REG - Digitalbox PLC - Interim Results
26/09/2023 07:00
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RNS Number : 5880N Digitalbox PLC 26 September 2023
26 September 2023
Digitalbox plc
("Digitalbox", the "Group" or the "Company")
Unaudited interim results for the six months ended 30 June 2023
Digitalbox plc, the mobile-first digital media business, which owns leading
websites Entertainment Daily, The Daily Mash, The Tab and The Poke, today
publishes its unaudited interim results for six months to 30 June 2023 (the
"First Half", the "Period", or "H1 2023").
Financial Highlights
H1 2023 H1 2022 Var
£m £m
Group revenues 1.2 1.9 -34.0%
Gross profit 1.0 1.6 -41.8%
Adjusted EBITDA* -0.1 0.7 -121.0%
Cash generated from operations -0.1 0.7 -111.4%
Gross cash balance 2.6 2.8 -8.1%
Net cash balance 2.3 2.4 -4.7%
Gross margin % 77% 87% -10 ppts
Adjusted EBITDA* margin % -11% 35% -46 ppts
"Adjusted EBITDA" being operating profit/loss before exceptional charges,
share based payment charge, amortisation and depreciation
Operational Highlights
· H1 2023 performance ahead of the Board's expectations
· Graphene Ad Stack driving Digitalbox session values ahead of the
market
· The Tab session values up 5% year on year
· The Daily Mash Premium content continues to grow direct consumer
revenue
· The Poke delivered operating profit during the period, repaying
25% of its acquisition cost
· Traffic sourcing challenges experienced across the market
impacted total sessions by 36m
· Entertainment Daily session values returned to year-on-year
growth at the end of H1
· Tests of AI assisted content creation for on-platform
distribution showed strong potential
· Net cash at 30 June 2023 of £2.3m
Post-period Highlights:
· Daily Mash metered paywall grows subscriber base by 100%
· Acquisition of assets from Social Chain, doubling Digitalbox's
social media audience to over 20m
Outlook:
· Global advertising revenues expected to improve as confidence in
macro-economic conditions returns towards 2024.
· The Board is confident that despite the headwinds many digital
media businesses have faced in the first half of the year, particularly around
traffic sourcing, Digitalbox expects to trade positively in the all-important
Q4 2023.
· The Company expects to achieve full year 2023 revenue of approximately
£2.8m and remain EBITDA (adjusted) positive.
James Carter, CEO, Digitalbox plc, said: "We continue to see gains being
delivered by Digitalbox's highly-optimised Graphene Ad Stack. The technology
has enabled us to outperform the digital programmatic ad market. Despite the
first half seeing an advertising downturn across the UK, our brands delivered
session value trends ahead of these conditions. Pleasingly, we have seen The
Poke evolve to a position where it is making a strong financial contribution
each month. While we have been impacted by a Google algorithm change blocking
Entertainment Daily from the Discover feed we have performed increasingly well
in our social channels. This powerful engagement is what stimulated the Social
Chain transaction which we expect will bring wider distribution benefits to
both Entertainment Daily and The Tab as industry-wide traffic sourcing remains
a challenge. Looking ahead, while we remain vigilant of the disruptive
forces that AI-assisted content might create, we are confident our agile
approach positions us well to capitalise on the opportunities it also
presents."
Commenting on the Group's performance and prospects for the year, Chairman
Marcus Rich said: "It is well known that there are significant audience
challenges across the industry with other companies in the sector reporting
traffic reductions from Facebook, and Digitalbox has not been immune to this.
We envisage that publisher operating models will change significantly as we
move to a future where AI technology increasingly impacts the media space. The
team have already started harnessing the power of these tools to deliver
greater efficiency in production and greater reach through on-platform
distribution. Through our existing social follower bases and those made
available through other deals like our acquisition of assets from Social
Chain, we remain confident we have a route to a significant on-platform
existence."
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. The person
responsible for arranging for the release of this announcement on behalf of
the Company is James Carter, CEO.
Enquiries:
Digitalbox c/o SEC Newgate
James Carter, CEO
Panmure Gordon Tel: 020 7886 2500
(Nominated Adviser, Financial Adviser & Joint Broker)
James Sinclair-Ford / Ivo Macdonald (Corporate Advisory)
Rupert Dearden (Corporate Broking)
Leander Capital Partners (Joint Broker) Tel: 020 7195 1400
Alex Davies / Hugh Kingsmill Moore
SEC Newgate (Financial Communications) Tel: 07970 664807
Robin Tozer / Moly Gretton digitalbox@secnewgate.co.uk
About Digitalbox plc
Based in the UK, Digitalbox is a 'pure-play' digital media business with the
aim of profitable publishing at scale on mobile platforms.
Digitalbox operates the trading brands of "Entertainment Daily", "The Daily
Mash", "The Tab", and "The Poke".
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
fuelled by students. The Poke expertly curates and editorialises the
funniest content from around the web and social media.
Digitalbox primarily generates revenue from the sale of advertising in and
around the content it publishes. The Company'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 has been marginally ahead
of the Board's expectations with revenue of £1.2m which is down 34% on H1
2022. This was largely the result of better than anticipated advertising
performance within a tough market.
Importantly, Digitalbox had net cash of £2.3 million at 30 June 2023 which is
enabling the business to secure future growth opportunities through deals like
that announced in August to acquire the digital assets of 99 Problems, Student
Problems and The Life Network Shopping from Media Chain Group Limited.
Operating Review
The delivery of the Group's strategy has progressed well as we continued to be
acquisitive and focused on successfully integrating The Poke.
