12 August 2014
mirada plc
(AIM: MIRA)
("mirada", "the Company" or "the Group")
Final results for the year ended 31 March 2014
mirada plc, the AIM quoted leading audiovisual content interaction
specialist, announces its final results for the year ended 31 March 2014.
Financial Highlights
- Revenue: £4.57 million (2013: £4.84 million)
- Revenues earned from subscriber-based licence fees increased to £1.74 million
(2013: £1.49 million)
- Gross profit £4.39 million (2013: £4.63 million)
- Gross profit margin remained stable at 96%
- Adjusted EBITDA*: £1.02 million (2013: £0.98 million)
- Profit for the year: £0.04 million (2013: loss of £0.24 million)
*Adjusted EBITDA is defined as earnings before interest, tax, depreciation,
amortisation and share based payment charges
Operational Highlights
- Deployment of user interface for GVT satellite service.
- Contract with Millicom - the Group's first project with Motorola
set top boxes in Latin America
- Oversubscribed placing to raise £2.1 million in October and
November 2013 at a price of 8.75p
- Conversion of loans into equity - strengthening the Group's
balance sheet
- Appointments of Javier Casanueva as Non-Executive Chairman and
Raúl Labrada Neira as Chief Financial Officer
Post period highlights
- Inaugural Tier One contract win in Latin America following a USD $1.4 million trial
- Strengthened institutional investor base
- Placing to raise £3.5 million at a price of 12.5p - providing
funds to strengthen the Group's position within the Over The Top ("OTT")
market and Latin America
Commenting on the future outlook of the Group, José Luis Vázquez, CEO of mirada, said:
"We have now entered a new stage in which major players are showing
an increased interest in our capabilities. The Company is an advanced
negotiations with other potential customers, and we expect to announce new
deals after the summer break. References are key in this market and we are now
winning really important ones."
Enquiries:
mirada plc +44 (0) 207 549 5678
José Luis Vázquez, Chief Executive Officer
Walbrook PR +44 (0) 207 562 3350
Nick Rome/Sam Allen
mirada@walbrookpr.com
Arden Partners plc (Nomad and Joint Broker) +44 (0) 207 614 5900
Steve Douglas (Corporate Finance)
James Felix (Corporate Finance)
Kam Bansil (Corporate Broking)
Overview
I am pleased to report the Group's financial results for the year
ended 31 March 2014. This has been a watershed year for the Company during
which we secured our first Tier One customer for our lead product, iris,
further justifying management's decision to shift to a product-based model.
Despite dedicating significant resources to the trial that led to this
flagship contract win, we generated an operating profit for the year, recorded
an increase in our adjusted EBITDA (defined as earnings before interest, tax,
depreciation, amortisation and share based payment charges) to £1.02million
(2013: £0.98 million) and posted full year net profits after tax of £0.04
million (2013: loss of £0.24 million).
During the year the focus has been on our ability to secure and
service larger contracts in the developing market place, where Over The Top
("OTT") opportunities are expected to drive growth. The benefits of this
strategy are highlighted by the post-year announcement of the Tier One
contract win, following the success of the trial during the second half of the
reported financial year.
Reflecting our strategic investment in this contract, Group
revenues were slightly lower than last year (£4.57 million, a decrease of
around 5%). Our Digital TV & Broadcast unit revenues were broadly in line with
last year, equalling £4.15 million, with subscriber-based licence fees, mainly
for our iris product, growing more than 16%, from £1.49 million to £1.74
million. Digital TV & Broadcast revenues from professional services were 17%
lower, owing to the diversion of resource into the Tier One trial. For
commercial reasons this work was carried out at a significantly lower
charge-out rate. Further, the resources diverted into the Tier One trial could
not capitalise on other business which would have been charged at standard
rates, adversely impacting this year's Digital TV & Broadcast revenues.
