TIDMIMMO
RNS Number : 9099U
Immotion Group PLC
03 April 2019
3 April 2019
Immotion Group plc
("Immotion Group" or "the Group")
Final Results and Trading Update
Immotion Group (AIM:IMMO.L), the UK-based immersive virtual
reality ("VR") out-of-home entertainment business, is pleased to
announce, in line with market expectations, its audited final
results for the year ended 31 December 2018 and an update on
trading and strategy. Having invested heavily in 2018 we are now
starting to see the results of our investment. Since year end the
Group has signed two Content licensing deals, and has seen strong
trading especially across its Concession Partners, and its own
ImmotionVR stores. The recent fund raise will allow the Group to
continue investing in growth as it begins to build on the
foundations created in 2018.
Financial Highlights - 2018
-- Total revenue GBP2.9m
-- Revenue from continuing operations GBP1.9m
-- VR revenue increased twelve-fold in H2 to GBP1.2m
-- Total revenue from VR operations GBP1.3m
-- Total underlying EBITDA1 loss GBP2.2m
-- Total underlying loss2 before tax GBP2.9m
-- Total underlying loss2 per share 1.71p
Operational Highlights - 2018
-- Placing to raise GBP4.8m net proceeds and admission to the
AIM market of the London Stock Exchange completed on 12 July
2018
-- Creation of 12 proprietary VR experiences and Content Management System
-- Developed first recognisable VR retail brand in UK with multiple sites and formats
-- Successfully opened 10 ImmotionVR centres (11 trading at end of the period)
-- Initial concession agreement secured with major partners such as Merlin Entertainments plc
-- VR equipment sales revenue GBP0.5m in the period
Post period end highlights
-- Further placing raising GBP3.1m net of costs completed on 5 March 2019
-- Third party monetisation of content, with first two licensing deals signed in January 2019
-- Early 2019 trading in ImmotionVR centres encouraging,
especially with the February half-term holiday week
-- Strong trading in key concession partner sites, with new
Legoland Discovery Centre installations achieving sales well above
management expectations
-- First SEA LIFE centre installation expected April 2019
-- Launch of "Swimming with Humpbacks" immersive experience - a world first
Background
Immotion Group is a leading UK-based immersive out-of-home
entertainment business focused on VR experiences. The Group
combines award winning CGI and live action content with cutting
edge hardware to deliver an affordable and rewarding suite of
immersive experiences. Working with leading entertainment, leisure
and retail operators, the Group is able to deliver valuable
ancillary revenue, and footfall to its ever-increasing customer
base.
The Group has several channels to market, including:
-- Content creation and licensing - The Group creates and
curates immersive content for its own operations as well as
licensing these experiences to third parties.
-- Concession partners - The concession model enables the Group
to work with established high-quality leisure operators with proven
high footfall destinations. The Group provides, at its own cost,
the VR experience and motion platforms and other hardware. The
partner provides the site, staff and utilities. The Group and
partner share the revenue on a pre-agreed basis.
-- ImmotionVR - ImmotionVR is the brand name for the Group's own
Location Based Entertainment ("LBE") centres.
-- Sales - The Group sells VR equipment, together with quality
VR experiences through distributors and to selected partners.
Chairman's Statement
The Group's first full year of trading, 2018, was a year of
intense activity and investment, building the foundations of our
plan to become a leading player in the out-of-home VR market.
During the year we invested heavily in the creation of a wide
range of quality VR immersive experiences combined with motion
platforms. This was essential to help unlock the various channels
to market. We are now starting to see the benefit of this
investment. We signed our first two content licensing deals in
January 2019, and are enthused by the ongoing interest in licensing
our experiences.
Early 2019 trading has been very encouraging, especially across
our concession partner estate.
Sales across our ImmotionVR centres also saw solid growth,
giving us confidence to explore opening larger centres on a
selective basis, where we will work with key landlords in a more
strategic manner.
We continue to work with our newly appointed distributors to
develop our sales strategy, and look forward to the launch of a new
'attendant free' VR booth.
Having made a significant investment throughout 2018 in content
creation, equipment sourcing, and establishing concession
relationships, the Group is now able to more precisely focus its
expenditure, leading to a reduction in its cost base and cash
outflow. As we move through 2019, we will begin to capitalise on
the significant investment and activity of 2018 to propel the Group
to the next stage.
I would like to place on record the thanks of the Board to all
our existing and new investors and, in particular, to those who
supported us in the most recent fundraise despite all the
uncertainties surrounding Brexit.
Chief Executive's Review of Strategy and Operations
I am pleased to report that, following a year of intense
activity and investment, we are now in a position to start taking
advantage of our efforts. Strong early trading has encouraged us to
focus on key growth areas, especially our concession partner
relationships, and our ImmotionVR centres.
In what is a relatively new market we are quickly gaining
traction and establishing ourselves as a key player in this
exciting sector.
According to Greenlight Insights, the LBE market is forecast to
grow from $1 billion at the end of 2018 to $12 billion by 2023,
making up 11% of the forecast global VR market. Furthermore, it is
now recognised as the fastest growing revenue sector for Brand
Licensing according to LicensingSource.net.
We have now established several revenue generating channels to
market, which we believe can underpin our strategy to become a
leading player in this market.
Content Creation and Licensing
In order to become a serious player in this exciting market, the
Group has developed a range of 12 high quality immersive
experiences. In 2018, the Group invested circa GBP1.5m in creating
these VR experiences. Immotion Group's heritage of content creation
through its award-winning storytellers is important in our market
as we believe people buy 'experiences' and not technology per
se.
VR hardware manufacturers are now looking to license our
experiences, and AAA brands are now engaging with us to produce
immersive experiences for them. All testament that our content
creation team are 'best in class'.
To date we have completed two license deals with LEKE. The first
provides Immotion Group with 70% of all revenue generated. The
licensee must generate minimum revenue of GBP588,000 in the period
to March 2020 for Immotion Group in order to maintain exclusivity.
A further licensing agreement was signed in January 2019 for two
experiences to be exploited in the Chinese market. This license
guarantees a minimum revenue of GBP224,000 to the Group in the
period to March 2021. Further license discussions are underway with
other hardware manufacturers.
The Group is in the process of opening up its experiences,
reversioned as appropriate, to the home and educational markets via
SpringboardVR with SonyVR and mobile channels to follow in the near
future. The Directors believe the 'Swimming with Humpbacks'
experience, the first in the Group's 'Blue Ocean' series, will be
especially well received by this audience.
Concessions
The concessions model enables the Group to work with established
high-quality leisure operators with proven high footfall leisure
destinations. We are pleased to report that our concession partners
reported record trading during the recent February half-term
holiday, up 68.8% on a like-for-like basis compared with the
Christmas holiday week in 2018.
