of the old historic rugby and football ground to the new AVIVA stadium. "Pilgrims", a sports documentary on the Irish at the Cheltenham Festival was produced for Setanta Sports, with the support of the Broadcasting Authority of Ireland (BAI). Motive Television Limited recently secured BAI funding for another sports documentary, "Man on a Mission", also for Setanta Sports, which will go into production in the autumn of 2010. Production continues on the UEFA Champions League and the Europa League for TV3 and the outlook for the rest of the year and early 2011 appear positive.
We have seen accelerating interest and progress in our new strategy as a provider of technology and services to the digital broadcasting sector and we look forward to the future with great confidence.
Appointment of Adviser
The Company also announces that it has appointed Jendens Securities Limited as its joint broker with immediate effect.
Finally, I would like to take this opportunity to thank my fellow Directors and our Advisers for their support through what has been a difficult and challenging period.
Michael Pilsworth
Chairman
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2010
|
| Six months to |
| Six months |
| Year to |
|
| 30 June |
| to 30 June |
| 31 December |
|
| 2010 |
| 2009 |
| 2009 |
|
| £ |
| £ |
| £ |
| Continuing activities |
|
|
|
|
|
| Revenue | 370,818 |
| 273,934 |
| 1,054,178 |
| Cost of sales | (283,397) |
| (248,110) |
| (951,886) |
|
|
|
|
|
|
|
| Gross Profit | 87,421 |
| 25,824 |
| 102,292 |
| Administrative expenses - normal | (347,370) |
| (267,072) |
| (763,750) |
| Administrative expenses - exceptional | (275,988) |
| - |
| - |
| Goodwill impairment | - |
| - |
| (90,000) |
|
|
|
|
|
|
|
| Loss on ordinary activities before interest | (535,937) |
| (241,248) |
| (751,458) |
|
|
|
|
|
|
|
| Financial income | 43 |
| 665 |
| 784 |
| Financial costs | - |
| - |
| (401) |
|
|
|
|
|
|
|
| Finance costs - net | 43 |
| 665 |
| 383 |
|
|
|
|
|
|
|
| Loss before tax | (535,894) |
| (240,583) |
| (751,075) |
| Tax expense | - |
| - |
| - |
|
|
|
|
|
|
|
| Loss for the period from continuing activities | (535,894) |
| (240,583) |
| (751,075) |
|
|
|
|
|
|
|
| Discontinued activities |
|
|
|
|
|
| Profit/ (Loss) on discontinued activities | 122,216 |
| (189,861) |
| (258,092) |
| Tax expense - discontinued activities | - |
| (9,600) |
| 918 |
|
|
|
|
|
|
|
|
| 122,216 |
| (199,461) |
| (257,174) |
| Loss attributable to equity holders of the company | (413,678) |
| (440,044) |
| (1,008,249) |
|
|
|
|
|
|
|
| Loss per share from continuing activities in pence |
|
|
|
| |
| basic and diluted | (0.10)p |
| (0.07)p |
| (0.22)p |
| Loss per share from continuing activities in pence |
|
|
|
| |
| basic and diluted | 0.02p |
| (0.06)p |
| (0.07)p |
| Loss per share from continuing and discontinuing activities in pence | |||||
| basic and diluted | (0.08)p |
| (0.13)p |
| (0.29)p |
STATEMENT OF FINANCIAL POSITION
as at 30 June 2010
|
|
| 30 June |
| 30 June |
| 31 December |
|
|
| 2010 |
| 2009 |
| 2009 |
|
|
| £ |
| £ |
| £ |
|
|
|
|
|
|
|
|
| Non-current assets |
|
|
|
|
|
|
| Goodwill |
| 100,000 |
| 401,789 |
| 380,000 |
| Tangible fixed assets |
| 7,703 |
| 43,852 |
| 22,278 |
| Deferred tax asset |
| - |
| 23,052 |
| 33,570 |
|
|
|
|
|
|
|
|
| Total non-current assets |
| 107,703 |
| 468,693 |
| 435,848 |
|
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
| Inventories |
| 2,990 |
| 14,286 |
| 3,246 |
| Trade receivables |
| 326,069 |
| 687,179 |
| 464,667 |
| Cash at bank |
| 152,422 |
| 359,053 |
| 220,123 |
|
|
|
|
|
|
|
|
| Total current assets |
| 481,481 |
| 1,060,518 |
| 688,036 |
|
|
|
|
|
|
|
|
| Total assets |
| 589,184 |
| 1,529,211 |
| 1,123,884 |
|
|
|
|
|
|
|
|
| Equity |
|
|
|
|
|
|
| Issued share capital |
| 1,543,958 |
| 1,319,958 |
| 1,319,958 |
| Share Premium |
| 2,304,217 |
| 2,110,217 |
| 2,110,217 |
| Merger reserve |
| 155,467 |
| 155,467 |
| 155,467 |
| Retained Earnings |
| (3,992,292) |
| (3,092,909) |
| (3,578,614) |
|
|
|
|
|
|
|
|
| Total Equity |