During the year we were pleased to welcome a number of new
institutional shareholders to the Group, which we consider a significant
demonstration of support for our strategy. In addition, as evidenced by the
recently announced fundraising, the Company is now well placed to take
advantage of the growing OTT market, enabling us to fund new contracts and
improve our product range within demanding time-scales. The team has adapted
well to the changing environment, and has shown its ability to meet new
challenges. We are grateful for the continued support that we have received
from our stakeholders.
Trading review
Tier One customer
Following sustained growth in our subscriber-based licence fees in
recent years, the main goal of management this year was to secure our first
Tier One customer. After winning new contracts in Latin America over the last
two years and establishing a strong track record on deliveries, we were given
the opportunity to participate in a much larger tender against
industry-leading competitors, most much larger than us. The outcome of this
process was the offer of a trial period in which to showcase our iris product.
In management's opinion, the key to securing the trial derived from the
following factors:
- Our ability to deliver a finished product faster than our competitors;
- The superior architecture of our iris product;
- The number of references that mirada had won in the market during
the previous few years; and
- The high degree of flexibility of iris, which allowed for a more
customised proposal.
We have now entered a new stage in which other major players in the
digital television market are showing increased interest in our capabilities.
The Company is in advanced negotiations with other potential customers, and we
expect to announce new deals after the summer break. References are key in
this market, and we are now winning really important ones.
Performance of Installed Base
This year has been the second complete year of operations under our
product-based model and we now have four customers' platforms generating
subscriber-based licence fees: GVT in Brazil, on both IPTV (through Ericsson)
and DTH (satellite) platforms, and Cablecom and Axtel in Mexico. By the end of
our financial year we should have at least one more, owing to the recent Tier
One contract win.
GVT in Brazil, owned by the Vivendi Group, is growing well with
more than 750,000 subscribers as of 31 March 2014, yielding around 300,000 new
subscribers during the fiscal year. Most of their growth is driven by their
new satellite platform, which was launched in August 2013. Axtel is a smaller
customer, although their subscriber base is growing satisfactorily. Cablecom
is still waiting for the approval of the Mexican regulators to consolidate
their integration into the Televisa group, expected during the current
financial year.
Digital TV and Broadcast unit financial performance
It should be noted that for the year under review, we have stopped
segregating revenues between Digital TV and Broadcast. This is because we have
been increasingly integrating xplayer functionalities into our larger Digital
TV product (iris and navi) deals. The Group has continued to focus on Digital
TV & Broadcast business, which, with revenues of £4.15 million this year,
represented 91% of the Group total (90% last year) and 94% of gross margins
(94% last year). Subscriber-based licence fees continued to grow from £1.49
million to £1.74 million (up 16%), while the rest of revenues decreased by
around 17% from £2.76 million to £2.40 million owing to the reasons already
set out above. Segmental EBITDA remained strong at £1.87 million (2013: £1.97
million).
Increasing our presence in growing markets represents our main
focus and, even with the lower trial-related prices for professional services
in the region this year, Latin America represented 69% of total Group revenues
(65% last year). We continue to focus on international activities, with
revenues from the UK and Spanish markets remaining broadly stable at 27% of
total turnover (25% last year).
Appointments
During the year we were pleased to welcome Mr. Javier Casanueva to
the role of Non-Executive Chairman. Mr.Raúl Labrada also joined us as our new
CFO.
Financial overview
Owing to the impact of the trial on professional service fee
revenue, total turnover decreased by 5% to £4.57 million (2013: £4.84
million). Gross profit margin was stable at 96% and adjusted EBITDA for the
year was up 4.5% to £1.02 million, compared to £0.98 million in the prior
year. Amortisation charges increased to £0.92 million from £0.68 million
resulting from increased investment in our iris product. Owing to the improved
performance and future projections of the Group deferred tax assets of £0.47
million were recognised during the year.
Adjusted EBITDA is a key performance indicator ("KPI") used by
management as it removes the impact of one-off and non-cash transactions.