We rolled out our first revenue sharing partnership in 2018 and
it was a significant achievement to develop a relationship with
Merlin Entertainments plc ("Merlin"), one of the largest
entertainment companies in the world. The relationship with Merlin
continues to show good progress with eight Legoland Discovery
Centre ("LDC") sites now open (versus two sites at 31 December
2018). Following successful trials, the two initial LDCs in Boston,
USA, and Manchester, UK continue to trade well and the sites opened
post period end are also showing very strong performance.
The total number of headsets within the Group's concession
estate at the year end was 46, which has now increased
significantly to 85, with most of the additional headsets being
installed into Merlin's estate. The Group now has 44 headsets
installed at Merlin LDCs with a further 12 scheduled and an
additional 6 headsets going into a Legoland hotel in Germany. We
have also agreed to install a further 18 headsets into three SEA
LIFE centres as an initial trial. Whilst logistics can be a
challenge, the Directors are confident of achieving the short-term
target of 82 headsets with Merlin, and the on-going potential to
roll out more headsets across the SEA LIFE centres post the initial
three site trial (there are 52 SEA LIFE centres around the
world).
In addition to Merlin we are developing a number of other
partnerships in the entertainment space including Al Hokair, a
major leisure and hotel group in the Middle East. The first site
will open in April 2019 in Abu Dhabi with 12 headsets, with a
further site to follow in their flagship mall in Jeddah, Saudi
Arabia. Al Hokair has 90 sites throughout the Middle East.
With more entertainment sites in SEA LIFE, LDC, and a number of
select Family Entertainment Centres ("FECs") we are confident that
we now have a model in this sector which, when operated with the
right partners, should provide a good return on investment, solid
recurring revenues and is potentially very scalable.
ImmotionVR Centres
ImmotionVR is the brand name for the Group's own Location Based
Entertainment VR centres. These are located in high footfall retail
and leisure locations and are operated by the Group. Based on the
Group's initial store in Bristol (opened in December 2017) we have
begun to develop what the Directors believe is the UK's first
recognised retail brand for immersive entertainment and today, all
of our ImmotionVR centres boast five star Trip Advisor reviews. We
believe this positions us to be involved in the evolution of retail
and leisure experiences, driven by consumers' increasing desire for
experiences and the needs of retail landlords to develop more
rounded leisure and entertainment offerings, as online shopping
takes an ever-increasing share of retail spend.
We have good working relationships in place with intu, Landsec
and Hammerson. The Group now operates 11 LBE centres trading under
the ImmotionVR brand.
ImmotionVR's flagship centre in Bristol has been fully
operational since December 2017, and the Directors are encouraged
by the progress made, and lessons learnt, during that time.
Highlights include:
- 5 star reviews on Trip Advisor from the public
- New online booking system and targeted marketing plan
introduced in Bristol which, over the past six weeks, has accounted
for circa 70% of revenue
- Revenue and contribution in the year ended 31 December 2018
were GBP206k and GBP67k respectively
- Comparing the February half term week in 2019, against the
Christmas holiday week of 2018, we are pleased to report a 24.8%
increase in revenue, a significant increase in such a short period
of time
At our Bristol ImmotionVR centre, we are pleased at the number
of returning customers, as well as the impact of our new marketing
campaign. We are further enthused at the uptake of our recent
introduction of our new booking system and associated marketing
plan. It is our intention to roll both the booking system and
marketing plan out to all stores3 over the coming weeks. It is
inevitable that it takes time to build up a repeat audience but as
we have gained greater experience, we are refining our marketing
approach to drive this audience.
The changing landscape now being faced by the retail sector has
allowed us to seek a more collegiate approach with landlords and no
long-term lease commitments. We also try to minimise irrecoverable
shop fit-out costs, focusing where we can on moveable settings and,
of course, equipment.
Having gained a huge amount of knowledge in the past year, and
using proof of concept data from existing sites, the Group will
look to selectively open further ImmotionVR centres in key cities.
We believe larger LBE centres will become an integral part of the
shopping mall of the future. Accordingly, we are in dialogue with
owners of a number of larger sites where there may be an
opportunity to be part of a larger LBE destination, encompassing a
range of immersive experiences (including VR), particularly those
with a competitive or social aspect, as well as food and beverage
offerings. We will update the market as these discussions
evolve.
Immotion Group's estate of ImmotionVR centres was comprised of
112 installed headsets at 31 December 2018 and is currently 129
across 11 sites in the UK and USA.
Hardware Sales
We have been working with our newly appointed distributors to
develop our sales strategy. Whilst there is a lot of interest in
the VR market, the demand is more for 'operator-light', or
coin-operated VR machines, with a small footprint and quality
experiences will drive sales into the long tail of FEC's. To this
end we have developed a standalone 'free-roaming' VR booth able to
offer a wide range of VR experiences. We will begin trials of this
machine in the next few weeks.
We have also, on the back of working with larger strategic
partners, decided to offer a more tailored solution. The Group is
able to produce VR content and source motion platforms in line with
their brand guidelines, thus giving it the ability to develop
larger scale 'turnkey' solutions. The Directors believe this
combined sales strategy allows the Company to deliver both volume
sales, as well as a more refined higher-margin business model.
Post Period End Activity and Outlook
Having put in place solid foundations, including a comprehensive
range of VR experiences, a number of major concession partners, and
a growing number of collegiate relationships with major retail
landlords, the Group is well poised to start building a strong
annuity revenue business.
Our content creation and licensing team is focused on the
monetisation of what it has created. Having delivered what the
Directors believe to be some of the best VR experiences in the
market today we see great potential in this channel.
New concession partner sites have opened since the year end in
LDCs in Detroit, Chicago, Kansas City, Toronto, New York, and
Phoenix. The initial results are very encouraging. We expect to see
our first concession in SEA LIFE centres opening in April 2019 in
Germany, with two expected to follow in Melbourne and Sydney,
Australia.
Our first major concession site in the Middle East will open
with Al Hokair. This is expected to commence trading in April 2019
in Abu Dhabi. Al Hokair has in excess of 90 sites across the
region. We are currently in discussions with Al Hokair about the
next site, in Jeddah, Saudi Arabia, which we expect will be a
larger site, with a greater choice of immersive entertainment
offerings.
Our ImmotionVR centres continue to grow in revenue and
popularity. Whilst LBE is a relatively new market, the Directors
believe that we have chosen the right market for our focus and with
sector revenues forecast to hit $12 billion by 2023, we want to
ensure we position ourselves to be a leading player in this
sector.
