One Media iP Group
Plc
("One Media", the
"Group” or the “Company")
UNAUDITED INTERIM
RESULTS
One Media iP Group Plc (AIM: OMIP), a digital media content
provider that exploits intellectual property rights around music
and video, is pleased to announce its half year results for the
period ended 30 April 2017.
Highlights:
· Turnover of £1,147,131 (2016:
£1,055,693); (+ 8.7%)
· Profit before tax of £148,781
(2016: £118,721); (+25.3%)
· EBITDA of £264,935 (2016:
£224,143); (+18.2%)
· Cash balances of £228,628 at
30 April 2017 (£335,664 at
31 October 2016).
Michael Infante, Chairman and
CEO, commented: “I am pleased to report a steadying of the ship and
early indications that we are beginning to see our repositioned
business model starting to benefit from the effect of ‘digital
audio streaming’ gaining traction over ‘digital audio downloads’. I
have previously explained the seismic shift in our audio
monetisation model and its consequential degradation on our
revenues over the last two years. The Group has been very vocal and
transparent on this and I have gone to lengths to explain this in
my previous Chairman’s statements. The indication is that we are at
an inflection point and that growth is back on the horizon. Combine
this with our new initiatives in TCAT and Men & Motors,
together with our core business and we are beginning to demonstrate
early momentum for our growth strategy. We predicted that Q1 2017
would be the beginning of the ‘streaming monetisation’ insurgency
against ‘downloads’ and that we would begin to feel the benefit of
those effects moving forward. I continue to have confidence in our
market approach and our new music, video and technical related
initiatives are well positioned to retain our mission of ‘IP’
exploitation, growth and continued profit.”
For further information, please
contact:
One Media iP Group Plc |
|
Chairman and Chief
Executive
Michael Infante |
Tel: +44 (0)175 378 5501 |
One Media iP Group
Plc
Alice Dyson-Jones
Communications |
Tel +44 (0)175 378 5500 |
Cairn Financial Advisers
LLP
Nominated Adviser |
|
Liam Murray / Jo
Turner |
Tel: +44 (0)20 7148
7900 |
|
|
Panmure Gordon (UK)
Limited
Broker
Karri Vuori /James Stearns |
Tel: +44 (0)20 7886 2500 |
CHAIRMAN & CHIEF EXECUTIVE’S
STATEMENT
The global political upheavals serve as a reminder that change
occurs faster than markets can sometimes anticipate. With keen
direction and attention to detail the Group has taken the challenge
of meeting its market expectation. The team has focussed on
embracing the audio shift and have used our expertise to accelerate
the changeover. We can’t direct consumers to work within the
timescale we set for the balance to shift in monetisation of our
audio consumption, but what we can do is ensure that all our
content, where possible, is being offered on every new and existing
streaming store (such as Apple Music, Spotify, Amazon, Deezer and
Google Play) as they come to market with their expanded streaming
services.
Industry revenues in the UK grew by 1.5% to £926m (source BPI
Official Charts Company) to December
2016. Trade revenues for recorded music are anticipated to
reach a growth rate of 5.1% and our own figures would appear to
support this swing back to growth. The increase in streaming has
attracted many negative headlines over the last few years. We have
always been a supporter of the streaming model, despite its initial
adverse effect on our revenues and believe it must be embraced not
resisted (in the words of the Borg “Resistance is Futile”) One
Media however deals in the world-wide market and according to the
BPI revenues have grown by 5.9% globally. Global revenues revealed
by the IFPI reports that by December
2016 there were 112m users of paid music streaming
subscriptions. The UK remained at third place in global table
behind the USA and Japan. The USA (One Media’s strongest market) has grown
by 7.6%. The total world market in music is now valued at
$15.6bn (US Dollars) up 5.9% from the
previous year. Global revenue data, as of December 2016, confirmed digital sales (including
downloading and streaming) were 50% of the total market at
USD$7.835 bn. Physical Sales (CDs
& Vinyl formats included) 34% at $5.3278bn. Synchronisation sales (music for
advertising film & TV 2% at $0.3134bn, Performance Rights (Concerts, Radio
& TV play ) 14% at £$2.1938 (source BPI/IFPI).
We have taken a consolidative view of the market whilst the
buying trends shift. We are preserving our resources regarding
content acquisition until the merry-go-round settles. I believe
there will be some bargains on the horizon. We are underpinning
existing contracts by extending existing rights and ensuring that
our library of rights remains robust.
