One Media Regulatory News (OMIP)

One Media iP Group Plc ("One Media" or the "Group") Unaudited half yearly report for the six-month period ended 30 April 2013 Acquisition of video content and extension of existing rights One Media iP (AIM: OMIP) the digital media content provider which exploitsintellectual property rights around music and video, is pleased to announce itshalf year results to the period ended 30 April 2013 and an interim dividend. Maiden Interim Results as an AIM Listed Company Highlights - On 18 April 2013 the Group's shares were admitted for trading on AIM; - £750,000 was raised pursuant to the Placing of 9,375,000 ordinary shares at 8p a share; - Turnover increased by 32.2% to £1,325,119 (2012: £1,002,302); - Profit before tax from continuing operations, excluding AIM floatation and associated costs, increased by 28.1% to £262,180 (2012: £204,596); - USD$2,250,000 advance against royalties was received from The Orchard, in line with the distribution agreement signed on 1 November 2012, with a further USD$250,000 to be received on or by 30 June 2013; - Cash balances of £1,919,668 at 30 April 2013 (2012: £792,938), and - Interim dividend of 0.078p per share for the six month period ended 30 April 2013 The Group is also pleased to announce the acquisition of two new videocatalogues today, including `The Adventures of Skippy', `Alien Autopsy' and anextension of its existing rights to a previously acquired catalogue of over 400hours of music documentaries at a cost of USD $100,000 plus an ongoing royalty. Content and Rights Acquisition The first new catalogue of video contains 38 episodes of `The Adventures ofSkippy', as well as `Skippy the Movie' first produced in the 1990s, theepisodes follow on from the original `Skippy' series of the 1960s, anddeveloped a widespread following when first broadcast. The second video content catalogue contains footage know as `Alien Autopsy' anddocumentaries relating to the 1990s autopsy on the body of an extraterrestrialpurported to have been recovered from the crash of a UFO near Roswell, NewMexico. The documentary about the autopsy, presented by JonathanFrakes, was widely considered to be one of the most controversial TVdocumentary specials ever aired on US Prime Time television. The autopsyfootage was subsequently used in the movie `Alien Autopsy' starring Ant & Dec. Finally, the Group is pleased to announce that it has secured exclusive digitalrights to a catalogue of video programs first licensed to the company inSeptember 2011. The content will be made available and exploited exclusively byOne Media digitally via YouTube. Containing over 400 hours of content, the 200+music video-documentaries feature behind-the-scenes and `fan-based specialfeature' looks at artists such as; David Bowie, the Rolling Stones, Marc Bolan,Limp Bizkit, Lennon & Harrison (the Guitars that Gently Weep), Thin Lizzy,Elvis, Bob Marley, The Royal Philharmonic Orchestra, Andy Williams and the lateTony Bennett. Michael Infante, Chairman and CEO, commented: "We are very pleased that our first announcement of results on AIM is sopositive. The Group continues to deliver shareholder value, both throughimproved financial performance and the acquisition of content which we believeadds real value to One Media. The new catalogues acquired today are exactly thetypes of content we target, and the extension of our existing rights on thethird catalogue is also a real positive. We can look forward with confidence asthe digital media space continues to grow and the Group grows with it." Enquiries: Michael Infante One Media iP Group Plc 44 (0) 175 378 500Chairman and CEO Liam Murray / Jo Turner Cairn Financial Advisers 44 (0) 207 148 7900 LLP Nominated Adviser Claire Noyce / William Hybridan LLP 44 (0) 207 947 4004Lynne Broker John West / Niall Walsh Tavistock Communications 44 (0) 207 920 3150 Public Relations Chairman's Statement Introduction Welcome to my inaugural statement as Chairman of your AIM listed company. Ithas long been my intention to list the company on AIM, and I am pleased to belisted on a market which matches the company's ambition. The last six monthshave been a very busy time for the Group. We negotiated an advance againstroyalties of $2.5m USD from our digital distributor, maintained our dividendpolicy and have been nominated for national awards from both the Institute ofDirectors and the Small Cap Markets Awards. Most pleasing of all, however, wasour successful move to the AIM market. The fundraising associated with ourlisting, I am happy to report, was fully subscribed. We raised the targeted £750,000, and brought several institutional investors on-board. The Group's turnover has increased by 32% to over £1.3m, our profits increasedby 28% to £0.26m (before AIM costs) and the Group's cash balance remainshealthy at £1.9m. We will now look to focus our energies on acquiring morecontent, whether branded (as with the Men & Motors deal in December 2012) ornot, and will continue to develop the skills of our in-house team of CreativeTechnicians. Financial Overview In April 2013, gross proceeds of £750,000 were raised from the Placing of9,375,000 0.5p ordinary