TIDMMIRA
RNS Number : 2617B
Mirada PLC
30 September 2022
30 September 2022
Mirada plc
("Mirada", "the Company" or "the Group")
Final results for the year ended 31 March 2022
Mirada (AIM: MIRA), a leading provider of integrated software
solutions for digital TV operators and broadcasters, announces its
audited final results for the year ended 31 March 2022.
Financial Highlights
-- Revenue of $11.02 million (2021: $11.13 million)
-- Gross profit of $10.25 million (2021: $10.84 million)
-- Adjusted EBITDA* of $1.65 million (2021: $1.70 million)
-- Net loss for continuing activities of $2.87 million (2021:
loss of $2.99 million)
-- Net debt** of $8.59 million (2021: $7.07 million), including
utilisation of EUR2.3 million out of the EUR3.0 million revolving
credit facility with Leasa, owned by the Group's largest
shareholder.
* EBITDA is defined as earnings before interest, tax,
depreciation, amortisation and share-based payments
** Net Debt is defined as Gross Debt minus Cash
Operational Highlights
-- Significant growth in licences from existing customers,
up 50% over FY21, helped to offset a decrease in professional
services.
-- Consolidated position as a leading provider of Android TV-powered
software, with set-top box deployments increasing to approximately
1.5 million in the year ended 31 March 2022.
-- Boosted marketing and sales reach through reseller agreements
in Asia and North America
Post-period Highlights
-- Approximately $3.1 million revenue (2021: $3.1 million) and
$0.9 million adjusted EBITDA (2021: $0.7 million) achieved
in the first quarter of FY23
-- Continued growth on licence fees, with Android TV-powered
set-top box deployments surpassing 2 million in August 2022
-- Extension of the revolving credit facility with Leasa to 30
November 2023
-- Contract win with SkyMedia for the deployment of their extended
video platform and two more significant deals with new customers
in late stage, one in India where terms have been agreed and
one in Latin America.
-- Record sales pipeline and confident of delivering meaningful,
sustainable growth in FY23
José-Luis Vázquez, CEO of Mirada, commented:
"To have delivered these results despite the effects of the
pandemic continuing to be felt for much of the period is testament
to quality of the products and services we provide, the dedication
of our people, the resilience of our model and the improvements
made to our operational infrastructure.
Looking ahead, with our end markets now operating normally and a
pipeline that has rapidly grown to record levels, we are optimistic
about our prospects. It can often take several months to convert
prospects but, as we move through the new financial year, some lead
times are drawing to an end and we are confident of securing our
first major new wins since the pandemic. There remains an air of
uncertainty around the broader economic environment but, at
present, we are not seeing any signs of the demand in our end
markets slowing.
We have invested heavily and developed several strategic
initiatives ahead of the curve that position us at the centre of
emerging TV and video service trends. Assuming the worst of the
pandemic is now behind us, I am confident Mirada is equipped to
return to its pre-Covid trajectory and grow in a meaningful and
sustainable way."
Annual Report and Accounts
The Company's Annual Report and Accounts will be made available
on the Company's website www.mirada.tv later today and will be
posted to shareholders today.
Contacts
Mirada plc +44 (0)20 8187 1661
José-Luis Vázquez, Chief Executive investors@mirada.tv
Officer
Gonzalo Babío, Finance Director
Allenby Capital Limited (Nominated Adviser
& Broker) +44 (0)20 3328 5656
Jeremy Porter/George Payne (Corporate
Finance)
Jos Pinnington (Sales and Corporate Broking)
Alma PR (Financial PR Adviser) +44 (0)20 3405 0205
David Ison mirada@almapr.co.uk
Andy Bryant
Matthew Young
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
over 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, ATN International, Telefonica, Sky, Virgin Media, BBC,
ITV, Skytel and France Telecom Orange. 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 Report
Emerging strongly from the pandemic
This is a robust set of results that bodes well for the future
given the impact of Covid meant virtually no new business activity
took place in the first half of the year and our ability to source
and negotiate new business was impeded for much of the second.
I am proud of the efforts of our teams and particularly
encouraged by the way we were able to strengthen and deepen our
relationships with existing customers in the period, with licences
across our base increasing 50% over FY21. Working closely with them
throughout, not only did we support them through tough times, we
helped them continue moving forwards with their respective growth
strategies.
While the market recovery in the second half was somewhat
stop-start as the pandemic continued to impact sentiment and
logistics, appetite for our products and services steadily
increased, our sales pipeline reached record levels, and we were
able to make progress in advancing opportunities (albeit at a
slower pace than originally anticipated).