We have appointed distributors and installers for both the
Middle East and UK markets and will be working closely with them to
optimise our sales offering.
Having made the significant investment throughout 2018 in
content creation, equipment sourcing, and establishing concession
relationships, the Group is now looking to significantly reduce its
cost base and reduce cash outflow from operations. As we move into
2019, we will begin to capitalise on the heavy investment of 2018
to propel the Group to the next stage of its development. I look
forward to providing more regular news and updates as we continue
to execute on the successes we have achieved to date.
Financial Review
Total revenue for the period was GBP2.85m, of which GBP1.95m
came from continuing operations (including GBP1.33m from VR related
activity) and GBP0.91m from discontinued operations.
We ceased historic client activity in Japan during the year by
transferring that business for nominal value to its Managing
Director. In H2, we effectively completed all legacy client work in
the UK and consider that activity discontinued.
Overall, the underlying EBITDA loss was GBP2.22m, as a result of
the investment in VR content production (and cessation of historic
client work in the UK) and putting in place the central management
and sales teams and infrastructure necessary to grow the Group's
new core activities. In short, the Group is now focused on
achieving significant growth in scale of revenue to drive towards
break even. The Board is also very conscious of the Group's rapidly
expanded fixed costs of operation and has begun to take steps post
the end of the period to review and reduce these as appropriate.
The Board continues to look for further savings, particularly in
property occupancy costs.
Overall cash outflow in the year was GBP0.58m. Of the total, the
cash outflow (before exceptional and IPO related items) from
operations was GBP2.30m and the heavy investment in content,
infrastructure and hardware for our Concession activities resulted
in combined capital expenditure of GBP2.99m.
Net cash inflow from equity and debt funding (net of repayments)
was GBP6.37m and GBP0.03m respectively, making a total inflow from
financing activities of GBP6.40m in the period.
Growth in tangible fixed assets of GBP2.07m pre-dominantly
reflected the investment in hardware for our ImmotionVR centres, as
well as our concession operations.
Growth in intangible assets reflect the goodwill related to the
three acquisitions made to create the Group as well as the
investment in our proprietary content and software creation.
Net assets at period end were GBP6.20m and net current assets
were GBP0.92m.
Underlying loss per share(2) was 1.71p. Total loss per share was
2.42p.
Sir Robin Miller, Chairman of Immotion Group, said:
"Immotion Group is quickly becoming a major player in the
exciting world of Virtual Reality. Since flotation, the Group has
secured partnerships with some serious entertainment businesses,
including Merlin, the largest entertainment business in the world
after Disney.
"The approach of creating cutting edge VR content, and blending
this with cost effective motion platforms, has given the Group the
ability to deliver a suite of immersive experiences at an
affordable end price. The price paid by the end consumer is a vital
ingredient in the long-term success of any business. Being able to
achieve this, and deliver a sustainable margin is a credit to the
team.
"We are thrilled at the recent content licensing deals, along
with the sales performance of both our concession partners, and our
ImmotionVR centres. We continue to hone our sales strategy and are
excited at the upcoming launch of our 'attendant free' VR
booth.
"We are very encouraged by the opportunities in front of us and
we firmly believe that 2019 will be an exciting year for Immotion
Group. We are very much focused on the delivery of revenue and
profit and will continue to learn and adapt as the Group
grows."
Martin Higginson, CEO of Immotion Group, said:
"I am pleased with the progress made to date. 2018 was very much
a year of investment. In order to establish ourselves as a serious
player, we needed to create a range of VR experiences as well as
source a range of VR platforms on which these experiences could
operate. There are many players, including some of the largest
companies in the world, operating in the VR space and whilst
Immotion Group is a relatively new entrant in this landscape, it
has quickly established itself as a serious contender.
"Our ability to produce amazing VR experiences has given us the
ability to secure partnership relationships with a number of
leading entertainment companies, including Merlin. This is a credit
to our respective teams. Understanding the end customer's needs has
seen the development of our Blue Ocean series of VR content,
including 'Swimming with Humpbacks'. This has allowed us to extend
our relationship with Merlin through their SEA LIFE centres, as
well as giving us the opportunity to deliver a new ancillary
revenue generator to aquariums, zoos and museums.
"An encouraging start to trading with both our own ImmotionVR
centres and our concession partners has given us confidence in the
potential of the concessions model as well as the appetite to look
selectively for new sites.
"As one of the few VR companies actually generating revenues, we
are genuinely enthused at the growth we are achieving. Our team
continue to deliver amazing results, whether it's creating new
experiences, signing up new partners or opening new stores, they
are a credit to the Group and themselves. I thank them for their
continued hard work and belief in our goals."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
Footnotes:
(1) Underlying EBITDA is stated before exceptional costs
relating to the IPO in July 2018, other one-off items and costs
relating to share based payments.
(2) Underlying loss before tax and loss per share are stated
before exceptional costs relating to the IPO in July 2018, other
one-off items, costs relating to share based payments and the
impairment of intangible assets relating to discontinued
operations.
(3) Whilst the Group will operate a booking system in the 'pop
up' ImmotionVR centres, these are seldom used due to the walk by
nature of the store.
