TIDMIMMO
RNS Number : 5081A
Immotion Group PLC
30 September 2020
30 September 2020
Immotion Group plc
("Immotion Group", the "Company" or the "Group")
Interim Results
Immotion Group plc (AIM:IMMO.L), the provider of 'Out of Home'
virtual reality ("VR") experiences, is pleased to announce its
Interim Results for the six months to 30 June 2020.
Highlights
-- Revenue for the six months to 30 June 2020: GBP0.8m (2019: GBP1.3m)
-- Almost four months of period effectively lost to COVID-19 lockdown
-- Sites began to re-open in July, and August 2020
-- 23 Partner sites and 5 IVR sites now open and trading
-- Three new sites have opened since lockdown, including Mandalay Bay
-- Encouraging overall levels of trading at re-opened sites
-- Operating costs reviewed and reduced
-- Un-audited August revenue of GBP311k
-- Un-audited August EBITDA loss narrowed to circa GBP30k
-- Initial sales of UVISAN ultra-violet sanitisation cabinets
-- Let's Explore Oceans 'in home' product ready for launch
-- Cash on hand at 25 September 2020 of GBP1.2m
Robin Miller, Chairman of Immotion Group said: " Prior to
lockdown, the Company was extremely well positioned to capitalise
on its investments. The opening of our largest installation to
date, 'Undersea Explorer' at Shark Reef, Mandalay Bay, Las Vegas,
was planned for early April 2020. This along with numerous other
planned Partner installs in the pipeline would have taken us past
EBITDA breakeven."
"Like many leisure orientated businesses, the pandemic has had a
very significant impact on trading. I am, however, pleased to
report that we have started to see some of our existing sites
re-open, along with a number of new sites, including Mandalay Bay,
which opened, albeit with a reduced capacity, on 1 August 2020.
These openings have enabled our revenues to grow from almost
nothing as a direct result of the lockdown, to over GBP300,000 in
the month of August. Overall, where we are allowed to open, the
uptake of our offering, even with reduced footfall, is very
encouraging. Whilst many sites remain un-opened, we are encouraged
by the level of uptake, and the willingness of consumers to engage
with our experiences.
Our team has been very proactive in launching two new revenue
generating products utilising our assets, skills and knowledge
wisely. The first, our UVISAN cabinets, was born out of a need to
sanitise our own VR equipment. Our team designed a proprietary UV
cabinet capable of cleaning and disinfecting our VR headsets (and a
wide range of other equipment) in a matter of minutes. We have now
started third party sales.
The second new product is our in-home offering, 'Let's Explore
Oceans' due to launch tomorrow, 1 October 2020, which utilises
content we have created and invested in over the years, along with
a number of new Augmented Reality experiences, to bring consumers a
cutting-edge immersive product they can enjoy in the comfort of
their home."
"These new initiatives along with significant cost reductions
are a testament to the team and its ability to react and adapt to
the current situation. With our recovering revenues, tight control
of costs and new revenue streams, we are confident in our ability
to survive this crisis and put the business back on track to
profitability."
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014
Enquiries
For further information please visit www.immotion.co.uk , or
contact:
Immotion Group Martin Higginson Tel: +44 (0) 161
David Marks 235 8505
WH Ireland Limited Adrian Hadden Tel + 44 (0) 207
(Nomad and Joint Darshan Patel 220 1666
Broker) Matthew Chan
Shard Capital Partners Damon Heath Tel: +44 (0) 20
LLP Erik Woolgar 7186 9900
(Joint Broker)
Alvarium Capital Alex Davies Tel: +44 (0) 207
Partners 195 1433
(Joint Broker)
Overview
In early March 2020, the Company was readying to install
headsets into a number of new partner locations, including its
largest installation to date, an 'Undersea Explorer' 36-seater
theatre project at the MGM-owned Mandalay Bay Resort, in Las
Vegas.
However, by mid-March 2020, the Company began to see an impact
on the business as a result of the COVID-19 pandemic, and by 24
March 2020, the majority of our locations were forced to close as
much of the world went into a full lockdown. All sites eventually
closed and as a consequence, the remainder of H1 saw zero
revenue.