As we move through the new financial year and with our new
global sales strategy bedded in, we are now beginning to convert
some significant opportunities such as those with Mongolian telco
Skytel, a relevant Indian telco and TV provider in India and a
major telco in Latin America and are confident in our ability to
continue in a similar vein. This, combined with continued revenue
momentum from existing customers, has led to a growing sense of
stabilisation in the business and optimism that we are now back on
track.
Continued operational and commercial progress
Despite the challenges, particularly in the first half, we made
encouraging progress in rolling out our new global sales strategy
which centres around partnering with local experts to provide
greater and more targeted access to international markets. We now
have an established presence in Asia-Pacific that has already
delivered major new business leads, and with several exciting
prospects referred by our sales team, resellers and partners,
pipelines are growing across the board, particularly in India. In
November 2021, we signed a significant reseller deal with Shift 2
Stream, a TV as a Service provider active in North America and the
Caribbean, enabling us to expand our reach into North America and
strengthening our presence in the Caribbean, both of which are
important target markets for Mirada.
Also in November 2021, driven mainly by the continued success of
our relationship with Mexican telco giant izzi Telecom, we
announced that we had surpassed the deployment of one million
set-top boxes ("STBs") powered by our Android TV Operator Tier
offering. Using 2021 statistics published by technology research
firm Omdia, Mirada STBs constituted approximately 5% of the
expected 20 million global Android TV Operator Tier STBs at the
time. By period end, deployments of Mirada-powered Android TV
set-to-boxes worldwide had increased to approximately 1.5 million
and by August 2022, that figure surpassed 2 million.
To have rolled out our Android TV Operator Tier STBs at such a
rate despite the global chipset shortage and installation
challenges posed by the pandemic is both a great achievement and
strong validation of our decision to back this technology. Omdia
forecasts that 50 million Android TV Operator Tier STBs will be in
use in 2024 and, with existing and prospective customers actively
considering replacing their legacy platforms, we continue to be
confident in our ability to consolidate our market share.
Ideally positioned versus technology trends
The Directors believe that market trends continue to move in
Mirada's favour. Super-aggregation, which involves consolidating
video streaming services and traditional linear channels into a
single viewing experience, remains the dominant strategy for Pay TV
operators looking to adapt to the industry disruption caused by the
emergence of Netflix, Amazon Prime Video and other content
providers.
At the same time, with the landscape for these
direct-to-consumer ("D2C") content providers becoming increasingly
competitive and dominant players such as Netflix approaching
saturation point, they themselves are becoming more and more
reliant on super-aggregation as a method of customer acquisition
and retention, alongside tactics such as limiting account sharing
and creating new advertising-driven subscription tiers.
Super-aggregation plays a key role in increasing subscriber
loyalty, which at present is an important priority for these
providers.
This mutually beneficial relationship between Pay TV operators
and content providers means super-aggregation is set to be an
enduring trend and Mirada's proposition puts it right at the
centre.
The Directors believe that Mirada's flagship software, Iris, now
boasts one of the most comprehensive sets of integrated content
providers available, with all the key players including Disney+,
Amazon Prime Video, Netflix, HBO, Fox and more represented. This is
a technically challenging feat to achieve and maintain -
particularly in the small and medium operator space - giving Mirada
a strong competitive advantage as we look to capitalise on improved
trading conditions.
At the same time, Android TV, Google's operating system ("OS"),
continues to cement its position as the OS of choice for set-top
boxes and other devices, due to its versatility, reliability, and
ability to quickly and conveniently deliver the premium content and
multiscreen functionality needed to reduce churn and increase
premium subscriptions and viewing times. According to a February
2022 report by streaming analytics provider Conviva, Android TV is
the fastest-growing TV platform, with 42% growth in the final
quarter of 2021 compared to the same period in 2020.
Mirada boasts an enviable track record of large-scale
deployments and has established itself as one of the world's
preeminent providers of the technology, with well over 2 million of
its Android TV-powered STBs currently in circulation.
Geographic expansion facilitated by new sales strategy
Our decision to sell into international markets via local
resellers has provided us with access to a wealth of new
international opportunities that would otherwise have been
difficult to reach. The success we are having in India is a great
example of this. A hugely populous nation with a burgeoning middle
class, research by Omdia forecasts the Indian Pay TV market to grow
by nearly 30% over the next five years, with the average revenue
per user ("ARPU") increasing by 35% by 2025. With a substantial
addressable market and a well-connected presence on the ground
sourcing new prospects, we continue to expect India, and the wider
APAC region, to become key markets for Mirada in the coming
years.