shares at a price of 8p a share, with direct costsassociated with the Placing of £50,501. Subsequent to the Placing, the Group'sshares were admitted to trading on the AIM market with an additional one offcost of £196,559 directly related to the Admission. The Group reported a consolidated turnover of £1,325,119, an increase of 32.2%on the equivalent period last year, resulting in a profit before tax fromcontinuing activities (excluding AIM float and associated costs) of £262,180,an increase of 28.1% on the £204,596 achieved for the same six months in 2012. During the period the Group invested a further £273,209 in copyrights andreceived a USD$2,250,000 advance against royalties from its primarydistribution partner, The Orchard. As per an agreement signed on 1 November2012, a further USD$250,000 is due on or by 30 June 2013. Cash balances of £1,919,668 are reported as of 30 April 2013 (2012: £792,938). Profit after tax for the period, after the AIM float and associated costs, was£17,467. On the reported Net Profit after tax, basic earnings per share are0.031p. However, "like for like" earnings per share on the post tax profit fromcontinuing activities is 0.38p. Dividend A dividend of 0.037p per share was paid in November 2012 for the year ended 31October 2012, and the Group is pleased to announce that it intends to pay aninterim dividend of 0.078p per ordinary share in respect of the 6 month periodended 30 April 2013. The ex-dividend date of this payment is 26 June 2013, therecord date is 28 June 2013 and the expected payment date is 9 July 2013. Operational Overview During the period, we have acquired significantly more visual content, fromearly Sooty episodes to the entire brand of the Men & Motors shows from Granada/ITV. Despite a focus on video content, the Group has not neglected its audiocatalogue. We recently acquired the Peppermint Music catalogue (featuring hitsfrom Alvin Stardust, Connie Francis and Kid Creole to name a few). We are also delighted that today, outside the period covered by this report, wehave announced the acquisition of two new video catalogues, including `TheAdventures of Skippy' and `Alien Autopsy', and an extension of its existingrights to a previously acquired catalogue of over 400 hours of musicdocumentaries at a cost of USD $100,000 plus an ongoing royalty. We currently provide over 170,000 music tracks and over 5,000 visual programs,and we view this as just the beginning. Now, as an AIM Listed company, we willinvest further into our chosen genres and continue to monetise content, whichcan then be accessed by a broad viewing public. This expansion strategy is notlimited to the UK, with most of our content available world-wide as the digitalstores we deal with expand the territories in which they operate Market Overview The world of both audio and visual media is changing rapidly, as digitaldelivery providers seek to stay ahead of the curve in their bid for marketshare. BT, Virgin Media/Liberty Global and Sky continue to flex their musclesfinancially for market position as they jockey to become the preferred optionfor broadband delivery. Apple has finally announced its streaming site, iTunesRadio, and YouTube is destined to become a new program provider as InternetProtocol TV (`IPTV') becomes a standard in Smart TV applications. None of uscan predict who will win your subscription pound at this stage, but what we doknow is that a world of change is upon us all. Those of a certain age willremember when the choice of programming was restricted to four terrestrial TVchannels and four analogue national radio stations, a video-cassette recorderwas your in-home entertainment centre and a cassette player in the car wasconsidered to be a mobile device. Now we live in a world of infinite contentpossibilities. Thousands of TV programmes of all genres are broadcast 24/7, catering to anyappetite or taste via every digital medium, through a choice of viewing devicesboth mobile and static. As these various mediums emerge and become moreestablished customers are consuming their chosen doses of media entertainmentat a variety of price points, ranging from those who only stream for free tothose who spend hundreds of pounds a month. Viewers and investors alike can besure of one thing: content is a key driver in this expanding market. Yes, weneed pipes of delivery, and yes, technology will provide the platform for thatdelivery; but without good content at its core, a platform is largelymeaningless, regardless of how sophisticated it may be. With this in mind, it'sno wonder we continue to invest so robustly in our program of nostalgic contentacquisition, with its established audience and proven track record. Outlook The Directors continue to believe that the Group is well positioned to meet allthe demands of the digital market as it continues to evolve and influenceconsumer demand. We have the technical ability, internal systems, financialcontrols and personnel to meet the exacting demands of both our digitalpartners for distribution and those from whom we acquire our audio-visualcontent. Consumer demand continues to rise in line with market expectation andas a digital