Other KPIs used by management included the following:
- Gross profit margin: the concentration of the Group on the
Digital TV & Broadcast business has led to a sustained gross profit margin of
96%, in line with last year.
- Overseas activities (i.e. excluding UK and Spain): total revenues
remained stable in Latin America at £3.14 million compared to £3.16 million
last year, owing to the effect of the Tier One trial. Latin America now
represents 69% of our turnover, up from 65% last year. Overseas activities
remained at 73% of total Group turnover, a small reduction from 75% last year.
- Subscriber-based licence fee revenue included within the Digital
TV & Broadcast segment: revenues from licence fees command higher margins and
are key to our return on investment and overall profitability. Total licence
fees for the year equalled £1.74 million, a 16.7% increase on the £1.49
million earned in the prior period.
The Group posted a profit after tax for the year of £0.04 million
compared to a loss of £0.24 million loss in the prior period although
management is acutely aware that investment is still ongoing in ensuring that
the Tier One contract can be executed. This contract should, however, deliver
higher margins like the ones already being received from other
subscriber-based licence fees.
The entire convertible loan balance of £975,000 outstanding at 31
March 2013 was converted into equity during the year with all conversions
taking place at a price of 10 pence. We believe that this demonstrates the
confidence of the loan note holders in the future performance of the share
price. Total loans and borrowings decreased from £3.53 million to £2.64
million during the period. Additionally, during the financial year, the
Company was able to secure about £2.1 million from both existing and new
institutional shareholders, with the aim of funding the expected contract win
and enhancing our inspire user interface.
As detailed in an announcement on 30 July 2014, the has Company
approved a placing of £3.5 million (before expenses) which will allow the
Group to improve its presence in the OTT market, further reduce its net debt
and increase working capital available to fund potential new deals.
Operational Review
Areas of business
mirada is an audiovisual interaction technology company providing
both interactive products and software development services. We trade in
complementary areas around the media business, with some smaller stand-alone
activities in certain other markets:
Digital TV operators:
We have nearly 15 years' experience in technologies from
interactive TV to advanced navigational services. We have a solid network of
partners and we are internationally recognised for our skill base. Our
products comprise user interfaces for content navigation and consumption over
Digital TV receivers (TV and set-top boxes), personal computers and companion
devices (tablets and smartphones). Our major products are our navigational
software propositions: iris (with our origin and inspire user interfaces) and
navi (in partnership with Ericsson).
Other areas:
mirada has experience and business activities in other areas,
principally broadcast and cashless payment solutions for the car parking
market via mirada connect. Broadcast activities have been merged with the
Digital TV unit in the year under review, as the group has been increasingly
integrating the product range of these business units. Mirada connect will
remain independent of the rest of the business. Although non-core, it makes a
positive contribution to Group EBITDA.
Current Trading and Outlook
This has been a transformational period for the Group, in which we have proven
our ability to deliver on top-level deals. The Group remains in a period of
investment and current trading is similar to that stated at financial
year-end. The Group continues to direct resources to the Tier One contract. We
remain confident in the Group's ability to deliver on the Tier One contract
and the recent £3.5 million placing strengthens our balance sheet and enables
the Group to pursue further OTT opportunities in the Latin American market.
We expect our performance to be supported by strong subscriber-based licence
revenues deriving from existing installations, the new Tier One contract and
future contract wins. We believe the Tier One contract will be a significant
catalyst to the Group growing substantially as the product is rolled out over
its life from commercial launch later this financial year.
The Tier One contract has expanded the pipeline of opportunities in Latin
America and beyond. References are key in this market and we are already
seeing the benefits as we seek to capitalise on recent successes.
The Company expects to benefit from its focus on OTT propositions. We will be
investing heavily in our technical capabilities and expanding our sales and
marketing efforts in this area.