We are currently working to replicate the success of the APAC
reseller strategy in the rest of the world, starting with the
Americas. According to a recent report, again by Omdia, Pay TV is
the largest video entertainment segment by revenue across all of
Latin America, worth $15 billion annually as at calendar year 2022,
a 4% increase over 2021. In addition, Digital TV Research points to
OTT TV revenues doubling by 2027, reaching $14 billion annually. As
in South-East Asia, economic growth in key Latin American
territories has led to the emergence of a middle class with extra
disposable income and an appetite for advanced video entertainment
options. With a strong existing reputation in the region and the
prospect of greater access through the new sales strategy, Mirada
is well-positioned to capitalise.
People and board update
I would like to take this opportunity to again thank everyone
associated with Mirada for their efforts through the year. At times
it was another difficult period for them and their families and yet
they rose to the challenges posed by the pandemic, demonstrating
real perseverance and resolve. Our people are our greatest asset
and I feel fortunate to have such a talented, dedicated and
hard-working team, particularly against the backdrop of an
extremely competitive labour market.
Post-period on 1 April 2022, we announced that Francis Coles
stepped down as Chairman and a director of the Company for family
reasons. As I mentioned at the time, Francis played an important
role in the transition of Mirada to a product model and provided
valuable guidance as we grew our footprint internationally. I am
grateful for his support over the years and, on behalf of everyone
at Mirada, would like to again wish him and his family all the best
for the future.
Following Francis' departure, I stepped into the role of Interim
Chairman. The Board continues to make good progress in finding
Francis' successor, and in seeking to appoint a further
non-executive director and will make a further announcement at the
appropriate time.
Financial overview
Revenue was broadly flat at $11.02 million (FY21: $11.13
million), with significant growth in licences from existing
customers (50% growth over FY21) offsetting, what the Directors to
believe to be, a temporary reduction in professional services and
delays to new contracts caused by the pandemic. Development revenue
decreased to $3.70 million (FY21: $5.61 million). Licence revenues
grew strongly to $5.35 million (FY21: $3.57 million).
Gross profit was also broadly flat at $10.25 million (FY21:
$10.84 million) and operating losses increased to $2.72 million
(FY21: $2.59 million). Staff costs decreased to $6.48 million
(FY21: $7.10 million), supported by the majority of our costs being
incurred in Euros and the appreciation of the US dollar. Other
administrative expenses increased to $2.12 million (FY21: $2.05
million).
Adjusted EBITDA (as defined in Note 7) was $1.65 million (FY21:
$1.70 million). A tax credit was recognised in the period of $0.03
million (FY21: $0.17 million) from Mirada Iberia's research and
innovation tax deductions. Net loss for continued activities was
$2.87 million (FY21: loss of $2.99 million).
Net Debt increased to $8.59 million (FY21: $7.07 million).
Long-term interest-bearing loans and borrowings and related party
loans and interest increased to $6.66 million (FY21: $5.40 million)
and short-term borrowings increased to $1.95 million (FY21: $1.78
million) - see note 9 for further details. Trade receivables
increased from $1.83 million to $2.07 million.
On 27 September 2021, the Company announced the extension from
EUR1.3 million to EUR3.0 million of the facility granted by a
related party, of which EUR2.27 million was utilised at 31 March
2022. The facility is being provided by Leasa Spain, S.L.U.
("Leasa" or the "Lender"). The Lender is incorporated in Spain and
ultimately owned by Mr Ernesto Luis Tinajero Flores who has a total
beneficial interest in 87.21% of Mirada's share capital. The term
of the Facility was extended until 30 November 2023 ("Maturity
Date"), although the Company retains the option to repay any drawn
amounts earlier.
Other intangible assets have decreased by $0.27 million.
The Group generated $2.86 million of cash in operating
activities in the year (FY21: $3.15 million) and spent a further
$3.99 million (FY21: $4.17 million) in investing activities.
Growing new business momentum with major new contracts signed
post-period
In recent weeks, we announced the first major contract win since
the onset of the pandemic and the company has two more significant
deals with new customers in late stage, one in India where terms
have been agreed and one in Latin America.
With a large TV operator and telecoms company in India, Mirada
has agreed a five-year contract and is expecting to be able to
implement it and start the project in the new year following
receipt of the initial payment. Mirada will deliver a hybrid DVB
("Digital Video Broadcasting")/OTT ("Over-the-Top") Android TV
Operator Tier platform, powered by its flagship Iris solution. The
platform will provide viewers with on-demand content as well as
linear TV on set-top boxes and on other devices such as
smartphones, tablets, computers and smart TVs. The deal marks
Mirada's continued expansion in the Asia-Pacific market, where it
is seeing an increasing number of new opportunities and
demonstrates the success of the Company's new sales and marketing
strategy.
