TIDMPROX
RNS Number : 1420L
Proxama PLC
29 September 2016
29 September 2016
Proxama PLC
("Proxama" or the "Company")
Half-Year Results
Proxama PLC, (AIM: PROX), the mobile commerce company
specialising in proximity marketing and a provider of end-to-end
payment solutions for card issuers and processors, is pleased to
announce its half year results for the six months ended 30th June
2016.
Highlights
Financial Highlights
-- Revenues increased by 26% to GBP1.21m (2015 GBP0.96m). Other
operating income, which includes grant income, has increased to
GBP0.32m (2015 GBP0.04m) and therefore total income for the half
year is GBP1.53m (2015 GBP1.0m).
-- EBITDA(1) losses before exceptional items reduced
significantly to GBP2.10m (2015: GBP3.48m).
-- Losses before tax decreased to GBP2.94m (2015: GBP4.6m).
-- Loss per share(2) of 0.27p (2015: 0.44p).
Operational Highlights
-- Sale of the Digital Payments Division is proceeding with completion expected in 2016.
-- The Digital Payments Division has made good progress in H1
through accelerating the commercial availability of Proxama's cloud
based mobile payments solutions.
-- The Proximity Marketing Division has enjoyed a strong period:
o Executed commercial mobile proximity engagement campaigns for
Royal Bank of Canada, GLACÉAU smartwater (a division of Coca Cola),
Skyscanner and in collaboration with their partner the Mobile Gamer
Network, DraftKings and Crabbies.
o Establishing what is believed to be the largest beacon network
in the UK, with a London focus, being further expanded with a
specific emphasis on adding new beacons in transport and leisure
venues.
Post Period End
-- Completed an equity placing in July 2016 raising a further
GBP2m (before expenses) and the Company is on track to be cash
breakeven by the end of 2017. Cash as at 30 June 2016 was
GBP0.3m.
-- In September, Proxama became one of only two companies
worldwide to be certified by Google as a "Location Services
Provider" to deliver Eddystone experiences for consumers, including
the Physical Web (the use of mobile technology to interact with
objects and locations) after passing the technical requirements to
demonstrate full integration with the Google Beacon Platform.
-- With Apple's iPhone 7 reliant of Bluetooth for its wireless
functions such as headphones this is expected to increase the use
of Bluetooth in the UK, a positive development for Proxama's
Bluetooth enabled beacon network.
(1) EBITDA means earnings before interest, tax, depreciation,
amortization and exceptional items
(2) Loss per share is computed from statutory profits after tax
adjusted to exclude exceptional items
Commenting on the results, John Kennedy, Chief Executive of
Proxama, said,
"The calibre of the brands and businesses we are now working
with on a day to day basis are a reflection of the future potential
of our business. We are excited about the advances in our network
scale and reach, and how brands are using this unique capability.
The early revenues from advertising and data are promising and we
are focused on looking to maximise the opportunity for
Proxama."
Enquiries:
Proxama PLC
John Kennedy, Chief Executive 020 3668 2888
--------------------------------- --------------
Peel Hunt LLP
(Nominated Adviser and Broker)
Richard Kauffer
Euan Brown 020 7418 8900
--------------------------------- --------------
Novella
Tim Robertson
Toby Andrews 020 3151 7008
--------------------------------- --------------
This announcement contains inside information for the purposes
of Article 7 of regulation 596/2014.
Forward looking statements
Certain statements contained within the announcement are forward
looking statements and are based on current expectations, estimates
and projections about the potential returns of Proxama and industry
and markets in which Proxama operates, the Directors' beliefs and
assumptions made by the Directors. Words such as "expects",
"anticipates", "should", "intends", "plans", "believes", "seeks",
"estimates", "projects", "pipeline" and variations of such words
and similar expressions are intended to identify such forward
looking statements and expectations. These statements are not
guarantees of future performance or the ability to identify and
consummate investments and involve certain risks, uncertainties,
outcomes of negotiations and due diligence and assumptions that are
difficult to predict, qualify or quantify. Therefore, actual
outcomes and results may differ materially from what is expressed
in such forward looking statements or expectations. Among the
factors that could cause actual results to differ materially are:
the general economic climate, competition, interest rate levels,
loss of key personnel, the result of legal and commercial due
diligence, the availability of financing on acceptable terms and
changes in the legal or regulatory environment.