Our team has performed well during the transition from delivering
on small to medium-sized projects to the greater demands and complexities of
much bigger Tier One projects. The quality and values of our stakeholders have
made a real difference to their ability to effect such a difficult transition.
I cannot be more grateful to them for their hard work and their
professionalism.
José-Luis Vázquez
Chief Executive Officer
11 August 2014
Consolidated income statement
Year ended 31 March 2014
Note Year ended Year ended
31 March 31 March 2013
2014 £000
£000
Revenue 4 4,572 4,837
Cost of sales (182) (207)
Gross profit 4,390 4,630
Depreciation 5 (43) (58)
Amortisation 5 (924) (683)
Share-based payment charge (53) -
Other administrative expenses (3,366) (3,649)
Total administrative expenses (4,386) (4,390)
Operating profit 5 4 240
Finance income 32 137
Finance expense (422) (617)
Loss before taxation (386) (240)
Taxation 6 427 -
Profit/(loss) for year 41 (240)
Year ended Year ended
31 March 31 March 2013
2014 £
Earnings/(loss) per share £
Earnings/(loss) per share for the year
- basic & diluted 7 0.001 (0.007)
Consolidated statement of comprehensive income
Year ended 31 March 2014
Year ended Year ended
31 March 31 March
2014 2013
£000 £000
Profit/(loss) for the period 41 (240)
Other comprehensive loss:
Currency translation differences (26) (28)
Total other comprehensive loss (26) (28)
Total comprehensive income/(loss) for 15 (268)
the year
Consolidated statements of changes in equity
Year ended 31 March 2014
Share Share Foreign
Share premium option exchange Merger Retained
capital account reserve reserve reserves earnings Total
£000 £000 £000 £000 £000 £000 £000
At 1 April 2013 519 3,059 140 509 2,472 (3,234) 3,465
Profit for the financial year - - - - - 41 41
Movement in foreign exchange reserve - - - (26) - - (26)
Share based payment - - - - - 53 53
Transfer between reserves - - (140) - - 140 -
Conversion of convertible loans 98 877 - - - (29) 946
into shares
Issue of shares 244 1,894 - - - - 2,138
Share issue costs - (54) - - - - (54)
At 31 March 2014 861 5,776 - 483 2,472 (3,029) 6,563
Share Share Foreign
Share premium option exchange Merger Retained
capital account reserve reserve reserves earnings Total
£000 £000 £000 £000 £000 £000 £000
At 1 April 2012 319 1,216 140 537 2,472 (3,026) 1,658
Loss for the financial year - - - - - (240) (240)
Movement in foreign exchange reserve - - - (28) - - (28)
Conversion of convertible loans 45 400 - - - 32 477
into shares
Issue of shares 155 1,457 - - - - 1,612
Share issue costs - (14) - - - - (14)
At 31 March 2013 519 3,059 140 509 2,472 (3,234) 3,465
Consolidated statement of financial position
As at 31 March 2014
31 March 31 March
2014 2013
Note £000 £000
Property, plant and equipment 37 61
Goodwill 6,946 6,946
Intangible assets 2,444 1,719
Deferred Tax Assets 508 -
Non-current assets 9,935 8,726
Trade & other receivables 1,781 1,292
Cash and cash equivalents 30 94
Current assets 1,811 1,386
Total assets 11,746 10,112
Loans and borrowings (728) (697)
Trade and other payables (2,339) (2,725)
Provisions (76) (141)
Current liabilities (3,143) (3,563)
Net current liabilities (1,332) (2,177)
Total assets less current 8,603 6,549
liabilities
Interest bearing loans and borrowings (1,911) (2,767)
Embedded conversion option
derivative - (65)
Other non-current liabilities (129) (181)
Provisions - (71)
Non-current liabilities (2,040) (3,084)
Total liabilities (5,183) (6,647)
Net assets 6,563 3,465
Issued share capital and reserves
attributable
to equity holders of the company
Share capital 8 861 519
Share premium 5,776 3,059
Other reserves 2,955 3,121
Retained earnings (3,029) (3,234)
Equity 6,563 3,465
Consolidated statement of cash flows
Year ended 31 March 2014
Year ended Year ended
31 March 31 March
2014 2013
Note £000 £000
Cash flows from operating activities
Profit/Loss after tax 41 (240)
Adjustments for:
Depreciation of property,
plant and equipment 43 58
Amortisation of intangible assets 924 683
Share-based payment charge 53 -
Finance income (32) (137)
Finance expense 422 617
Taxation 427
Operating cash flows before movements 1,024 981
in working capital