On 25 January 2017 we announced
that we had renewed the exclusive rights to the MD Production music
catalogue for a recoupable advance of $18,000 (eighteen thousand
US Dollars). The MD catalogue comprises over 1,000 original
recordings from the 1960s to the 1980s. With performances from
artists such as Don Fardon, The
Cockerel Chorus, Dando Shaft, Gill
Scott-Heron, Greyhound, Roy
Harper, Johnny Kidd & the
Pirates, Kenny and Python Lee Jackson to name just a few. The
tracks have been marketed exclusively by One Media since 2007 on a
royalty-sharing basis. MD Productions has been a long-term music
provider and has received three advances and on-going royalties
from One Media throughout the term. One Media is pleased to
report that it has always fully recouped its advances throughout
the relationship.
On 30 January 2017 we started work
on reorganising the Group’s websites. Five new websites were
created demonstrating the Group’s expanded activities. Firstly we
have the new site; One Media iP Group Plc (http://www.omip.co.uk/).
Here you will find all the investor relation information and
dedicated summaries of the Group’s subsidiaries. The day-to-day
activities, artist information and social media activities of our
audio and video businesses is now housed under
http://www.onemediaip.com/. Our Technical Copyright Analysis Tool
(TCAT) is at (http://www.tcat.media/). Here you will find our
informational video on the ‘Software as a Service’ (SaaS)
technology. Men & Motors can be found on (www.menandmotors.com)
a new and exciting style for this site showing the links to the
archive of over 3400 shows and information on our initiative for a
new format of TV show still being presented to various
broadcasters. Point Classics, our classical collection of
over 3000 recordings (http://www.pointclassics.com/) is now the new
home for this collection. Music supervisors use this site to sort,
search and compile classical recordings for film and TV. We are
pleased to report that all of the work in creating the new sites
was completed on time and within budget.
It is the Group’s intention to expand the exploitation for the
corporate brands that it now owns and to more clearly define their
individuality trade-wise in the coming year. Men & Motors by
way of example has already been registered (albeit dormant), as a
stand-alone subsidiary company in preparation for broadcast and
trading demand. The same applies for TCAT and the Group has
registered TCAT Ltd should this be required in the future.
On 1 February 2017 we announced
that we had moved our banking services to Coutts & Co
("Coutts") of 440 Strand, London.
We commenced the orderly handover from Barclays to Coutts during
February 2017. The Group confirmed at
the time that it has no debt and is cash resourced. Coutts
experience within media and content with many focussed services and
seminars should prove invaluable to the Group with its expansion
programme into varying media and technology activities.
In two statements on 20 February
2017 and on 12 April 2017, the
Group announced that it had concluded its copyright complaint and
litigation in the Middle District of Tennessee with HHO Licensing Ltd, Henry
Hadaway Organisation Ltd and Henry
Hadaway personally by way of an amicable resolution.
Post the half year end on 30 April
2017 the Group announced that One Media signed an exclusive
exploitation deal with Getty Images for 'clips' from the Group’s
moving image library rights. The deal will involve One Media
supplying ‘clips’ from its growing video content library to Getty
Images for representation and exploitation to Getty’s worldwide
client base for multiple use in documentaries, advertising and all
moving image usages. Getty Images is one of the most esteemed
sources of visual content throughout the world, with over 200
million assets available through its industry-leading sites
www.gettyimages.com and www.istock.com. The distribution deal will
see the Group create thousands of clips from its archive to be made
available to Getty Image’s clients on their web based platforms.
The Group’s video archive has grown by acquisition over that last
few years and we are now able to further exploit the content via a
‘clipping’ service and to supply the world leader in image hire.
The Group’s Creative Technicians are already trained and equipped
to perform this function in-house and have been successful in
building billions of views with the Company’s content for sites
like You Tube. Content from Men & Motors, Alien Autopsy and the
HiBrow film catalogue together with our cleared music video content
will spearhead the service.
On 25 May 2017 we announced that
we had signed our first major music distributor to utilise the
services of the Group’s Technical Copyright Analysis Tool (“TCAT”).
The global music distributor will be using the TCAT services from
June 2017 to monitor its weekly release schedules, monitor music
conflicts and potential copyright infringements. Following two
years of development the deal will see the commercialisation of
TCAT on an annual contract basis. Confidentiality clauses in the
agreement prevents us from disclosing the identity of our client at
this time and any of the commercial terms but the Group is very
excited by having TCAT deployed as a technical resource to a major
record distributor. Whilst the revenues generated from this
initial contract will be modest, it is a significant development
for the Group as it validates and proves the technology and
demonstrates its need in the market place.
Results
The Group has continued to manage its financial position over
the 6 month period to 30 April 2017
with profitable operations and no debt.