These forward-looking statements speak only as of the date of
this announcement. Proxama expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statements contained herein to reflect any change
in Proxama's expectations with regard thereto, any new information
or any change in events, conditions or circumstances on which any
such statements are based, unless required to do so by law or any
appropriate regulatory authority."
About Proxama PLC
-- Proxama is an international commerce Company specialising in
proximity marketing via mobile and providing end-to-end solutions
for card issuers to migrate customers from magnetic stripe credit
and debit cards to contactless mobile payments.
-- Today, Proxama's solutions are used by banks, financial
institutions, mobile app companies, media owners, stadium owners,
retailers and brands.
-- The proximity marketing division focuses on connecting
consumers to brands and retailers via Bluetooth Low Energy (BLE)
beacon technology. Proxama establishes and owns beacon networks in
high footfall locations such as City Centres, stadia, shopping
malls and retail outlets, which are then able to communicate to
consumers via messages to mobiles when the consumer is in close
proximity to a beacon. The technology platform at the heart of this
division is TapPoint(R).
-- The payments division manages end-to-end credit and debit
cards solutions on behalf of financial institutions in the United
States, Europe and the Middle East and specialises in enabling the
migration of cards from magnetic stripe cards, to chip and pin
cards and from contactless chip cards to mobile devices. The
technology behind this division is Proxama's Digital Enablement
Platform.
Chairman's Statement
Introduction
This is an exciting time for our business as we move firmly into
the process of commercialising our technologies across our
Proximity Marketing and Digital Payments Divisions. Within our
Proximity Marketing Division our strategy and execution in the
marketplace is evolving in line with the opportunities that arise.
We believe our beacon network to be the largest in the UK of its
type. The fundamental basis of our business model remains focused
on generating revenue from both location based mobile marketing
products and the sale of data to major Data Management Providers
(DMPs).
Major brands and advertising agencies are increasingly looking
to see greater co-ordination between multi-channel campaigns such
as integrating mobile advertising with Out of Home ("OOH")
advertising. In addition, the desire for attribution (evidencing
mobile advertising has been effective) combined with transparent
analysis of mobile campaign results. This is an important trend for
the Company as Proxama's technology is well positioned to help with
both of these aspirations in the marketplace.
Update on Sale of Digital Payments Division
The business continues to focus on the successful strategic sale
of the Digital Payments Division. As announced on 24 June 2016,
discussions regarding the potential sale of the Digital Payments
Division (the "Sale") continue to take place with a potential
buyer. The potential buyer's due diligence is ongoing and
discussions are active. Whilst the Company is continuing
discussions with this potential buyer, it is not in a period of
exclusivity and there are encouraging conversations with other
potential buyers. The Board expect that the Strategic Review will
complete by the end of 2016. However, there can be no certainty
that an offer will be made, any sales concluded, nor as to the
terms of any offer or sale.
Results
The trading performance of the business is in line with
management expectations. The Company grew revenues and other income
by over 50% to GBP1.53m (2015: GBP1.0m) and the cost-base has
continued to reduce whilst maintaining investment in key areas,
resulting in an EBITDA(1) loss of GBP2.10m (2015: GBP3.48m).
The Proximity Marketing Division income and revenue accounted
for approximately 24% (GBP0.4m) of Group income in first half of
2016, up from 5% (GBP0.1m) in 2015.