Mirada is also in advanced negotiations for a contract to
provide Pay TV services and ad-based entertainment platform
available in public spaces to a Pay TV Operator in Latin America.
The Pay TV contract will be delivered via a SaaS model, an
important part of Mirada's growth strategy, with the potential for
revenue to increase as the customer expands its subscriber base.
The expected contract includes initial set-up fees for Mirada,
followed by subscriber fees on a monthly basis (with a minimum
revenue guaranteed) once the service goes live. The entertainment
platform contract would see the Group's Iris solution deployed for
the first time as an ad-based service available in public spaces,
such as in government buildings, parks, train stations and
airports.
Encouraging start to FY23
The contract wins described in the above section have been
achieved alongside a strong start to trading from existing
customers in FY23. The first quarter ended 30 June 2022 saw a
marked increase in subscriber-based licence fees, with over 2
million set-top boxes now deployed using Mirada's technology. This
has translated into revenues for the quarter of approximately $3.1
million (2021: $3.1 million) and adjusted EBITDA of $0.9 million
(2021: $0.7 million).
Confidence in delivering continued, sustainable growth in the
new financial year and beyond
To have delivered these FY22 results despite the effects of the
pandemic continuing to be felt for much of the period is testament
to quality of the products and services we provide, the dedication
of our people, the resilience of our model and the improvements
made to our operational infrastructure.
We continued to support our customers as they worked to realise
their growth ambitions, and while new business activity across the
market suffered a major setback because of the Covid 19 pandemic -
particularly in the first half - we were able to offset this by
securing a significant increase in licences across our existing
base.
As the second half progressed, we saw a recovery in appetite
across our target markets and, although there were pandemic-related
challenges along the way and it can take several months for a new
agreement to be signed in our industry, our sales pipeline quickly
grew to the largest it has ever been. Encouragingly, as
demonstrated by the post-period agreements with Mongolian telco
Skytel and a telco in India, and late-stage negotiations in Latin
America, we are now beginning to get those deals over the line.
There remains an air of uncertainty around the broader economic
environment but, at present, we are not seeing any signs of the
demand in our end markets slowing. Our outlook as things stand
remains unchanged from the trading update issued in May - that the
new financial year will be one of significant commercial
progress.
We have invested heavily and developed several strategic
initiatives ahead of the curve that position us at the centre of
emerging TV and video service trends. Assuming the worst of the
pandemic is now behind us, I am confident Mirada is equipped to
return to its pre-Covid trajectory and grow in a meaningful and
sustainable way.
José-Luis Vázquez
Chief Executive Officer
29(th) September 2022
Note 3.b to the financial statements set out further below
provides details on going concern and which indicates that the
Company will require additional funding prior to 31 March 2023.
Consolidated Statement of Comprehensive Income for the year
ended 31 March 2022
2022 2021
$000 $000
Revenue 11,023 11,134
Cost of sales (776) (297)
--------------------------------------------- ----------- -----------
Gross profit 10,247 10,837
Depreciation (336) (378)
Amortisation (4,032) (3,909)
Staff costs (6,477) (7,095)
Other administrative expenses (2,120) (2,047)
--------------------------------------------- ----------- -----------
Total administrative expenses (12,965) (13,429)
Operating loss (2,718) (2,592)
--------------------------------------------- ----------- -----------
Finance income - 70
Finance expense (263) (222)
Foreign currency translation differences 77 (419)
--------------------------------------------- ----------- -----------
Loss before taxation (2,904) (3,163)
Taxation 33 171
Loss for year (2,871) (2,992)
--------------------------------------------- ----------- -----------
Other comprehensive income for
the period
Amounts that will or may be reclassified
to the profit or loss
Forex on translation of foreign
operations (299) 338
Total comprehensive loss for the
period (3,170) (2,654)
--------------------------------------------- ----------- -----------
Earnings per share Year ended Year ended
31 March 31 March
2022 2021
$ $
Earnings per share for the year
- basic & diluted (0.322) (0.336)
Consolidated Statement of Financial Position as at 31 March
2022
2022 2021
$000 $000
Goodwill 5,151 5,435
Other Intangible assets 7,046 7,314
Right of use assets 195 343
Property, plant and equipment 161 223
Other Receivables 334 354
---------------------------------------- --------- ---------
Non-current assets 12,887 13,669
---------------------------------------- --------- ---------