Group consolidated turnover was £1,147,131 for the 6 months
ended 30 April 2017 (2016:
£1,055,693).
Profit before tax of £148,781 (2016: £118,721).
Cash balances at 30 April 2017 of
£228,628 (2016: £335,664).
During the period, the Company has not issued new shares as
consideration for acquisitions and has used existing cash resources
as consideration.
Litigation
The company has been informed of a pending action in the
Southern District of Florida Court
USA for a claim by Kemar McGreor (KM) against Phoenix Music
International Ltd (PMI), Orchard Enterprises Ltd (OE) and One Media
Ip Group PLC (OMIP), for an alleged infringement of copyrights
supplied by PMI to both OE and OMIP. Phoenix Music
International (a British company) entered into a license agreement
with Kemar McGreor for the licensing
of certain music rights on or about the 9th
May 2011. PMI then entered into a deal with OE and OMIP to
act as distributors for the licensed content. The case is centered
on whether PMI had the rights to allow OE and OMIP to distribute
the licensed content. PMI have informed both OE and OMIP that they
will robustly defend this action. OMIP has a full indemnity from
PMI on its distribution agreement with PMI. PMI are meeting all the
costs of the defence for OMIP and any costs or settlements in
the final outcome.
A representative from the Group will attend a mediation meeting
on the 9th October 2017 in
Florida and will report the
outcome of said mediation. A trial date has been set for
December 9 2017 failing mediation
and/or settlement between the parties.
Dividend
The Group continues to review the dividend policy in line with
its cash resources and requirements. No dividend is announced at
this time.
News, Content Exploitation and
Acquisitions
Understanding and underpinning where our revenues are generated
and our resources are best spent has been a priority. Maintaining
cost controls, motivating new and existing initiatives and
resourcing the TCAT development for exploitation is a continued
project. We are recruiting more technical staff in the second half
and will build our ability not only to expect more from TCAT but
also review our internal operation in line with the skill set
required. We remain vigilant on content acquisition and as always
will invest where the Group can identify good opportunities.
Outlook
I have been transparent throughout the last two years regarding
the challenging times that the Group has faced. We still have
concepts to prove. We still have internal changes to make to meet
the new demands as we advance into becoming a more fully rounded
digital group. It is an exciting time and I know that we can meet
those demands. We are here for the long run and continue to invest
our time, effort and ingenuity to make One Media a company of
substance.
I would like to thank our team both in-house, contracted and my
co-directors. I would especially like to express my thanks to our
newly appointed Company Secretary and Head of Finance, Steven Gunning for so ably embracing the Group’s
financial obligations and day to day running of our accounts
systems.