Increase/(decrease) in trade
and other receivables (501) 44
(Decrease)/increase in trade
and other payables (484) 21
(Decrease)/increase in provisions (136) (356)
Net cash (used in)/generated from (97) 690
operating activities
Cash flows from investing activities
Interest and similar income received 16 3
Purchases of property,
plant and equipment (20) (8)
Purchases of other intangible assets (1,661) (1,116)
Net cash used in investing activities (1,665) (1,121)
Cash flows from financing activities
Interest and similar expenses paid (335) (341)
Issue of share capital 2,036 1,014
Costs of share issue (53) (14)
Loans received 289 913
Repayment of loans (409) (735)
Repayment of capital element
of finance leases (10) (10)
Net cash from financing activities 1,517 827
Net (decrease)/increase in cash and (243) 396
cash equivalents
Cash and cash equivalents at the 94 (299)
beginning of the year
Exchange gains on cash and cash equivalents (1) (3)
Cash and cash equivalents at the 9 (150) 94
end of the year
Cash and cash equivalents comprise cash at bank less bank overdrafts.
1. General information
mirada plc is a company incorporated in the United Kingdom. The address of the
registered office is New City Cloisters, 196 Old Street, London, EC1V 9FR. The
nature of the Group's operations and its principal activities are the
provision and support of products and services in the Digital TV and Broadcast
markets.
2. Basis of preparation
The financial information set out in this document does not constitute the
Company's statutory accounts for year to 31 March 2013 and 2014. Statutory
accounts for the years ended 31 March 2013 and 31 March 2014 have been
reported on by the Independent Auditors. The Independent Auditor's Reports on
the Annual Report and Financial Statements for each of 2013 and 2014 were
unmodified and did not contain statements under sections 498(2) or 498(3) of
the Companies Act 2006. However, the audit report for the year ended 31 March
2013, drew attention to an emphasis of matter due to the uncertainty over
going concern.
Statutory accounts for the year ended 31 March 2013 have been filed with the
Registrar of Companies. The statutory accounts for the year ended 31 March
2014 will be delivered to the Registrar in due course, and will be available
from the Company's registered office at New City Cloisters, 196 Old Street,
London, EC1V 9FR and from the Company's website www.mirada.tv/corporate.
The financial information set out in these preliminary results has been
prepared using the recognition and measurement principles of International
Accounting Standards, International Financial Reporting Standards and
Interpretations adopted for use in the European Union (collectively Adopted
IFRSs). The accounting policies adopted in these preliminary results have been
consistently applied to all the years presented and are consistent with the
policies used in the preparation of the statutory accounts for the period
ended 31 March 2014. The principal accounting policies adopted are unchanged
from those used in the preparation of the statutory accounts for the period
ended 31 March 2013. New standards, amendments and interpretations to existing
standards, which have been adopted by the Group have not been listed, since
they have no material impact on the financial statements
3. Significant accounting policies
Going concern policy
The directors have prepared a cash flow forecast covering a period extending
beyond 12 months from the date of these financial statements. The forecast
contains certain assumptions about the performance of the business. These
assumptions are the directors' best estimate of the future development of the
business, including consideration of cash reserves required to support working
capital and its new growth initiatives. The directors completed a fund raising
in July 2014 in order to secure £3.5m for the Group. Based on shareholder
approval received at the general meeting on 30 July 2014, the directors have a
reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. For these reasons, they
continue to adopt the going concern basis of accounting in preparing the
annual financial statements.