All our Partner and Immotion VR sites were closed and no new
installations occurred. Work at the Mandalay Bay site (which had
been scheduled to open in early April 2020) was suspended. This was
deeply disappointing as we had expected the original scheduled
opening of Mandalay Bay and other new Partner sites would move the
Group into a monthly profit at the EBITDA level for the first time
in April 2020.
The Lockdown Period
We anticipated a lengthy lockdown with little or no revenue and
carried out an immediate full review of our business. We
implemented a programme of cost reductions (including pay cuts for
all monthly salaried employees paid GBP30,000 or more, including
Directors) and focused on cash preservation. We applied in both the
UK and USA for available government support and undertook a placing
of new ordinary shares, which completed in late May 2020, raising
GBP1.2m net of expenses.
We have benefitted from the Coronavirus Jobs Retention Scheme in
the UK and in the USA we have received $161,000 under the Paycheck
Protection Program and $150,000 through the Economic Injury
Disaster loan regime (the former received in H1 and the latter
since the period end). Repayment of the majority of the Paycheck
Protection Program loan is expected to be forgiven by the US
government in accordance with the terms of the scheme. We have also
secured a GBP50,000 bounce back loan from the UK Government (also
after the period end).
One of the challenges the pandemic forced upon us was how to
clean VR headsets in a rapid, effective and safe manner at our
locations. Anticipating consumer and Partner concerns about hygiene
when sites re-open, our team quickly designed and developed our own
sanitisation product to service our highest traffic sites, where
manual cleaning of headsets would not be practical. This led to the
UVISAN cabinet, which uses ultra-violet light to kill bacteria and
viruses. Our product has many potential applications and we have
now begun to sell it to third parties. This is discussed in more
detail below.
Given the considerable uncertainty regarding the length of any
lockdown and its impact, we decided to accelerate our 'in-home'
initiative, utilising our existing content and studio expertise to
create a complementary product, which could be sold through direct
to consumer channels, as well as through our Partner sites when
they re-opened.
Post Lockdown (Post Period End Trading)
Our first Partner sites began to re-open in early July. At the
time of writing we have 23 Partner sites and 5 ImmotionVR units
trading. We were delighted that Mandalay Bay finally opened on 1
August 2020 (though some 4 months later than was expected) and, in
the absence of any further lockdowns, we expect it to be a strong
contributor even at reduced footfall.
At the commencement of lockdown, we had 42 Partner sites in
operation; of which 3 will not re-open; but we have completed 3 new
installations since lockdown, including Mandalay Bay. Of our
current Partner site portfolio, 4 sites have not yet re-opened and
a further 15 are open but have not yet re-opened interactive
attractions such as ours. We are hopeful that more sites will begin
to re-open in the coming months.
Footfall in general has been very heavily impacted by the
pandemic, in large part we believe due to regulatory or
self-imposed restrictions on footfall due to social distancing
requirements. However, where sites are open, we are seeing good
uptake of our offering. Average revenue per headset in the seven
weeks from 3 August 2020 across all Partner sites in operation for
any part of that period (excluding Mandalay Bay) was GBP243 which
was 74% of that for any sites in operation in any part of the
equivalent period in 2019. Whilst this is not an exact site-by-site
comparison, we believe the overall outcome is very encouraging
given social distancing and significantly reduced footfall. Partner
average revenue per headset in the same period on the same basis
was 31% higher than in 2019 when Mandalay Bay is included.
Whilst trading conditions remain challenging and uncertain,
there have been some encouraging signs. In particular, there does
not seem to be a significant resistance amongst customers to using
VR headsets. The three new sites we have opened since lockdown,
including our Undersea Explorer at Shark Reef Aquarium, Mandalay
Bay, have traded well so far. Mandalay Bay is our largest site to
date, with a 36 seat VR theatre and an interactive pre-show
area.
Whilst we still have a significant number of sites closed, or
with restricted footfall, un-audited aggregate revenue for August
2020 was GBP0.3m with the underlying EBITDA loss (after taking the
benefit of furlough grants and benefitting from reduction in
operating costs) was circa GBP30k. Revenue can be analysed as
follows:
Partner ImmotionVR
July August July August
2020 2020 2020 2020
------- -------------- ------- -------
Average headsets 57 116 55 61
------- -------------- ------- -------
Revenue GBP45k GBP246k GBP13k GBP50k
------- -------------- ------- -------
Average weekly revenue per GBP178 GBP479 GBP53 GBP185
headset
------- -------------- ------- -------
The monthly central operating cost base (excluding capitalised
studio salaries and IFRS 16 charges) has averaged around GBP215k
for July and August 2020 (circa GBP180k with the benefit of
furlough grant). We continue to look for additional savings,
particularly in the area of occupancy costs.
