TIDMMIRA
RNS Number : 2248F
Mirada PLC
11 July 2019
11 July 2019
Mirada plc
("Mirada", the "Company" or the "Group")
Final Results for the Year Ended 31 March 2019
Mirada plc (AIM: MIRA), the leading audio-visual content
interaction specialist, announces its final results for the year
ended 31 March 2019.
Financial Highlights
-- Revenue increase of 40% to $12.32 million (2018: $8.82 million)
-- Substantial growth of 57% in subscriber-based licence fees to
$4.05 million (2018: $2.58 million)
-- Positive adjusted EBITDA (as defined in Note 7) of $0.81
million (2018: loss of $1.12 million)
-- Gross profit increased to $11.47 million (2018: $7.94 million)
-- Net loss reduced to $3.11 million (2018: loss of $4.87 million)
-- Net debt reduced to $4.86 million (2018: $11.70 million)
Operational Highlights
-- Successful mass-market deployment of Mirada's OTT product at
Izzi Telecom for the 2018 FIFA World Cup.
-- Deployment of Iris multiscreen licences over new segments of
subscribers at Izzi Telecom to finally reach the milestone of two
million STBs installed by March 2019.
-- Contract win with Skytel in Mongolia in December 2018.
-- First commercial deployment with ATN international, in Bermuda, in January 2019.
-- Commercial deployment of Digital TV Cable Edmund in Bolivia in March 2019.
Jose Luis Vazquez, CEO of Mirada, commented:
"Mirada is increasing its market reach, with a growing healthy
pipeline of opportunities as a result of the successful deployment,
and a wide appraisal of, its Iris multiplatform product. We are
considered to be a top-end solution for many potential customers,
with a flexible model that allows audio-visual companies of any
size to provide a competitive offering to their subscribers.
"Our financial position is continuously improving, reinforced by
the support of our largest shareholder. Together these factors have
led to an improved commercial performance with participation in
multiple deals and, combined with our growing pipeline, provide
confidence in our ability to secure more contract wins in the
current year."
Annual Report and Accounts
The Company's Annual Report and Accounts will be available on
the Company's website, www.mirada.tv.
Enquiries
Mirada plc +44 (0) 207 868 2104
José Luis Vázquez, investors@mirada.tv
Chief Executive Officer
Gonzalo Babío, Chief Financial
Officer
Newgate Communications +44 (0) 207 680 6550
Bob Huxford mirada@newgatecomms.com
Tom Carnegie +44 (0) 20 3328 5656
Allenby Capital Limited
(AIM Nominated Adviser and Broker)
Jeremy Porter
Alex Brearley
Liz Kirchner
About Mirada
Mirada is a leading provider of products and services for
Digital TV Operators and Broadcasters. Founded in 2000 and led by
CEO José Luis Vázquez, the Company prides itself on having spent
almost 20 years as a pioneer in the Digital TV market. Mirada's
core focus is on the ever-growing demand for TV Everywhere for
which it offers a complete suite of end-to-end modular products
across multiple devices, all with innovative state-of-the-art UI
designs.
Mirada's products and solutions, acclaimed for unparalleled
flexibility and optimal time to market, have been deployed by some
of the biggest names in digital media and broadcasting including
Televisa, ATNI, Digital TV Cable Edmund, Skytel, Telefonica, Sky,
Virgin Media, BBC, ITV and France Telecom. Headquartered in London,
Mirada has commercial representation across Europe, Latin America
and Southeast Asia and operates technology centres in the UK, Spain
and Mexico. For more information, visit www.mirada.tv
Chief Executive Officer's Statement
Overview
I am pleased to present the Group's financial results for the
year ended 31 March 2019. This was a transformational period for
the Company, during which Mirada demonstrated its capabilities
through the successful mass-market deployment of its Iris
multiscreen technology in Mexico during the 2018 FIFA World
Cup.
Mirada also continued its expansion with multiple new commercial
deployments during the year, including two new Software as a
Service (SaaS) customers, ATN international in Bermuda and Digital
TV Cable Edmund in Bolivia. The Company also secured its first Iris
customer in the Asian market with Skytel in Mongolia.
Mirada simultaneous coordination of multiple new deployments,
while supporting a marked increase in growth within its existing
customer based, demonstrated the significant advancement in the
operational capabilities of the Group. Additionally, thanks to its
improved sales and marketing teams, and due to the relevant
references the Group has been able to secure, there has been a
significant improvement in the sales pipeline anticipating a
potential increase in the pace of new customer acquisition.
With the accumulation of successful deployments, the Company is
also experiencing a substantial increase in both support and
subscriber-based licence revenues, with a greater percentage of
recurrent income providing much higher revenue visibility.
Trading Review
The Group operates two segments, being Digital TV and Broadcast
("Digital TV") and Mobile.
The Company is advancing its operational and commercial
capabilities, demonstrated by Mirada's involvement in three
simultaneous, significant deployments in the year. From an
operational point of view, it has been the first time that Mirada
has been involved in the roll-out of three simultaneous significant
deployments.
Izzi Telecom in Mexico extended the Mirada Iris multiscreen
technology to all its subscriber base during the 2018 World Cup,
allowing them to watch the football matches over their mobile
phones at times where they would not usually be at home. Mirada
successfully responded to the challenge and it proved to be a great
success, aided by Mexico's long run in the tournament. This has
resulted in an ongoing increased usage of Mirada's OTT technology
in Mexico. Additionally, Izzi Telecom chose to extend Mirada's
technology to its middle tier subscribers, resulting in an
increased rate of installation of Mirada licences, and therefore,
improved subscriber-based licence fee revenues for Mirada during
the year. In March 2019, Izzi Telecom surpassed the milestone of
having 2 million set-top boxes installed with Mirada's technology.
It is expected that Izzi will expand Mirada's technology to its
remaining tiers in the future.
ATN International started deploying Mirada technology over its
assets in the Caribbean and Bermuda during the year. The commercial
phase began in January 2019, and the pace of adoption of the
technology in the region is on track with Mirada's expectations.
This is Mirada's first SaaS model deployment, and recurrent
revenues from this customer will start to have a financial impact
during the present fiscal year.
The third significant deployment during the year under review
was with Digital TV Edmund in Bolivia. This is also a SaaS model
deployment with the commercial phase starting in late March 2019.
Long term recurring revenues from this contract are also expected
to impact our financial performance in the coming year and there is
potential for ongoing deployment of new features and services. A
gradual roll out is planned over five years, with a target of up to
nearly one million devices.
Mirada has also been able to extend its product reach to
accommodate the demands of the market. The "Bring-Your-Own-Device"
(BYOD) market trend is increasingly being adopted by our customers,
meaning that the consumption of the audiovisual content is being
extended to other devices like mobile phones, tablets, gaming
consoles and smart TVs. Mirada anticipated this trend with the
launch of its OTT product in 2015 and is now able to provide its
services over all these devices, with the recent announcement of
our software for Roku and Xbox. The set-top box market is also
evolving with the extended adoption of Android TV technology over
traditional pure Linux-based middleware. We are happy to announce
that we are now able to provide our services over the latest
version of the Android TV operator tier, with an advanced Custom
Launcher that perfectly matches our Inspire user experience over
these new devices.
