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REG - Digitalbox PLC - Interim Results

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RNS Number : 7109A  Digitalbox PLC  27 September 2022

 

27 September 2022

 

Digitalbox plc

("Digitalbox", the "Group" or the "Company")

 

Unaudited interim results for the six months ended 30 June 2022

 

FY2022 outlook broadly in line with market expectations

 

Digitalbox plc, the mobile-first digital media business, which owns leading
websites Entertainment Daily, The Daily Mash and The Tab today publishes its
interim results for six months to 30 June 2022  (the "First Half", the
"Period", or "H1 2022").

 

Financial Highlights

 

                                    H1 2022  H1 2021  Variance
                                    £m       £m
 Group revenue                      1.88     1.34     +40%
 Gross profit                       1.64     1.13     +46%
 Adjusted operating profit*         0.66     0.29     +126%
 Cash generated from operations     0.74     0.21     +260%
 Gross cash balance                 2.80     2.04     +37%
 Net cash balance                   2.43     1.55     +57%

 Gross margin                       87%      84%      +3ppts
 Adjusted operating profit margin*  35%      22%      +13ppts

 

*Adjusted operating profit is stated before depreciation, amortization,
impairment of goodwill and intangible assets and share based payment charges.

 

Operational Highlights

·      Increased advertiser demand for high-quality audiences on mobile
continues to fuel strong session values.

·      Entertainment Daily session volumes (traffic) up 46%.

·      The Tab session values up 57%.

·      The Daily Mash Premium content offering introduced to drive
direct consumer revenues.

·      The Tab, benefiting from Digitalbox's Graphene platform,
continued to deliver operating profit every month in the period and has now
fully repaid its acquisition cost.

·      The acquisition of the web and mobile platform assets of
TVGuide.co.uk Limited, announced in May 2022, is expected to complete in the
second half of FY 2022 as scheduled.

·      Administration costs excluding the non-cash charges of
depreciation, impairment and share based payment costs are up 17% due to
investments in technical, commercial and content resources.

 

Outlook

·      Full year results to 31 December 2022 will be broadly in line
with market expectations.

 

James Carter, CEO, Digitalbox plc, said: "We are pleased with the
performance of the business in the first six months of the year. This was
achieved in part due to the commercial transformation of The Tab, our focus on
mobile publishing, and Entertainment Daily's editorial team successfully
maximising user engagement across all channels. This strong first-half
performance and our optimised operating model, mean we are confident that we
can cope with the economic headwinds expected to impact global advertising
revenues in the second half. We believe we can strengthen the Company's
position as we plan to bring TV Guide on board and we are confident that
trading for the full year 2022 will be broadly in line with market
expectations."

 

Certain information contained in this announcement would have constituted
inside information (as defined by Article 7 of Regulation (EU) No 596/2014)
("MAR") prior to its release as part of this announcement and is disclosed in
accordance with the Company's obligations under Article 17 of MAR.

 

Enquiries:

 

 Digitalbox                                                  c/o SEC Newgate
 James Carter, CEO

 Panmure Gordon                                              Tel: 020 7886 2500

 (Nominated Adviser, Financial Adviser & Joint Broker)
 Alina Vaskina / James Sinclair-Ford (Corporate Advisory)
 Rupert Dearden (Corporate Broking)

 Alvarium Capital Partners (Joint Broker)                    Tel: 020 7195 1400
 Alex Davies / Hugh Kingsmill Moore

 SEC Newgate (Financial Communications)                      Tel: 020 3757 6880
 Robin Tozer / Moly Gretton / Max Richardson                 digitalbox@secnewgate.co.uk

 

 

 

About Digitalbox plc

 

Based in Bath, UK, Digitalbox is a 'pure-play' digital media business with the
aim of profitable publishing at scale on mobile platforms.

 

Digitalbox operates three trading brands, "Entertainment Daily", "The Tab" and
"The Daily Mash". Entertainment Daily produces and publishes online UK
entertainment news covering TV, showbiz and celebrity news. The Daily Mash
produces and publishes satirical news content. The Tab is the UK's biggest
youth culture site fueled by students.

 

Digitalbox generates revenue from the sale of advertising in and around the
content it publishes. The Group's optimisation for mobile enables it to
achieve revenues per session significantly ahead of market norms for
publishers on mobile.