The directors have taken steps to reduce the running costs of
the Company to the minimum level consistent with the proper running
of a public company. The costs of the business continue to be
managed efficiently, reducing by more than 15% on a year on year
basis, with the objective of extending, as far as possible, the
cash resources of the Company and the period during which the
Company can sell its Digital Payments Division. The Board believes
the Company is well placed to fund the business through to being
cash flow positive by the end of 2017.
As at 30 June 2016, the Company had a cash balance of GBP0.3m
and during July raised GBP2m (before expenses) from new and
existing investors.
Operating Review
Proximity Marketing Division
Key announcements affecting the mobile proximity marketing
sector from Apple and Google have served to underline the
importance of this marketplace to current and future participants.
One of the most significant is that Google continue to invest and
develop their Nearby and Physical Web propositions globally, with
physical location, as identified by a BLE beacon and the Eddystone
standards, being at the heart of Google's development in mobile.
With Proxama being one of only two companies in the world and the
only one outside of the US to be certified by Google as a Location
Services Provider, Proxama can offer services and experiences using
these technologies, significantly increasing the market
opportunity.
Apple's new iPhone 7 launch has also focused the spotlight on
Bluetooth adoption - with the increasing move to wireless functions
which require Bluetooth, it is expected that more and more
consumers will default to having Bluetooth permanently on.
These decisions by the industry's major players are all
combining to support our positioning and the importance of
continuing to build out our leading UK beacon network. All major
London public transport types are now covered, with a majority
using the latest dual beacons (supporting both Apple iBeacon and
Google Eddystone formats); we have partnered with most of the major
OOH media players, across London bars and pubs, cinemas, regional
trains, buses, taxis, airports and bars around the 20 English
Premier League football grounds. Our current proximity network
capability stands at around 4,000 beacons.
However, it is critical to understand that the fundamental KPI
of a beacon network is not the number of beacons but the consumer
reach of those beacons. For example, the Company currently
estimates the potential consumer reach across its beacon enabled
London zone 1 and 2 stations to be over 1 billion, which is sourced
from TFL's entry and exit footfall data. Our partnership with the
Emblem Group across 97 of those stations enables us to maximise the
opportunity as consumers pass each one of our beacons.
The Company has a campaign pipeline containing some of the most
recognisable brand names in the world. So far in 2016, Proxama has
worked on campaigns with Royal Bank of Canada, GLACÉAU smartwater
(a division of Coca Cola), Skyscanner and in collaboration with
their partner the Mobile Gamer Network, DraftKings and Crabbies.
The calibre of the brands the Company is now working with, on a
consistent and regular basis, is an excellent indicator of the
endorsement of the proximity marketing business and there is a
growing pipeline of similar campaigns still to come this year and
into 2017.
An important next stage for our market is around greater
campaign analysis, and in particular, the demand for greater
attribution of mobile campaign spend for marketers. Even in 2016 it
is difficult to execute and measure effective location based
targeting, and location technology is often crudely used, missing
or inaccurate. We believe only beacon technology is able to
determine the exact proximity of a consumer to a physical location
and also the context e.g. entering a station, on a moving bus,
dwelling at a pub, bar or cinema. Once this moment has been
identified, Proxama can help the brand or app publisher deliver the
most appropriate notification, engaging message or advert.
Today the Company is also announcing the completed integration
of their Software Development Kit ("SDK") into the Android version
of the iconic London Tube Map app, with our partner Mapway. The app
has circa 900,000 lifetime downloads and is another step change in
the Proxama audience reach across our beacon network. The Company
has a strong pipeline of other major app owners, who are focused
across a range of sectors.
Monetising the business is now underway with campaigns going
beyond trials to having a commercial element, which we expect will
see accelerated revenues throughout 2016.
With Proxama's audience reach expanding significantly every
month, the Company has begun the process of commercialising the
anonymised data this audience generates, through data partnership
agreements with the major DMPs such as Oracle BlueKai, AdSquare and
Nielson. The Company anticipates growing data revenues in line with
the growth of the network and advertising campaigns run across
it.