On the commercial side, the Group has continued to improve its
marketing and sales efforts, with the successful extension of our
customer reach to the Asian market. The contract win in December
2018 with Skytel in Mongolia marks the first deployment of our Iris
technology in the Asian market, and we expect to follow this
announcement with other deals in the future. The pipeline has
substantially increased, with the number of deals in which we are
participating nearly doubling during the year. This increase in the
pipeline can in part be attributed to the many successful
deployments of our technology, which demonstrate the quality of our
offering and ability to manage substantial projects. This is
especially evident of our successful deployment with Televisa Group
across Mexico. Our product range comprises the vast majority of the
needs of our potential customers, and their feedback is that we
match other top-range solutions in the market.
Regarding our non-core cashless payment parking division, Mirada
Connect, we are happy to have been able to nurture a successful
company, which has been able to gain a powerful presence in its
market. On 31 March 2019 the audited accounts showed a turnover for
the year of GBP0.63 million (2018: GBP0.66 million), net profits of
GBP0.12 million (2018: GBP0.12 million) and was valued at GBP0.56
million on the Company's balance sheet at that date. The Connect
division was clearly not related to our core activities, and we
were happy to receive offers for the divestment of this unit. Post
year-end, on 5th July 2019, we announced the sale of this division
to PayByPhone, a competitor owned by the Volkswagen Financial
Services group, for a consideration of GBP2.12 million in cash.
This generated a profit on disposal of $1.75 million. We believe
this transaction is very beneficial for all parties involved, and
we wish the Connect team the best for the future.
Looking ahead to Brexit and considering mitigation plans in
order to reduce the potential negative impact on the Company's
operational activity and Financial Statements, the Board has
decided to close its Exeter office. This closure may result in
redundancies and a process is underway at the current time. The
closure of the Company's Exeter office is expected to take effect
in September 2019.
The growth experienced this year at all levels result from the
continued deployment of a business plan based on securing
profitable deals with an increased focus on recurrent revenues and
a belief that a superior product and customer service is the
cornerstone of every successful company. The Board believes that
the Company is rapidly approaching a point of sustained
profitability. We are committed to this plan, and we couldn't make
it possible without the continued support of our employees,
customers, suppliers, partners and investors, to whom we express
our gratitude.
Financial overview
Revenue grew to $12.32 million (2018: $8.82 million), a 40%
year-on-year increase. Growth in revenues on development was $2.1
million to reach $6.51 million for the year, driven by the new
projects won. Subscriber-based licence fees grew by $1.5 million to
reach $4.05 million for the year, mainly due to the introduction of
our Iris product into new customer tiers at Izzi Telecom.
Gross profit grew to $11.46 million (2018: $7.94 million),
leading to an operating loss of $2.91 million (2018: $4.62
million). Amortisation charges increased to $3.58 million from
$3.35 million, in line with prior years' increase in product
investment. Staff Costs increased by $1.65 million to $ 7.25
million (2018: $5.6 million). This is due to the growth of the
development team during the year. As a result, the net impact was a
reduction of the net loss for the year to $3.11 million (2018: loss
of $4.87 million). The improvement on revenues led to an Adjusted
EBITDA (as defined in Note 7) profit of $0.81 million (2018: loss
of $1.12 million), mainly driven by the licence revenue increase.
There is a tax credit recognised in the current period of $0.18
million (2018: $0.30) as a result of Mirada Iberia's research and
innovation tax deductions.
Net Debt was reduced to $4.86 million (2018: $11.70 million).
Long term interest-bearing loans and borrowings decreased by 31% to
$1.72 million (2018: $2.48 million) and short term borrowings and
related party loans and interest decreased to $3.26 million (2018:
$11.16 million). See note 18 for further details. Trade receivables
increased from $1.38 million to $1.89 million, due to increased
revenues and activity at the end of the fiscal year. The Company
settled a related party debt facility of GBP1.7 million in August
2018, and another related party facility of GBP3.0 million in
October 2018, which were converted into capital on 29 August 2018
and 4 October 2018 respectively, alongside an additional capital
injection of GBP3.0 million. Both the facilities and the capital
injection were subject to shareholder approval in August 2018 and
October 2018.
Other intangible assets have decreased by $1.22 million mainly
due to the decreased valuation of the Euro against the US Dollar
and due to the difference between amortisation and addition of
intangible assets.
The Group used $1.24 million of cash in operating activities in
the year (2018: cash used in operating activities of $1.7 million)
and spent a further $3.1 million (2018: $3.9 million) in investing
activities, mainly due to variations in the working capital
position at the end of the period and investment in development
costs.
The operating and investing cash flows were partially funded by
the movement in net debt explained above. Therefore, resulting in a
fall in cash and cash equivalents of $1.82 million.
The Company has adopted the new accounting standards with effect
from 1 April 2018:
IFRS 9- Financial instruments
IFRS 15- Revenue from contracts with customers
IFRS 9 - Financial instruments has replaced IAS 39 Financial
Instruments: Recognition and Measurement and has not had a material
effect on the Company. Therefore, impairment provision on financial
assets measured at amortised cost (such as trade and other
receivables) has been calculated in accordance with IFRS 9's
expected credit loss model. The Group did not identify significant
changes in its consolidated financial statements due to applying
the classification and measurement requirements of IFRS 9, because
the Group only has assets that are categorised as amortised cost
and the application of expected credit loss has not had a material
impact to the impairment provision because all trade receivables
balances have been collected before 9 July 2019. Since the impact
on the Group was immaterial, the Group has chosen not to restate
prior year comparatives on adoption of IFRS 9.
IFRS 15 - Revenue from customer contracts has replaced IAS 18
Revenue and IAS 11 Construction Contracts as well as various
interpretations previously issued by the IFRS Interpretations
Committee. The Company adopted IFRS 15 using the cumulative effect
method applied to those contracts which were not completed as of 1
April 2018. The impact of the new standard was a $0.38 million
positive adjustment as shown in the Consolidated Statement of
Changes in Equity.
See note 3 to the financial statements for further information
on the new IFRS standards.
Current Trading and Outlook
Mirada is focused on the Digital TV segment and is increasing
its market reach, with a growing healthy pipeline of opportunities
as a result of the successful deployment and a wide appraisal of
its Iris multi-platform product. The Company is now considered to
be a top-end solution for potential customers, with a flexible
model that allows audiovisual companies of any size to provide a
competitive offering for their subscribers.
Mirada's financial position is continuously improving,
reinforced by the support of its largest shareholder. Together
these factors have left to an improved commercial performance, with
participation in multiple deals and, combined with the growing
pipeline, provide confidences in the Company's ability to secure
more contract wins in the current years.