 

 

 

InteriM Statement

 

Overview

The performance of the Group in the first six months of the year has been
strong and exceeded our expectations. As a result of the high volumes of
traffic on Entertainment Daily and the continued improvement in the
monetisation of The Tab, revenues have increased 40% period on period to £1.9
million. More importantly, Digitalbox reports adjusted operating profit of
£0.7 million which is significantly ahead of management expectations.
Furthermore, the gross cash balance has increased from £2.2 million as
at 31 December 2021 to £2.8 million as at 30 June 2022.

 

Operating Review

The two factors that drive revenue are the volume and value of advertising.
The volume is reflected in the number of visits (or sessions) that the Group's
websites receive from users that come to read our content. The value is the
price advertisers pay to reach these users during these sessions. The number
of visits to the Group's websites increased significantly in H1, predominantly
due to solid editorial success through our biggest brand, Entertainment Daily.
While we anticipated advertiser demand softening due to the energy and cost of
living crisis, combined with the Ukraine war, competition for high-quality
mobile inventory continued to deliver strong session values across the period.

 

The delivery of the Group's strategy has progressed considerably year on year
as the total audience across the business has again grown
significantly. Entertainment Daily, which is focused on TV and show business
news, had an exceptionally strong six months, with the number of visits up 46%
on the same period last year.

 

The Daily Mash saw its content offering strengthen with the launch of 'Mash
Premium', the new paid subscriber-only area, which has already gained 1,000
members so far with limited promotion, hence we are excited about the
prospects for growth of the subscription model. As well as the introduction of
the Mash Premium channel, the production of a new series of The Daily Mash's
successful spin-off TV show Late Night Mash has commenced, with Rachel Parris
confirmed as the new host. The first episode aired on Dave on 1 September
2022, with a further seven episodes released in the season.

 

The Tab has continued to deliver, contributing a profit each month since we
acquired it in October 2020, and has now successfully repaid all the
acquisition costs. With the site holding its position at around 50m visits for
the period, we continued to see significant year-on-year revenue growth of 52%
for the period as a result of the Graphene ad stack being deployed; a model of
the Company's approach to acquisition identification and integration.

 

Looking ahead, the acquisition of the web and mobile platform assets of
TVGuide.co.uk Limited, announced in May 2022, is expected to complete in the
second half of FY 2022 as scheduled. The Company then intends to focus on
integrating these assets onto the Company's Graphene technology platform. As
with The Tab, the Board expects this to enhance the site's revenue performance
and profitability.

 

Financial review

The Directors are pleased to report strong absolute growth in revenues with a
period-on-period uplift of 40% to £1.9 million, driven by high volumes of
traffic on Entertainment Daily and the continued improvement in the
monetisation of The Tab.

 

Further, gross margins are up from 84% last period to 87% this period serving
to highlight the high efficiency of successful digital media businesses like
Digitalbox. This efficiency is growing due to the continued improvement to the
monetisation on The Tab and the low scaling costs of servicing the increased
traffic on Entertainment Daily.

 

With adjusted operating profit of £0.7 million, which is the true cash
generating indicator for the business, gross cash has grown from £2.2 million
at the end of December 2021 to £2.8 million at the end of June 2022. For
context, gross cash at bank on 23 September 2022 was £3.2m, up 45% since 31
December 2021.

 

Given the development of The Daily Mash from a straight advertising-funded
model to a hybrid subscription and advertising model, we have taken the
cautious step of writing off the carrying value of goodwill and intangible
asset associated with this brand. As a non-cash, one-off financial accounting
adjustment, this does not affect the strong cash generating characteristics of
the business.

