24 Sep 2014 07:00
24 September 2014
Motive Television PLC
("Motive", the "Company" or the "Group")
Half-yearly results for the six months ended 30 June 2014
Motive Television PLC (AIM: MTV.LN), the digital television technology, software and services provider, is pleased to announce its interim results for the six months ended 30 June 2014.
Financial highlights
· Revenue from continuing operations up one per cent. to £577,740 (H1 2013: £573,082)
· Gross profit from continuing operations up 32 per cent. to £276,409 (H1 2012: £208,725)
· Loss attributable to continuing activities and developing new business before interest increased by 10 per cent to £1,086,616 (H1 2013: £984,478)
· Cash at hand and in bank at 30 June was £751,884
Operational highlights
· Progressed Tablet TV in United States and United Kingdom to beta testing with intention to commercially launch both by Christmas if these proceed in line with management's expectations.
· Successfully installed and tested Motive's Content Express™ at Siyaya in anticipation of an early 2015 launch of services in South Africa.
· Joined the HbbTV Consortium with the objective of making Content Express™ technology a component of the industry standard and to extend the efficient delivery of video-on-demand (VOD) content over the broadcast.
· Signed a contract with Twin Peak S.A. of Athens, Greece to develop and integrate Motive's patented and proprietary technology with Twin Peak's VoDo services for deployment in the global Maritime industry and for the nation of Greece.
· Signed a Renewal Agreement with Reti Televisive Italiane S.p.A. ("Mediaset") to continue to provide support and other technology services for the maintenance and delivery of the Head End Solution. Mediaset also agreed to evaluate launching Tablet TV in Italy with Motive.
· Continued to support the rollout of Content Express™ technology at Digiturk, the largest satellite pay television platform in Turkey. During the six months, approximately 34 thousand additional subscribers were added to the over 118 thousand since launch of the new platform in first quarter 2013.
Michael Pilsworth, Chairman, said: "The first half of 2014 saw the Company making substantial progress in customer projects and in developing its award-winning Tablet Television product. Motive Television was transformed from a development company to a product company by the end of the first half, and our focus is now on growing the market for our patented products Content Express™ and Tablet TV. With Tablet TV about to launch in both the UK and the USA, the Company is now very well-positioned to start to reap the benefits of its heavy investment programme over the past few years."
Enquiries:
Motive Television plc Michael Pilsworth, Chairman Leonard M Fertig, CEO
| T: +44 20 7025 8425
|
Sanlam Securities UK Limited Simon Clements / Virginia Bull
| T: +44 20 7628 2200 |
Hume Capital Jon Belliss
| T: +44 20 3216 2630 |
Newgate Communications Jason Nisse/Stephanie Dobbs
Media PR Europe Gerry Buckland
Brainerd Communicators Chris Plunkett / Mike Smargiassi | T: +44 20 7680 6559
T: +44 7774 860011
T: +1 212 986 6667
|
Notes to Editors
Motive Television provides software and services to the global television industry, enabling Television Anytime Anywhere™. Motive's patented and proprietary technology platform responds to the heightened viewer demand for watching what they want, when they want, on whatever device they want; and is driven by the mandatory switchover from analogue to digital broadcasting as mandated by the International Telecommunication Union.
Motive Television provides broadcasters and pay television operators with enabling technology that provides opportunities to deliver highly valued services to viewers that generate additional income and retain existing subscribers, comprising:
Content Express™: A technology platform that enables digital broadcasters and pay television operators to offer enhanced broadcasting services with or without the need for an Internet connection. These services include, among others, Video-on-Demand, Catch-Up TV, Virtual Channels, Sneak Preview TV, and Targeted Advertising. Also it includes an advanced multi-screen multi-channel technology that allows a viewer to control and watch all the content received by or recorded in their main home television equipment on any computer, mobile phone, iPad or any other Internet connected device. Content Express™ is software-based and can be updated via software upgrades on existing STB. Content Express™ is currently in commercial operation in Europe both in digital terrestrial (DTT) and in satellite (DTH) environments. Patented in Spain and patents pending in the EU and United States.
Tablet Television: A technology platform that provides the capability for viewers to watch and record broadcast television programmes on tablet devices from digital terrestrial channels without the need of the Internet. Tablet TV also will enable users to receive video-on-demand and other features such as social networking when connected to the Internet.
Motive's content division is:
Motive Television Limited, a Dublin-based award-winning independent production company that produces factual programmes for Irish broadcasters. It specializes in live sports production and sports documentaries and also produces factual and entertainment series.