Enquiries:
For further information please visit www.immotiongroup.co.uk, or
contact:
Immotion Group Martin Higginson Tel: +44 (0) 161 235 8505
WH Ireland Limited Adrian Hadden Tel: +44 (0) 207 220 1666
(Nomad and Joint Broker) Jessica Cave
Shard Capital Partners Damon Heath Tel: +44 (0) 20 7186 9900
LLP Erik Woolgar
(Joint Broker)
Leander Capital Partners Alex Davies Tel: +44 (0) 207 195 1458
(Joint Broker)
Newgate Communications Elisabeth Cowell Tel: +44 (0) 20 3757 6880
(Financial PR) Robin Tozer Immotion@newgatecomms.com
Tom Carnegie
IMMOTION GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2018
Restated
Year ended Year ended
31 December 31 December
2018 2017
Note GBP'000 GBP'000
Revenue - continuing operations 1,948 -
Cost of sales - continuing operations (1,436) -
------------ ------------
Gross profit 512 -
Administrative expenses- continuing
operations (4,264) (175)
-------------- --------------
Loss from Operations (3,752) (175)
Memorandum:
Adjusted EBITDA (2,360) (114)
Depreciation (405) -
Amortisation (178) -
Share based payments (137) -
Acquisition & listing costs (672) (61)
-------------- --------------
Loss from Operations (3,752) (175)
--------------------------------------- ----- --------------- ---------------
Finance costs (57) -
Finance income 2
------------ ------------
Loss before taxation and attributable
to equity holders of the parent (3,807) (175)
Taxation 159 -
------------ ------------
Loss from continuing operations (3,648) (175)
Discontinued operations (net of tax) (175) -
------------ ------------
Loss after taxation 8 (3,823) (175)
Other comprehensive expense
Loss on translation of subsidiary (16) -
Loss after taxation and attributable
to equity holders of the parent and
total comprehensive income for the ------------ ------------
period (3,839) (175)
====== ======
IMMOTION GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2018
Loss per share
Basic (continuing) 4 (2.31) (1.29)
Basic (discontinuing) (0.11) -
====== ======
(2.42) (1.29)
Earnings/(Loss) per share
Diluted (continuing) 4 (2.31) (1.29)
Diluted (discontinuing) (0.11) -
====== ======
(2.42) (1.29)
IMMOTION GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2018
Foreign Retained
Share Share Exchange (deficit)/ Total
capital premium Reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Issue of shares - 3,704 - - 3,704
Loss after tax and total
comprehensive income - - - (175) (175)
-------------- -------------- -------------- -------------- --------------
Balance at 31 December
2017 - 3,704 - (175) 3,529
-------------- -------------- -------------- -------------- --------------
Issue of shares 26 6,786 - - 6,812
Issue costs deducted from
equity - (439) - - (439)
Loss after tax - - - (3,823) (3,823)
Equity settled share-based
payments - - - 137 137
Bonus Issue 52 (52) - - -
Currency translation of
overseas subsidiary - - (16) - (16)
-------------- -------------- -------------- -------------- --------------
Balance at 31 December
2018 78 9,999 (16) (3,861) 6,200
-------------- -------------- -------------- -------------- --------------
IMMOTION GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2018
Restated
31 December 31 December
2018 2017
ASSETS Note GBP'000 GBP'000
Non-current assets
Property, plant and equipment 1,574 493
Intangible fixed assets 4,038 2,895
----------------- -----------------
Total non-current assets 5,612 3,388
Current assets
Inventories 133 -
Trade and other receivables 1,410 866
Deferred tax asset - 85
Cash and cash equivalents 711 769
----------------- -----------------
Total current assets 2,254 1,720
----------------- -----------------
Total assets 7,866 5,108
========= =========
LIABILITIES
Current liabilities
Trade and other payables (886) (1,160)
Loans and borrowings (229) (245)
Deferred tax liability (26) -
Contract liabilities (189) (62)
----------------- -----------------
Total current liabilities (1,330) (1,467)
----------------- -----------------
Non-current liabilities
Other payables (54) -
Loans (218) (112)
Deferred tax liability (64) -
------------------ ------------------
(336) (112)
------------------ ------------------
Total liabilities (1,666) (1,579)
------------------ ------------------
Total net assets 6,200 3,529
========= =========
Capital and reserves attributable
to owners
of the parent
Share capital 7 78 -
Share premium 9,999 3,704
Foreign exchange reserve (16) -
Retained earnings/(deficit) (3,861) (175)
------------------ ------------------
Total equity 6,200 3,529
========= =========
The financial statements were approved by the Board and
authorised for issue on 3 April 2019.
Martin Higginson David Marks
CEO Finance Director
IMMOTION GROUP PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2018
Year ended Year ended
31 December 31 December
2018 2017
GBP'000 GBP'000
Cash flows from operating activities
Loss before tax including discontinued
operations
Adjustments for: (3,982) (175)
Share based payments 137 -
Depreciation on property plant and 405 -
equipment
Depreciation on stock transfers (20) -
Amortisation of intangible assets 178 -
Impairment of intangible assets 231 -
Finance costs 57 -
Finance income (2)
Foreign exchange on retranslation (28) -
of fixed assets
Foreign exchange loss (16) -
Corporation tax paid (13) -
----------------- -----------------
Cash flows from operating activities
before changes (3,053) (175)
in working capital
Increase in stocks (133) -
Increase in trade and other receivables (458) (12)
Increase in trade and other payables 168 163
----------------- -----------------
Cash (used)/generated in operations (423) 151
Investing activities
Purchase of intangible assets (1,524) -
Purchase of property, plant and equipment (1,542) -
Disposals of property, plant and 76 -
equipment
Cash on acquisition - 202
----------------- -----------------
Net cash (used in)/generated from
investing activities (2,990) 202
Financing activities
Finance costs (57) -
Finance income 2
New loans and finance leases 179 -
Loan repayments (89) -
Issue of convertible loan stock 488 -
Issue of new share capital 6,324 591
Costs on issue of shares (439) -
----------------- -----------------
Net cash from financing activities 6,408 591
----------------- -----------------
Net (decrease)/increase in cash and
cash equivalents (58) 769
Cash and cash equivalents at beginning 769 -
of the period
------------------ ------------------
Cash and cash equivalents at end
of the period 711 769
========= =========
IMMOTION GROUP PLC
CONSOLIDATED STATEMENT OF CASH FLOWS (continued)
FOR THE YEARED 31 DECEMBER 2018
Reconciliation of net cashflow to movement
in net debt: Year ended Year ended
31 December
31 December 2018 2017
GBP000 GBP000
Net (decrease)/increase in cash and
cash equivalents (58) 769
New loans and finance leases (179) -
Repayment of loans 89 -
Loans acquired on acquisition - (357)
----------------- -----------------
Movement in net funds in the year (148) 412
Net funds at 1 January 412 -
----------------- ------------------
Net funds at 31 December 264 412
========= =========
IMMOTION GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARED 31 DECEMBER 2018
1. GENERAL INFORMATION
Immotion Group plc is a public limited company incorporated and
domiciled in the United Kingdom. The address of the registered
office is East Wing, Ground Floor, The Victoria, Mediacity,
Manchester, M50 3SP. The Company is listed on AIM of the London
Stock Exchange.
The principal activity of the Group during the year was the
production of virtual reality content, experiences, equipment and
software design.
These financial statements are presented in pounds sterling
because that is the currency of the primary economic environment in
which the Group operates. Foreign operations are included in
accordance with the policies set out in note 2.
2. ACCOUNTING POLICIES
Principal accounting policies
The Company is a public company incorporated and domiciled in
the United Kingdom. The principal accounting policies applied in
the preparation of these consolidated financial statements are set
out below. These policies have been consistently applied to all the
periods presented, unless otherwise stated.
Basis of preparation
The financial statements have been prepared in accordance with
International Financial Reporting Standards, International
Accounting Standards and Interpretations (collectively IFRS) issued
by the International Accounting Standards Board (IASB) as adopted
by the European Union ("adopted IFRSs") and those parts of the
Companies Act 2006 which apply to companies preparing their
financial statements under IFRSs. The financial statements are
presented to the nearest round thousand (GBP'000) except when
otherwise indicated.