 

 

 

DIGITALBOX PLC

INTERIM CONSOLIDATED INCOME STATEMENT

for the six months ended 30 June 2022

                                                                                                    Unaudited      Unaudited      Audited
                                                          Notes                                     Six months to  Six months to  12 months to
                                                                                                    30 June 22     30 June 21     31 December 21
                                                                                                    £'000          £'000          £'000
 Continuing Operations
 Revenue                                                                                            1,877          1,345          3,667

 Cost of sales                                                                                      (235)          (219)          (529)
                                                                                                    __________     __________     __________
 Gross profit                                                                                       1,642          1,126          3,138

 Administrative expenses                                                                            (1,858)        (1,028)        (2,508)
 Other operating income                                                                             -              5              10
                                                                                                    __________     __________     __________
 Operating (loss)/profit                                                                            (216)          103            640

 "Adjusted operating profit" being operating profit before exceptional charges,                     663            294            1,029
 amortisation and depreciation
 Depreciation                                                                                       (3)            (15)           (31)
 Amortisation                                                                                       (121)          (105)          (215)
 Impairment on goodwill and intangible assets                                                       (716)          -              -
 Share based payment charge                                                                         (39)           (71)           (143)
                                                                                                    __________     __________     __________
 Operating (loss)/profit                                                                            (216)          103            640

 Finance income                                                                                     1              1              1
 Finance costs                                                                                      (5)              (5)          (14)
                                                                                                    __________     __________     __________
 (Loss)/profit before taxation                                                                      (220)          99             627

 Tax charge                                                                                         6              (8)            (231)
                                                                                                    __________     __________     __________
 (Loss)/profit for the period from continuing operations                                            (214)          91             396

 TOTAL INCOME FOR THE PERIOD                                                                        (214)          91             396
                                                                                                    =============  =============  =============

 OTHER COMPREHENSIVE INCOME FOR THE PERIOD                                                          -              -              -

 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD                                                          (214)          91             396
                                                                                                    =============  =============  =============
 Earnings per share                                       4
                                                                                                    Pence          Pence          Pence
 Basic EPS from continuing operations                                                               (0.18)         0.08           0.34
                                                                                                    __________     __________     __________

 Diluted EPS from continuing operations                                                             (0.18)         0.08           0.34
                                                                                                    __________     __________     __________

 

DIGITALBOX PLC

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30 June 2022

 

 

                                             Share Capital  Share Premium reserve  Share based payment reserve  Retained earnings  Total

                                             £'000          £'000                  £'000                        £'000              £'000

 Balance at 1 January 2021                   1,163          11,149                 321                          (99)               12,534

 Total comprehensive expense for the period  -              -                      -                            91                 91

 Share based payment charge                  -              -                      71                           -                  71
                                             _____          _____                  _____                        _____              _____
 Balance at 30 June 2021                     1,163          11,149                 392                          (8)                12,696

 Total comprehensive expense for the period  -              -                      -                            305                305

 Share based payment charge                  -              -                      72                           -                  72

                                             _____          _____                  _____                        _____              _____
 Balance at 31 December 2021                 1,163          11,149                 464                          297                13,073

 Total comprehensive income for the period   -              -                      -                            (214)              (214)

 Issue of new shares                         16             19                     -                            -                  35

 Share based payment charge                  -              -                      39                           -                  39
                                             _____          _____                  _____                        _____              _____
 Balance at 30 June 2022                     1,179          11,168                 503                          83                 12,933
                                             _____          _____                  _____                        _____              _____

 

DIGITALBOX PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 June 2022

                                              Unaudited   Unaudited   Audited
                                       Notes  30 June 22  30 June 21  31 December 21
                                              £'000       £'000       £'000
 ASSETS
 NON-CURRENT ASSETS
 Property, plant and equipment         5      18          61          46
 Intangible assets                     6      9,960       10,741      10,710
                                              ______      ______      _______
 TOTAL NON-CURRENT ASSETS                     9,978       10,802      10,756
                                              ______      ______      _______

 CURRENT ASSETS
 Trade and other receivables                  1,046       951         1,770
 Cash and cash equivalents                    2,805       2,042       2,186
                                              ______      ______      _______
 TOTAL CURRENT ASSETS                         3,851       2,993       3,956
                                              ______      ______      _______
 TOTAL ASSETS                                 13,829      13,795      14,712
                                              ______      ______      _______
 LIABILITIES
 CURRENT LIABILITIES
 Trade and other payables                     95          269         739
 Lease liabilities                            -           28          112
 Bank loans                                   94          71          29
 Corporation tax payable                      288         55          163
                                              _______     _______     ________
 TOTAL CURRENT LIABILITIES                    477         423         1,043
                                              _______     _______     ________
 NON-CURRENT LIABILITIES
 Lease liabilities                            -           17          2
 Bank loans                                   281         423         319
 Deferred tax                                 138         236         275
                                              _______     _______     ________
 TOTAL NON-CURRENT LIABILITIES                419         676         596
                                              _______     _______     ________
 TOTAL LIABILITIES                            896         1,099       1,639