Trade & other receivables 4,986 4,856
Cash and cash equivalents 25 107
----------------------------------------
Current assets 5,011 4,963
---------------------------------------- --------- ---------
Total assets 17,898 18,632
---------------------------------------- --------- ---------
Loans and borrowings (1,856) (1,774)
Related parties loans and interests (94) (3)
Trade and other payables (1,743) (2,234)
Deferred income (1,403) (973)
Lease liabilities (96) (204)
Current liabilities (5,192) (5,188)
---------------------------------------- --------- ---------
Net current liabilities (181) (225)
---------------------------------------- --------- ---------
Total assets less current liabilities 12,706 13,444
---------------------------------------- --------- ---------
Related parties loans (2,557) (586)
Interest bearing loans and borrowings (4,106) (4,815)
Lease liabilities (105) (145)
Trade and other payables (1,210) -
Non-current liabilities (7,978) (5,546)
---------------------------------------- --------- ---------
Total liabilities (13,170) (10,734)
---------------------------------------- --------- ---------
Net assets 4,728 7,898
---------------------------------------- --------- ---------
Issued share capital and reserves
attributable to equity holders of
the company
Share capital 12,015 12,015
Share premium - -
Merger reserve 4,863 4,863
Foreign exchange reserves 13,462 13,761
Accumulated loss (25,612) (22,741)
Equity 4,728 7,898
---------------------------------------- --------- ---------
Consolidated Statement of changes in equity for the year ended
31 March 2022
Share Share Foreign Merger Accumulated Total
capital premium exchange reserves losses
reserve
$000 $000 $000 $000 $000 $000
Balance at 1 April 2021 12,015 - 13,761 4,863 (22,741) 7,898
------------------------------ --------- --------- ---------- ---------- ------------ --------
Profit/(loss) for year - - - - (2,871) (2,871)
Other comprehensive
income
Movement in foreign exchange - - (299) - - (299)
Total comprehensive income
for the year - - (299) - (2,871) (3,170)
------------------------------ --------- --------- ---------- ---------- ------------ --------
Balance at 31 March
2022 12,015 - 13,462 4,863 (25,612) 4,728
------------------------------ --------- --------- ---------- ---------- ------------ --------
Company number 03609752 Share Share Foreign Merger Accumulated Total
capital premium exchange reserves losses
reserve
$000 $000 $000 $000 $000 $000
Balance at 1 April 2020 12,015 - 13,423 4,863 (19,749) 10,552
------------------------------ --------- --------- ---------- ---------- ------------ --------
Profit/(loss) for year - - - - (2,992) (2,992)
Other comprehensive
income
Movement in foreign exchange - - 338 - - 338
Total comprehensive income
for the year - - 338 - (2,992) (2,654)
------------------------------ --------- --------- ---------- ---------- ------------ --------
Balance at 31 March
2021 12,015 - 13,761 4,863 (22,741) 7,898
------------------------------ --------- --------- ---------- ---------- ------------ --------
Consolidated Statement of Cash Flows for the year ended 31 March
2022
2022 2021
$000 $000
Cash flows from operating activities
(Loss)/profit after tax (2,871) (2,992)
Adjustments for:
Depreciation of property, plant
and equipment 336 378
Amortisation of intangible assets 4,032 3,909
Finance income - (70)
Finance expense 263 222
Foreign currency translation differences (77) 419
Taxation (33) (171)
Operating cash flows before movements
in working capital 1,650 1,695
Decrease/(increase) in trade and
other receivables 134 1,375
(Decrease)/increase in trade and
other payables 1,018 (74)
Interest paid (10) (13)
Taxation received 71 162
-------------------------------------------- -------- --------
Net cash used in operating activities 2,863 3,145
Cash flows from investing activities
Interest and similar income received - 70
Purchases of property, plant and
equipment (16) (53)
Purchases of other intangible assets (3,972) (4,185)
Net cash used in investing activities (3,988) (4,168)
Cash flows from financing activities
Interest and similar expenses paid (253) (209)
Payment of principal on lease liabilities (269) (301)
Loans received 832 3,264
Related parties loans received 2,557 -
Repayment of loans (1,114) (956)
Repayment of related parties (556) (704)
-------------------------------------------- -------- --------
Net cash from financing activities 1,197 1,094
Net decrease in cash and cash equivalents 72 71
Cash and cash equivalents at the
beginning of the period 107 185
Exchange losses on cash and cash
equivalents (153) (149)
Cash and cash equivalents at the
end of the year 25 107
-------------------------------------------- -------- --------
Selected notes to financial statements year ended 31 March
2022
1. General information
Mirada plc is a company incorporated in the United Kingdom. The
address of the registered office is 3rd Floor Chancery House, St
Nicholas Way Sutton, Surrey SM1 1JB. The nature of the Group's
operations and its principal activities are the provision and
support of products and services in the Digital TV and Broadcast
markets.