Going into lockdown we had a contracted pipeline of 122 Partner
headsets (19 locations). Of those, 46 have now been installed at 3
sites (including 36 at Mandalay Bay). We remain in discussions with
12 Partners on 64 of the remaining headsets, with only 3 sites (12
headsets) having said they cannot at this stage proceed due to
COVID-19 social distancing. Of the balance we have a mixture of
target dates for installs in Q1 2021 (28 headsets; 5 locations) and
those that are "on hold" pending recovery in footfall numbers (36
headsets; 7 locations).
For obvious reasons we are taking a very cautious approach on
new sites and further capex in general. We believe our offering
remains attractive to prospective partners and that there is
plentiful future opportunity to grow the estate. However, beyond
utilising existing stocks on known or selected new opportunities we
do not anticipate major expansion in the short term.
With our reduced operating costs, the first priority is working
with Partners on those key sites that have not yet re-opened or
where performance is lagging and to provide assurance on hygiene
and work on any social distancing concerns that remain.
ImmotionVR
We have successfully re-opened 5 sites but will not re-open the
others (including the site in the USA). This leaves us with the
core of what were the best performing ImmotionVR sites in any case.
They performed well in August 2020 and were all profitable at site
level. We have now moved all sites to either turnover-based rents
or low manageable fixed rents and/or leases terminable at short
notice.
There are no business rates until April 2021 and VAT has been
reduced to 5 per cent, both of which provide an uplift in the short
term. This along with careful management of rotas and part time
furloughing through until end October allows us to trade these
sites at minimal risk and with potential for good profits in school
and public holidays and weekends.
We are also examining some opportunities for short term pop-ups
to cover the Christmas holiday period - which is a further means of
utilising our available stock.
Let's Explore Oceans
As we went into lockdown, it quickly became clear that we should
accelerate our 'in-home' plans. With an arsenal of VR content,
especially undersea experiences, it was clear this could be used to
create a fully connected 'in home' offering, including VR headset
and experiences in one, simple to use, boxed product.
This exciting new product will be launched tomorrow (1 October
2020).
UVISAN
We developed the UVISAN cabinet for our own purposes. It was
clear that for our high traffic sites we would need an alternative
to manual clean-down of our VR headsets in particular. We needed
something that did not use chemicals or fluids and that safely and
rapidly killed pathogens without damaging our equipment.
Accordingly, we opted to use ultra-violet light, which is
scientifically proven to be effective in killing viruses and
bacteria.
Our cabinets allow rapid cleaning of not only our VR headsets
and headphones but also a very wide range of other products. It is
particularly well suited to sanitising sensitive electronic
equipment, such as laptops, tablets, notebooks, headphones,
microphones as the UV light does not damage these.
Therefore, we began to approach third parties and we have now
made initial third-party sales to schools; universities and
industrial partners. We also have trials underway with some
important industrial and healthcare parties.
We have also been asked by a number of parties if we have an
ambient UV sanitising product for rooms and surfaces and we are in
the process of designing a cost-effective product in conjunction
with an educational establishment.
Outlook
We continue to tread cautiously and are focused on working with
existing partners to optimise trading at sites that are open and to
do what we can to assist in the re-opening of sites that remain
closed. Our first priority is to reach EBITDA and then operating
cashflow breakeven.
We have invested in developing 'Let's Explore' and 'UVISAN' and
believe that these can also begin to contribute in a meaningful way
to our fixed costs of operation over the coming months and have the
potential to flourish into businesses in their own right.
Rather than any major new capex in our Partner estate, we will
seek to deploy the stock of machines on hand into sites that are
already in our known pipeline or for selected new opportunities, in
both cases where we believe that any cost of commissioning will be
rapidly recovered.
This has been an exceptionally difficult period and we have had
to make some tough decisions, including saying goodbye to valued
colleagues. We are proud of the resilience and professionalism of
our team. We do not expect the road ahead to be easy; we will stay
focused and nimble, seeking to balance caution with growth.