 TOTAL NET CURRENT ASSETS                     3,374       2,570       2,913
                                              _______     _______     ________
 TOTAL NET ASSETS                             12,933      12,696      13,073
                                              _______     _______     ________

 CAPITAL AND RESERVES

 ATTRIBUTABLE TO EQUITY SHAREHOLDERS
 Issued share capital                  7      1,179       1,163       1,163
 Share premium account                        11,168      11,149      11,149
 Share based payment reserve                  503         392         464
 Retained earnings                            83          (8)         297
                                              _______     _______     ________
                                              12,933      12,696      13,073
                                              _______     _______     ________

 

DIGITALBOX PLC

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 30 June 2022

 

                                                                         Unaudited        Unaudited        Audited
                                                                         Six months to    Six months to    Period to
                                                                         30 June 22       30 June 21       31 December 21
                                                                         £'000            £'000            £'000
 OPERATING ACTIVITIES
 (Loss)/profit from ordinary activities                                  (214)            91               396

 Adjustments for:

Income tax expense

                                                                         (6)              8                231
 Share based payment charge                                              39               71               143
 Amortisation of intangibles                                             121              105              215
 Impairment on goodwill and intangible assets                            716              -                -
 Depreciation on property, plant and equipment                           3                15               31
 Finance costs                                                           5                5                14
 Finance income                                                          (1)              (1)              (1)
                                                                         _____            _____            _____
 Cash flows from operating activities before changes in working capital  663              294              1,029

 Decrease/(increase) in trade and other receivables                      718              96               (723)
 (Decrease)/increase in trade and other payables                         (644)            (185)            280
                                                                         _____            _____            _____
 Cash generated by operations                                            737              205              586

 Income tax paid                                                         -                -                (76)
                                                                         _____            _____            _____
 Cash generated by operating activities                                  737              205              510
                                                                         _____            _____            _____
 INVESTING ACTIVITIES
 Purchase of property, plant and equipment                               (6)              -                (2)
 Purchase of intangible assets                                           (87)             (7)              (86)
 Proceeds on the sale of property, plant and equipment                   31               -                -
 Finance income                                                          1                1                1
                                                                         _____            _____            _____
 Cash used in investing activities                                       (61)             (6)              (87)
                                                                         _____            _____            _____
 FINANCING ACTIVITIES
 Proceeds from share issues                                              35               -                -
 Finance costs                                                           -                -                (4)
 Bank loan repayments                                                    (61)             -                -
 Finance lease repayments                                                (31)             (10)             (86)
                                                                         _____            _____            _____

 Cash used in financing activities                                       (57)             (10)             (90)

                                                                         ---------------  ---------------  ---------------

 INCREASE IN CASH AND CASH EQUIVALENTS                                   619              189              333
 Cash and cash equivalents brought forward                               2,186            1,853            1,853
                                                                         _____            _____            _____
 CASH AND CASH EQUIVALENTS CARRIED FORWARD                               2,805            2,042            2,186
                                                                         _____            _____            _____
 Represented by:
 Cash at bank and in hand                                                2,805            2,042            2,186
                                                                         ========         ========         ========

 

 

DIGITALBOX PLC

NOTES TO THE INTERIM REPORT

for the six months ended 30 June 2022

 

1.    Corporate information

 

The interim consolidated financial statements of the group for the period
ended 30 June 2022 were authorised for issue in accordance with a resolution
of the directors on 26 September 2022. Digitalbox plc ("the company") is a
Public Limited Company listed on AIM, incorporated in England and Wales. The
interim consolidated financial statements do not comprise statutory accounts
within the meaning of section 434 of the Companies Act 2006.

 

2.    Statement of Accounting policies

 

2.1  Basis of Preparation

The entities consolidated in the half year financial statements of the company
for the six months to 30 June 2022 comprise the company and its subsidiaries
(together referred to as "the group").