4. Segmental reporting
Reportable segments
The chief operating decision maker for the Group is ultimately the board of
directors. For financial and operational management the board considers the
Group to be organised into two operating divisions based upon the varying
products and services provided by the Group - Digital TV & Broadcast and
Mobile. The Digital TV & Broadcast segment has been created in 2014, following
the merger of the Digital TV and Broadcast & Content segments during the year.
The segment headed other relates to corporate overheads, assets and
liabilities.
Segmental results for the year ended 31 March 2014 are as follows:
Digital TV
& Broadcast Mobile Other Group
£'000 £'000 £'000 £'000
Revenue - external 4,149 423 - 4,572
Gross profit 4,120 270 - 4,390
Profit/(loss) before interest, tax,
depreciation, amortisation &
shared based payments 1,871 53 (900) 1,024
Depreciation (23) - (20) (43)
Amortisation (864) (26) (34) (924)
Share-based payment charge - - (53) (53)
Finance income - - 32 32
Finance expense - - (422) (422)
Taxation 375 52 - 427
Segmental profit/(loss) 1,358 79 (1,396) 41
The segmental results for the year ended 31 March 2013, presented on the
revised basis, are as follows:
Digital TV
& Broadcast Mobile Other Group
£'000 £'000 £'000 £'000
Revenue - external 4,367 470 - 4,837
Gross profit 4,331 299 - 4,630
Profit/(loss) before interest, tax,
depreciation, amortisation &
shared based payments 1,974 57 (1,050) 981
Impairment of goodwill - - - -
Depreciation (33) - (25) (58)
Amortisation (615) (34) (34) (683)
Finance income - - 137 137
Finance expense - - (617) (617)
Segmental profit/(loss) 1,326 23 (1,589) (240)
There is no material inter-segment revenue included in the segments which is
required to be eliminated.
The Group has three major customers in the Digital TV and Broadcast segment (a
major customer being one that generates revenues amounting to 10% or more of
total revenue) that account for £0.86 million (2013: £1.37 million), £0.83
million (2013: £0.48 million) and £0.67 million (2013: £0.48 million) of the
total Group revenues respectively.
The segment assets and liabilities at 31 March 2014 are as follows:
Digital TV
-
Broadcast Mobile Other Group
£'000 £'000 £'000 £'000
Additions to non-current assets 2,132 54 3 2,189
Total assets 10,947 732 67 11,746
Total liabilities (4,280) (57) (846) (5,183)
Capital expenditure comprises additions to property, plant and equipment and intangible assets.
The segment assets and liabilities at 31 March 2013, presented on a revised basis, are as follows:
Digital TV
-
Broadcast Mobile Other Group
£'000 £'000 £'000 £'000
Additions to non-current assets 1,087 23 14 1,124
Total assets 9,085 688 339 10,112
Total liabilities (2,141) (97) (4,409) (6,647)
Segment assets and liabilities are reconciled to the Group's assets and liabilities as follows:
Assets Liabilities Assets Liabilities
31 March 31 March 31 March 31 March
2014 2014 2013 2013
£'000 £'000 £'000 £'000
Segment assets and liabilities 11,679 4,337 9,773 2,238
Other:
Intangible assets - - 89 -
Property, plant & equipment 2 - 19 -
Other financial assets & liabilities 65 846 231 4,409
Total other 67 846 339 4,409
Total Group assets and liabilities 11,746 5,183 10,112 6,647
Assets allocated to a segment consist primarily of operating assets such as
property, plant and equipment, intangible assets, goodwill and receivables.
Liabilities allocated to a segment comprise primarily trade payables and other
operating liabilities.