José-Luis Vázquez
Chief Executive Officer
10(th) July 2019
Mirada plc
Consolidated Statement of Comprehensive Income at 31 March
2019
Note 2019 2018
$000 $000
Revenue 5 12,322 8,816
Cost of sales (857) (874)
----------------------------------- ----- ----------- -----------
Gross profit 11,465 7,942
Depreciation (80) (73)
Amortisation (3,578) (3,352)
Share-based payment charge (70) (72)
Staff costs (7,249) (5,599)
Other administrative expenses (3,402) (3,464)
----------------------------------- ----- ----------- -----------
Total administrative expenses (14,379) (12,560)
Operating loss (2,914) (4,618)
Finance income 141 84
Finance expense (523) (634)
Loss before taxation (3,296) (5,168)
Taxation 184 298
Loss for year (3,112) (4,870)
----------------------------------- ----- ----------- -----------
Other comprehensive income
for the period
Amounts that will or may be reclassified to
the profit or loss
Forex on translation of
foreign operations (565) 999
Total comprehensive loss
for the period (3,677) (3,871)
----------------------------------- ----- ----------- -----------
Loss per share Year ended Year ended
31 March 31 March
2019 2018
$ $
Loss per share for the year
- basic & diluted (0.006) (0.035)
Mirada plc
Consolidated Statement of Financial Position as at 31 March
2019
Company number 3609752 2019 2018
$000 $000
Goodwill 5,924 6,492
Other Intangible assets 5,855 7,072
Property, plant and equipment 222 247
Other Receivables 398 308
--------------------------------- --------- ---------
Non-current assets 12,399 14,119
--------------------------------- --------- ---------
Trade & other receivables 5,421 4,484
Cash and cash equivalents 117 1,937
---------------------------------
Current assets 5,538 6,421
Total assets 17,937 20,540
--------------------------------- --------- ---------
Loans and borrowings (3,257) (4,246)
Related parties loans and
interests - (6,917)
Trade and other payables (1,958) (2,320)
Contract liabilities (1,019) (1,360)
Current liabilities (6,234) (14,843)
--------------------------------- --------- ---------
Net current liabilities (696) (8,422)
--------------------------------- --------- ---------
Total assets less current
liabilities 11,703 5,697
--------------------------------- --------- ---------
Interest bearing loans and
borrowings (1,721) (2,477)
Non-current liabilities (1,721) (2,477)
--------------------------------- --------- ---------
Total liabilities (7,955) (17,320)
--------------------------------- --------- ---------
Net assets 9,982 3,220
--------------------------------- --------- ---------
Issued share capital and
reserves attributable to
equity holders of the company
Share capital 12,015 2,261
Share premium 15,995 15,760
Other reserves 15,398 15,985
Accumulated loss (33,426) (30,786)
Equity 9,982 3,220
--------------------------------- --------- ---------
Mirada plc
Consolidated Statement of changes in equity for the year ended
31 March 2019
Share Share Foreign Merger Accumulated Total
capital premium exchange reserves losses
reserve
$000 $000 $000 $000 $000 $000
Balance at 1 April 2018 2,261 15,760 11,122 4,863 (30,786) 3,220
------------------------------ --------- --------- ---------- ---------- ------------ --------
Prior Year Adjustment-IFRS
15 (Note 2) - - - - 380 380
Loss for the year - - - - (3,112) (3,112)
Other comprehensive income
Movement in foreign exchange - - (587) - 22 (565)
Total comprehensive loss
for the year 2,261 15,760 10,535 4,863 (33,496) (77)
------------------------------ --------- --------- ---------- ---------- ------------ --------
Transactions with owners
Share-based payment - - - - 70 70
Conversion of convertible
loans into shares 5,858 235 - - - 6,093
Issue of shares 3,896 - - - - 3,896
Balance at 31 Mar 2019 12,015 15,995 10,535 4,863 (33,426) 9,982
------------------------------ --------- --------- ---------- ---------- ------------ --------
Share Share Foreign Merger Accumulated Total
capital premium exchange reserves losses
reserve
$000 $000 $000 $000 $000 $000
Balance at 1 April 2017 2,261 15,760 10,134 4,863 (25,930) 7,088
------------------------------ --------- --------- ---------- ---------- ------------ --------
Loss for the year - - - - (4,870) (4,870)
Other comprehensive income
Movement in foreign exchange - - 988 - 11 999
Total comprehensive loss
for the year 2,261 15,760 11,122 4,863 (30,789) 3,217
------------------------------ --------- --------- ---------- ---------- ------------ --------
Transactions with owners
Share-based payment - - - - 3 3
Balance at 31 March 2018 2,261 15,760 11,122 4,863 (30,786) 3,220
------------------------------ --------- --------- ---------- ---------- ------------ --------
Mirada plc
Consolidated statement of cash flows for the year ended 31 March
2019
2019 2018
$000 $000
Cash flows from operating activities
Loss after tax (3,112) (4,870)
Adjustments for:
Depreciation of property, plant
and equipment 80 73
Amortisation of intangible assets 3,578 3,352
Share-based payment charge 70 72
Finance income (141) (84)
Finance expense 523 634
Taxation (184) (298)
Operating cash flows before movements
in working capital 814 (1,121)
Increase in trade and other receivables (1,654) (1,608)
(Decrease)/Increase in trade and
other payables (703) 453
Taxation received 307 540
-------------------------------------------- --------
Net cash used in operating activities (1,236) (1,736)
Cash flows from investing activities
Interest and similar income received 141 84
Purchases of property, plant and
equipment (80) (161)
Purchases of other intangible assets (3,127) (3,780)
-------------------------------------------- -------- --------
Net cash used in investing activities (3,066) (3,857)
Cash flows from financing activities
Interest and similar expenses paid (523) (634)
Conversion of convertible loans 3,896 -
into shares
Loans received 1,201 3,020
Related parties loans received - 6,588
Repayment of loans (2,150) (1,827)
-------------------------------------------- -------- --------
Net cash from financing activities 2,424 7,147
Net increase in cash and cash equivalents (1,878) 1,554
Cash and cash equivalents at the
beginning of the period 1,937 277
Exchange losses on cash and cash
equivalents 58 106
Cash and cash equivalents at the
end of the year 117 1,937
-------------------------------------------- -------- --------
Mirada plc
Notes to financial statements Year ended 31 March 2019
The following selected notes are extracted from the full Annual
Report
1. General information
Mirada plc is a company incorporated in the United Kingdom. The
address of the registered office is 68 Lombard Street, London, EC3V
9LJ. The nature of the Group's operations and its principal
activities are the provision and support of products and services
in the Digital TV and Broadcast markets.
In accordance with section 435 of the Companies Act 2006, the
Directors advise that the financial information set out in this
announcement does not constitute the Group's statutory financial
statements for the year ended 31 March 2018 or 2019 but is derived
from them. The financial statements for the year ended 31 March
2018 have been audited and filed with the Registrar of Companies.
The financial statements for the year ended 31 March 2019 have been
audited and will be filed with the Registrar of Companies following
the Company's Annual General Meeting. The Independent Auditors
Report on the Group's statutory financial statements for the years
ended 31 March 2019 and 2018 were unqualified and did not contain
statements under Section 498(2) or (3) of the Companies Act
2006.