 

The interim consolidated financial statements do not include all the
information and disclosures required in the annual financial statements.

 

The directors are satisfied that, at the time of approving the consolidated
interim financial statements, it is appropriate to adopt a going concern basis
of accounting and in accordance with the recognition and measurement
principles of International Financial Reporting Standards adopted for use in
the United Kingdom ("IFRS"). In reaching this conclusion the directors have
considered the financial position of the Group, its cash, liquidity position
and borrowing facilities together with its forecasts and projections for a
period in excess of 12 months from the date of approval. At the reporting date
the Group had £2.8m of cash at bank and in hand providing a strong position
to support the continued and future success of the Group.

 

2.2  Accounting Policies

 

The principal accounting policies adopted in the preparation of the financial
statements are set out below.  The policies have been consistently applied to
all the years presented, unless otherwise stated.

 

The interim results announcement has been prepared in accordance with
International Financial Reporting Standards ("IFRS"), International Accounting
Standards and Interpretations issued by the International Accounting Standards
Board as adopted by the United Kingdom ("IFRSs") and with those parts of the
Companies Act 2006 applicable to companies preparing their accounts under
IFRSs.  The consolidated financial statements have been prepared under the
historical cost convention.

 

The preparation of these consolidated half year financial statements requires
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets and
liabilities, income and expense. Actual results may differ from these
estimates in preparing these consolidated half year financial statements.

 

 

 

3.    Segment Information

 

The Group's primary reporting format for segment information is business
segments which reflect the management reporting structure in the Group and of
its two core media assets.

 

Unaudited six months to 30 June 2022

 

                                                Entertainment Daily  The Daily Mash    The Tab           Head Office       Total

                                                                                                                           Six months to 30 June 2022
                                                £'000                £'000             £'000             £'000             £'000

     Revenue                                    1,282                82                513               -                 1,877
     Cost of sales                              (106)                (88)              (41)              -                 (235)
     Admin expenses*                            (261)                (43)              (187)             (488)             (979)
     Other operating income                     -                    -                 -                 -                 -
                                                ----------------     ----------------  ----------------  ----------------  --------------------
     Adjusted operating profit/(loss)           915                  (49)              285               (488)             663

     Amortisation, depreciation and impairment  -)                   (777)             (44)              (19)              (840)
     Share based payment charge                 -)                   -)                -)                (39)              (39)
     Finance income                             -)                   -)                -)                1                 1
     Finance costs                              -                    -                 -                 (5)               (5)
     Tax                                        -)                   -)                -)                6                 6
                                                ----------------     ----------------  ----------------  ----------------  --------------------
     Profit/(loss) for the period               915                  (826)             241               (544)             (214)
                                                ----------------     ----------------  ----------------  ----------------  --------------------

 

 

Unaudited six months to 30 June 2021

 

                                       Entertainment Daily  The Daily Mash    The Tab           Head Office       Total

                                                                                                                  Six months to 30 June 2021
                                       £'000                £'000             £'000             £'000             £'000

     Revenue                           917                  95                333               -                 1,345
     Cost of sales                     (105)                (84)              (30)              -                 (219)
     Admin expenses*                   (221)                (39)              (142)             (435)             (837)
     Other operating income            -                    -                 -                 5                 5
                                       ----------------     ----------------  ----------------  ----------------  --------------------
     Adjusted operating profit/(loss)  591                  (28)              161               (430)             294

     Amortisation and depreciation     -                    (61)              (44)              (15)              (120)
     Share based payment charge        -                    -                 -                 (71)              (71)
     Finance income                    -                    -                 -                 1                 1
     Finance costs                     -                    -                 -                 (5)               (5)
     Tax                               -                    -                 -                 (8)               (8)
                                       ----------------     ----------------  ----------------  ----------------  --------------------
     Profit/(loss) for the period      591                  (89)              117               (528)             91
                                       ----------------     ----------------  ----------------  ----------------  --------------------

 

 

3.    Segment Information (continued)

 

12 months to 31 December 2021

 

                                       Entertainment Daily  The Daily Mash    The Tab           Head Office       Total

                                                                                                                  Year to 31 December 2021
                                       £'000                £'000             £'000             £'000             £'000