2. Changes in accounting policies
a. New and amended standards mandatory for the first time for
the financial periods beginning on or after 1 April 2021
The International Accounting Standards Board (IASB) issued
various amendments and revisions to International Financial
Reporting Standards and IFRIC interpretations. The amendments and
revisions were applicable for the year ended 31March 2022 but did
not result in any material changes to the Financial Statements of
the Group.
b. New Standards, interpretations and amendments not yet effective
There are a number of standards, amendments to standards, and
interpretations which have been issued by the IASB that are
effective in future accounting periods that the group has decided
not to adopt early.
The following amendments are effective for the period beginning
1 January 2022:
Standard Impact on initial application Effective date
IFRS 16 (Amendments) Property, plant, and equipment *1 January 2022
IAS 1 (Amendments) Classification of Liabilities 1 January 2022
as Current or Non-Current
Annual improvements 2018-2020 Cycle 1 January 2022
IAS 37 (Amendments) Provisions, contingent liabilities *1 January 2022
and contingent assets
IAS 8 (Amendments) Accounting estimates 1 January 2023
* Subject to endorsement
The Group has not early adopted any of the above standards and
the directors are assessing the impact on future financial
statements. There are no other IFRS or IFRIC interpretations that
are not yet effective that would be expected to have a material
impact on the Group.
3. Significant accounting policies
a. Basis of accounting
These consolidated financial statements have been prepared in
accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006 and UK-adopted
International Accounting Standards (UK IASs).
The consolidated financial statements have been prepared under
the historical cost convention, as modified by the revaluation of
financial assets and financial liabilities (including derivative
instruments) at fair value through profit or loss, assets held for
sale measured at fair value less costs to sell; and defined benefit
pension plans for which the plan assets are measured at fair
value.
All amounts disclosed in the consolidated financial statements
and notes have been rounded off to the nearest thousand currency
units, unless otherwise stated.
The preparation of consolidated financial statements requires
the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the
group's accounting policies. The areas involving a higher degree of
judgement or complexity, or areas where assumptions and estimates
are significant to the consolidated financial statements, are
disclosed in Note 4.
b. 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, its
exposure to credit and liquidity risks and the impact of the
COVID-19 pandemic.
Based on our review of going concern position, we believe that
there are material uncertainties relating to going concern
assumptions for the Group and the company on the grounds that
future sources of funding or supporting evidence are not available
at the date of approval of the financial statements. We have
considered a period of at least twelve months from the date of
approval of the financial statements. We acknowledge that the Group
requires additional funding, and we are in the process of exploring
opportunities to raise additional funding and optimistic that we
will be able to raise sufficient funds.
As at 31 March 2022, the Group had cash and cash equivalents of
$0.03m (2021: $0.11m), had net current liabilities of $1.39m (2021:
$0.23m) and net assets of $4.73m (2021: $7.90m.). In the year ended
31 March 2022, the Group generated net cash from operating
activities of $2.86m (2021: $3.15m), realised a loss for the year
of $2.87m (2021: $2.99m).
The EUR1.30 million credit facility, granted by Leasa Spain,
S.L.U. ("the Lender") on 4 June 2019, was increased up to EUR3.0
million and its Maturity Date was extended until 30 November 2022.
In addition, the Facility was novated from Mirada Iberia to Mirada
Plc. On 23 September 2022 this was extended until 30 November 2023.
All other terms of the Facility remain unchanged. The Lender is
controlled by Mr. Ernesto Luis Tinajero Flores, who also owns
87.21% of the voting rights of Mirada.
The Directors have prepared detailed cash flow forecasts for the
period to at least 31 December 2023. The Directors regularly review
the detailed forecasts of sales, costs and cash flows. The
assumptions underlying the forecasts are challenged, varied and
tested to establish the likelihood of a range of possible outcomes,
including reasonable cash flow sensitivities. The expected figures
are carefully monitored against actual outcomes each month and
variances are highlighted and discussed at Board level. From a
technology point of view, the Group is also offering and developing
the most advanced features in the market, providing services to a
growing subscriber base in our core markets. To this end a base
case cash flow forecast has been prepared which takes into account
the following key assumptions:
-- The continued availability of the Group's invoice discounting
facility throughout the foreseeable future.
-- An average revenue growth of 13% in the foreseeable
future, which Directors believe, comprise of revenue
that is substantially already secured undersigned contracts.
-- Fundraising up to $2.0 million to happen in the year
ending in 31 March 2023.