IMMOTION GROUP PLC
INTERIM CONSOLIDATED INCOME STATEMENT
for the six months ended 30 June 2020
Unaudited Unaudited Audited
Notes Six months Six months 12 months
to to to
30 June 30 June 31 December
20 19 19
GBP'000 GBP'000 GBP'000
Continuing operations 3
Revenue 818 1,280 3,606
Cost of sales (789) (1,154) (2,509)
_______ _______ _______
Gross profit 29 126 1,097
Other income 4 308 - -
Administrative expenses (2,867) (2,629) (6,524)
_______ _______ _______
Operating loss (2,530) (2,503) (5,427)
Memorandum:
Adjusted EBITDA (1,212) (1,443) (2,494)
Amortisation (352) (236) (561)
Depreciation (851) (569) (1,304)
Share based payments (64) (131) (171)
Impairment of intangible assets - - (458)
Loss on disposal of fixed assets (24) - (12)
Restructuring costs (27) (124) (427)
______ ______ ______
Loss from operations (2,530) (2,503) (5,427)
-------------------------------------- ------ ----------- ----------- ------------
Finance costs (45) (74) (108)
Finance income 1 2 4
______ ______ ______
Loss before taxation (2,574) (2,575) (5,531)
Tax credit 58 137 84
______ ______ ______
Loss for the period from continuing
operations (2,516) (2,438) (5,447)
Profit from discontinued operations - 44 32
Loss after taxation (2,516) (2,394) (5,415)
======== ======== ========
Other comprehensive income /
(expense) for the period
Profit / (loss) on translation
of subsidiary 67 4 (29)
Total comprehensive expense
for the period (2,449) (2,390) (5,444)
======== ======== ========
Earnings per share 5 GBP0.01 GBP0.01 GBP0.01
Basic EPS from continuing operations (0.77) (1.06) (2.13)
Basic EPS from discontinued
operations - 0.02 0.01
______ ______ ______
Basic EPS from loss for the
period (0.77) (1.04) (2.12)
Diluted EPS from continuing
operations (0.77) (1.06) (2.13)
Diluted EPS from discontinued
operations - 0.02 0.01
______ ______ ______
Diluted EPS from loss for the
period (0.77) (1.04) (2.12)
IMMOTION GROUP PLC
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2020
(unaudited)
Share Share Retained Foreign Total
capital premium earnings exchange
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 31 December
2018 78 9,999 (3,861) (16) 6,200
Total comprehensive expense
for the period - - (2,394) - (2,394)
Currency translation
of overseas subsidiary - - - 4 4
Issue of new shares 22 3,278 - - 3,300
Issue costs deducted
from equity - (219) - - (219)
Share based payment expense - - 131 - 131
_____ _____ _____ _____ _____
Balance at 30 June 2019 100 13,058 (6,124) (12) 7,022
_____ _____ _____ _____ _____
Total comprehensive expense
for the period - - (3,021) - (3,021)
Issue of new shares 15 2,406 - - 2,421
Issue costs deducted
from equity - (154) - - (154)
Share based payment expense - - 40 - 40
Currency translation
of overseas subsidiary - - - (33) (33)
_____ _____ _____ _____ _____
Balance at 31 December
2019 115 15,310 (9,105) (45) 6,275
_____ _____ _____ _____ _____
Total comprehensive expense
for the period - - (2,516) - (2,516)
Currency translation
of overseas subsidiary - - - 67 67
Issue of new shares 37 4,164 - - 4,201
Issue costs deducted
from equity - (328) - - (328)
Share based payment expense - - 64 - 64
_____ _____ _____ _____ _____
Balance at 30 June 2020 152 19,146 (11,557) 22 7,763
_____ _____ _____ _____ _____
IMMOTION GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2020
Unaudited Unaudited Audited
Notes 30 June 20 30 June 19 31 December
19
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 2,638 1,838 2,395
Right of use assets 580 914 737
Intangible assets 6 3,971 4,517 4,020
______ ______ ______
Total non-current assets 7,189 7,269 7,152
______ ______ ______
Current assets
Inventories - 147 -
Trade and other receivables 668 1,139 803
Cash and cash equivalents 1,811 737 474
______ ______ ______
Total current assets 2,479 2,023 1,277
______ ______ ______
Total assets 9,668 9,292 8,429
______ ______ ______
LIABILITIES
Current liabilities
Trade and other payables (947) (864) (1,060)
Finance leases (340) (559) (401)
Bank overdraft and loans (180) (156) (101)
Deferred tax (7) (38) (27)
Contract liabilities (12) (113) (14)