The financial information included in this announcement has been
prepared in accordance with the recognition and measurement
requirements of International Financial Repeating Standards as
adopted for use in the EU but does not include all of the
disclosures required by those standards. The accounting policies
used in the preparation of the financial information are consistent
with those used in the group's financial statements for the year
ended 31 March 2019 and are unchanged from those set out in the
financial statements for the period ended 31 March 2018, except for
the implementation of the new IFRS 9 and IFRS 15 as described in
Note 2.
2. Changes in accounting policies
Adoption of new and revised standards effective from 1 April
2018
IFRS 9 - Financial Instrument
IFRS 9 - Financial instruments has replaced IAS 39 Financial
Instruments: Recognition and Measurement and has not had a material
effect on the Company:
The impairment provision on financial assets measured at
amortised cost (such as trade and other receivables) has been
calculated in accordance with IFRS 9's expected credit loss
model.
The Group did not identify significant changes in its
consolidated financial statements due to applying the
classification and measurement requirements of IFRS 9.
The Group has set up an analysis regarding expected credit
losses. Since all Trade Receivables balances have been collected
before 9 July 2019, it has been concluded that the impact of the
new standard on the Group was immaterial.
The Group has chosen not to restate comparatives on adoption of
IFRS 9.
IFRS 15 - Revenue from Contracts with Customers
IFRS 15 establishes a comprehensive framework for determining
whether, how much and when revenue is recognised. It replaced IAS
18 Revenue, IAS 11 Construction Contracts and related
interpretations. Under IFRS 15, revenue is recognised when a
customer obtains control of the goods or services. Determining the
timing of the transfer of control - at a point in time or over time
- requires judgement.
The Group has applied IFRS 15 using the cumulative effect method
to those contracts which are not completed as of 1 April 2018, with
the effect of initially applying this standard recognized at the
date of initial application. Accordingly, the comparative
information is not restated.
The impact of the new standard was $0.38 million as shown in the
Consolidated Statement of Changes in Equity. The following table
summarises the impact, net of tax, of transition to IFRS 15 on
retained earnings at 1 April 2018:
1 April of 2018
Assets
Total Assets -
======
Equity
Retained earnings 380
Total Equity 380
======
Liabilities
Contract liabilities (380)
Total Liabilities (380)
======
Total equity
and liabilities -
======
The impact of adoption on the main revenue streams is:
-- Contracts with customers in respect of Development: The Group
has determined the incurred works are specific to the customer and
cannot be used on alternative contracts. In addition, Mirada has
the right to payment for all incurred works. Accordingly, the
revenue is recognised over the time of the contract.
-- Contracts with customers in respect of the parking
transactions: Under IFRS 15, revenue is recognised in the same
month as the end user has used the cashless parking services. Since
there are not differences between the revenue recognition in
accordance with IFRS 15 and IAS 18, there has not been any impact
of IFRS 15 application on this revenue stream.
-- Contracts with customers in respect of licences are
recognised as per the number of STBs or Households (depending on
contracts) where the Mirada Software is installed. Licences cover
the right of use of the software in the initial conditions without
any right to modify it. None of the contracts have an end or
termination date. Typically, once you sign a contract, you keep
using the software for many years. Revenue is recognised at a point
in time. The impact of the new standard was $0.38 million as shown
in the Consolidated Statement of Changes in Equity.
-- Contracts with customers in respect of managed services
continue to be recognised monthly along the duration of the
contracts. Therefore IFRS 15 has not had any impact on this revenue
stream. In some cases, these outsourcing services can be carried
out by a different company.
Invoices are due within 30 days, according to contractual terms.
Sometimes the payments received from customers at each balance
sheet date do not necessarily coincide with the amount of revenue
recognised under the contracts. The assets and liabilities of the
contracts are included in Accrued Income and Deferred Income,
respectively (see note 5).
The Company has applied the practical expedient. Therefore, no
information is provided about remaining performance obligation at
31 March 2019 as Mirada has a right to payments for all incurred
works.
New Standards, interpretations and amendments not yet
effective
The following standard has been issued by the IASB and has been
adopted by the EU:
IFRS 16- Leases (Applicable from 1 April 2019)
The Group is required to adopt IFRS 16 Leases from 1 April 2019.
IFRS 16 replaces existing leases guidance, including IAS 17 Leases.
The Group has assessed the estimated impact that initial
application of IFRS 16 will have on its consolidated financial
statements, as described below.
IFRS 16 introduces a single, on-balance sheet lease accounting
model for lessees. A lessee recognizes a right-of-use asset
representing its right to use the underlying asset and a lease
liability representing its obligation to make lease payments.
In this respect, the Group will recognise new assets and
liabilities for its operating leases. The nature of expenses
related to those leases will now change because the Group will
recognise a depreciation charge for right-of-use assets and
interest expense on lease liabilities.
Previously, the Group recognised operating lease expense on a
straight-line basis over the term of the lease, and recognised
assets and liabilities only to the extent that there was a timing
difference between actual lease payments and the expense
recognised.
The Group is applying the modified retrospective transition
method under which comparative information will not be restated and
has elected to use the following practical expedients permitted by
the standard:
- on initial application, IFRS 16 will be only been applied to
contracts that were previously classified as leases;
- lease contracts with a duration of less than 12 months, and/or
leases for which the underlined asset is of low value, will
continue to be expensed to the income statement on a straight-line
basis over the lease term;
- the lease term has been determined with the use of hindsight
where the contract contains options to extend the lease.
The adoption of the standard will result in replacing the
existing operating lease expenses, within administrative expenses,
with interest and depreciation expenses. Therefore, it is likely to
result in an increase in EBITDA.
The Group is in the early stages of assessing the potential
impact of adopting this standard. The new accounting policies are
subject to change until the Group presents its first financial
statements in fiscal year 2020 that include the date of initial
application.
The adoption of other amendments and interpretations are likely
to not have a material impact on the financial statements of the
Group and Company.
3. Significant accounting policies
Basis of accounting
These Group financial statements have been prepared in
accordance with International Financial Reporting Standards,
International Accounting Standards and Interpretations issued by
the International Accounting Standards Board as adopted by European
Union ("IFRSs") and with those parts of the Companies Act 2006
applicable to companies preparing their accounts under IFRSs.
Going concern
These financial statements have been prepared on the going
concern basis. The Directors have reviewed the Company and Group's
going concern position taking account of its current business
activities, budgeted performance and the factors likely to affect
its future development, which are set out in this Annual report,
and include the Group's objectives, policies and processes for
managing its capital, its financial risk management objectives and
its exposure to credit and liquidity risks.
As at 31 March 2019, the Group had cash and cash equivalents of
$0.12m (2018: $1.94m), net cash used in operating activities of
$1.24m (2018: net cash used in operating activities $1.74m),
realised a loss for the year of $3.07m, (2018: a loss of $4.87m),
net current liabilities of $0.66m (2018: net current liabilities of
$8.42m) and had net assets of $10.02m (2018: $3.22m).