Motive Television was founded in London in 2005 and its shares are quoted on the London Stock Exchange (AIM).
www.motivetelevision.co.uk
Chairman's and CEO's statement
We are pleased to announce Motive's interim results for the half-year ended 30 June 2014.
The first half of 2014 saw the Company making substantial progress in customer projects and in developing its award-winning Tablet Television product. Motive Television was transformed from a development company to a product company by the end of the first half year, and our focus is now on growing the market for our patented products Content Express™ and Tablet TV.
Some of the highlights:
Siyaya: At the close of 2013, Motive announced the completion of a five-year contract with Siyaya Free To Air TV (PTY) Ltd. of Johannesburg, South Africa (Siyaya) to develop and install, integrate, and operate Siyaya's Video-on-Demand ("VOD") platform in conjunction with the expected launch of Siyaya's television services on the Sentech Freevision DTH satellite service. The Company completed the successful installation and testing of its Content Express™ head-end solution during the first half of 2014.
In April 2014, Motive signed a Software Development License Agreement with Shenzhen Skyworth Digital Technology Co Ltd ("Skyworth"), a leading technology manufacturer that will be supplying set top boxes in support of the Siyaya DTH services. Skyworth Digital Technology is the largest manufacturer of set top boxes in China, with an annual sales volume over 10 million units and is ranked first in its domestic market in China and fifth in the global set-top box business.
In May 2014, Siyaya announced that it has received one of five provisional licenses to operate a pay television service in South Africa. The launch date of Siyaya services awaits the final licence, however, Siyaya and the South African Football Association announced a ZAR 1 billion (US$100 million) broadcast agreement in August to begin early 2015.
HbbTV: In February 2014, Motive joined the HbbTV Consortium with the objective of making its Content Express™ technology a component of the industry standard and to extend the efficient delivery of video-on-demand (VOD) content over the broadcast.
Digiturk: Motive has continued to support and maintain its Content Express™ technology at Digiturk, the largest satellite pay television platform in Turkey, as it rolls out the new features among its subscribers. During the first half of 2014 approximately 34,000 homes were added to the over 118,000 using Motive software since the new platform was introduced in the first quarter of 2013.
Tablet TV: In April 2014, Tablet TV (USA) was unveiled to the broadcasting industry at the 2014 National Association of Broadcasters (NAB) show and was very well received. Tablet TV was well received when it was demonstrated at its stand to a large number of broadcasters and industry journalists. Motive continued to develop Tablet TV through spring 2014 and installed its patented data-casting technology at KOFY, a Granite television station based in San Francisco in anticipation of the beta test beginning in the third quarter.
Development and testing of Tablet TV UK began in the first quarter of 2014 and has continued in parallel to its USA counterpart. In July Motive announced the signing of an agreement with icube Corporation of Seoul, South Korea to produce retail products that will enable full-featured and certified Freeview broadcast TV to be received on mobile devices in the United Kingdom.
Motive Television Ltd:
Motive's content division, based in Dublin, was in production on eight hours of prime time television in the first half: "#darndale - The Edge of Town" (3 x 52 mins for TV3); "A Sporting Chance", made in collaboration with Munster Rugby for Setanta Sports; and "Prison Families 2" for TV3, following on the critical and ratings success of the first series. In addition, "The Long Walk", (a look at Irish golfers on the edge of the PGA tour), and "The Notorious" (featuring an in-depth look at the progress of UFC cage fighter Conor McGregor as he battled his way to the top), were delivered to Setanta Sports and RTE respectively. After the period end, Motive was commissioned to supply a new six-part series with real celebrity swagger for RTÉ 2, a follow-up to "The Notorious", entitled "The Notorious: The Series".
Subsequent Events:
Since June 30th several events and accomplishments include:
Twin Peak: In August 2014, Motive signed a contract with Twin Peak S.A. of Athens, Greece, to develop and integrate Motive's patented and proprietary technology with Twin Peak's VoDo services for deployment in the global maritime industry and for the nation of Greece. The new combined platform will provide television channels and video-on-demand (VOD) movies and television content to the rapidly growing demand of tablets and other BYOD devices (bring-your-own-device) on commercial ships, private yachts, oil rigs, ferries, and cruise ships worldwide. It will have the advantage of serving, through a single Set-Top Box, the TV and multiple devices with a significantly lower cost than other solutions on the market.