_______ _______ _______
Total current liabilities (1,486) (1,730) (1,603)
_______ _______ _______
Total current net assets /
(liabilities) 993 293 (326)
Non-current liabilities
Bank loans (95) (88) (55)
Finance leases (324) (435) (496)
Other payables - (17) -
_______ _______ _______
Total non-current liabilities (419) (540) (551)
_______ _______ _______
TOTAL NET ASSETS 7,763 7,022 6,275
_______ _______ _______
CAPITAL AND RESERVES
ATTRIBUTABLE TO EQUITY HOLDERS
OF THE PARENT
Issued share capital 7 152 100 115
Share premium account 7 19,146 13,058 15,310
Foreign exchange reserve 22 (12) (45)
Retained earnings (11,557) (6,124) (9,105)
_______ _______ _______
7,763 7,022 6,275
_______ _______ _______
IMMOTION GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 June 2020
Unaudited Unaudited Audited
Six months Six months 12 months
to to to
30 June 20 30 June 19 31 December
19
GBP'000 GBP'000 GBP'000
OPERATING ACTIVITIES
Loss before tax including discontinued
operations (2,574) (2,531) (5,499)
Adjustments for:
Share based payments 64 131 171
Depreciation 851 569 1,302
Loss on disposal of fixed assets 24 - 12
Amortisation 352 236 561
Impairment of intangible assets - - 458
Finance costs 45 74 108
Finance income (1) - (4)
Foreign exchange on retranslation
of fixed assets (101) (11) (32)
Foreign exchange loss 67 4 (29)
Taxation refund received - - 289
_____ _____ _____
Operating loss before changes in
working capital and provisions (1,273) (1,528) (2,663)
Increase in stocks - (14) 133
Decrease in trade and other receivables 173 357 339
Decrease in trade and other payables (113) (117) (55)
_____ _____ _____
Cash flows used in operating activities (1,213) (1,302) (2,246)
_____ _____ _____
INVESTING ACTIVITIES
Purchase of property, plant and equipment (931) (1,750) (2,883)
Purchase of intangible assets (288) (715) (1,005)
Disposals of property, plant and
equipment 54 25 15
Foreign exchange on retranslation
of fixed assets - - 32
_____ _____ _____
Cash consumed by investing activities (1,165) (2,440) (3,841)
_____ _____ _____
FINANCING ACTIVITIES
Finance costs (45) (74) (108)
Finance income 1 2 4
New Loans and finance leases 174 1,063 1,166
Loan repayments (55) (91) (560)
Finance lease repayments (233) (213) -
Issue of ordinary shares 4,201 3,300 5,721
Costs on issue of shares (328) (219) (373)
_____ _____ _____
Cash generated by financing activities 3,715 3,768 5,850
INCREASE/ (DECREASE) IN CASH AND
CASH 1,337 26 (237)
EQUIVALENTS --------------- --------------- ---------------
Cash and cash equivalents brought
forward 474 711 711
_____ _____ _____
CASH AND CASH EQUIVALENTS CARRIED
FORWARD 1,811 737 474
_____ _____ _____
IMMOTION GROUP PLC
NOTES TO THE INTERIM REPORT
for the six months ended 30 June 2020
1. Corporate information
The interim consolidated financial statements of the Group for
the period ended 30 June 2020 were authorised for issue in
accordance with a resolution of the directors on 29 September 2020.
Immotion Group Plc ("the company") is a Public Limited Company
quoted on AIM, incorporated in England and Wales. The interim
consolidated financial statements do not comprise statutory
accounts within the meaning of section 434 of the Companies Act
2006.
2. Statement of Accounting policies
2.1 Basis of Preparation
The entities consolidated in the half year financial statements
of the company for the six months to 30 June 2020 comprise the
company and its subsidiaries (together referred to as "the
Group").
The interim consolidated financial statements do not include all
the information and disclosures required in the annual financial
statements and should be read in conjunction with the Group's
annual audited consolidated financial statements for the year ended
31 December 2019.
The directors are satisfied that, at the time of approving the
consolidated interim financial statements, it is appropriate to
adopt a going concern basis in accordance with the recognition and
measurement criteria of International Financial Reporting Standards
("IFRS") as adopted by the European Union.