MICHAEL INFANTE
CHAIRMAN AND CHIEF EXECUTIVE
27 June
2017
Unaudited Consolidated Statement of Comprehensive
Income
For the six months ended
30 April 2017
|
|
Unaudited |
Unaudited |
Audited |
|
|
6 months
ended
30 April 2017 |
6 months
ended
30 April 2016 |
12 months
ended
31 October 2016 |
|
|
£ |
£ |
£ |
|
|
|
|
|
Revenue |
|
1,147,131 |
1,055,693 |
2,045,652 |
Cost of sales |
|
(628,093) |
(601,080) |
(1,139,951) |
|
|
_________ |
_________ |
_________ |
Gross profit |
|
519,038 |
454,613 |
905,701 |
|
|
|
|
|
Administrative expenses |
|
(370,352) |
(336,083) |
(876,742) |
|
|
_________ |
_________ |
_________ |
Operating
profit |
|
148,686 |
118,530 |
28,959 |
Finance income |
|
95 |
191 |
1,060 |
|
|
_________ |
_________ |
_________ |
Profit on ordinary activities
before taxation |
|
148,781 |
118,721 |
30,019 |
Tax credit / (expense) |
|
(16,573) |
(23,744) |
32,852 |
|
|
_________ |
_________ |
_________ |
Profit for period attributable to
equity shareholders and total comprehensive income for the
year |
|
132,208 |
94,977 |
62,871 |
|
|
========= |
========= |
========= |
Basic adjusted earnings per
share |
|
0.19p |
0.13p |
0.09p |
|
|
========= |
========= |
========= |
Unaudited Consolidated Statement of Financial Position
As at 30
April 2017
|
|
Unaudited |
Unaudited |
Audited |
|
|
30
April 2017 |
30
April 2016 |
31 October
2016 |
|
|
£ |
£ |
£ |
Assets |
|
|
|
|
Non-current assets |
|
|
|
|
Intangible assets |
|
3,394,925 |
3,338,237 |
3,394,134 |
Property, plant and equipment |
|
5,230 |
7,787 |
6,452 |
|
|
_________ |
_________ |
_________ |
|
|
3,400,155 |
3,346,024 |
3,400,586 |
|
|
_________ |
_________ |
_________ |
Current assets |
|
|
|
|
Trade and other receivables |
|
447,690 |
478,174 |
463,574 |
Cash and cash equivalents |
|
228,628 |
549,888 |
335,664 |
|
|
_________ |
_________ |
_________ |
Total current assets |
|
676,318 |
1,028,062 |
799,238 |
|
|
_________ |
_________ |
_________ |
Total assets |
|
4,076,473 |
4,374,086 |
4,199,824 |
|
|
========= |
========= |
========= |
|
|
|
|
|
Liabilities |
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
468,318 |
869,999 |
756,988 |
Deferred tax |
|
22,532 |
- |
5,960 |
|
|
_________ |
_________ |
_________ |
|
|
|
|
|
|
|
_________ |
_________ |
_________ |
Total liabilities |
|
490,850 |
869,999 |
762,948 |
|
|
_________ |
_________ |
_________ |
Equity |
|
|
|
|
|
|
|
|
|
Called up share capital |
|
355,268 |
355,268 |
355,268 |
Share redemption reserve |
|
239,546 |
239,546 |
239,546 |
Share premium account |
|
1,457,645 |
1,457,645 |
1,457,645 |
Share based payment reserve |
|
90,979 |
59,097 |
74,440 |
Retained earnings |
|
1,442,185 |
1,392,531 |
1,309,977 |
|
|
_________ |
_________ |
_________ |
Total equity |
|
3,585,623 |
3,504,087 |
3,436,876 |
|
|
_________ |
_________ |
_________ |
|
|
|
|
|
|
|
_________ |
_________ |
_________ |
Total equity and
liabilities |
|
4,076,473 |
4,374,086 |
4,199,824 |
|
|
========= |
========= |
========= |
|
|
|
|
|
|
|
|
|
|
Unaudited Consolidated Statement of Changes in Equity
For the six months ended
30 April 2017
|
Share capital |
Share redemption reserve |
Share premium |
Share based payment
reserve |
Retained earnings |
Total equity |
|
£ |
£ |
£ |
£ |
£ |
£ |
At 1 November 2015 |
355,268 |
239,546 |
1,457,645 |
43,497 |
1,348,002 |
3,443,958 |
Profit for the six
months to
30 April 2016 |
- |
- |
- |
- |
94,977 |
94,977 |
Share option charge |
- |
- |
- |
15,600 |
- |
15,600 |
Dividends |
- |
- |
- |
- |
(50,448) |
(50,448) |
|
________ |
_________ |
_________ |
_________ |
_________ |
_________ |
At 30 April 2016 |
355,268 |
239,546 |
1,457,645 |
59,097 |
1,392,531 |
3,504,087 |
Profit for the six
months to
31 October 2016 |
- |
- |
- |
- |
(32,106) |
(32,106) |
Share based payment
charge |
- |
- |
- |
15,343 |
- |
15,343 |
Dividends |
- |
- |
- |
- |
(50,448) |
(50,448) |
|
________ |
_________ |
_________ |
_________ |
_________ |
_________ |
At 31 October 2016 |
355,268 |
239,546 |
1,457,645 |
74,440 |
1,309,977 |
3,436,876 |
Profit for the six
months to
30 April 2017 |
- |
- |
- |
- |
132,208 |
132,208 |
Share option charge |
- |
- |
- |
16,539 |
- |
16,539 |
|
________ |
_________ |
_________ |
_________ |
_________ |
_________ |
Balance at 30 April 2017 |
355,268 |
239,546 |
1,457,645 |
90,979 |
1,442,185 |
3,585,623 |
|
======== |
========= |
========= |
========= |
========= |
========= |
There has been no issue of shares in the six months ended
30 April 2017.
Unaudited Consolidated Cash Flow Statement
For the six months ended
30 April 2017
|
Unaudited |
Unaudited |
Audited |
|
6 months
ended
30 April 2017 |
6 months
ended
30 April 2016 |
12 months
ended