The directors have prepared cash flow forecasts covering a
period of at least 12 months from the date of approval of the
financial statements. If the forecast is achieved, the Group will
be able to operate within its existing facilities. However, the
time to close new customers and the value of each customer, which
are deemed high volume and low value in nature are factors which
constrain the ability to accurately predict revenue performance.
Furthermore, investment in winning customers, via marketing
expenditure, and servicing and delivering to new customers remains
an important function of the forecasts too. As such, there is a
risk that the group's working capital may prove insufficient to
cover both operating activities and the repayment of its debt
facilities. In such circumstances, the group would be obliged to
seek additional funding though a placement of shares or source
other funding. The directors have had a history of raising
financing from similar transactions.
The directors have concluded that the circumstances set forth
above enable the Company and Group to continue as a going concern
for the foreseeable future. The financial statements do not include
the adjustments that would be required if the Company and the Group
were unable to continue as a going concern.
Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiaries) made up to 31 March 2019.
Where the company has control over an investee, it is classified
as a subsidiary. The company controls an investee if all three of
the following elements are present: power over the investee,
exposure to variable returns from the investee, and the ability of
the investor to use its power to affect those variable returns.
Control is reassessed whenever facts and circumstances indicate
that there may be a change in any of these elements of control.
All intra-group transactions, balances, income and expenses are
eliminated on consolidation.
Revenue recognition
The Group has applied IFRS 15 from 1 April 2018. For further
information about the application of this standard see Note 2.
Interactive service revenues are divided into 5 types:
development fees, the sale of licences, SaaS, managed services and
self-billing revenues.
1. Revenues from development fees (which include set-up fees):
these are recognised according to management's estimation of the
stage of completion of the project. This is measured by reference
to the amount of development time spent on a project compared to
the most up to date calculation of the total time estimated to
complete the project in full.
Since the Group has determinate the works incurred are specific
to the customer and cannot be used on alternative contracts and
Mirada has right to payment for all incurred works, the revenue is
recognised over the time
2. Sale of licence: Revenue from licences are earned from two specific and separate streams.
i) Where the revenue relates to the sale of a one-off licence,
the licence element of the sale is recognised as income when the
following conditions have been satisfied:
-- The software has been provided to the customer in a form that
enables the customer to utilise it;
-- The ongoing obligations of the Group to the customer are minimal; and
-- The amount payable by the customer is determinable and there
is a reasonable expectation of payment.
The performance obligation included in this type of contract is
to provide initially licence and key to access.
ii) Contract licence fees payable by customers are dependent
upon the number of end user subscribers signing up to the
customer's digital television service, purchased Set Top Boxes or
active devices. Licences cover the right of use of the software in
the initial conditions without any right to modify it. None of the
contracts have an end or termination date. Typically, once you sign
a contract, you keep using the software for many years.
For this type of contract, revenues are recognised by
multiplying the individual licence fee by the net increase in the
customer's subscriber base, purchased Set Top Boxes or active
devices.
The Group promises to grant a licence that provides a customer
with a right to use and obtain substantially all the benefits from
the licence. As a consequence of this, the recognition of the
revenue is at a point in time at which the licence is granted.
3. Some of the licence software are under Software as a Service
model (SaaS). Under this model, lower integration set up fees than
in other agreements are offset by recurrent monthly licence fee
revenues. Revenue for SaaS arrangements are recognised over the
period of the arrangement to reflect the ongoing service
provider.
4. Managed services - revenue is measured on a straight line
basis over the length of the contract.
5. Transactions revenues: These are earned through a
revenue-share agreement between Mirada and the customers which is
presented in the Mobile segment. The Group are informed by the
customer of the amount of revenue to invoice and the revenues are
recognised at a point in time in the period these services are
provided.
Where agreements involve multiple obligations, the entire fee
from such arrangements is allocated to each of the individual
obligations based on each obligation's fair value. The revenue in
respect of each element is recognised in accordance with the above
policies.
Certain revenues earned by the Group are invoiced in advance. As
outlined in the revenue recognition policy above, revenues are
recognised in the period in which the Group provides the services
to the customer, revenues relating to services which have yet to be
provided to the customer are deferred.
Business combinations
Acquisitions of businesses are accounted for using the purchase
method. The cost of the acquisition is measured at the aggregate of
the fair values, at the date of exchange, of assets given,
liabilities incurred or assumed, and equity instruments issued or
to be issued, by the Group in exchange for control of the acquiree,
plus any costs directly attributable to the business combination.
The acquiree's identifiable assets, liabilities and contingent
liabilities that meet the conditions for recognition under IFRS 3
are recognised at their fair value at the acquisition date.
Goodwill arising on acquisition is recognised as an asset and
initially measured at cost and is accounted for according to the
policy below.
Goodwill
Goodwill represents the excess of the cost of acquisition over
the Group's interest in the fair value of the identifiable assets
and liabilities of the acquired business at the date of
acquisition. Goodwill is initially recognised as an asset at cost
and is subsequently measured at cost less any accumulated
impairment losses.
On disposal of a subsidiary the attributable amount of goodwill
is included in the determination of the profit or loss on
disposal.
For the purpose of impairment testing, goodwill is allocated to
each of the Group's cash-generating units expected to benefit from
the synergies of the combination. Cash-generating units to which
goodwill has been allocated are tested for impairment annually, or
more frequently when there is an indication that the unit may be
impaired. If the recoverable amount of the cash-generating unit is
less than the carrying amount of the unit, the impairment loss is
allocated first to reduce the carrying amount of any goodwill
allocated to the unit and then to the other assets of the unit
pro-rata on the basis of the carrying amount of each asset in the
unit.
Other intangible assets
Intangible assets acquired as part of a business combination are
initially recognised at their fair value and subsequently amortised
on a straight line basis over their useful economic lives.
Intangible assets that meet the recognition criteria of IAS 38,
"Intangible Assets" are capitalised and carried at cost less
amortisation and any impairment losses. Intangible assets comprise
of completed technology, acquired software, capitalised development
costs and goodwill.
Amortisation of other intangible assets is calculated over the
following periods on a straight-line basis:
Completed technology - over a useful life of 4 years
Deferred development costs - over a useful life of 3 to 4 years
The amortisation is charged to administrative expenses in the
consolidated income statement. Completed technology relates to
software and other technology related intangible assets acquired by
the Group from a third party. Deferred development costs are
internally-generated intangible assets arising from work completed
by the Group's product development team.
Internally-generated intangible assets - research and
development expenditure
Any internally-generated intangible asset arising from the
Group's development projects are recognised only if all of the
following conditions are met:
-- The technical feasibility of completing the intangible asset
so that it will be available for use or sale.
-- The intention to complete the intangible asset and use or sell it.
-- The ability to use or sell the intangible asset.
-- How the intangible asset will generate probable future
economic benefits. Among other things, the Group can demonstrate
the existence of a market for the output of the intangible asset or
the intangible asset itself or, if it is to be used internally, the
usefulness of the intangible asset.
