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 exploits
intellectual property rights around music and video, is pleased to announce its
half 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 video
catalogues today, including `The Adventures of Skippy', `Alien Autopsy' and an
extension of its existing rights to a previously acquired catalogue of over 400
hours 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 of
Skippy', as well as `Skippy the Movie' first produced in the 1990s, the
episodes follow on from the original `Skippy' series of the 1960s, and
developed a widespread following when first broadcast.
The second video content catalogue contains footage know as `Alien Autopsy' and
documentaries relating to the 1990s autopsy on the body of an extraterrestrial
purported to have been recovered from the crash of a UFO near Roswell, New
Mexico. The documentary about the autopsy, presented by Jonathan
Frakes, was widely considered to be one of the most controversial TV
documentary specials ever aired on US Prime Time television. The autopsy
footage was subsequently used in the movie `Alien Autopsy' starring Ant & Dec.
Finally, the Group is pleased to announce that it has secured exclusive digital
rights to a catalogue of video programs first licensed to the company in
September 2011. The content will be made available and exploited exclusively by
One Media digitally via YouTube. Containing over 400 hours of content, the 200+
music video-documentaries feature behind-the-scenes and `fan-based special
feature' 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 late
Tony Bennett.
Michael Infante, Chairman and CEO, commented:
"We are very pleased that our first announcement of results on AIM is so
positive. The Group continues to deliver shareholder value, both through
improved financial performance and the acquisition of content which we believe
adds real value to One Media. The new catalogues acquired today are exactly the
types of content we target, and the extension of our existing rights on the
third catalogue is also a real positive. We can look forward with confidence as
the digital media space continues to grow and the Group grows with it."
Enquiries:
Michael Infante One Media iP Group Plc 44 (0) 175 378 500
Chairman 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 4004
Lynne 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. It
has long been my intention to list the company on AIM, and I am pleased to be
listed on a market which matches the company's ambition. The last six months
have been a very busy time for the Group. We negotiated an advance against
royalties of $2.5m USD from our digital distributor, maintained our dividend
policy and have been nominated for national awards from both the Institute of
Directors and the Small Cap Markets Awards. Most pleasing of all, however, was
our successful move to the AIM market. The fundraising associated with our
listing, 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 increased
by 28% to £0.26m (before AIM costs) and the Group's cash balance remains
healthy at £1.9m. We will now look to focus our energies on acquiring more
content, whether branded (as with the Men & Motors deal in December 2012) or
not, and will continue to develop the skills of our in-house team of Creative
Technicians.
Financial Overview
In April 2013, gross proceeds of £750,000 were raised from the Placing of
9,375,000 0.5p ordinary shares at a price of 8p a share, with direct costs
associated with the Placing of £50,501. Subsequent to the Placing, the Group's
shares were admitted to trading on the AIM market with an additional one off
cost 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 from
continuing 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 and
received a USD$2,250,000 advance against royalties from its primary
distribution partner, The Orchard. As per an agreement signed on 1 November
2012, 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 are
0.031p. However, "like for like" earnings per share on the post tax profit from
continuing activities is 0.38p.
Dividend
A dividend of 0.037p per share was paid in November 2012 for the year ended 31
October 2012, and the Group is pleased to announce that it intends to pay an
interim dividend of 0.078p per ordinary share in respect of the 6 month period
ended 30 April 2013. The ex-dividend date of this payment is 26 June 2013, the
record 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, from
early 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 audio
catalogue. We recently acquired the Peppermint Music catalogue (featuring hits
from Alvin Stardust, Connie Francis and Kid Creole to name a few).
We are also delighted that today, outside the period covered by this report, we
have announced the acquisition of two new video catalogues, including `The
Adventures of Skippy' and `Alien Autopsy', and an extension of its existing
rights to a previously acquired catalogue of over 400 hours of music
documentaries 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 will
invest further into our chosen genres and continue to monetise content, which
can then be accessed by a broad viewing public. This expansion strategy is not
limited to the UK, with most of our content available world-wide as the digital
stores we deal with expand the territories in which they operate
Market Overview
The world of both audio and visual media is changing rapidly, as digital
delivery providers seek to stay ahead of the curve in their bid for market
share. BT, Virgin Media/Liberty Global and Sky continue to flex their muscles
financially for market position as they jockey to become the preferred option
for broadband delivery. Apple has finally announced its streaming site, iTunes
Radio, and YouTube is destined to become a new program provider as Internet
Protocol TV (`IPTV') becomes a standard in Smart TV applications. None of us
can predict who will win your subscription pound at this stage, but what we do
know is that a world of change is upon us all. Those of a certain age will
remember when the choice of programming was restricted to four terrestrial TV
channels and four analogue national radio stations, a video-cassette recorder
was your in-home entertainment centre and a cassette player in the car was
considered to be a mobile device. Now we live in a world of infinite content
possibilities.
Thousands of TV programmes of all genres are broadcast 24/7, catering to any
appetite or taste via every digital medium, through a choice of viewing devices
both mobile and static. As these various mediums emerge and become more
established customers are consuming their chosen doses of media entertainment
at a variety of price points, ranging from those who only stream for free to
those who spend hundreds of pounds a month. Viewers and investors alike can be
sure of one thing: content is a key driver in this expanding market. Yes, we
need pipes of delivery, and yes, technology will provide the platform for that
delivery; but without good content at its core, a platform is largely
meaningless, regardless of how sophisticated it may be. With this in mind, it's
no wonder we continue to invest so robustly in our program of nostalgic content
acquisition, with its established audience and proven track record.