31 October 2016 |
|
£ |
£ |
£ |
Cash flows from operating
activities |
|
|
|
|
|
|
|
Profit before taxation |
148,781 |
118,721 |
30,019 |
Amortisation |
112,998 |
103,633 |
209,365 |
Depreciation |
1,222 |
1,980 |
4,002 |
Share based payments |
16,539 |
15,600 |
30,943 |
Finance income |
(95) |
(191) |
(1,060) |
(Increase)/decrease in
receivables |
15,884 |
(37,922) |
(23,320) |
(Decrease)/increase in payables |
(288,670) |
(297,628) |
(290,186) |
Corporation tax paid |
- |
- |
(57,900) |
|
_________ |
_________ |
_________ |
Net cash inflow from operating
activities |
6,659 |
(95,807) |
(98,137) |
|
_________ |
_________ |
_________ |
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
|
|
|
Investment in copyrights |
(113,790) |
(118,547) |
(280,176) |
Investment in fixed assets |
- |
(1,750) |
(2,436) |
Finance income |
95 |
191 |
1,060 |
|
_________ |
_________ |
_________ |
Net cash used in investing
activities |
(113,695) |
(120,106) |
(281,552) |
|
_________ |
_________ |
_________ |
|
|
|
|
Cash flow from financing
activities |
|
|
|
|
|
|
|
Dividend paid |
- |
(50,448) |
(100,896) |
|
_________ |
_________ |
_________ |
Net cash outflow from financing
activities |
- |
(50,448) |
(100,896) |
|
_________ |
_________ |
_________ |
|
|
|
|
Net change in cash and cash
equivalents |
(107,036) |
(266,361) |
(480,585) |
Cash at the beginning of the
period |
335,664 |
816,249 |
816,249 |
|
_________ |
_________ |
_________ |
Cash at end of the
period |
228,628 |
549,888 |
335,664 |
|
========= |
========= |
========= |
Notes to the Interim Report
For the six months ended 30 April 2017
1. Nature of operations and general
information
One Media iP Group Plc and its subsidiaries’ (“the Group”)
principal activities are the acquisition and licensing of
audio-visual intellectual copyrights and publishing for
distribution through the digital medium and to a lesser extent
through traditional media outlets.
One Media iP Group Plc is the Group’s ultimate parent company
incorporated under the Companies Act in England and Wales. The address of One Media iP Group Plc
registered office is 623 East Props Building, Goldfinger Avenue,
Pinewood Road, Iver Heath,
Buckinghamshire, SL0 0NH.
The financial information set out in this Interim Report does
not constitute statutory accounts. The Group’s statutory financial
statements for the year ended 31 October
2016 are available from the Group’s website. The auditor’s
report on those financial statements was unqualified.
2. Accounting Policies
Basis of Preparation
These interim consolidated financial statements are for the six
months ended 30 April 2017. They have
been prepared following the recognition and measurement principles
of IFRS. They do not include all the information required for full
annual statements, and should be read in conjunction with the
consolidated financial statements of the Group for the year ended
31 October 2016.
This unaudited interim statement has not been subject to a
review by the Group’s auditors James Cowper
Kreston.
Comparatives
The comparative periods represent the unaudited results for the
six months period ended 30 April 2017
and the audited twelve months figures for the year ended
31 October 2016.
3. Earnings per share
The calculation of the earnings per share is based on the profit
for the financial period divided by the weighted average number of
shares in issue during the period.
|
Unaudited |
Unaudited |
Audited |
Basic earnings per share |
6 months
ended
30 April 2017 |
6 months
ended
30 April 2016 |
12 months
ended
31 October 2016 |
|
|
|
|
Profit for period attributable to
equity shareholders |
132,208 |
94,977 |
62,871 |
Weighted average number of shares in
issue at period end |
71,053,698 |
71,053,698 |
71,053,698 |
|
_________ |
_________ |
_________ |
Basic earnings per share |
0.19p |
0.13p |
0.09p |
|
========= |
========= |
========= |
The diluted earnings per share would be lower than the basic
profit per share as the exercise of warrants and options would be
dilutive.
4. Share capital
|
Unaudited |
Unaudited |
Audited |
|
30
April 2017 |
30 April
2016 |
31 October
2016 |
Group and company |
£ |
£ |
£ |
|
|
|
|
Authorised: |
|
|
|
|
|
|
|
200,000,000 ordinary shares of 0.5p
each |
1,000,000 |
1,000,000 |
1,000,000 |
|
========== |
========== |
========== |
|
|
|
|
Issued: |
|
|
|
|
|
|
|
Ordinary shares of 0.5p each |
|
|
|
|
|
|
|
71,053,698 ordinary shares of 0.5p
each |
355,268 |
355,268 |
355,268 |
|
========== |
========== |
========== |
5. Interim statement
Copies of this statement are available from Group's registered
Office at:
623 East Props Building, Goldfinger Avenue, Pinewood Road,
Iver Heath, Buckinghamshire, SL0 0NH.