-- The availability of adequate technical, financial and other
resources to complete the development and to use or sell the
intangible asset.
-- Its ability to measure reliably the expenditure attributable
to the intangible asset during its development.
If a development project has been abandoned, then any
unamortised balance is immediately written off to the income
statement. Where no internally-generated intangible asset can be
recognised, development expenditure is recognised as an expense in
the period in which it is incurred. The amortisation is charged to
administrative expenses in the consolidated statement of
comprehensive income.
Impairment of non-current assets excluding deferred tax
assets
At each reporting date, the Group reviews the carrying amounts
of its tangible and intangible assets to determine whether there is
any indication that those assets have suffered an impairment loss.
If any such indication exists, the recoverable amount of the asset
is estimated in order to determine the extent of the impairment
loss (if any).
Recoverable amount is the higher of fair value less costs to
sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been
adjusted.
If the recoverable amount of an asset (or cash-generating unit)
is estimated to be less than its carrying amount, the carrying
amount of the asset (cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognised in the
impairment of intangible assets line in the consolidated statement
of comprehensive income as an expense immediately.
Where an impairment loss subsequently reverses, the carrying
amount of the asset (cash-generating unit) is increased to the
revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised
for the asset (cash-generating unit) in prior periods. A reversal
of an impairment loss is recognised as income immediately.
Goodwill impairments are not reversed.
Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated
depreciation and any impairment in value.
Depreciation is provided on all property, plant and equipment,
other than freehold land, at rates calculated to write off the
cost, less estimated residual value based on current prices, of
each asset evenly over its expected useful life, as follows:
- Office & computer equipment 33.3% per annum
- Short-leasehold improvements 10% per annum
The carrying values of property, plant and equipment are
reviewed for impairment if events or changes in circumstances
indicate the carrying value may not be recoverable. The asset's
residual values, useful lives and methods are reviewed, and
adjusted if appropriate, at each financial period end.
Financial instruments
Financial assets and financial liabilities are recognised on the
Group's statement of financial position at fair value when the
Group becomes a party to the contractual provisions of the
instrument.
Trade receivables
Trade receivables represent amounts due from customers in the
normal course of business.
The group applies the IFRS 9 simplified approach to measuring
expected credit losses which uses a lifetime expected credit loss
allowance for all trade receivables and contract assets. During
this process the probability of non-payment of a trade receivable
balance is assessed and multiplied by an expected amount of credit
loss as a result of the likely credit default. The group has set up
a matrix using the age a debtor is overdue and any likely events as
a criteria to determine the default probability. This uses 5
categories ranging from 0% to 90% probability.
The Group only have assets that are categorised as amortised
cost and the application of ECL has not had a material impact to
the impairment provision because all trade receivables balances
have been collected before the reporting date. As a conclusion, the
impact of the IFRS 9 on the Group was immaterial.
Cash and cash equivalents
Cash and cash equivalents include cash at hand and deposits held
at call with banks with original maturities of three months or
less, net of bank overdrafts.
Financial liabilities and equity instruments
Financial liabilities and equity instruments are classified
according to the substance of the contractual arrangements entered
into. An equity instrument is any contract that evidences a
residual interest in the assets of the Group after deducting all of
its liabilities.
Equity instruments issued by the Company are recorded at the
proceeds received, net of direct issue costs.
Financial instruments issued by the Group are treated as equity
only to the extent that they do not meet the definition of a
financial liability. The Group's ordinary shares are classified as
equity. When new shares are issued, they are recorded in share
capital at their par value. The excess of the issue price over the
par value is recorded in the share premium reserve.
Incremental external costs directly attributable to the issue of
new shares (other than in connection with a business combination)
are recorded in equity as a deduction, net of tax, to the share
premium reserve.
Bank Borrowings
Interest-bearing bank loans are initially recorded at fair value
less direct issue costs. Finance charges are accounted for on an
accruals basis in the income statement using the effective interest
rate method and are added to the carrying amount of the instrument
to the extent that they are not settled in the period in which they
arise.
Invoice discounting
The Group has an invoice discounting facility secured on the
trade debtors. Liabilities under this arrangement are shown in
borrowings.
Trade payables
Trade payables are initially measured at fair value, and are
subsequently measured at amortised cost, using the effective
interest rate method.
Employee share incentive plans
The Group issues equity-settled share-based payments to certain
employees (including directors). These payments are measured at
fair value at the date of grant by use of the Black-Scholes pricing
model. This fair value cost of equity-settled awards is recognised
on a straight-line basis over the vesting period, based on the
Group's estimate of shares that will eventually vest and adjusted
for the effect of any non market-based vesting conditions. The
expected life used in the model has been adjusted, based on
management's best estimate, for the effects of non-transferability,
exercise restrictions, and behavioural considerations. A
corresponding credit is recorded in equity in the retained
earnings.
Leases
Leases taken by the Group are assessed individually as to
whether they are finance leases or operating leases. Leases 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.
Operating lease rental payments are recognised as an expense in
the statement of comprehensive income on a straight-line basis over
the lease term. The benefit of lease incentives is spread over the
term of the lease.
Taxation
The tax expense represents the sum of the current tax and
deferred tax charges.
The tax currently payable is based on taxable profit for the
period. Taxable profit differs from net profit as reported in the
income statement because it excludes items of income or expense
that are taxable or deductible in other years and it further
excludes items that are never taxable or deductible. The Group's
liability for current tax is calculated using tax rates that have
been enacted or substantively enacted by the reporting date.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profit and is accounted for using the
balance sheet liability method. Deferred tax liabilities are
recognised for all taxable temporary differences and deferred tax
assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible
temporary differences can be utilised. Such assets and liabilities
are not recognised if the temporary difference arises from the
initial recognition of goodwill or from the initial recognition
(other than in a business combination) of other assets and
liabilities in a transaction that affects neither the tax profit
nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow
all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled or the asset is
realised. Deferred tax is charged or credited in the income
statement, except when it relates to items charged or credited
directly to equity, in which case the deferred tax is also dealt
with in equity.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied
by the same taxation authority and the Group intends to settle its
current tax assets and liabilities on a net basis.
Research and development tax credit
Companies within the group may be entitled to claim special tax
allowances in relation to qualifying research and development
expenditure (e.g. R&D tax credits). The group accounts for such
allowances as tax credits and recognise them when it is probable
that the benefit will flow to the group and that benefit can be
reliably measured. R&D tax credits reduce current tax expense
and, to the extent the amounts due in respect of them are not
settled by the balance sheet date, reduce current tax payable.
Retirement benefit costs
The Group operates defined contribution pension schemes. The
amount charged to the statement of comprehensive income in respect
of pension costs and other post-retirement benefits is the
contributions payable in the period.
Differences between contributions payable in the period and
contributions actually paid are shown as either accruals or
prepayments in the statement of financial position.
Foreign exchange
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 result and the financial
position of each group company are expressed in US Dollars, which
is the presentational currency for the consolidated financial
statements.