Mediaset: In September 2014, the Company signed a Renewal Agreement with Reti Televisive Italiane S.p.A. ("Mediaset") to continue to provide support and other technology services for the maintenance and delivery of the Head End Solution. This platform has been in continuous successful service providing on demand movies and television programmes to hundreds of thousands of homes in Italy since November 2009. In addition, Motive has agreed to provide Mediaset a demonstration of the Company's Tablet TV technology for evaluation by Mediaset executive and commercial management regarding a launch in Italy.
Tablet TV: In the USA, Tablet TV beta testing is underway in San Francisco, the first market, with users trying out the functionality in different environments and various parts of the city (the "Beta Test"). Following a user interface upgrade planned at the end of September, the Beta Test will be expanded and will focus on the user experience. In August Motive received results from a study done for Tablet TV by research expert Frank N. Magid Associates that indicated that "33% of all tablet owners consider themselves very likely to use Tablet TV. Given that almost half of the current US population with Internet access owns a tablet, or about 110 million people, the scale of the opportunity is clear."
Tablet TV UK was demonstrated to the industry at the recent IBC trade show in Amsterdam, winning the CSI award for Best Mobile Technology or Service for 2014. Tablet TV UK has a planned commercial launch by Christmas, assuming testing and Freeview approval meet Company expectations. The UK product will offer full Freeview experience and functionalities, including red button interactive features. In addition it will include recording and social networking capabilities, as well as other features invented by Motive.
With Tablet TV about to launch in both the UK and the USA, the Company is now well-positioned to start to reap the benefits of its heavy investment programme over the past few years.
Michael Pilsworth Leonard M Fertig
Chairman Chief Executive Officer
23 September 2014
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||||
for the six months ended 30 June 2014 | |||||
Unaudited | Unaudited | Audited | |||
Six months to | Six months to | Year to | |||
30 June | 30 June | 31 December | |||
2014 | 2013 | 2013 | |||
£ | £ | £ | |||
Continuing activities | |||||
Revenue | 577,740 | 573,082 | 1,170,942 | ||
Cost of sales | (301,331) | (364,357) | (510,334) | ||
Gross Profit | 276,409 | 208,725 | 660,608 | ||
Administrative expenses | (1,363,025) | (1,193,203) | (2,522,386) | ||
Operating loss | (1,086,616) | (984,478) | (1,861,778) | ||
Financial income | 82,736 | 154,062 | 63,513 | ||
Financial income - exceptional | - | - | - | ||
Financial costs | (611,782) | (415,031) | (813,874) | ||
Financial costs - exceptional | - | - | (441,570) | ||
Net financial (costs)/income | (529,046) | (260,969) | (1,191,931) | ||
Loss before tax | (1,615,662) | (1,245,447) | (3,053,709) | ||
Tax credit | 66,263 | 45,989 | 45,989 | ||
Loss for the period | (1,549,399) | (1,199,458) | (3,007,720) | ||
Other comprehensive income | |||||
Exchange differences on translating foreign operations | 162,148 | (177,079) | (58,679) | ||
Total comprehensive income for the period attributable to equity holders of the company | (1,387,251) | (1,376,537) | (3,066,399) | ||
Loss per share from continuing activities in pence | |||||
basic and diluted | (0.005)p | (0.013)p | (0.018)p | ||
STATEMENT OF FINANCIAL POSITION | ||||||
as at 30 June 2014 | ||||||
Unaudited | Unaudited | Audited | ||||
30 June | 30 June | 31 December | ||||
2014 | 2013 | 2013 | ||||
£ | £ | £ | ||||
Non-current assets | ||||||
Intangible assets | 9,004,702 | 8,479,717 | 8,740,853 | |||
Tangible fixed assets | 22,455 | 35,485 | 29,036 | |||
Total non-current assets | 9,027,157 | 8,515,202 | 8,769,889 | |||
Current assets | ||||||
Trade and other receivables | 632,586 | 594,136 | 672,939 | |||
Cash and cash equivalents | 751,884 | 566,026 | 250,404 | |||
Total current assets | 1,384,470 | 1,160,162 | 923,343 | |||
Total assets | 10,411,627 | 9,675,364 | 9,693,232 | |||