Digital Payments Division
The Digital Payments Division has enjoyed a successful first
half of 2016. Our focus has been on accelerating the commercial
availability of our Cloud Based mobile payments solutions,
delivering a first class service to our existing International
clients and implementing software solutions to new clients in USA
and EMEA. After previously winning contracts with new clients such
as Navy Federal Credit Union, Diners Club South Africa (DCSA) and
Tutuka in South Africa, a significant focus has been in ensuring
that we exceeded these new clients' expectations.
The Division is also at final stages of selection with a number
of chip and pin migration and mobile payment prospects which will
further increase market penetration. Proxama has invested heavily
in expanding its mobile payments solutions and now for the first
time, and in response to market feedback, we can offer a Software
as a Service (SaaS) model for rapid implementation of our highly
scalable and resilient solutions.
People
The Board is pleased to announce that John Kennedy has been
appointed as permanent CEO of Proxama PLC. John has been interim
CEO for the Group since 15th July 2015 and has been instrumental in
restructuring the business and laying the rails for an exciting
Proximity Marketing business. John will continue to combine this
with the CFO role whilst the Board looks to commence a search for
this position.
The Board would also like to recognise the contribution made by
the Proxama staff in what has been a dynamic and challenging few
months, especially given the uncertainties over the future of the
Digital Payments Division. We thank them all for their commitment
and professionalism.
Outlook
The very good progress which has been made reinforces the
Board's belief that the Company is establishing itself as a real
presence in this rapidly expanding market of location based
marketing. We believe our beacon network represents the largest
such network in the UK of its type and when combined with our
proven ability to execute mobile proximity engagement campaigns
puts the Company in a strong position. We can now focus on
capitalising on our infrastructure from both location based mobile
marketing products and the sale of data to major Data Management
Providers.
UNAUDITED INTERIM CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHSED 30 JUNE 2016
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
Unaudited Unaudited Audited
GBP GBP GBP
Revenue 1,206,766 964,033 2,543,644
Cost of sales (260,073) (49,612) (391,941)
------------- ------------ -------------
Gross profit 946,693 914,421 2,151,703
Administrative expenses (4,097,029) (4,829,266) (8,562,679)
Administrative expenses
- exceptional item - (656,250) 109,375
Other operating income 323,496 35,527 336,727
------------- ------------ -------------
Operating loss (2,826,840) (4,535,568) (5,964,874)
Finance income 654 9,515 11,641
Finance expense (115,820) (72,781) (139,624)
Loss on ordinary activities
before taxation (2,942,006) (4,598,834) (6,092,857)
Taxation 129,962 113,879 764,815
Loss for the period (2,812,044) (4,484,955) (5,328,042)
============= ============ =============
Loss per share - basic
and fully diluted (0.27p) (0.44p) (0.52p)
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
FOR THE SIX MONTHSED 30 JUNE 2016
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
Unaudited Unaudited Audited
GBP GBP GBP
Loss for the period (2,812,044) (4,484,955) (5,328,042)
Foreign exchange difference
arising on consolidation (12,347) (14,964) (34,654)
------------ ------------ -------------
Total comprehensive loss
for the period
attributable to equity
holders (2,824,391) (4,499,919) (5,362,696)
============ ============ =============
UNAUDITED INTERIM CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2016
As at As at As at
30 June 30 June 31 December
2016 2015 2015
Unaudited Unaudited Audited
GBP GBP GBP
Assets
Non-current assets
Intangible assets 4,479,709 4,634,819 5,000,609
Property, plant
and equipment 105,538 183,674 127,070
-------------
4,585,247 4,818,493 5,127,679
Current assets
Trade and other
receivables 821,718 793,622 1,879,744
Current tax receivable - 519,923 684,277
Cash and cash equivalents 348,790 1,610,371 270,487
------------- ------------- -------------
1,170,508 2,923,916 2,834,508
Current liabilities
Trade and other
payables (1,736,882) (2,070,111) (2,014,986)
Current portion
of long-term borrowings (4,301) (964,149) (2,747)