On translation of balances into the functional currency of the
entity in which they are held, 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.
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 that period, in which case the exchange rates at the date of
transactions are used.
Exchange differences arising on translating the opening
statement of financial position and the current year income
statements are classified as equity and transferred to the Group's
foreign exchange reserve. Such translation differences are
recognised as income or an expense in the period in which the
operations 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 rate. The Group has
elected to treat goodwill and fair value adjustments arising on
acquisitions before the date of transition to IFRS as sterling
denominated assets and liabilities.
4. Critical accounting judgements and key sources of estimation uncertainty
Critical judgements in applying the Group's accounting
policies
In the application of the Group's accounting policies, which are
described in note 2, the directors are required to make judgements,
estimates and assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources. The
estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis.
Key sources of estimation uncertainty and judgements
The following are the critical judgements and estimates that the
directors have made in the process of applying the Group's
accounting policies that has the most significant effect on the
amounts recognised in the financial statements.
Presenting financial information in USD
The reporting currency is US Dollar due to the growing exposure
to the US Dollar, as all major contracts and most of the new
potential deals for the Company are denominated in this currency.
The board therefore believes that USD financial reporting provides
the best presentation of the group's financial position, funding
and treasury functions, financial performance and its cash flows.
Coupled with the evolution of the business, the group's shareholder
base is now largely comprised of investors to whom financial
reporting in GBP is of limited relevance. Internally, the board
also bases its performance evaluation and many investment decisions
on USD financial information.
Impairment of goodwill and intangibles
Determining whether goodwill is impaired requires an estimation
of the value in use of the cash-generating units to which goodwill
has been allocated. The value in use calculation requires the Group
to estimate the future cash flows expected to arise from the
cash-generating units and the estimated future cash flows are
discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money
and the risks specific to the cash-generating unit. This includes
the directors' best estimate on the likelihood of current deals in
negotiation not yet concluded. Consequently, the outcome of
negotiations may vary materially from management expectation.
Capitalised development costs
Any internally generated intangible asset arising from the
Group's development projects are recognised only once all the
conditions set out in the accounting policy Internally Generated
Intangible Assets (refer to note 2) are met. The amortisation
period of capitalised development costs is determined by reference
to the expected flow of revenues from the product based on
historical experience. Furthermore, the Group reviews, at the end
of each financial year, the capitalised development costs for each
product for indications of any loss of value compared to net book
value at that time. This review is based on expected future
contribution less the total expected costs.
The Group capitalises spend on development of new software and
the delivery of innovative software. Management exercises judgement
in establishing both the technical feasibility of completing an
intangible asset which can be sold, and the degree of certainty
that a market exists for the asset, or its output, based on
feedback from existing and potential customers, for the generation
of future economic benefits. In addition, amortisation rates are
based on estimates of the useful economic lives and residual values
of the assets involved.
5. Revenue from contracts with customers
Disaggregation of
revenue
Year to 31 March 2019 Development Transactions Licenses Managed Total
services
$000 $000 $000 $000 $000
Mexico 5,065 - 3,964 769 9,798
Europe 381 833 73 159 1,446
Other Americas 913 - 17 - 930
Asia 148 - - - 148
------------ ------------- --------- ---------- -------
6,507 833 4,054 928 12,322
Revenue recognised
over a period 6,182 - - 928 7,110
Revenue recognised
at a point in time 325 833 4,054 - 5,212
------------ --------- ---------- -------
6,507 833 4,054 928 12,322
Year to 31 March
2018
$000 $000 $000 $000 $000
Mexico 2,131 - 2,542 793 5,466
Europe 892 878 39 201 2,010
Other Americas 1,267 - - - 1,267
Asia 73 - - - 73
4,363 878 2,581 994 8,816
Revenue recognised
over a period 4,243 - - 994 5,237
Revenue recognised
at a point in time 120 878 2,581 - 3,579
------------ --------- ---------- -------
4,363 878 2,581 994 8,816
Contract balances
The following table provides information about contract assets
(included as accrued income) and contract liabilities (included as
deferred income) from contracts with customers:
31 March 31 March 2018
2019
$000 $000
Contract assets (accrued income) 1,891 989
Contracts liabilities (deferred
income) 1,019 1,360
2,910 2,349
========= =================
The movement in the contract assets and liabilities during the
year is set out below:
Contract assets
31 March 31 March
2019 2018
$'000 $'000
At 1 April 989 446
Transfers in the period from contract
assets to trade receivables (989) (446)
Excess of revenue recognised over cash
(or rights to cash) 1,891 989
recognised during the period
At 31 March 1,891 989
====================================== =========
Contract liabilities
31 March 2019 31 March
2018
$'000 $'000
At 1 April 1,360 1,844
Amounts included in contract liabilities
recognised (1,360) (1,844)
as revenue in the period
Cash received in advance of performance
and not recognised 1,019 1,360
as revenue during the period
At 31 March 1,019 1,360
====================================== =========
Contract assets ('accrued income') and contract liabilities
('deferred income') are included within 'Trade and other
receivables' and 'deferred income' respectively on the face of the
Statement of Financial Position. They arise from the Group's
revenue contracts, where work has been performed in advance of
invoicing customers, and where revenue is received in advance of
work performed. Cumulatively, payments received from customers at
each balance sheet date do not necessarily equate to the amount of
revenue recognised on the contracts.
6. Segmental reporting
Reportable segments
The chief operating decision maker for the Group is ultimately
the board of directors. For financial and operational management,
the board considers the Group to be organised into two operating
divisions based upon the varying products and services provided by
the Group - Digital TV & Broadcast and Mobile. The products and
services provided by each of these divisions are described in the
Strategic Report. The segment headed other relates to corporate
overheads, assets and liabilities.
Segmental results for the year ended 31 March 2019 are as
follows:
Digital Mobile Other Group
TV & Broadcast
$000 $000 $000 $000
Revenue 11,490 832 - 12,322
Segmental profit/(loss) 1,905 171 (1,262) 814
(Adjusted EBITDA,
see note 7)
Finance income - - 141 141
Finance expense - - (523) (523)
Depreciation (70) (10) - (80)
Amortisation (3,578) - - (3,578)
Share-based payment
charge - - (70) (70)
---------------- ------- -------- --------
Profit / (Loss) before
taxation (1,743) 161 (1,714) (3,296)
$0.100 million (2018: $1.228 million) disclosed as "Other"
comprises employment, legal, accounting and other central
administrative costs incurred at a Mirada Plc level.
The segmental results for the year ended 31 March 2018 are as
follows:
Digital Mobile Other Group
TV & Broadcast
$000 $000 $000 $000
Revenue - 7,938 878 - 8,816
Segmental profit/(loss) (102) 209 (1,228) (1,121)
(Adjusted EBITDA,
see note 7)
Finance income - - 84 84
Finance expense - - (634) (634)
Depreciation (63) (10) - (73)
Amortisation (3,352) - - (3,352)
Share-based payment
charge - - (72) (72)
---------------- ------- -------- --------
Profit / (Loss) before
taxation (3,517) 199 (1,850) (5,168)
There is no material inter-segment revenue.