content-only `Netlabel' we are not exposed to the vagaries anddecline of the high street retailers, which are susceptible to the continueddecline and legacy of the physical medium of compact discs and DVDs. I lookforward to meeting the demands of the emerging digital markets with our newlyestablished AIM listed company and thank you for your continued support inOMiP. Michael Infante JPChairman and CEO Unaudited Consolidated Statement of Comprehensive IncomeFor the six months ended 30 April 2013 Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 30 April 30 April 31 October 2013 2012 2012 £ £ £ Revenue 1,325,119 1,002,302 2,089,841 Cost of sales (628,384) (481,863) (983,374) _________ _________ _________ 696,735 520,439 1,106,467 Administrative expenses (434,555) (315,843) (678,793) _________ _________ _________ Profit from continuingactivities 262,180 204,596 427,674 Other expenses - Aim floatand associated costs (196,559) - - _________ _________ _________ Operating profit 65,621 204,596 427,674 Finance income 1,046 71 214 _________ _________ _________ Profit on ordinaryactivities before taxation 66,667 204,667 477,888 Taxation (49,200) (43,000) (88,668) _________ _________ _________ Profit for periodattributable to equityshareholders 17,467 161,667 339,220 ========= ========= ========= Basic earnings per share 0.031p 0.37p 0.73p ========= ======= ========= Unaudited Consolidated Statement of Financial PositionAs at 30 April 2013 Unaudited Unaudited Audited 30 April 30 April 31 October 2013 2012 2012 £ £ £ Assets Non-current assets Intangible assets 1,661,416 1,064,033 1,442,140 Property, plant andequipment 38,388 49,673 47,755 _________ _________ _________ 1,699,804 1,113,706 1,489,895 _________ _________ _________ Current assets Trade and otherreceivables 435,198 443,905 405,762 Cash and cash equivalents 1,919,668 792,938 368,655 _________ _________ _________ Total current assets 2,354,866 1,236,843 774,417 _________ _________ _________ Total assets 4,054,670 2,350,549 2,264,312 ========= ========= ========= Liabilities Current liabilities Trade and other payables 1,720,339 975,052 633,153 _________ _________ _________ _________ _________ _________ Total liabilities 1,720,339 975,052 633,153 _________ _________ _________ Equity Called up share capital 320,018 218,143 273,143 Share redemption reserve 239,546 239,546 239,546 Share premium account 1,370,895 643,271 718,271 Share based payment reserve 18,835 8,384 12,416 Retained earnings 385,037 266,153 387,783 _________ _________ _________ Total equity 2,334,331 1,375,497 1,631,159 _________ _________ _________ _________ _________ _________ Total equity and 4,054,670 2,350,549 2,264,312liabilities ========= ========= ========= Unaudited Consolidated Statement of Changes in EquityFor the six months ended 30 April 2013 Share Share based Share redemption Share payment Retained Total capital reserve premium reserve earnings equity £ £ £ £ £ £ At 1 November 218,143 239,546 643,271 4,791 119,537 1,225,2882011 Profit for thesix months to30 April 2012 - - - - 161,667 161,667 Share optioncharge - - - 3,593 - 3,593 Dividends - - - - (15,051) (15,051) ________ _________ _________ _________ _________ _________ At 30 April 2012 218,143 239,546 643,271 8,384 266,153 1,375,497 Profit for thesix months to31 October 2012 177,553 177,553 Issue of sharecapital 55,000 75,000 130,000 Share optioncharge - - - 4,032 4,032 Dividends - - - - (55,923) (55,923) ________ _________ _________ _________ _________ _________ At 31 October2012 273,143 239,546 718,271 12,416 387,783 1,631,159 Issue of sharecapital 46,875 703,125 750,000 Costs of shareissue (50,501) (50,501) Profit for thesix months to30 April 2013 - - - - 17,467 17,467 Share optioncharge - - - 6,419 6,419 Dividends - - - - (20,213) (20,213) ________ _________ _________ _________ _________ _________ Balance at 30April 2013 320,018 239,546 1,370,895 18,835 385,037 2,334,331 ======== ========= ========= ========= ========= ========= Pursuant to the Placing of shares on 10 April 2013 9,375,000 ordinary shares of0.5p each were issued at 8p a share. The difference between the gross proceedsraised of £750,000 and the total nominal value of shares issued of £46,875 hasbeen transferred to the share premium account. Direct costs associated withthis transaction were £50,501. Unaudited Consolidated Cash Flow Statement For the six months ended 30 April 2013 Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 30 April 30 April 31 October 2013 2012 2012 £ £ £ Cash flows from operatingactivities Profit before taxation 66,667 204,667 427,888 Amortisation 53,933 44,598 98,296 Depreciation 13,267 14,574 25,106 Share based payments 6,419 3,593 7,625 Finance income (1,046) (71) (214) (Increase)/decrease in (29,436) (140,372) (102,229)receivables Increase in payables 1,037,986 515,333 210,176 Corporation tax paid - - (82,410) _________ _________ _________ Net cash inflow from operatingactivities 1,147,790 642,322 584,238 _________ _________ _________ Cash flows from investingactivities Investment in copyrights (273,209) (211,626) (643,431) Investment in fixed assets (3,900) (32,548) (41,162) Finance cost - Finance income 