Outlook
The Directors continue to believe that the Group is well positioned to meet all
the demands of the digital market as it continues to evolve and influence
consumer demand. We have the technical ability, internal systems, financial
controls and personnel to meet the exacting demands of both our digital
partners for distribution and those from whom we acquire our audio-visual
content. Consumer demand continues to rise in line with market expectation and
as a digital content-only `Netlabel' we are not exposed to the vagaries and
decline of the high street retailers, which are susceptible to the continued
decline and legacy of the physical medium of compact discs and DVDs. I look
forward to meeting the demands of the emerging digital markets with our newly
established AIM listed company and thank you for your continued support in
OMiP.
Michael Infante JP
Chairman and CEO
Unaudited Consolidated Statement of Comprehensive Income
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
£ £ £
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 continuing
activities 262,180 204,596 427,674
Other expenses - Aim float
and associated costs (196,559) - -
_________ _________ _________
Operating profit 65,621 204,596 427,674
Finance income 1,046 71 214
_________ _________ _________
Profit on ordinary
activities before taxation 66,667 204,667 477,888
Taxation (49,200) (43,000) (88,668)
_________ _________ _________
Profit for period
attributable to equity
shareholders 17,467 161,667 339,220
========= ========= =========
Basic earnings per share 0.031p 0.37p 0.73p
========= ======= =========
Unaudited Consolidated Statement of Financial Position
As 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 and
equipment 38,388 49,673 47,755
_________ _________ _________
1,699,804 1,113,706 1,489,895
_________ _________ _________
Current assets
Trade and other
receivables 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 2,264,312
liabilities
========= ========= =========
Unaudited Consolidated Statement of Changes in Equity
For 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 1,225,288
2011
Profit for the
six months to
30 April 2012 - - - - 161,667 161,667
Share option
charge - - - 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 the
six months to
31 October 2012 177,553 177,553
Issue of share
capital 55,000 75,000 130,000
Share option
charge - - - 4,032 4,032
Dividends - - - - (55,923) (55,923)
________ _________ _________ _________ _________ _________
At 31 October
2012 273,143 239,546 718,271 12,416 387,783 1,631,159
Issue of share
capital 46,875 703,125 750,000
Costs of share
issue (50,501) (50,501)
Profit for the
six months to
30 April 2013 - - - - 17,467 17,467
Share option
charge - - - 6,419 6,419
Dividends - - - - (20,213) (20,213)
________ _________ _________ _________ _________ _________
Balance at 30
April 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 of
0.5p each were issued at 8p a share. The difference between the gross proceeds
raised of £750,000 and the total nominal value of shares issued of £46,875 has
been transferred to the share premium account. Direct costs associated with
this 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 operating
activities
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 operating
activities 1,147,790 642,322 584,238
_________ _________ _________
Cash flows from investing
activities
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 investing
activities (276,063) (244,103) (684,379)
_________ _________ _________
Cash flow from financing
activities
Proceeds from the issue of new
shares 750,000 - 130,000
Share issue costs (50,501)
Dividend paid (20,213) (15,051) (70,974)
_________ _________ _________
Net cash outflow from financing
activities 679,286 (15,051) 59,026
_________ _________ _________
Net change in cash and cash
equivalents 368,655 409,770 (41,115)
Cash at the beginning of the
period 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 are
the acquisition and licensing of audio-visual intellectual copyrights and
publishing for distribution through the digital medium and to a lesser extent
through traditional media outlets.
One Media iP Group Plc is the Group's ultimate parent company incorporated
under the Companies Act in England and Wales. The address of One Media iP Group
Plc registered office is 623 East Props Building, Goldfinger Avenue, Pinewood
Road , Iver Heath, Buckinghamshire, SL0 0NH.
The financial information set out in this Interim Report does not constitute
statutory accounts. The Group's statutory financial statements for the year
ended 31 October 2012 are available from the Group's website. The auditor's
report on those financial statements was unqualified.
2. Accounting Policies
Basis of Preparation
These interim consolidated financial statements are for the six months ended 30
April 2013. They have been prepared following the recognition and measurement
principles of IFRS. They do not include all the information required for full
annual statements, and should be read in conjunction with the consolidated
financial statements of the Group for the year ended 31 October 2012.
This unaudited interim statement has not been subject to a review by the
Group's auditors James Cowper LLP.
Comparatives
The comparative periods represent the unaudited results for the six months
period ended 30 April 2012 and the audited twelve months figures for the year
ended 31 October 2012.
3. Earnings per share
The calculation of the earnings per share is based on the profit for the
financial period divided by the weighted average number of shares in issue
during the period.
Unaudited Unaudited Audited
Basic earnings per share 6 months ended 6 months ended 12 months ended
30 April 30 April 31 October
2013 2012 2012
Profit for period
attributable to equity
shareholders 17,467 161,667 339,220
Weighted average number
of shares in issue at
period 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 share
as 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 of
0.5p 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 and
54,628,698 at 31 October 2012
ordinary 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 per
share). Our intention is to reward those investors that have been loyal and to
further demonstrate that One Media is an investment opportunity providing a
return 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 170,000
music tracks and over 5,000 hours of video by recompiling the content for sale
through over 600 digital music and video stores worldwide. The Company has a
team of Creative Technicians who digitise the content, create the metadata and
re-compile and prepare the digital music & video releases using bespoke
in-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 database
system that enables music supervisors to explore the library and select tracks
for 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 and
over 1,000 hours of classical music.
One Media is eligible for Enterprise Investment Schemes ("EIS") and Venture
Capital Trusts ("VCT")
END
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