Equity | ||||||
Issued share capital | 7,170,621 | 5,637,892 | 6,683,954 | |||
Share Premium | 9,037,134 | 7,515,097 | 8,640,176 | |||
CLN reserve | 2,093,392 | 2,093,392 | 2,093,392 | |||
Merger reserve | 155,467 | 155,467 | 155,467 | |||
Foreign exchange reserve | 282,204 | 1,656 | 120,056 | |||
Retained Earnings | (14,297,818) | (10,798,050) | (12,799,419) | |||
Total Equity | 4,441,000 | 4,605,454 | 4,893,626 | |||
Current liabilities | ||||||
Trade and other payables | 1,693,649 | 973,454 | 1,609,765 | |||
Borrowings | 1,588,153 | 556,185 | 430,165 | |||
Total current liabilities | 3,281,802 | 1,529,639 | 2,039,930 | |||
Non-current liabilities | ||||||
Borrowings | 2,673,825 | 3,450,271 | 2,671,091 | |||
Other payables | 15,000 | 90,000 | 88,585 | |||
Total non-current liabilities | 2,688,825 | 3,540,271 | 2,759,676 | |||
Total equity and liabilities | 10,411,627 | 9,675,364 | 9,693,232 | |||
STATEMENT OF CASHFLOWS | |||||
as at 30 June 2014 | |||||
Unaudited | Unaudited | Audited | |||
Six months to | Six months to | Year to | |||
30 June | 30 June | 31 December | |||
2014 | 2013 | 2013 | |||
£ | £ | £ | |||
Cash flows from operating activities | (929,282) | (1,368,025) | (2,141,445) | ||
Cash flows from investing activities | |||||
Interest received | 100 | 84 | 220 | ||
Payments to acquire tangible fixed assets | (1,225) | (4,678) | (8,994) | ||
Payments to acquire intangible fixed assets | (286,853) | (4,158) | (308,972) | ||
Net cash used in investing activities | (287,978) | (8,752) | (317,746) | ||
Cash flows from financing activities | |||||
Interest paid | (125,502) | (176,137) | (180,354) | ||
Proceeds from issue of shares | 775,000 | 1,897,488 | 2,897,489 | ||
Costs of issue of shares | (58,125) | (103,937) | (153,937) | ||
Proceeds from issue of CLN | 1,480,000 | - | - | ||
Costs of CLN issue | (305,000) | - | - | ||
Loan received | - | 500,000 | - | ||
Cost of raising loan finance | - | (33,015) | (34,233) | ||
Loan repayments | (57,786) | (302,975) | - | ||
Payment of earn out consideration | (31,291) | (17,318) | (17,319) | ||
Exercise of warrants | 58,750 | 50,000 | 50,000 | ||
Withholding tax paid on CLN interest | (14,379) | (23,159) | (46,766) | ||
Net cash from financing activities | 1,721,667 | 1,790,947 | 2,514,880 | ||
Taxation | |||||
Tax refund received | - | - | 45,989 | ||
Net cash from taxation | - | - | 45,989 | ||
Net increase in balances | 504,407 | 414,170 | 101,678 | ||
Cash and cash equivalents at beginning of period | 250,404 | 148,554 | 148,554 | ||
Exchange gains and losses on cash and cash equivalents | (2,927) | 3,302 | 172 | ||
Cash and cash equivalents at end of period | 751,884 | 566,026 | 250,404 | ||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||||
for the six months ended 30 June 2014 | |||||||
Foreign | |||||||
Share | Share | CLN | Merger | Exchange | Retained | Total | |
Capital | Premium | Reserve | Reserve | Reserve | Earnings | Equity | |
unaudited | unaudited | unaudited | unaudited | unaudited | unaudited | unaudited | |
£ | £ | £ | £ | £ | £ | £ | |
Balance at 1 January 2013 | 4,328,543 | 6,853,967 | 2,055,105 | 155,467 | 178,735 | (9,628,592) | 3,943,225 |
Loss for six months to 30 June 2013 | - | - | - | - | - | (1,199,458) | (1,199,458) |
Shares issued for cash | 1,222,291 | 620,197 | - | - | - | - | 1,842,488 |
Shares issued in settlement of liabilities | 29,562 | 116,122 | - | - | - | - | 145,684 |
Costs of raising finance | - | (103,937) | - | - | - | - | (103,937) |
Shares issued to pay CLN interest | 24,163 | 12,081 | - | - | - | - | 36,244 |
Equity reserve on CLN issue | - | - | 38,287 | - | - | - | 38,287 |
Shares issued on exercise of warrants | 33,333 | 16,667 | - | - | - | - | 50,000 |
Exchange differences on translating foreign operations | - | - | - | - | (177,079) | - | (177,079) |
Cost of share based awards | - | - | - | - | - | 30,000 | 30,000 |
Balance at 30 June 2013 | 5,637,892 | 7,515,097 | 2,093,392 | 155,467 | 1,656 | (10,798,050) | 4,605,454 |
Loss for the six months to 31 December 2013 | - | - | - | - | - | (1,808,262) | (1,808,262) |
Shares issued for cash | 487,919 | 512,082 | - | - | - | - | 1,000,001 |