Geographical disclosures
External revenue Non-current assets
by location by location
of customer of assets
31 March 31 March 31 March 31 March
2014 2013 2014 2013
£000 £000 £000 £000
UK 563 743 3,041 3,063
Spain 650 473 6,894 5,663
Continental Europe 218 465 - -
Latin America 3,141 3,156 - -
4,572 4,837 9,935 8,726
5. Operating profit
The operating profit is stated after charging the following:
Year ended Year ended
31 March 31 March
2014 2013
£000 £000
Depreciation of owned assets 43 35
Depreciation of assets held - 23
under finance lease
Amortisation of intangible assets 924 683
Operating lease charges 233 200
Research and development costs - 220
Reconciliation of operating profit for continuing operations to loss before
interest, taxation, depreciation and amortisation:
Year ended Year ended
31 March 31 March
2014 2013
£000 £000
Operating profit 4 240
Depreciation 43 58
Amortisation 924 683
Share-based payment charge 53 -
Operating profit before interest, 1,024 981
taxation, depreciation, amortisation
and share-based payment charge
6. Taxation
The tax assessed on the loss on ordinary activities for the period differs
from the standard rate of tax of 23%. The differences are reconciled below:
Year ended Year ended
31 March 31 March
2014 2013
£000 £000
Loss before taxation (386) (240)
Loss on ordinary activities (89) (58)
multiplied by 23% (2013: 24%)
Effect of expenses not deductible 52 23
for tax purposes
Effect of non-taxable income - (32)
Losses carried forward - 67
Losses Utilised 37 -
Total current tax - -
Origination and reversal of (35)
temporary differences
Recognition of previously (392) -
un recognised deferred tax assets
Total deferred tax (427) -
Total tax expense (427) -
Deferred taxation
Deferred tax assets have been recognised in respect of all tax losses for
Mirada Connect Limited, research and development investment for Fresh
Interactive Technologies S.A and other temporary differences giving rise to
deferred tax assets where the directors believe it is probable that these
assets will be recovered. The Directors believe that the deferred tax assets
are recoverable given the increasing profitability of Fresh Interactive
Technologies S.A and Mirada Connect Limited over recent years, combined with
the forecasts for future periods.
The movements in deferred tax assets and liabilities (prior to the offsetting
of balances within the same jurisdiction as permitted by IAS 12) during the
period are shown below.
(Charged)/ Charged/
credited to credited to
Asset Liability profit & loss Equity
31 March 31 March 31 March 31 March
2014 2014 2014 2014
Group £000 £000 £000 £000
Tax credit for losses 52 - 52 -
Other tax credits 421 340
Other temporary 35 - 35 -
deductible differences
Tax asset 508 - 427 -
Deferred tax asset of £11,000 as at 31 March 2013 is included within trade and
other receivables.
Deferred taxation amounts not recognised are as follows:
Year ended Year ended
31 March 31 March
2014 2013
Group £000 £000
Depreciation in excess 1,587 1,582
of capital allowance
Losses 9,830 10,196
Unrecognised tax credit 1,839 1,623
13,256 13,401
The gross value of tax losses carried forward at 31 March 2014
equals £57.6 million (2013: £58.3 million).
7. Earnings per share
Year ended Year ended
31 March 31 March
2014 2013
Total Total
Profit/(loss) for year £41,000 (£240,000)
Weighted average number of shares 65,233,761 34,612,552
Basic earnings/(loss) per share £0.001 (£0.007)
Diluted earnings/(loss) per share £0.001 (£0.007)
Adjusted earnings per share
Adjusted loss per share is calculated by reference to the loss from continuing
activities before interest, taxation, share-based payment charges,
depreciation and amortisation (see note 5).