-- The extension of the due date of the EUR3.0 million
credit facility granted by Leasa Spain, S.L.U. until
30 November 2023.
-- An expected receipt of US$0.3m of Research and Development
tax credit in March 2023 from Spanish tax authorities.
The Company expects to announce in the coming weeks a contract
win to provide Pay TV services and an ad-based entertainment
platform available in public spaces to a Pay TV Operator in Latin
America.
The Directors have also considered several downside scenarios,
including a scenario where all revenue growth from new customers is
removed and a reverse stress test. The purpose of the reverse
stress test for the Group is to test at what point the cash
facilities would be fully utilised if the assumptions in the
Director's base case forecasts are altered. This reverse stress
test includes both a removal of all revenue growth from new
customers and a reduction of contracted revenue from existing
customers for the forecast period, resulting in an overall
reduction of revenue of c.20%, as well as the removal of any
potential future funding and the receipt of the US$0.3m Research
and Development tax credits anticipated. In the event that the
performance of the Group is not in line with the projections, and
more akin to one of our downside scenarios, including the
worst-case scenario, action will be taken by management immediately
to address any potential cash shortfall for the foreseeable future.
The actions that could be taken by the Directors include both a
review and restructuring of employment related costs, including the
deferral of any potential bonuses due to employees. These measures
alone could save at least $1.5m in operating costs and therefore
cash flows, although they would compromise the company's future
growth. Further, the Directors could also negotiate access to other
sources of finances from the Group's lenders. Given the Director's
current relationship with lenders and their recent success in
negotiations with these financial institutions, whilst there are no
binding agreements currently in place, negotiations are in very
advanced stages for additional funding. Therefore, the Directors
are confident that any additional funding required would be
obtained.
Overall, the sensitised cash flow forecasts demonstrate that the
Group will be able to pay its debts as they fall due for the period
to at least 31 December 2023 based on a potential fundraising of up
to $2.0 million during the period. The Directors are, therefore,
satisfied that the financial statements should be prepared on the
going concern basis.
4. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group's accounting policies 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.
a. Key judgements
The following are the critical judgements 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 Group 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.
-- 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 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.
-- 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.
5. Revenue from contracts with customers
Year to 31 March Professional Licenses Support Total
2022 Services & Maintenance
$000 $000 $000 $000
Mexico 2,922 3,907 1,625 8,454
Europe 394 486 302 1,182
Other Americas 308 959 - 1,267
Asia 77 - 43 120
------------- --------- --------------- -------
3,701 5,352 1,970 11,023
Revenue recognised
over a period 3,549 5,278 1,966 10,793
Revenue recognised
at a point in time 152 73 5 230
3,701 5,351 1,971 11,023
Year to 31 March Professional Licenses Support Total
2021 Services & Maintenance
$000 $000 $000 $000
Mexico 4,239 2,032 1,713 7,984
Europe 827 556 228 1,611
Other Americas 393 977 - 1,370
Asia 147 - 22 169
------------- --------- --------------- -------
5,606 3,565 1,963 11,134
Revenue recognised
over a period 5,243 3,450 1,916 10,609
Revenue recognised
at a point in time 363 115 47 525
5,606 3,565 1,963 11,134
Licenses revenue are including both contract licenses and SaaS
revenue.
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
2022 2021
$000 $000
Contract assets (accrued
income) 1,859 1,561
Contract liabilities
(deferred income) 1,403 973
3,262 2,534
========= =========
The movement in the contract assets and liabilities during the
year is set out below:
Contract assets
31 March 31 March
2022 2021
$'000 $'000
At 1 April 1,561 3,478
Transfers in the period from contract
assets to trade receivables (1,561) (3,478)
Excess of revenue recognised over
cash (or rights to cash) 1,859 1,561
recognised during the period
At 31 March 1,859 1,561
=========== ==========
Contract liabilities
31 March 31 March
2022 2021
$'000 $'000
At 1 April 973 1,785
Amounts included in contract liabilities
recognised (973) (1,785)
as revenue in the period
Cash received in advance of performance
and not recognised 1,403 973
as revenue during the period
At 31 March 1,403 973
=========== ==========
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 Digital TV & Broadcast. 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 2022 are as
follows:
March 2022
Digital Mobile Other Group
TV & Broadcast
$000 $000 $000 $000
Revenue 11,023 - - 11,023
Segmental profit/(loss) 2,677 - (1,027) 1,650
(Adjusted EBITDA, see note
7)
Finance income - - 0 0
Finance expense - - (263) (263)
Depreciation (336) - - (336)
Amortisation (4,032) - - (4,032)
Foreign currency translation
differences 77 - - 77
---------------- ------- -------- --------
Profit / (Loss) before
taxation (1,614) - (1,290) (2,904)
$ 1.027 million (2021: $0.744 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 2021 are as
follows:
March 2021
Digital Mobile Other Group
TV & Broadcast
$000 $000 $000 $000
Revenue 11,134 - - 11,134
Segmental profit/(loss) 2,439 - (744) 1,695
(Adjusted EBITDA, see
note 7)
Finance income - - 70 70
Finance expense - - (222) (222)
Depreciation (378) - - (378)
Amortisation (3,909) - - (3,909)
Foreign currency translation
differences (419) - - (419)
---------------- ------- ------ --------
Profit / (Loss) before
taxation (2,267) - (896) (3,163)
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 $8.45 million of $11.02m total revenue.