2.2 Accounting Policies
The interim results' announcement has been prepared in
accordance with IFRSs, International Accounting Standards and
Interpretations issued by the International Accounting Standards
Board, as adopted by the European Union, and with those parts of
the Companies Act 2006 applicable to companies preparing their
accounts under IFRSs. The consolidated financial statements have
been prepared under the historical cost convention.
The principal accounting policies adopted in the preparation of
these interim consolidated financial statements are consistent with
those followed in the preparation of the Group's annual audited
consolidated financial statements for the year ended 31 December
2019, except for the new and revised IFRSs effective 1 January
2020. None of the amendments adopted on 1 January 2020 have had a
material impact on the interim consolidated financial statements of
the Group.
The preparation of these consolidated half year financial
statements requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and
the reported amounts of assets and liabilities, income and expense.
Actual results may differ from these estimates in preparing these
consolidated half year financial statements.
Going concern - the ongoing impact of COVID-19 on the Group has
been considered in the preparation of these interim consolidated
financial statements. At the reporting date income generation has
re-commenced; the Group has adopted new distancing and cleansing
processes; and the directors remain confident in the long-term
future performance of the Group, whilst recognising that continuous
monitoring of, and adjustment to, the effects of COVID-19, will be
essential. In reaching their conclusion, the Directors considered
the financial position of the Group, and the forecast trading, for
12 months from the reporting date. The forecasts assume a staged
recovery back to pre-COVID-19 trading conditions and no further
widespread lockdowns throughout the period.
Impairment of intangible assets and goodwill - recoverable
amounts are based on value in use calculations using
management's best estimate of future performance. On the basis
of the forecast cash flows prepared it is concluded
that no impairment of intangible assets and goodwill is
required.
Recently applied a ccounting standards and interpretations
adopted
IFRS 16
Effective 1 January 2019, IFRS 16 replaced IAS 17 Leases and
IFRIC 4 Determining Whether an Arrangement Contains a Lease. IFRS
16 provides a single lessee accounting model, requiring the
recognition of assets and liabilities for all leases, together with
options to exclude leases where the lease term is 12 months or
less, or where the underlying asset is of low value.
The Group adopted IFRS 16 using the modified retrospective
approach with recognition from the transitional date (1 January
2019) without restatement of comparative figures.
As a lessee, the Group previously classified leases as operating
or finance leases based on its assessment of whether the lease
transferred substantially all of the risks and rewards of
ownership. Under IFRS 16, the Group recognises right-of-use assets
and lease liabilities, except where the lease is of low value, or
the lease term is 12 months or less. The lease liabilities are
measured at the present value of the required lease payments at
commencement, discounted using the Group's incremental borrowing
rate, considered to be 6%.
Government grants and assistance
The Group has applied IAS 20 - Accounting for Government Grants
and Disclosure of Government Assistance - in relation to Government
grants received in the period to 30 June 2020 (further details in
Note 4). No government grants or assistance were received in prior
periods.
In accordance with IAS 20 the accruals method of accounting has
been adopted.
-- grants in recognition of specific expenses are recognised in
profit or loss in the same period as the relevant expenses;
-- grants related to depreciable assets are recognised in profit
or loss over the periods and in the proportions in which
depreciation expense on those assets is recognised; and
-- grants related to non-depreciable assets which require the
fulfilment of certain obligations are recognised in profit or loss
over the periods that bear the cost of meeting the obligations.
3. Segment Information
The Group's primary reporting format for segment information is
business segments which reflect the management reporting structure
in the Group.
6 months to 30 June 2020
Total
6 months
Immotion Partners Content Head Office to 30 June
VR 2020
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 243 563 7 5 818
Cost of sales (366) (370) (50) (3) (789)
Government
grants - - - 259 259
Rent income - - - 49 49
Admin expenses* (185) (432) (31) (901) (1,549)
---------------- ---------------- ---------------- ---------------- ---------------
Operating
loss (308) (239) (74) (591) (1,212)
Amortisation (5) (6) (288) (53) (352)
Depreciation (221) (432) (46) (152) (851)
Loss on disposal - - - (24) (24)
Restructuring - (15) (9) (3) (27)
Finance costs - - - (45) (45)
Finance income - - - 1 1
Share based
payments - - - (64) (64)
Tax - - 20 38 58
---------------- ---------------- ---------------- ---------------- -------------
Loss for
the period (534) (692) (397) (893) (2,516)
---------------- ---------------- ---------------- ---------------- ------------
*Admin expenses exclude depreciation, amortisation, loss on
disposal, restructuring costs, finance costs and income, taxation
and share based payments.