The Group has a major customer in the Digital TV and Broadcast
segment that generates revenues amounting to 10% or more of total
revenue that account for $9.7 million of $12.4m total revenue. This
is approximately 78% of all revenue (2018: $5.2 million, out of
$8.8m) of the total Group revenues.
Segment assets and liabilities are reconciled to the Group's
assets and liabilities as follows:
Assets Liabilities Assets Liabilities
2019 2019 2018 2018
$000 $000 $000 $000
Digital TV - Broadcast
& Mobile 11,360 7,675 13,807 9,664
Other:
Goodwill 5,924 - 6,492 -
Other financial assets
& liabilities 653 279 241 7,656
Total other 6,577 279 6,733 7,656
Total Group assets and
liabilities 17,937 7,954 20,540 17,320
Assets allocated to a segment consist primarily of operating
assets such as property, plant and equipment, intangible assets,
goodwill and receivables.
Liabilities allocated to a segment comprise primarily trade
payables and other operating liabilities.
Geographical
disclosures
External revenue Total assets by
by location of
customer
location of assets
2019 2018 2019 2018
$000 $000 $000 $000
Mexico 9,799 5,466 23 6
Europe 1,445 2,010 17,914 20,534
Other Americas 930 1,267 - -
Asia 148 73 - -
---------------- ---------------- -------
12,322 8,816 17,937 20,540
Revenues by
Products:
Digital Mobile Digital Mobile
TV & Broadcast 2019 TV & Broadcast 2018
2019 2018
$000 $000 $000 $000
Development 6,508 - 4,363 -
Transactions - 832 - 878
Licenses 4,054 - 2,581 -
Managed Services 928 - 994 -
11,490 832 7,938 878
7. Operating loss
This has been arrived at after charging:
2019 2018
$000 $000
Depreciation of owned assets (note
14) 80 73
Amortisation of intangible assets
(note 13) 3,578 3,352
Operating lease charges 596 473
Analysis of auditors' remuneration is as follows:
2019 2018
$000 $000
Fees payable to the company's auditor
for the audit of the company's
annual accounts 119 87
Audit of the account of subsidiaries 36 34
Reconciliation of operating profit for continuing operations to
adjusted earnings before interest, taxation, depreciation and
amortisation:
2019 2018
$000 $000
Operating loss (2,914) (4,618)
Depreciation 80 73
Amortisation 3,578 3,352
Operating profit/loss before interest,
taxation, depreciation and amortisation
(EBITDA) 744 (1,193)
Share-based payment charge 70 72
Adjusted EBITDA 814 (1,121)
======== ========
8. Taxation
2019 2018
$'000 $'000
Analysis of tax credit
for the year
Current tax
UK tax for the current
financial year (113) (111)
Adjustments in respect - -
of previous years
Foreign tax on income for
the year (71) (157)
Total current tax charge/(credit) (184) (268)
====== ======
Deferred tax
Origination and reversal
of timing differences
Adjustment in respect of
prior periods - (30)
------ ------
Total deferred tax charge/(credit) - (30)
Total tax (credit)/charge
for the year (184) (298)
====== ======
The tax assessed on the loss on ordinary activities for the
period differs from the standard rate of tax of 19% (2018-19%). The
differences are reconciled below:
2019 2018
$000 $000
Loss before taxation (3,296) (5,168)
Loss on ordinary activities
multiplied by 19% (2018:19%) (626) (982)
Losses carried forward 626 982
Witholding Taxes 321 125
-------- --------
Total current tax 321 125
Decrease of deferred tax assets - 39
Subtotal 321 164
Tax benefit from research and
development expenditure (462) (497)
Foreign exchange (43) 35
Total tax credit (184) (298)
======== ========
Deferred Taxation
Deferred tax assets related to tax losses were reduced by
$30,000 during FY18 in Mirada Connect. Foreign exchange differences
of $8,000 arising on consolidation of the deferred tax asset were
recognised in other comprehensive income.
At the balance sheet date, the UK government has substantively
enacted a 2% reduction in the main rate of UK corporation tax from
19% to 17% effective from 1 April 2020.
Reconciliation of deferred tax asset and liabilities:
2019 2018
Asset Asset
$000 $000
Balance at 1 April - 30
Reversal of Deferred tax asset - (39)
Foreign exchange 9
Balance at the end of year - -
Deferred taxation amounts not recognised are as follows:
Group Group
2019 2018
$000 $000
Losses 16,880 16,272
Research & Development Tax Credits, 2,868 3,082
useable against future profits
------- -------
Balance at the end of the year 19,748 19,354
======= =======
The gross value of tax losses carried forward at 31 March 2019
equals $78.7 million (2018: $78.0 million).
9. Loss per share
Year ended Year ended
31 March 31 March
2019 2018
Total Total
Loss for year $(3,111,688) $(4,870,019)
Weighted average number
of shares 520,652,606 139,057,695
Basic loss per share $(0.006) $(0.035)
Diluted loss per share $(0.006) $(0.035)
The Company has 4,697,166 (2018: 4,697,166) potentially dilutive
ordinary shares arising from share options issued to staff.
However, in 2019 and 2018 the loss attributable to ordinary
shareholders and weighted average number of ordinary shares for the
purpose of calculating the diluted earnings per ordinary share are
identical to those used for basic earnings per ordinary share. This
is because the exercise of share options would have the effect of
reducing the loss per ordinary share and is therefore
anti-dilutive.
10. Share capital
A breakdown of the authorised and issued share capital in place
as at 31 March 2019 is as follows:
2019 2019 2018 2018
Number $000 Number $000
Allotted, called up and
fully paid
Ordinary shares of GBP0.01
each 890,843,408 12,015 139,057,695 2,261
On 28 November 2017, the Company announced it had entered into
agreements for the provision to the Company of unsecured one-year
loan facilities of up to an aggregate amount of $2.4 million. The
facility had certain conditional subscription rights in respect of
new ordinary shares of 1p each in the capital of the Company. The
facility was provided by Kaptungs Limited, Kronck Business S.A. and
Minles Corporation Inc. This facility was converted into capital as
announced on 29 August 2018.
On 7 March 2018, the Company announced it had entered into a
secured one-year loan facility for up to $4.2 million. This
facility was provided by Kaptungs Limited. This facility was
converted into capital as announced on 4 October 2018.
On 5 October 2018, the Company announced it had raised GBP3
million before expenses, by way of a subscription of 300 million
new Ordinary Shares at 1p per share by a substantial shareholder of
the Company, Kaptungs Limited.
Kaptungs Limited is an investment company which is beneficially
owned by Mr Ernesto Luis Tinajero Flores and has a total beneficial
interest of 776,879,163 Ordinary Shares in Mirada, which represents
87.21 per cent of the voting rights in the Company.
11. Events after the reporting date
See note 27 of the Group financial statements.
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 GIGDRRXBBGCB
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July 11, 2019 04:43 ET (08:43 GMT)
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