This is approximately 77% of all revenue (2021: $7.9 million, out
of $11.03m) of the total Group revenues.
Segment assets and liabilities are reconciled to the Group's
assets and liabilities as follows:
Assets Liabilities Assets Liabilities
2022 2022 2021 2021
$000 $000 $000 $000
Digital TV - Broadcast
& Mobile 11,387 10,251 12,847 10,449
Other:
Goodwill 5,151 - 5,435 -
Other financial assets
& liabilities 1,360 2,919 350 286
Total other 6,511 2,919 5,785 286
Total Group assets
and liabilities 17,898 13,170 18,632 10,734
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 location of by location
customer of assets
2022 2021 2022 2021
$000 $000 $000 $000
Mexico 8,454 7,984 26 14
Europe 1,182 1,611 17,872 18,618
Other Americas 1,267 1,370 - -
Asia 120 169 - -
---------------- ----------- -------
11,023 11,134 17,898 18,632
Revenues by
Products:
Digital Mobile Digital Mobile
TV & Broadcast 2022 TV & 2021
2022 Broadcast
2021
$000 $000
Professional
Services 3,701 - 5,606 -
Transactions - - - 0
Licenses 5,351 - 3,565 -
Support & Maintenance 1,971 - 1,963 -
11,023 - 11,134 -
7. Expenses by nature
This has been arrived at after charging:
2022 2021
$000 $000
Depreciation of owned assets 336 378
Amortisation of intangible assets 4,032 3,909
Operating lease charges 220 253
Total R&D expenditure capitalised as intangible assets
amounts to $4.13m (2021: $4.12m).
The total lease expense not subject to IFRS 16 for short-term as
well as low-value leases amounts to $0.220 (2021: $0.253).
Analysis of auditors' remuneration is as follows:
2022 2021
$000 $000
Fees payable to the company's auditor
for the audit of the company's
annual accounts 72 60
Audit of the account of subsidiaries 22 30
Reconciliation of operating profit for continuing operations to
adjusted earnings before interest, taxation, depreciation and
amortisation:
2022 2021
$000 $000
Operating loss (2,718) (2,592)
Depreciation 336 378
Amortisation 4,032 3,909
Operating profit before interest,
taxation, depreciation, amortisation,
impairment (EBITDA) 1,650 1,695
Share-based payment charge - -
Adjusted EBITDA 1,650 1,695
======== ========
These APM are not International Finacial Reporting Standard
measures.
8. Loss per share
Year ended Year ended
31 March 31 March
2022 2021
Total Total
Loss for year $(2,871,881) $(2,992,569)
Weighted average number
of shares 8,908,435 8,908,435
Basic loss per share $(0.322) $(0.336)
Diluted loss per share $(0.322) $(0.336)
After the cancellation of share premium approved by the General
Meeting on 10 September 2019, the Company has 41,483 (2021: 41,483)
potentially dilutive ordinary shares arising from share options
issued to staff. However, i n 2022 and 2021 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 earning per ordinary share and is
therefore anti-dilutive.
9. Non-current liabilities
2022 2021
$000 $000
Interest bearing loans and borrowings:
Bank loans 2,865 3,767
Other loans 1,241 1,048
Related parties loans 2,557 586
------ ------
6,663 5,401
Other loans relate to loans received by the Group's Spanish
operation to assist in funding the continued development of the
Group's Digital TV products.
Capital risks have been analysed in the Director's report in the
Annual Report and Accounts.
Net Debt
Net Debt is calculated based on short term loans, long terms
loans and cash and cash equivalents:
2022 2021
$000 $000
Loans and borrowings - Current 1,950 1,777
Loans and borrowings - Non Current 6,663 5,401
Cash (25) (107)
Net Debt 8,588 7,071
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END
FR DDGDCDBDDGDC
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September 30, 2022 02:02 ET (06:02 GMT)
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