| 11,350 |
| 492,733 |
| 7,028 |
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
| Trade and other payables |
| 577,834 |
| 1,036,478 |
| 1,116,856 |
|
|
|
|
|
|
|
|
| Total current liabilities |
| 577,834 |
| 1,036,478 |
| 1,116,856 |
|
|
|
|
|
|
|
|
| Total equity and liabilities |
| 589,184 |
| 1,529,211 |
| 1,123,884 |
|
|
|
|
|
|
|
|
STATEMENT OF CASH FLOWS
for the six months ended 30 June 2010
|
| Six months to |
| Six months to |
| Year to |
|
| 30 June |
| 30 June |
| 31 December |
|
| 2010 |
| 2009 |
| 2009 |
|
| £ |
| £ |
| £ |
| Cash flows from operating activities |
|
|
|
|
|
| Cash absorbed by continuing activities | (492,747) |
| (250,548) |
| (405,500) |
| Cash absorbed by discontinued activities | (127,789) |
| (112,876) |
| (97,086) |
| Total cash absorbed | (620,536) |
| (363,424) |
| (502,586) |
| Net interest received | 43 |
| 665 |
| 383 |
| Net cash absorbed by operating activities | (620,493) |
| (362,759) |
| (502,203) |
|
|
|
|
|
|
|
| Cash flows from investing activities |
|
|
|
|
|
| Payments to acquire tangible fixed assets | (10,061) |
| (9,228) |
| (8,714) |
|
|
|
|
|
|
|
| Net cash used in investing activities | (10,061) |
| (9,228) |
| (8,714) |
|
|
|
|
|
|
|
| Cash flows from financing activities |
|
|
|
|
|
| Proceeds from issue of shares | 400,000 |
| - |
| - |
| Proceeds net of costs from disposal of subsidiary | 167,568 |
| - |
| - |
| Cash balances transferred on disposal | (4,715) |
| - |
| - |
|
|
|
|
|
|
|
| Net cash from financing activities | 562,853 |
| - |
| - |
|
|
|
|
|
|
|
| Net decrease in cash and bank balances | (67,701) |
| (371,987) |
| (510,917) |
| Cash and bank and bank overdrafts at beginning of period | 220,123 |
| 731,040 |
| 731,040 |
| Cash at bank and bank overdrafts at end of period | 152,422 |
| 359,053 |
| 220,123 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the period ended 30 June 2010
|
| Share | Share | Merger | Retained | Total |
|
| Capital | Premium | reserve | Earnings | Equity |
|
| unaudited | unaudited | unaudited | unaudited | unaudited |
|
| £ | £ | £ | £ | £ |
| Balance at 1 January 2009 | 1,319,958 | 2,110,217 | 155,467 | (2,672,365) | 913,277 |
| Loss for six months to 30 June | - | - | - | (440,044) | (440,044) |
| Cost of share based awards | - | - | - | 19,500 | 19,500 |
|
|
|
|
|
|
|
|
| 1,319,958 | 2,110,217 | 155,467 | (3,092,909) | 492,733 |
| Loss for six months to 31 December | - | - | - | (568,205) | (568,205) |
| Cost of share based awards | - | - | - | 82,500 | 82,500 |
|
|
|
|
|
|
|
| Balance at 31 December 2009 | 1,319,958 | 2,110,217 | 155,467 | (3,578,614) | 7,028 |
|
|
|
|
|
|
|
| Loss for period to 30 June | - | - | - | (413,678) | (413,678) |
| Issue of shares in lieu of salary | 9,000 | 9,000 | - | - | 18,000 |
| Issue of shares in lieu of fees | 15,000 | 15,000 | - | - | 30,000 |
| Issue of shares for cash | 200,000 | 200,000 | - | - | 400,000 |
| Costs of issue | - | (30,000) | - | - | (30,000) |
|
|
|
|
|
|
|
| Balance at 30 June 2010 | 1,543,958 | 2,304,217 | 155,467 | (3,992,292) | 11,350 |
1 GENERAL INFORMATION
Motive Television Plc (the "Company") is a company domiciled in England whose registered office address is Windsor House, Barnett Way, Barnwood, Gloucester GL4 3RT. The condensed consolidated interim financial statements of the Company for the six months ended 30 June 2009 comprise the Company and its subsidiaries (together referred to as "the Group").
The condensed consolidated interim financial statements of the company for the six months ended 30 June 2010 comprise the company and its subsidiaries (together referred to as "the group"). These interim statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The interim financial information has been prepared using the same accounting policies, presentation, method of computation and estimation techniques as are expected to be adopted in the Company financial statements for the year ending 31 December 2010 and which were adopted in the audited group financial statements for the year ended 31 December 2009.