Basis of Consolidation
The Group comprises a holding company and a number of individual
subsidiaries and all of
these have been included in the consolidated financial
statements in accordance with the principles of acquisition
accounting as laid out by IFRS 3 Business Combinations.
Prior year restatement
A prior year adjustment has been processed to recognise the
acquisition of VR Acquisition (Holdings) Limited in 2017 given
Immotion Group Plc had control and the substance of the transaction
was that Immotion Group Plc owned 100% of the shares on 31 December
2017. This has resulted in an increased investment of GBP910k in
the Company financial statements and the recognition of goodwill on
VR Acquisition (Holdings) in the comparative figures.
An adjustment to costs of GBP61k incorrectly reducing the share
premium at 31 December 2017 has been included.
Going concern
The Group incurred a loss after taxation of GBP3,823k for the
year and a net cash outflow of GBP58k. If losses after taxation are
not reduced significantly and/or new equity funds raised as
required, this may result in a material uncertainty about the
Group's ability to continue as a going concern. To this end, on 1
March 2019, the Group raised GBP3.3m (before costs) through an
additional issue of shares for cash.
The directors have, at the time of approving the financial
statements, a reasonable expectation that the Company and the Group
have adequate resources to continue in operational existence for
the foreseeable future. In reaching this conclusion the directors
have considered the financial position of the Group, it's cash,
liquidity position and borrowing facilities together with its
forecasts and projections for 18 months from the reporting date
that take into account possible changes in trading performance. The
going concern basis of accounting has therefore been adopted in
preparing the financial statements.
IMMOTION GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEARED 31 DECEMBER 2018
2. ACCOUNTING POLICIES (continued)
Business combinations and goodwill
Acquisitions of subsidiaries and business are accounted for
using the acquisition method. The assets and liabilities and
contingent liabilities of the subsidiaries are measured at their
fair value at the date of acquisition. Any excess of acquisition
over fair values of the identifiable net assets acquired is
recognised as goodwill. Goodwill arising on consolidation is
recognised as an asset and reviewed for impairment at least
annually. Any impairment is recognised immediately in profit or
loss accounts and is not subsequently reversed. Acquisition related
costs are recognised in the income statement as incurred.
Revenue recognition
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Group and the revenue can be
reliably measured. Revenue is measured as the fair value of the
consideration received or receivable, excluding discounts, rebates,
value added tax and other sales taxes. The following criteria must
also be met before revenue is recognised:
Hardware Sales
Revenue from the sale of goods is recognised when all of the
following conditions are satisfied:
-- the Group has transferred the significant risks and rewards
of ownership to the buyer;
-- the Group retains neither continuing managerial involvement
to the degree usually associated with ownership nor effective
control over the goods sold;
-- the amount of revenue can be reliably measured;
-- it is probably that the Group will receive the consideration
due under the transaction; and
-- the costs incurred or to be incurred in respect of the
transaction can be reliably measured.
Client Services
Revenue from a contract to provide services is recognised in the
period in which the services are provided in accordance with the
stage of completion of the contract when all of the following
conditions are satisfied:
-- the amount of revenue can be measured reliably;
-- it is probable that the Group will receive the consideration due under the contract;
-- the stage of completion of the contract at the end of the
reporting period can be measured reliably; and
-- the costs incurred and the costs to complete the contract can be measured reliably.
Retail revenue is recognised on the date which the sale to the
customer takes place.
Concessions revenue is recognised on the date which the sale to
the customer takes place. The Group acts as the principal in the
transaction and therefore recognises the revenue charged to the end
user in full with the concession partners' shares deducted as a
cost of sale.
Hardware sales revenue is normally recognised on the date that
the hardware is delivered to the customer. In the event that a
customer is not ready to take delivery of the hardware and have
requested a delayed delivery date, the Group applies the specifics
of IFRS 15 Bill-and-Hold arrangements. Revenue is then recognised
in advance of delivery. Under the Bill-and-Hold arrangements:
-- The goods are complete and ready for collection;
-- The goods are separately identified from the Group's other
stock and are not used to fulfil any other areas;
-- The customer has specifically requested that the goods be held pending collection.
-- Normal payment terms apply to the Bill-and-Hold arrangement.
IMMOTION GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEARED 31 DECEMBER 2018
2. ACCOUNTING POLICIES (continued)
No element of financing is deemed present as the sales are made
with standard credit terms of 30 days which is consistent with
market practice. The Group does not expect to have any contracts
where the period between the transfer of the promised services or
goods to the customer and payment by the customer exceeds one year.
As a consequence, the Group does not adjust any of the transaction
prices for the time value of money.
Leases
Lease are classified as finance leases whenever the terms of the
lease transfer substantially all the risks and rewards of ownership
to the lessee. All other leases are classified as operating
leases.
Assets held under finance leases are recognised as assets of the
Group at their fair value or, if lower at the present value of the
minimum lease payments, each determined at the inception of the
lease. The corresponding liability to the lessor is included in the
balance sheet as a finance lease obligation. Lease payments are
apportioned between finance expenses and a reduction of the lease
obligation so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance expenses are recognised
immediately in profit or loss.
Rentals payable under operating leases are charged to the
statement of comprehensive income on a straight-line basis over the
term of the relevant lease.
Foreign currency
The individual financial statements of each group company are
presented in the currency of the primary economic environment in
which it operates (its functional currency). For the purpose of the
consolidated financial statements, the results and financial
position of each group company are expressed in pound sterling,
which is the functional currency of the Group, and the
presentational currency for the consolidated financial
statements.
In preparing the financial statements of the individual
companies, transactions in currencies other than the Group
Company's functional currency (foreign currencies) are recorded at
rates of exchange prevailing on the dates of the transactions. At
the reporting date, monetary assets and liabilities that are
denominated in foreign currencies are retranslated at the rates
prevailing on the reporting date. Non-monetary items carried at
fair value that are denominated in foreign currencies are
translated at the rates prevailing at the date when the fair value
was determined. Non-monetary items that are measured in terms of
historical cost in foreign currency are not retranslated. Exchange
differences arising on the settlement of monetary items, and on the
retranslation of monetary items, are included in profit or loss for
the period. Exchange differences arising on the retranslation of
non-monetary items carried at fair value are included in profit or
loss for the period except for differences arising on the
retranslation of non-monetary items in respect of
which gains and losses are recognised directly in equity. For
such non-monetary items, any exchange component of the gain or loss
is also recognised directly in equity.
For the purpose of presenting consolidated financial statements,
the assets and liabilities of the Group's foreign operations are
translated at exchange rates prevailing on the reporting date.