-------------
(1,741,183) (3,034,260) (2,017,733)
Net current assets (570,675) (110,344) 816,775
------------- ------------- -------------
4,014,572 4,708,149 5,944,454
Non-current liabilities
Non-current borrowings (2,893,305) (8,403) (1,967,456)
Deferred Tax liabilities (420,800) (553,600) (487,200)
-------------
Net assets 700,467 4,146,146 3,489,798
============= ============= =============
Equity
Share capital 10,404,372 10,194,393 10,195,024
Share premium account 8,985,383 8,703,332 8,703,332
Share based payment
reserve 969,605 729,169 934,966
Merger relief reserve 11,605,556 11,605,556 11,605,556
Translation Reserve (38,839) (6,802) (26,492)
Capital reserve 209,791 209,791 209,791
Equity reserve 44,160 546,178 535,138
Other reserve (9,225,108) (9,225,108) (9,225,108)
Retained deficit (22,254,453) (18,610,363) (19,442,409)
------------- ------------- -------------
Total equity 700,467 4,146,146 3,489,798
============= ============= =============
John Kennedy
Director
UNAUDITED INTERIM CONSOLIDATED CASH FLOW STATEMENT
AS AT 30 JUNE 2016
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
Unaudited Unaudited Audited
GBP GBP GBP
Cash flows from operating
activities
Loss for the period (2,812,044) (4,598,834) (6,092,857)
Adjustments for:
Depreciation of property,
plant and equipment 49,810 51,964 107,635
Amortisation of intangible
assets 677,917 418,763 890,295
Impairment of intangibles
assets 35,668 - 87,777
Profit on disposal of
assets (2,460) - (2,512)
Financial income (654) (9,515) (11,641)
Financial expense 115,820 72,781 139,624
Foreign exchange difference (164) - (34,455)
Share-based payments 34,639 129,720 335,517
(1,901,468) (3,935,121) (4,580,617)
Decrease/(increase) in
trade and other receivables 1,058,026 166,340 (976,044)
Increase/(decrease) in
trade and other payables (344,504) 93,483 (38,359)
------------
Cash used in operations (1,187,946) (3,675,298) (5,518,302)
Current tax credits 684,277 172,643 649,087
------------ ------------ -------------
Net cash used in operating
activities (503,669) (3,502,655) (4,869,215)
Cash flows from investing
activities
Interest received 654 9,515 11,641
Purchase of intangible
assets (192,685) (131,805) (1,056,904)
Purchase of property,
plant and equipment (28,114) (35,909) (39,314)
Sale of property, plant
and equipment 2,460 - 6,850
------------ ------------ -------------
Net cash used in investing
activities (217,685) (158,199) (1,077,727)
Cash flows from financing
activities
Interest paid (95,820) (41,617) (93,082)
Issue of share capital 421 6,721 7352
Convertible loan note
redeemed (Interest) - - (127,534)
Convertible loan note
redeemed (Principal) - - (100,000)
New HP Loans 11,699 - -
New long-term loan 900,000 - 1,600,000
Repayment of bank loans - - (10,249)
Repayments of finance
lease agreements (4,296) - (6,014)
Repayment of other borrowings - (182,482) (556,412)
------------ ------------ -------------
Net cash from financing
activities 812,004 (217,378) 714,061
Net increase/(decrease)
in cash & cash equivalents 90,650 (3,878,232) (5,232,881)
Cash and cash equivalents
at beginning of period 270,487 361,379 5,503,567
Exchange differences on
cash and cash equivalents (12,347) - (199)
------------ ------------ -------------
Cash and cash equivalents
at end of period 348,790 54,719 270,487
============ ============ =============
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
FOR THE PERIODED 30 JUNE 2016
Share Share Capital Translation Merger Share Equity Other Retained Total
capital premium reserve Reserve relief based reserve reserve deficit
reserve payment
reserve
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2015 10,187,672 8,703,332 209,791 8,162 11,605,556 599,449 546,178 (9,225,108) (14,125,407) 8,509,625
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Loss for
the year - - - - - - - - (4,484,955) (4,484,955)
Other
Comprehensive
Income - - - (14,964) - - - - - (14,964)
--------------------------- --------------------- ------------------------ ----------------------------- ---------------------------- ------------------------- ------------------------- ------------------------ ------------- ------------
Total
comprehensive
income
for the
period
attributable
to equity
holders - - - (14,964) - - - - (4,484,955) (4,499,919)
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Issue of
shares 6,721 - - - - - - - - 6,721
Equity - - - - - - - - -
element
of
convertible
loan
Share based