The financial information for the year ended 31 December 2009 has been extracted from the statutory accounts for that period. The auditors have reported on the statutory accounts for the year ended 31 December 2009 and their report was not qualified as the auditors. The auditors' report however drew attention by emphasis of matter to issues surrounding the ability of the company to continue as going concern. A copy of those financial statements has been filed with the Registrar of Companies.
The condensed consolidated interim financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs) as adopted in the EU. While the financial figures included in this half yearly report have been computed in accordance with IFRSs as adopted in the EU applicable to interim periods, this half yearly report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS 34.
The presentation of the comparatives for the six months ended 30 June 2009 and year ended 31December 2009 have been restated to reflect the impact of discontinued operations
2. GOING CONCERN
At 30 June 2010 the Group had very limited liquid resources available to it as a consequence of trading losses incurred during the year and would have been unable to continue trading had it not raised further cash resources of £400,000 from a Placing of its ordinary share capital on 11 February 2010. This provided sufficient funds to meet immediate ongoing operational liabilities and overheads. The Company has incurred significant costs on investigating and pursuing certain investment opportunities, such costs absorbing most of the new cash resources. Prior to incurring such costs the directors received verbal assurances from certain investors and shareholders that if such investment opportunities were not concluded and the cost of investigating and pursing such opportunities resulted in a shortfall in required funding they would ensure that funding would be made available to enable the company to continue to trade. These assurances have subsequently been reconfirmed verbally and on the basis of the assurances this announcement of interim results has been prepared on the basis that the Company is a going concern.
The ability of the only current operating subsidiary company (Motive Television Limited) to continue trading will depend on whether it is successful in obtaining commissions on numerous proposed programmes that are currently with commissioning editors of a number of broadcasting companies. If the subsidiary company is not successful in winning sufficient new commissions within the next 12 months then it is likely to require the injection of further funds to finance operating overheads. Such funds would only be injected by the parent company if it was clear that any such advance would not impair the ability of the Company to pursue its other business operations and if in the directors opinion the operations of that subsidiary remain viable.
If it were necessary to close the operations of the current operating subsidiary company provisions would be required for costs arising on discontinuance and closure and against the carrying value of goodwill.
3 ADMINISTATION EXPENSES - EXEPTIONAL
The exceptional administration costs relate to costs incurred in the period pursuing investment opportunities.
4 LOSS PER SHARE
The loss per share is based on a loss for the period of £413,678 (six months ended 30 June 2009: £440,044, year ended 31 December 2009: £1,008,249) and the weighted average of ordinary shares in issue for the period of 504,733,717 (six months ended 30 June 2009: 342,499,463, year ended 31 December 2009: 342,499,463).
5 NOTES TO THE STATEMENT OF CASH FLOWS
Net cash generated from operating activities - continuing activities
|
| Six months to |
| Six months |
| Year to |
|
| 30 June |
| to 30 June |
| 31 December |
|
| 2010 |
| 2009 |
| 2009 |
|
|
|
|
|
|
|
|
| £ |
| £ |
| £ |
| Operating loss | (535,937) |
| (241,248) |
| (751,458) |
| Depreciation | 2,456 |
| 2,556 |
| 12,349 |
| Goodwill impairment | - |
| - |
| 90,000 |
| Decrease in inventories | 256 |
| 1,929 |
| 12,969 |
| Increase in receivables | (118,081) |
| (157,561) |
| (42,486) |
| Increase in payables | 140,559 |
| 124,276 |
| 171,126 |
| Share based payments | 18,000 |
| 19,500 |
| 102,000 |
|
|
|
|
|
|
|
|
| (492,747) |
| (250,548) |
| (405,500) |
| Net cash generated from operating activities - discontinued activities |
|
| |||
|
| Six months to |
| Six months |
| Year to |
|
| 30 June |
| to 30 June |
| 31 December |
|
| 2010 |
| 2009 |
| 2009 |
|
|
|
|
|
|
|
|
| £ |
| £ |
| £ |
| Operating profit/(loss) | 122,216 |
| (189,861) |
| (258,092) |
| Depreciation | - |
| 4,156 |
| 15,423 |
| Profit on disposal of subsidiaries | (185,381) |
| - |
| - |
| Goodwill impairment | - |
| - |
| (68,211) |
| Decrease / (increase) in receivables | 52,496 |
| (149,974) |
| (42,537) |
| (Decrease) / increase in payables | (117,120) |
| 222,803 |
| 256,331 |
|
|
|
|
|
|
|
|
| (127,789) |
| (112,876) |
| (97,086) |
6. HALF-YEARLY RESULTS
Copies of the interim results for the six months ended 30 June 2010 will shortly available from the Company's website www.motivetelevision.co.uk.