Income and expense items are translated at the average exchange
rates for the period, unless exchange rates fluctuate significantly
during the period, in which case the exchange rates at the date of
transactions are used. Exchange differences arising, if any, are
classified as equity and transferred to the Group's translation
reserve. Such translation differences are recognised as income and
expense in the period in which the operation is disposed of.
Goodwill and fair value adjustments arising on the acquisition of a
foreign entity are treated as assets and liabilities of the foreign
entity and translated at the closing rates.
Intangible assets
Intangible assets include goodwill arising on the acquisition of
subsidiaries and represents the difference between the fair value
of the consideration payable and the fair value of the net assets
that have been acquired. The residual element of Goodwill is not
being amortised but is subject to an annual impairment review.
IMMOTION GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEARED 31 DECEMBER 2018
2. ACCOUNTING POLICIES (continued)
Also included within intangible assets are various assets
separately identified in business combinations (such as customer
lists) to which the Directors have ascribed a commercial value and
a useful economic life. The ascribed value of these intangible
assets is being amortised on a straight-line basis over their
estimated useful economic life, which is considered to be 3
years.
Internally generated intangible assets
An internally-generated intangible asset arising from the
Group's development activities is capitalised and held as an
intangible asset in the statement of financial position when the
costs relate to a clearly defined project; the costs are separately
identifiable; the outcome of such a project has been assessed with
reasonable certainty as to its technical feasibility and its
ultimate commercial viability; the aggregate of the defined costs
plus all future expected costs in bringing the product to market is
exceeded by the future expected sales revenue; and adequate
resources are expected to exist to enable to project to be
complete. Internally generated intangible assets are amortised over
their useful lives, between 3 and 10 years from completion of
development. Where the internally-generated intangible asset can be
recognised, development expenditure is recognised as an expense in
the income statement in the period in which it is incurred.
Inventories
Inventories are stated at the lower of cost and net realisable
value. Costs comprise direct materials and, where applicable,
direct labour costs and overheads that have been incurred in
bringing the inventories to their present location and condition.
Net realisable value represents the estimated selling price less
all estimated costs of completion and costs to be incurred in
marketing, selling and distribution.
Financial instruments
The Group classifies financial instruments, or their component
parts, on initial recognition as a financial asset, a financial
liability or an equity instrument.
Contract liabilities
Contract liabilities comprise payments in advance of revenue
recognition and revenue deferred due to contract performance
obligation not being completed. They are classified as current
liabilities if the contract performance obligations payments are
due to be completed within one year or less (or in the normal
operating cycle of the business if longer). If not, they are
presented as non-current liabilities. Contract liabilities are
recognised initially at fair value and subsequently at amortised
cost.
Trade and other receivables
Trade and other receivables are measured at initial recognition
at fair value, and subsequently measured at amortised cost using
the effective interest method. A provision is established when
there is objective evidence that the Group will not be able to
collect all amounts due. The amount of any provision is recognised
in profit or loss.
Cash and cash equivalents
Cash and cash equivalents are recognised as financial assets.
They comprise cash held by the Group and short-term bank deposits
with an original maturity date of three months or less.
Loss recognised previously in equity is included in profit or
loss for the period. Dividends are recognised in the income
statement when the right to receive payment has been
established.
Trade payables
Trade payables are initially recognised as financial liabilities
measured at fair value, and subsequent to initial recognition
measured at amortised cost.
IMMOTION GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEARED 31 DECEMBER 2018
2. ACCOUNTING POLICIES (continued)
Bank borrowings
Interest bearing bank loans, overdrafts and other loans are
recognised as financial liabilities and recorded at fair value, net
of direct issue costs. Finance costs are accounted for on an
amortised cost basis in the income statement using the effective
interest rate.
Equity instruments
An equity instrument is any contract that evidences a residual
interest in the assets of an entity after deduction of all its
liabilities. Equity instruments issued by the Company are recorded
at the proceeds received net of direct issue costs.
Share based payments
Where share options are awarded to employees, the fair value of
the options at the date of grant is charged to the statement of
comprehensive income on a straight-line basis over the vesting
period. Non-market vesting conditions are taken into account by
adjusting the number of options expected to vest at each statement
of financial position date so that, ultimately, the cumulative
amount recognised over the vesting period is based on the number of
options that eventually vest. Market vesting conditions are
factored into the fair value of the options granted. The cumulative
expense is not adjusted for failure to achieve a market vesting
condition.
Fair value is calculated either using the Monte-Carlo model or
Black-Scholes model, details of which are given in note 26.
Pensions
The pension schemes operated by the Group are defined
contribution schemes. The pension cost charge represents the
contributions payable by the Group.
Property, plant and equipment
Property, plant and equipment are stated at cost net of
accumulated depreciation and provision for impairment. Depreciation
is provided on all property plant and equipment, at rates
calculated to write off the cost less estimated residual value, of
each asset on a straight-line basis over its expected useful life.
The residual value is the estimated amount that would currently be
obtained from disposal of the asset if the asset were already of
the age and in the condition expected at the end of its useful
economic life.
The method of depreciation for each class of depreciable asset
is:
VR Hardware - 33% straight line
Computer equipment - 33% straight line
Leasehold property - 10% straight line
Plant & Equipment - 33% straight line
Fixtures & Fittings - 33% straight line
Impairment of Assets
Impairment tests on goodwill are undertaken annually at the
balance sheet date. The recoverable value of goodwill is estimated
on the basis of value in use, defined as the present value of the
cash generating units with which the goodwill is associated. When
value in use is less than the book value, an impairment is recorded
and is irreversible.
Other non-financial assets are subject to impairment tests
whenever circumstances indicate that their carrying amount may not
be recoverable. Where the carrying value of an asset exceeds its
estimated recoverable value (i.e. the higher of value in use and
fair value less costs to sell), the asset is written down
accordingly. Where it is not possible to estimate the recoverable
value of an individual asset, the impairment test is carried out on
the asset's cash-generating unit. The carrying value of property,
plant and equipment is assessed in order to determine if there is
an indication of impairment. Any impairment
IMMOTION GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEARED 31 DECEMBER 2018
2. ACCOUNTING POLICIES (continued)
is charged to the statement of comprehensive income. Impairment
charges are included under administrative expenses within the
consolidated statement of comprehensive income.
Taxation and deferred taxation
Corporation tax payable is provided on taxable profits at
prevailing rates.
Deferred tax assets and liabilities are recognised where the
carrying amount of an asset or liability in the balance sheet
differs from its tax base, except for differences arising on:
-- the initial recognition of goodwill; and
-- the initial recognition of an asset or liability in a
transaction which is not a business combination and at the time of
the transaction affects neither accounting nor taxable profit.