3. Segment Information (continued)
External revenue by location Location of assets Net tangible capital
of customer expenditure by
location
of assets
30-Jun-20 30-Jun-19 31-Dec-19 30-Jun-20 30-Jun-19 31-Dec-19 30-Jun-20 30-Jun-19 31-Dec-19
Continuing Continuing Continuing
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
United
Kingdom 345 719 1,599 7,449 7,612 6,437 239 592 1,182
United
States
of America 301 348 1,031 1,988 1,445 1,698 692 898 1,358
Netherlands - 77 422 - - - - - -
China 7 34 156 12 - 14 - - 17
Australia 85 23 187 41 18 52 - 18 73
Germany 9 14 83 33 34 43 - 40 65
Spain - 12 - - - - - - -
United
Arab
Emirates 39 8 55 74 123 95 - 141 83
Japan - 5 5 - - - - - -
Estonia - 1 1 - - - - - -
Portugal - (17) - - - - - - -
France 2 - 5 6 - 8 - - 9
Saudi
Arabia 29 56 62 65 60 82 - 61 96
Eire 1 - - - - - - - -
_____ _____ _____ _____ _____ _____ _____ _____ _____
Total 818 1,280 3,606 9,668 9,292 8,429 931 1,750 2,883
_____ _____ _____ _____ _____ _____ _____ _____ _____
More than 10% of revenue was generated from one customer. This
has been recognised within the ImmotionVR and Partners'
revenues.
Total revenues for the period to 30 June 2020 from 10% plus
customers:
GBP'000
USA 123
UK 192
Total 315
4. Other Income
Other income for the period of GBP308k includes GBP259k received
from the UK Government under the Coronavirus Job Retention Scheme,
and GBP49k of property rental income.
The government grant of GBP259k covered 80% of the payroll costs
incurred in April, May and June 2020 of furloughed employees.
The Group is satisfied that it has met all the conditions
relating to these grants and that no liability for repayment of the
grants exists.
The Group has not benefited from any other Government grants or
assistance in the period to 30 June 2020 or in any prior periods of
account.
5. Earnings per share
The calculation of the group basic and diluted loss per ordinary
share is based on the following data:
Unaudited Unaudited Audited
Six months Six months 12 months
to to to
30 June 30 June 31 Dec 19
20 19
GBP'000 GBP'000 GBP'000
The earnings per share is based
on the following:
Continuing earnings post tax
loss attributable to shareholders (2,516) (2,438) (5,447)
Discontinued earnings post tax
earnings attributable to shareholders - 44 32
========= ========= ==========
====== ====== ====
Basic weighted average number
of shares 328,286,069 230,119,542 255,564,704
Diluted weighted average number
of shares 328,286,069 230,119,542 255,564,704
========= ======== ==============
====== ======
GBP0.01 GBP0.01 GBP0.01
Basic earnings per share (0.77) (1.04) (2.12)
Diluted earnings per share (0.77) (1.04) (2.12)
========= ========== =========
Continuing earnings per share (0.77) (1.06) (2.13)
Continuing diluted earnings per
share (0.77) (1.06) (2.13)
========= ========== =========
Discontinued earnings per share - 0.02 0.01
Discontinued diluted earnings
per share - 0.02 0.01
========= ========== =========
Earnings per ordinary share has been calculated using the
weighted average number of shares in issue during the period. The
weighted average number of equity shares in issue in the period to
30 June 2020 was 328,286,069.
6. Intangible Assets
Other intangible Goodwill Development Total
assets acquired costs
on acquisition
GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 January 2020 539 2,438 1,973 4,950
Additions 2 - 286 288
Foreign exchange
adjustment - - 26 26
_____ _____ _____ _____
At 30 June 2020 541 2,438 2,285 5,264
_____ _____ _____ _____
Amortisation
At 1 January 2020 422 - 508 930
Charge 58 - 294 352
Foreign exchange
adjustment - - 11 11
_____ _____ _____ _____
At 30 June 2020 480 - 813 1,293
_____ _____ _____ _____
Net book value
30 June 2020 61 2,438 1,472 3,971
_____ _____ _____ _____
31 December 2019 117 2,438 1,465 4,020
_____ _____ _____ _____
Development costs are fully amortised on a straight-line basis
over 3 years.