Year ended Year ended
31 March 31 March
2014 2013
Total Total
Adjusted profit after tax for year £1,024,000 £981,000
65,233,761 34,612,552
Weighted average number of shares
Basic adjusted earnings per share £0.016 £0.028
Diluted adjusted earnings per share £0.014 £0.022
The Company has 5,602,555 (2013: 301,327) potentially dilutive ordinary shares
arising from share options issued to staff. At 31 March 2014 the Company had
no potentially dilutive ordinary shares arising from the convertible loan
(2013: 9,750,000). For the comparatives for year ended 31 March 2013 these
have not been included in calculating the diluted earnings per share as the
effect is anti-dilutive, although they have been included in calculating the
adjusted earnings per share.
8. Share capital
A breakdown of the authorised and issued share capital in place as at 31 March
2014 is as follows:
31 March 31 March 31 March 31 March
2014 2014 2013 2013
Number £000 Number £000
Allotted, called up and fully paid
Ordinary shares of £0.01 each 86,057,695 861 51,927,793 519
Share issues
During the year the following share issues took place:
- On 15 July 2013 £315,000 of the convertible loan balance was converted into
3,150,000 £0.01 ordinary shares at £0.10 per share.
- On 9 October 2013 the Company completed a placing for cash raising gross
proceeds of £1,000,000 via the issue of 11,428,571 £0.01 ordinary shares at a
price of £0.0875 each.
- On 19 November 2013 the Company raised £1,104,398 via the issue of
12,621,688 £0.01 ordinary shares at a price of £0.0875 each. The issue of
shares consisted of a placing for cash raising gross proceeds of £1,036,531 by
the issue of 11,846,066 ordinary shares, and 775,622 ordinary shares were
issued to capitalise certain creditor balances totalling £67,866.53. These
share based payments to creditors were measured at the market value of the
services rendered.
- On 23 December 2013 £170,000 of the convertible loan balance was converted
into 1,700,000 £0.01 ordinary shares at £0.10 per share. As part of this
conversion, Asesoría Digital S.L., which is owned by Rafael Martín Sanz and
his wife, received 900,000 shares.
- On 11 February 2014 4,229,643 £0.01 ordinary shares were issued at a price
of £0.10 each via the conversion of a convertible loan balance of £390,000 and
the capitalisation of interest owed on this convertible loan of £32,964.
- On 3 March 2014 the remaining convertible loan balance of £100,000 was
converted into 1,000,000 £0.01 ordinary shares at £0.10 per share.
9. Notes supporting cash flow statement
Cash and cash equivalents comprise:
31 March 31 March
2014 2013
£000 £000
Cash available on demand 30 94
Overdrafts (180) -
(150) 94
Net cash (decrease)/increase (244) 393
in cash and cash equivalents
Cash and cash equivalents 94 (299)
at beginning of year
Cash and cash equivalents (150) 94
at end of year
Cash and cash equivalents
Cash and cash equivalents are held in the following currencies:
31 March 31 March
2014 2013
£000 £000
Sterling 4 42
Euro 26 52
Total 30 94
Cash and cash equivalents comprise cash held by the Group and short-term bank
deposits with an original maturity of three months or less. The carrying
amount of these assets approximates their fair value.
Significant non-cash transactions are as follows:
31 March 31 March
2014 2013
£000 £000
Financing activities:
Convertible loans converted into equity 975 445
Accrued convertible loan interest 33 412
paid by issue of equity
Creditor balances paid by issue of equity 68 186
Total 1,076 1,043
10. Events after the reporting date
On 7 July 2014 the Company announced a proposed placing to raise £3.5 million
(before expenses) by way of a placing of 28,000,000 £0.01 ordinary shares at
12.5 pence per share, subject to shareholder approval being obtained at a
General Meeting held on 30 July 2014. All resolutions proposed at the General
Meeting were passed and the shares were issued on 5 August 2014. Post the
placing there are 114,057,695 ordinary shares of £0.01 each in issue.
11. Availability of report and accounts
Copies of the report and accounts for the year ended 31 March 2014 are being
posted to shareholders and will be available on the Company's website
www.mirada.tv.