Shares issued in settlement of liabilities | 94,224 | 66,672 | - | - | - | - | 160,896 |
Costs of raising finance | - | (50,000) | - | - | - | - | (50,000) |
Release of equity reserve on pre-maturity conversion of CLNs | - | - | - | - | - | (186,057) | (186,057) |
CLN issue costs | - | - | - | - | - | (31,050) | (31,050) |
Shares issued to acquire CLNs | 463,919 | 596,325 | - | - | - | - | 1,060,244 |
Exchange differences on translating foreign operations | - | - | - | - | 118,400 | - | 118,400 |
Cost of share based awards | - | - | - | - | - | 24,000 | 24,000 |
Balance at 31 December 2013 | 6,683,954 | 8,640,176 | 2,093,392 | 155,467 | 120,056 | (12,799,419) | 4,893.626 |
Loss for six months to 30 June 2014 | - | - | - | - | - | (1,549,399) | (1,549,399) |
Shares issued for cash | 387,500 | 387,500 | - | - | - | - | 775,000 |
Shares issued in settlement of liabilities | 60,000 | 48,000 | - | - | - | - | 108,000 |
Costs of raising finance | - | (58,125) | - | - | - | - | (58,125) |
Shares issued on exercise of warrants | 39,167 | 19,583 | - | - | - | - | 58,750 |
Exchange differences on translating foreign operations | - | - | - | - | 162,148 | - | 162,148 |
Cost of share based awards | - | - | - | - | - | 51,000 | 51,000 |
Balance at 30 June 2014 | 7,170,621 | 9,037,134 | 2,093,392 | 155,467 | 282,204 | (14,297,818) | 4,441,000 |
1. GENERAL INFORMATION
Motive is a company domiciled in England and Wales whose registered office address is 18 Soho Square, London W1D 3QL.
The condensed consolidated interim financial statements of the Company for the six months ended 30 June 2014 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 2014 and which were adopted in the audited Group financial statements for the year ended 31 December 2013.
The financial information for the year ended 31 December 2013 has been extracted from the statutory accounts for that period. The auditors have reported on the statutory accounts for the year ended 31 December 2013 and their report was not qualified. 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.
2. GOING CONCERN
This announcement of the Company's half-yearly results has been prepared on the basis that the Company is a going concern. The statutory accounts for the year-ended 31 December 2013 indicated that additional funding was required. There remains an ongoing requirement for the Company to win new contracts and/or raise additional funding. If this was not to happen the Company would have to take action to reduce its cost base and provisions would be required for costs arising on discontinuance and closure and against the carrying value of goodwill. The directors are confident that further injections of funds can be secured in the future and that further contracts will be won and have therefore prepared the half-yearly results on a going concern basis.
3. LOSS PER SHARE
The loss per share is based on a loss for the period of £1,387,251 (six months ended 30 June 2013: £1,376,537; year ended 31 December 2013: £3,066,399) and the weighted average of ordinary shares in issue for the period of 29,132,306,228 (six months ended 30 June 2013: 10,366,947,917; year ended 31 December 2013: 16,993,913,840).
4. NOTES TO THE STATEMENT OF CASH FLOWS
Net cash generated by / (absorbed by) activities | |||||
Unaudited | Unaudited | Audited | |||
Six months to | Six months to | Year to | |||
30 June | 30 June | 31 December | |||
2014 | 2013 | 2013 | |||
£ | £ | £ | |||
Operating loss | (1,086,616) | (984,478) | (1,861,778) | ||
Depreciation and amortisation | 29,109 | 21,160 | 66,261 | ||
Decrease / (increase) in receivables | 71,216 | (151,597) | (267,327) | ||
Increase / (decrease) in payables | 6,009 | (370,918) | (343,557) | ||
Share based payments | 51,000 | 30,000 | 54,000 | ||
Liabilities settled by issue of shares | - | 87,808 | 210,956 | ||
(929,282) | (1,368,025) | (2,141,445) | |||
5. AVAILABILITY OF THE INTERIM REPORT
Copies of the interim report will be available from the Company's registered office and also from the Company's website www.motivetelevision.co.uk. Copies of the interim report will not be sent to shareholders.