payments - - - - - 129,719 - - - 129,719
Share issue - - - - - - - - - -
costs
--------------------------- --------------------- ------------------------ ----------------------------- ---------------------------- ------------------------- ------------------------- ------------------------ ------------- ------------
Total
transactions
with owners 6,721 - - - - 129,719 - - - 342,869
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Total movement
in
shareholder's
equity 6,721 - - (14,964) - 129,719 - - (4,484,955) (4,363,478)
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
At 30 June
2015 10,194,393 8,703,332 209,791 (6,802) 11,605,556 729,168 546,178 (9,225,108) (18,610,362) 4,146,146
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
At 1 July
2015 10,194,393 8,703,332 209,791 (6,802) 11,605,556 729,168 546,178 (9,225,108) (18,610,362) 4,146,146
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Loss for
the year - - - - - - - - (843,087) (843,087)
Other
Comprehensive
Income - - - (19,690) - - - - - (19,690)
--------------------------- --------------------- ------------------------ ----------------------------- ---------------------------- ------------------------- ------------------------- ------------------------ ------------- ------------
Total
comprehensive
income
for the
period
attributable
to equity
holders - - - (19,690) - - - - (843,087) (862,777)
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Issue of
shares 631 - - - - - - - - 631
Equity
element
of
convertible
loan - - - - - - (11,040) - 11,040 -
Share based
payments - - - - - 205,798 - - - 205,798
Share issue - - - - - - - - - -
costs
--------------------------- --------------------- ------------------------ ----------------------------- ---------------------------- ------------------------- ------------------------- ------------------------ ------------- ------------
Total
transactions
with owners 631 - - - - 205,798 (11,040) - 11,040 206,429
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Total movement
in
shareholder's
equity 631 - - (19,690) - 205,798 (11,040) - (832,047) (656,348)
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
At 31 December
2015 10,195,024 8,703,332 209,791 (26,492) 11,605,556 934,966 535,138 (9,225,108) (19,442,409) 3,489,798
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Share Share Capital Translation Merger Share Equity Other Retained Total
capital premium reserve Reserve relief based reserve reserve earnings
reserve payment
reserve
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2016 10,195,024 8,703,332 209,791 (26,492) 11,605,556 934,966 535,138 (9,225,108) (19,442,409) 3,489,798
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Loss for
the year (2,812,044) (2,812,044)
Other
Comprehensive
Income - - - (12,347) - - - - - (12,347)
--------------------------- --------------------- ------------------------ ----------------------------- ---------------------------- ------------------------- ------------------------- ------------------------ ------------- ------------
Total
comprehensive
income
for the
period
attributable
to equity
holders - - - (12,347) - - - - (2,812,044) (2,824,391)
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Issue of
shares 209,348 282,051 - - - - (490,978) - - 421
Equity - - - - - - - - -
element - -
of
convertible
loan
Share based
payments - - - - - 34,639 - - - 34,639
Share issue - - - - - - - - - -
costs
--------------------------- --------------------- ------------------------ ----------------------------- ---------------------------- ------------------------- ------------------------- ------------------------ ------------- ------------
Total
transactions
with owners 209,348 282,051 - (12,347) - 34,639 (490,978) - - 35,060
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
At 30 June
2016 10,404,372 8,985,383 209,791 (38,839) 11,605,556 969,605 44,160 (9,225,108) (22,254,453) 700,467
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL
STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2016
1. GENERAL INFORMATION
Proxama PLC ("the Company") and its subsidiaries are an
international mobile commerce Company operating across two
divisions specialising in proximity marketing via mobile and
providing end-to-end solutions for card issuers to migrate
customers from magnetic stripe credit and debit cards to
contactless mobile payments. Proxama has been at the forefront of
this market for the last 10 years.