     Revenue                           2,463                308               896               -                 3,667
     Cost of sales                     (205)                (171)             (153)             -                 (529)
     Admin expenses*                   (474)                (86)              (287)             (1,272)           (2,119)
     Other operating income            -                    -                 -                 10                10
                                       ----------------     ----------------  ----------------  ----------------  --------------------
     Adjusted operating profit/(loss)  1,784                51                456               (1,262)           1,029

     Amortisation and depreciation     -                    (122)             (88)              (5)               (215)
     Acquisition and listing costs     -                    -                 -                 (31)              (31)
     Capital restructure costs         -                    -                 -                 (143)             (143)
     Share based payment charge        -                    -                 -                 1                 1
     Finance costs                     -                    -                 -                 (14)              (14)
     Tax                               -                    -                 -                 (231)             (231)
                                       ----------------     ----------------  ----------------  ----------------  --------------------
     Profit/(loss) for the period      1,784                (71)              368               (1,685)           396
                                       ----------------     ----------------  ----------------  ----------------  --------------------

 

         * Admin expenses exclude share based payment charges,
amortisation, depreciation, impairment charges and acquisition and listing
costs.

 

         External revenue by location of customer

                                 Six months to 30 June 2022  Six months to 30 June 2021  Year to 31 December 2021
                                 £'000                       £'000                       £'000
 United Kingdom                  310                         572                         1,683
 Europe                          810                         313                         665
 Rest of World                   757                         460                         1,319
                                 ________                    ________                    ________
 Total                           1,877                       1,345                       3,667
                                 ________                    ________                    ________

 

 

4.    Earnings per share

The calculation of the group basic and diluted loss per ordinary share is
based on the following data:

                                                                              Unaudited      Unaudited      Audited
                                                                              Six months to  Six months to  12 months to
                                                                              30 June 22     30 June 21     31 December 21
                                                                              £'000          £'000          £'000
     The earnings per share is based on the following:

     Continuing earnings post tax (loss)/profit attributable to shareholders  (214)          91             396

                                                                              ==========     ==========     ==========
     Basic Weighted average number of shares                                  117,516,820    116,332,457    116,332,457
     Diluted Weighted average number of shares                                120,525,628    116,332,457    118,297,010
                                                                              ==========     ==========     ==========

                                                                              pence          pence          pence
     Basic earnings per share                                                 (0.18)         0.08           0.34
     Diluted earnings per share                                               (0.18)         0.08           0.34
                                                                              ==========     ==========     ==========

 

Earnings per ordinary share has been calculated using the weighted average
number of shares in issue during the relevant financial periods. IAS 33
requires presentation of diluted EPS when a company could be called upon to
issue shares that would decrease earnings per share or increase the loss per
share.

 

 

 

5.      Tangible Assets

 

       IFRS 16 Right-of-Use Asset  Office equipment    Total

                                                             £'000                       £'000               £'000

       Cost
       At 1 January 2022                                                                                           56                          29                  85

       Additions                                                                                                   -                           5                   5

       Disposals                                                                                                   (56)                        (2)                 (58)
                                                                                                                   _____                       _____               _____
       At 30 June 2022                                                                                             -                           32                  32

       Depreciation
       At 1 January 2022                                                                                           25                          14                  39

       Charge for the period                                                                                       -                           3                   3

       Depreciation on disposal                                                                                    (25)                        (2)                 (27)
                                                             _____                       _____               _____
       At 30 June 2022                                                                                             -                           15                  15
                                                             _____                       _____               _____

       Net book value

       30 June 2022                                                                                                -                           17                  17
                                                             _____                       _____               _____

       31 December 2021                                                                                            31                          15                  46
                                                             _____                       _____               _____

 

 

 

 

6.      Intangible Assets

 

       Other Intangible Assets  Goodwill arising on consolidation  Development costs    Total

                                                            £'000                    £'000                              £'000                £'000

       Cost
       At 1 January 2022                                                                                         1,476                    9,610                              121                  11,207

       Additions                                                                                                 -                        -                                  87                   87
                                                                                                                 _____                    _____                              _____                _____
       At 30 June 2022                                                                                           1,476                    9,610                              208                  11,294

       Amortisation
       At 1 January 2022                                                                                         458                      -                                  39                   497