1,046 71 214 Corporation tax paid - - _________ _________ _________ Net cash used in investingactivities (276,063) (244,103) (684,379) _________ _________ _________ Cash flow from financingactivities Proceeds from the issue of newshares 750,000 - 130,000 Share issue costs (50,501) Dividend paid (20,213) (15,051) (70,974) _________ _________ _________ Net cash outflow from financingactivities 679,286 (15,051) 59,026 _________ _________ _________ Net change in cash and cashequivalents 368,655 409,770 (41,115) Cash at the beginning of theperiod 1,551,013 383,168 409,770 _________ _________ _________ Cash at end of the period 1,919,668 792,938 368,655 ========= ========= ========= Notes to the Interim Report For the six months ended 30 April 2013 1. Nature of operations and general information One Media iP Group Plc and subsidiaries' ("the Group") principal activities arethe acquisition and licensing of audio-visual intellectual copyrights andpublishing for distribution through the digital medium and to a lesser extentthrough traditional media outlets. One Media iP Group Plc is the Group's ultimate parent company incorporatedunder the Companies Act in England and Wales. The address of One Media iP GroupPlc registered office is 623 East Props Building, Goldfinger Avenue, PinewoodRoad , Iver Heath, Buckinghamshire, SL0 0NH. The financial information set out in this Interim Report does not constitutestatutory accounts. The Group's statutory financial statements for the yearended 31 October 2012 are available from the Group's website. The auditor'sreport on those financial statements was unqualified. 2. Accounting Policies Basis of Preparation These interim consolidated financial statements are for the six months ended 30April 2013. They have been prepared following the recognition and measurementprinciples of IFRS. They do not include all the information required for fullannual statements, and should be read in conjunction with the consolidatedfinancial statements of the Group for the year ended 31 October 2012. This unaudited interim statement has not been subject to a review by theGroup's auditors James Cowper LLP. Comparatives The comparative periods represent the unaudited results for the six monthsperiod ended 30 April 2012 and the audited twelve months figures for the yearended 31 October 2012. 3. Earnings per share The calculation of the earnings per share is based on the profit for thefinancial period divided by the weighted average number of shares in issueduring the period. Unaudited Unaudited AuditedBasic earnings per share 6 months ended 6 months ended 12 months ended 30 April 30 April 31 October 2013 2012 2012 Profit for periodattributable to equityshareholders 17,467 161,667 339,220 Weighted average numberof shares in issue atperiod end 55,716,405 43,628,698 46,769,794 _________ _________ _________ Basic earnings per share 0.031p 0.37p 0.73p ========= ========= ========= The diluted earnings per share would be lower than the basic profit per shareas the exercise of warrants and options would be dilutive. 4. Share capital Unaudited Unaudited Audited 30 April 30 April 31 October 2013 2012 2011 Group and company £ £ £ Authorised: 200,000,000 ordinary shares of0.5p each 1,000,000 1,000,000 1,000,000 ========== ========== ========== Issued: Ordinary shares of 0.5p each 64,003,698 at 30 April 2013 ,43,628,698 at 30 April 2012 and54,628,698 at 31 October 2012ordinary shares of 0.5p each 320,018 218,143 273,143 ========== ========== ========== 5. Dividend The Directors are delighted to announce a second divided for the year of £50,000 (0.078p per share) following the earlier dividend of £20,213 (0.037p pershare). Our intention is to reward those investors that have been loyal and tofurther demonstrate that One Media is an investment opportunity providing areturn that we believe we will enhance shareholder value. 6. Interim statement Copies of this statement are available from Group's registered Office at: 623 East Props Building, Goldfinger Avenue, Pinewood Road, Iver Heath,Buckinghamshire, SL0 0NH. Notes to Editors: One Media is a digital music and video rights owner. The consumer led but B2B(Business-to-business) operation looks to exploit its catalogue of over 170,000music tracks and over 5,000 hours of video by recompiling the content for salethrough over 600 digital music and video stores worldwide. The Company has ateam of Creative Technicians who digitise the content, create the metadata andre-compile and prepare the digital music & video releases using bespokein-house software. Additionally, One Media makes its library of content available for TV shows,movies, adverts, games and websites. One Media operates an online sync databasesystem that enables music supervisors to explore the library and select tracksfor music briefs. One Media focuses on music performed by well known artists from every genre,including; pop, rock, reggae, R&B, children's music, karaoke, jazz, soul,blues, rap, hip-hop, gospel, world-music, plus stand-up comedy, spoken-word andover 1,000 hours of classical music. One Media is eligible for Enterprise Investment Schemes ("EIS") and VentureCapital Trusts ("VCT")