Today, Proxama's solutions are used by banks, financial
institutions, mobile app companies, media owners, stadium owners,
retailers and brands. Current clients include: Diners Club, Navy
Credit Union, Fiserv, Nets, Exterion Media, Skyscanner, O2 and
Ubiquitous.
The Proximity Marketing Division:
-- Focuses on connecting consumers to brands and retailers via
Bluetooth Low Energy (BLE) beacon technology and Near Field
Communication (NFC). Proxama establishes and owns beacon
infrastructure networks in high footfall locations such as City
Centres, transport networks, stadia, shopping malls, entertainment
hubs and retail outlets, which are then able to communicate to
consumers via messages to mobiles when the consumer is in close
proximity to a beacon. The technology platform at the heart of this
division is TapPoint(R).
The Payments Division:
-- Manages end-to-end credit and debit cards solutions on behalf
of financial institutions in the United States, Europe, Africa and
the Middle East and specialises in enabling the migration of cards
from magnetic stripe cards, to chip and pin cards and from
contactless chip cards to mobile devices. The technology behind
this division is Proxama's Digital Enablement Platform.
The Company is a public limited company which is listed on the
Alternative Investment Market of the London Stock Exchange and is
incorporated and domiciled in the United Kingdom. The address of
its registered office is given on the Company Information page.
2. BASIS OF PREPARATION
The financial information has been prepared in accordance with
International Financial Reporting Standards ("IFRS") as adopted by
the European Union, IFRIC interpretations and with those parts of
the Companies Act 2006 applicable to companies reporting under
IFRS. The accounting policies adopted are consistent with those of
the financial statements for the year ended 31 December 2015, as
described in those financial statements.
The figures for the six-month periods ended 30 June 2016 and 30
June 2015 have not been audited. The figures for the year ended 31
December 2015 have been extracted from, but do not constitute, the
consolidated financial statements of Proxama PLC for that year.
Those financial statements have been delivered to the Registrar of
Companies and included an auditors' report, which was unqualified
and did not contain a statement under Section 498(2) or Section
498(3) Companies Act 2006.
3. LOSS PER SHARE
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2015
2016 2015 Audited
Unaudited Unaudited
GBP GBP GBP
Loss attributable
to shareholders (2,812,044) (4,484,955) (5,328,042)
-------------- -------------- --------------
Loss attributable
to shareholders
excluding exceptions
items (2,812,044) (3,828,705) (5,437,417)
-------------- -------------- --------------
Number Number Number
Weighted average number
of shares (basic) 1,030,027,685 1,018,877,152 1,019,185,906
-------------- -------------- --------------
The calculation of basic loss per share is based on loss after
taxation and the weighted average number of ordinary shares of 1p
each in issue during the period.
4. EXCEPTIONAL ITEMS
The 2015 exceptional item of GBP109,375 was the reversal of the
previous year's earn-out consideration accounted for as contingent
post acquisition remuneration on the acquisition of Aconite. This
was reversed as the conditions for the settlement were not met. The
exceptional item of (GBP650,250) was the provision for 6 months'
contingent earn out consideration as at 30th June 2015. This was
not required as at 31st December 2015.
5. AVAILABILITY OF HALF YEARLY REPORT
Copies of the half yearly report are available upon request to
members of the public from the Company's registered office at 7/28
Eastcastle Street, London W1W 8DH. This half yearly report can also
be viewed at www.proxama.com/investors.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ZMGZLRRMGVZM
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