Recognition of deferred tax assets is restricted to those
instances where it is probable that future taxable profit will be
available against which the asset can be utilised. The amount of
the asset or liability is determined using tax rates that have been
enacted or substantively enacted by the balance sheet date and are
expected to apply when the deferred tax liabilities/(assets) are
settled/(recovered).
Deferred tax assets and liabilities are offset when the Group
has a legally enforceable right to offset current tax assets and
liabilities and the deferred tax assets and liabilities relate to
taxes levied by the same tax authority on either:
-- the same taxable Group company; or
-- different Group entities which intend either to settle
current tax assets and liabilities on a net basis, or to realise
the assets and settle the liabilities simultaneously, in each
future period in which significant amounts of deferred tax assets
or liabilities are expected to be settled or recovered.
Segmental reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the Executive Directors, who are
responsible for allocating resources and assessing performance of
the operating segments.
A business segment is a group of assets and operations, engaged
in providing products or services that are subject to risks and
returns that are different from those of other operating
segments.
A geographical segment is engaged in providing products or
services within a particular economic environment that are subject
to risks and returns that are different from those of segments
operating in other economic environments. The Executive Directors
assess the performance of the operating segments based on the
measures of revenue, profit before taxation (PBT) and profit after
taxation (PAT). Central overheads are not allocated to business
segments.
IMMOTION GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEARED 31 DECEMBER 2018
3. SEGMENTAL INFORMATION
A segmental analysis of revenue and expenditure for the period
is:
Total
Client Head continuing Discontinued Total
VR Experiences Services Office operations operations 2018
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 1,326 622 - 1,948 906 2,854
Cost of sales (1,233) (203) - (1,436) (473) (1,909)
Administrative
expenses* (726) (304) (1,842) (2,872) (292) (3,164)
Operating
(loss)/profit (633) 115 (1,842) (2,360) 141 (2,219)
Amortisation (93) - (85) (178) (231) (409)
Depreciation (357) - (48) (405) - (405)
Acquisition
and listing
costs - - (672) (672) (85) (757)
Share based
payments - - (137) (137) - (137)
Finance costs - - (57) (57) - (57)
Finance income - - 2 2 - 2
Tax - - 159 159 - 159
------------- ------------- ------------- ------------- ------------- -------------
(Loss)/Profit
for the year (1,083) 115 (2,680) (3,648) (175) (3,823)
====== ====== ====== ====== ====== ======
*Administrative expenses exclude depreciation, amortisation,
exceptional costs and acquisition and listing costs.
For the period to 31 December 2017, all costs were head office
costs.
The segmental analysis above reflects the parameters applied by
the Board when considering the Group's monthly management accounts.
For the period to 31 December 2017, no revenue was generated. All
costs related to head office costs in the UK.
IMMOTION GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEARED 31 DECEMBER 2018
3. SEGMENTAL INFORMATION (continued)
External revenue by Total assets by Net tangible capital
location of customer location expenditure by location
31 December 31 December 31 31
2018 2018 31 December December December 31 December
Continuing Discontinuing 2018 2017 2018 2017
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
United
Kingdom 790 221 7,032 4,618 1,033 -
United
States
of America 636 - 834 490 491 -
Japan 49 449 - - - -
United Arab
Emirates 136 - - - - -
China 49 - - - - -
Saudi Arabia 48 - - - - -
Spain 224 - - - - -
Estonia 16 - - - - -
Netherlands - 230 - - - -
Eire - 8 - - - -
Switzerland - 4 - - - -
Germany - (6) - - - -
------------- ------------- ------------- ------------- ------------- -------------
1,948 906 7,866 5,108 1,524 -
====== ====== ====== ====== ====== ======
IMMOTION GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEARED 31 DECEMBER 2018
4. EARNINGS PER SHARE
2018 2017
GBP'000 GBP'000
The earnings per share is based on the
following:
Continuing earnings post tax loss attributable
to shareholders (3,648) (175)
Discontinued earnings post tax loss (175) -
attributable to shareholders
========== ==========
Basic weighted average number of shares 158,136,544 13,536,541
Diluted weighted average number of shares 158,136,544 13,536,541
========== ==========
GBP0.01 GBP0.01
Basic earnings per share (2.42) (1.29)
Diluted earnings per share (2.42) (1.29)
========== ==========
Continuing earnings per share (2.31) (1.29)
Continuing diluted earnings per share (2.31) (1.29)
========== ==========
Discontinued earnings per share (0.11) -
Discontinued diluted earnings per share (0.11) -
========== ==========
Underlying loss: continuing operations (2,838) (114)
Underlying loss: discontinued operations 140 -
========== ==========
Basic weighted average number of shares 158,136,544 13,536,541
Diluted weighted average number of shares 164,025,259 13,536,541
========== ==========
GBP0.01 GBP0.01
Basic underlying loss per share (1.71) (0.84)
Diluted underlying loss per share (1.71) (0.84)
========== ==========
Basic underlying loss per share: continuing
operations (1.80) (0.84)
Diluted underlying loss per share: continuing
operations (1.80) (0.84)
========== ==========
Basic underlying earnings per share: 0.09 -
discontinued operations
Diluted underlying earnings per share: 0.09 -
discontinued operations
========== ==========
Earnings/(Loss) per ordinary share has been calculated using the
weighted average number of shares in issue during the relevant
financial periods. IAS 33 requires presentation of diluted EPS when
a company could be called upon to issue shares that would decrease
earnings per share or increase the loss per share. The exercise
price of the outstanding share options is significantly more than
the average and closing share price. Therefore, as per IAS33 the
potential ordinary shares are disregarded in the calculation of
diluted EPS.
Underlying loss is the loss after taxation, adjusted for share
based payments, acquisition and listing costs, and impairment of
intangible assets relating to discontinuing operations.