For projects which are still underway and are not ready to be
used no amortisation has been charged.
Other intangible assets are being amortised principally over a
period of 3 years. Domains are amortised over 10 years and the
website over 2 years.
Goodwill is not amortised.
Amortisation is charged to administrative costs in the Statement
of Comprehensive Income.
7. Share capital
Called up share capital No. Value
Allotted, issued and fully GBP'000
paid
Ordinary shares of 0.040108663
pence each 379,538,083 152
=========== ==========
Shares issued in the 6 month period to 30 June 2020:
Date Description No shares Price/ Gross share Cash received
share value
GBP GBP GBP
Issue of shares
of 0.040108663p
12.02.2020 each 39,310,339 0.0725 2,850,000 2,850,000
Issue of shares
of 0.040108663p
27.05.2020 each 54,062,200 0.0250 1,351,555 1,351,555
----------------------- --------------------- ---------------------
93,372,539 4,201,555 4,201,555
=========== ========== =========
As at 30 June 2019 250,351,584 13,869,010 10,703,886
As at 31 December 2019 286,165,544 16,289,027 13,073,885
As at 30 June 2020 379,538,083 20,490,582 17,275,440
8. Related party transactions
Brand consultancy services to the value of GBP6,250 (year to 31
December 2019: GBP50,437) were invoiced in the period to Immotion
Group Plc by S Higginson, the adult son of M J Higginson. M J
Higginson is a director of Immotion Group Plc. There was GBPnil (31
December 2019: GBPnil) outstanding at the period end to / from
Immotion Group Plc to / from S Higginson.
M J Higginson, a director of Immotion Group Plc, is a director
and controlling shareholder of M Capital Investment Properties
Limited. Services to the value of GBP47,938 (year to 31 December
2019: GBP62,500) were invoiced in the period by M Capital
Investment Properties Limited to Immotion Group Plc. At 30 June
2020, Immotion Group Plc owed GBPNil (31 December 2019: GBPNil) to
M Capital Investment Properties Limited.
R Miller, a director of Immotion Group Plc, is a director of
Robin Miller Consultants Ltd. In the period, services totalling
GBP7,500 (year to 31 December 2019: GBP15,112) were billed to
Immotion PLC from Robin Miller Consultants Ltd. At 30 June 2020,
GBP1,250 (31 December 2019: GBP1,250) was owing from Immotion Group
Plc to Robin Miller Consultants Ltd.
M J Higginson and R Miller, directors of Immotion Group Plc, are
directors of Digitalbox Plc, the parent company of Digitalbox
Publishing Limited. Services to the value of GBP1,532 (year to 31
December 2019: GBP17,437) were invoiced in the period by Digitalbox
Publishing Limited to Immotion Group Plc. At 30 June 2020, Immotion
Group Plc owed GBPNil (31 December 2019: GBP4,672) to Digitalbox
Publishing Limited.
D Marks, a director of Immotion Group Plc, was advanced a loan
in a prior period by the subsidiary Immotion Studios Limited.
Interest is charged on the loan at 3% per annum. At 30 June 2020, D
Marks owed GBP15,523 (31 December 2019: GBP15,343) inclusive of
interest.
E Stanyon, adult step-daughter of M J Higginson, a director of
Immotion Group Plc, was advanced a loan in a prior period by the
subsidiary Immotion Studios Limited. Interest is charged on the
loan at 3% per annum. At 30 June 2020, E Stanyon owed GBP8,388 (31
December 2019: GBP8,291) inclusive of interest.
The total amounts paid to key management personnel during the
period was GBP275,151. The key management personnel are considered
to be the directors of Immotion Group Plc.
9. Seasonality
The Group's activities are not subject to significant seasonal
variation.
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END
IR PPUACBUPUGBB
(END) Dow Jones Newswires
September 30, 2020 02:00 ET (06:00 GMT)
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