       Charge for the period                                                                                     105                      -                                  16                   121

       Impairment losses                                                                                         395                      321                                -                    716
                                                            _____                    _____                              _____                _____
       At 30 June 2022                                                                                           958                      321                                55                   1,334
                                                            _____                    _____                              _____                _____

       Net book value

       30 June 2022                                                                                              518                      9,289                              153                  9,960
                                                            _____                    _____                              _____                _____

       31 December 2021                                                                                          1,018                    9,610                              82                   10,710
                                                            _____                    _____                              _____                _____

 

 

 

The other intangible assets are being amortised over a period of 7 years and
development costs are being amortised over 3 years on completion of the
project.

 

Amortisation is charged to administrative costs in the Statement of
Comprehensive Income.

 

The impairment losses relate to The Daily Mash. The Directors have taken a
cautious view and written off the carrying value of goodwill and intangible
asset of this brand as the underlying revenue model is changing from purely
advertising based to a hybrid advertising and subscription based model.

 

 

7.      Share capital

 

        Allotted, issued and fully paid          No.                          Value

                                                                              £'000

        Ordinary shares of 0.01p each            117,923,398                  1,179
                                                 ---------------------------  -------------------------
 Total                                           117,923,398                  1,179
                                                 =============                ============

 

1,590,936 shares were issued in the 6-month period to 30 June 2022 for cash
consideration of £36k giving rise to an increase in share premium of £20k.

 

 

8.      Related party transactions

 

At 30 June 2022, the Group was due £nil (30 June 2021: £171k, 31 December
2021: 171k) from James Carter and Jim Douglas, two Directors of the company,
the loans having been repaid in full on 31 March 2022.

 

During the period, Integral 2 Limited charged £37k (6 months to 30 June 2021:
£26k, 12 months to 31 December 2021: £53k) to the Group, a company related
by virtue of David Joseph, a member of key management personnel, having
control over the entity. As at 30 June 2022, £5k (30 June 2021: £5k, 31
December 2021: £5k) was owed to Integral 2 Limited. On 22 June 2022 David
Joseph acquired 600,000 shares in the company through an investment vehicle.

 

During the period, M Capital Investment Partners (Holdings) Limited billed
£12.5k (6 months to 30 June 2021: £12.5k, 12 months to 31 December 2021:
£23k) to the Group, a company related by virtue of Martin Higginson, a member
of key management personnel, having control over the entity. As at 30 June
2022, £nil (30 June 2021: £nil, 31 December 2021: £2.5k) was owed to M
Capital Investment Partners (Holdings) Limited. On 16 February 2022 Martin
Higginson exercised his warrants in a subsidiary company which triggered an
issue of 1,590,936 new ordinary shares of 1p each in the capital of the
company by way of consideration for the exercise of warrants in that
subsidiary. The effective exercise price of the warrants was 2.28p per share.
He subsequently disposed of these shares on 21 February 2022.

 

Sir Robin Miller resigned as a Director of Digitalbox plc on the 17 February
2021. During the period, Robin Miller Consultants Limited billed £5k (6
months to 30 June 2021: £6k, 12 months to 31 December 2021: £11k) to the
Group, a company related by virtue of Robin Miller, a former member of key
management personnel, having control over the entity. As at 30 June 2022, £1k
(30 June 2021: £nil, 31 December 2021: £1.7k) was owed to Robin Miller
Consultants Limited.

 

The key management personnel are considered to be the Board of Directors, and
were remunerated £192k in the period (6 months to 30 June 2021: £196k, 12
months to 31 December 2021: £715k).

 

The key management personnel hold 3,008,808 share options all of which vested
on the 28 February 2022 resulting in a charge of £17k in the period (6 months
to 30 June 2021: £50k, 12 months to 31 December 2021: £100k). Other
personnel that are not considered to be key management hold 3,008,718 share
options resulting in a charge of £22k in the period (6 months to 30 June
2021: £21k, 12 months to 31 December 2021: £43k).

 

 

9.      Seasonality

 

The Group's activities are not subject to significant seasonal variation
outside the normal parameters of a consumer media business.

 

 

10.   Events after the interim period

There were no reportable events after the interim period.

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.   END  IR EAPNKAFXAEFA

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