IMMOTION GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEARED 31 DECEMBER 2018
5. TANGIBLE FIXED ASSETS
Leasehold Equipment Fixtures Total
Property and Fittings
GBP'000 GBP'000 GBP'000 GBP'000
Cost
Balance at 1 January 2017 - - - -
Additions on acquisition
of subsidiary 158 310 25 493
--------- --------- -------------- ---------------
Balance at 1 January 2018 158 310 25 493
Additions 245 1,263 16 1,524
Transfers to inventory - (76) - (76)
Foreign exchange 2 39 2 43
--------- --------- -------------- ---------------
Balance at 31 December 2018 405 1,536 43 1,984
--------- --------- -------------- ---------------
Accumulated depreciation
Balance at 1 January 2017 - - - -
Deprecation on acquired - - - -
assets
---------- --------- -------------- ---------------
Balance at 1 January 2018 - - - -
Depreciation charge on owned
assets 65 248 17 330
Depreciation charge on
financed
assets 75 75
Transfers to inventory - (20) - (20)
Foreign exchange adjustment - 23 2 25
--------- --------- -------------- ---------------
Balance at 31 December 2018 65 326 19 410
--------- --------- -------------- ---------------
Net Book Value
At 31 December 2018 340 1,210 24 1,574
===== ===== ===== =====
At 31 December 2017 158 310 25 493
===== ===== ===== ======
At 31 December 2016 - - - -
===== ===== ===== ======
The net book value of assets held under finance leases or hire
purchase contracts, included above, are GBP137k (2017: GBPnil)
relating to VR Hardware. The depreciation charge on these assets
was GBP75k (2017: GBPnil).
IMMOTION GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEARED 31 DECEMBER 2018
6. INTANGIBLE ASSETS Development Goodwill Other
GROUP Costs Arising on Intangible
Consolidation Assets Total
GBP'000 GBP'000 GBP'000 GBP'000
Cost
Balance at 1 January 2017 - - - -
Additions 2 2,438 455 2,895
------------- ------------- ------------ ---------------
Balance at 1 January 2018 2 2,438 455 2,895
Additions 1,493 - 49 1,542
Foreign exchange 11 - - 11
------------- ------------- ------------ ---------------
Balance at 31 December
2018 1,506 2,438 504 4,448
------------- ------------ ------------ ---------------
Accumulated amortisation
Balance at 1 January 2017 - - - -
Additions - - - -
------------- ------------- ------------ ---------------
Balance at 1 January 2018 - - - -
Amortisation 93 - 85 178
Impairment - 231 231
Foreign exchange 1 - - 1
------------ ----------- ------------ ---------------
Balance at 31 December
2018 94 - 316 410
----------- ------------ ------------ ---------------
Net Book Value
At 31 December 2018 1,412 2,438 188 4,038
====== ====== ====== =======
At 31 December 2017 2 2,438 455 2,895
====== ====== ====== =======
At 31 December 2016 - - - -
====== ====== ====== ======
Other intangible assets comprise GBP151k (2017: GBP455k)
relating to identifiable relations between acquired companies and
associated client base with the remaining GBP37k of other
intangible assets relate to website development costs.
Amortisation is charged over a period between 5 and 10
years.
GOODWILL AND IMPAIRMENT
The carrying value of goodwill in respect of each cash generating
unit is as follows:
31 December 31
2018 December
2017
GBP'000 GBP'000
Studio Liddell Limited 1,252 1,252
C.2K Entertainment Inc. 748 748
VR Acquisition (Holdings)
Limited 438 438
------------- -------------
2,438 2,438
====== =======
IMMOTION GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2018
6. INTANGIBLE FIXED ASSETS (continued)
The Group is obliged to test goodwill annually for impairment,
or more frequently if there are indications that goodwill and
indefinite life intangibles might be impaired, due to the goodwill
deemed to have an indefinite useful life. In order to perform this
test, management is required to compare the carrying value of the
relevant cash generating unit ("CGU") including the goodwill with
its recoverable amount. The recoverable amount of the CGU is
determined from a value in use calculation. It is considered that
any reasonably possible changes in the key assumptions would not
result in an impairment of the present carrying value of the
goodwill.
7. SHARE CAPITAL 31 December 31 December
2018 2017
GBP'000 GBP'000
Called up share capital
Allotted, called up and fully paid
195,351,590 Ordinary shares of 0.00040108663 78 -
pence each
(2017: 46,415 ordinary shares at 0.01p)
------------ ------------
78 -
====== ======
Shares issued during the year ended 31 December 2018:
Date Description No. of shares Price Gross share Cash received
per share value
GBP GBP GBP
Issue of 1p
1 February 2018 shares 3,908 100 390,800 390,800
Issue of 1p
23 March 2018 shares 70 100 7,000 7,000
Issue of 1p
23 March 2018 shares 364 100 36,400 36,400
Issue of 1p
23 April 2018 shares 76 157.61 11,978 11,978
Issue of 1p
14 May 2018 shares 158 157.61 24,902 24,902
Issue of 1p
14 May 2018 shares 634 157.61 99,925 99,925
Bonus issue
22 June 2018 - 100:1 5,162,500 - 51,625 -
22 June 2018 Sub-division 5,214,125 - - -
- 0.01 to 0.005
9 July 2018 Sub-division 119,571,718 - - -
- 0.05 to 0.00040108663p
Placing on
AIM shares
12 July 2018 of 0.00040108663p 57,500,000 0.10 5,750,000 5,750,000
Conversion
of loan stock
to shares of
12 July 2018 0.00040108663p 7,851,622 0.06 491,487 491,487
Total 195,305,175 6,864,117 6,812,493
At 31 December
2017 46,415 3,704,894 591,394
-------------- ----------- ------------ --------------
At 31 December
2018 195,351,590 10,569,011 7,403,887
-------------- ----------- ------------ --------------
Cash received does not included costs relating to share issues.
In the year to 31 December 2018, costs of GBP439k were incurred
relating to share issues and these costs were charged against share
premium.
IMMOTION GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2018
8. DISCONTINUED OPERATIONS
2018 continuing 2018 discontinuing Total 2018
operations operations
GBP'000 GBP'000 GBP'000
Revenue 1,948 906 2,854
Cost of sales (1,436) (473) (1,909)
------------ ------------ ------------
Gross profit 512 433 945
Administrative expenses (4,264) (608) (4,872)
-------------- -------------- --------------
Loss from Operations (3,752) (175) (3,927)
Finance costs (57) - (57)
Finance income 2 2
------------ ------------ ------------
Loss before taxation and attributable
to equity holders of the parent (3,807) (175) (3,982)
Taxation 159 - 159
------------ ------------ ------------
Loss after taxation (3,648) (175) (3,823)
Other comprehensive expense
Loss on translation of subsidiary (16) - (16)
Loss after taxation and attributable
to equity holders of the parent
and total comprehensive income ------------ ------------ ------------
for the period (3,664) (175) (3,839)
====== ====== ======
Cash flows from discontinued operations are as follows:
Continuing Discontinuing Total
GBP'000 GBP'000 GBP'000
Operating cash flows (599) 176 (423)
Investing cash flows (2,990) - (2,990)
Financing cash flows 6,408 - 6,408
------------ ------------ ------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR ITMRTMBIMBAL
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April 03, 2019 02:00 ET (06:00 GMT)
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