Traffic
The well-documented issues relating to publishers sourcing traffic from the
major platforms continued during the period. As global economic pressures
impacted the big players - notably Meta and Alphabet - the audience volumes
sent to publisher websites have been reduced.
The number of visits to the Group's websites were down year on year, mainly
due to having Digitalbox's leading brand's presence blocked by Google's
Discover feed. Fortunately, we had identified this issue at the back end of
2022, and were able to adjust our operating model to suit. While we
anticipated advertiser demand softening because of the cost-of-living crisis,
competition for high-quality mobile inventory in H1 2023 continued to deliver
Digitalbox session values across the period that were ahead of the market and
a testimony to the power of the Graphene Ad Stack.
We are well positioned to complete more cash acquisitions that can help
de-risk the business. For example, to reduce reliance on the Google Discover
feed, the acquisition of the digital assets of 99 Problems, 90's Life and The
Life Network Shopping provides Digitalbox with the opportunity to extend its
audience reach. 99 Problems has 10m Facebook followers and 1.4m Instagram
followers, 90's Life has 200k Facebook followers and The Life Shopping Network
has 1m Facebook followers. The combined follower bases will more than double
the number currently owned by Digitalbox at approximately 8m Facebook
followers.
Furthermore, the economic conditions have pushed potential acquisition targets
into the zone of being considered 'distressed', creating more opportunities.
The Digitalbox executive team has remained considered in their approach to
M&A. Acquisitions will only be done if there is plausible turnaround
opportunity to put an asset on the path to profitability. This remains a key
acquisition criterion.
With the challenge of publishers, like Digitalbox, sourcing traffic from the
major platforms to become long-term, we are looking to a future where our
brands will increasingly exist within the platform walled gardens alongside
our websites. We have begun planning for this pivot with the assistance of AI
tools to help generate content.
Entertainment Daily
Entertainment Daily - which is focused on TV and showbiz news - had a
challenging six months as Google blocked its presence within their Discover
feed cutting around 28m sessions from the same period in 2022, however, it
showed resilience through its social media engagement. We have invested
considerable resources following Google's guidelines and ensuring our Core Web
Vitals performance across the portfolio is as strong as it can be to increase
the prospects of being featured within their results.
The Daily Mash
The Daily Mash strengthened its content offering through the 'Mash Premium'
channel. It has diversified its revenue composition with a new metered paywall
that has doubled its subscriber base year-on-year. As the platforms have
tightened up on the amount of traffic they are prepared to send to satire
sites like The Daily Mash, the site has been trialling a pivot to an
on-platform existence through an AI-generated video article format that is now
delivering over 20k 1-minute video views per day that we believe will provide
a platform for further video content expansion.
The Tab
The Tab has contributed a profit every month since it was acquired in October
2020 and is beginning to see its session values mature. The site benefited
from the fact it has a strong youth following in the US where advertising
markets have been much more buoyant than the UK, resulting in year-on-year
growth of 5%. In addition, The Tab strengthened its position within Google's
Discover feed as it grew to 5m sessions for the period while Facebook assigned
a red flag to its Holy Church of Netflix page. This flag was imposed for
reporting on Netflix's Jeffrey Dahmer series and resulted in page reach being
reduced by 95% with the same knock-on effect on traffic being generated from
this source. This flag was raised in September 2022 and is expected to be
removed after 12 months. The Tab has continued to benefit from the Graphene Ad
Stack boosting monetisation and has provided a strong model for the Company's
approach to acquisition identification and integration. This approach as was
deployed on The Poke.
The Poke
The Poke.co.uk was acquired out of cash in December 2022. The site has
established itself as a strong companion to The Daily Mash in the humour space
and repaid 25% of its acquisition costs in H1. Digitalbox acquired the dotcom
domain on acquisition and has now switched it to this domain. This helps
provide a clearer opportunity to explore expansion into territories beyond the
UK.
TV Guide.co.uk
Completing the acquisition of the web and mobile platform assets of
TVGuide.co.uk remains a desired objective with the tech re-platforming having
taken longer than anticipated. To ensure the site's stability and performance,
Digitalbox assumed responsibility to rebuild the site that is currently live
and in the final testing phase.
Social Chain
In August, the Company completed the acquisition of three of Social Chain AG
assets, 99Problems, 90's Life and The Life Network Shopping on better terms
than originally announced. Digitalbox's management is convinced that having a
greater audience scale opportunity to operate within the walled gardens of the
major platforms will bring future dividends. These assets provide access to an
additional 12 million followers on social media, which more than doubles
Digitalbox's follower base.
The future
Digitalbox has historically pursued a strategy of maximising profitability by
driving audiences off the major platforms to its websites. As the platforms
adjust their approach, Digitalbox will invest in a pivot to a much greater
presence through video within the walled gardens that are offering
preferential treatment to this type of content. As with The Daily Mash,
assisted by AI tools we expect to make this transition in our business over
the next six to twelve months.
Financial review
The Directors are pleased to report revenues ahead of the Board's expectations
for the period of £1.2m in H1. The team had a clear understanding of the
pressures that the tough economic conditions would place on the platforms -
most notably Google and Meta - and budgeted accordingly whilst they explore a
pivot to a greater on platform presence fuelled by AI.
The anticipated period on period significant traffic reduction impacted on the
gross profit %, taking it from 87% last year to 77% this year. Whilst this
gross profit % is still exceptionally high, this presents as a significant
reduction leading to a gross profit of £1.0m in H1 2023, down from £1.6m in
H1 2022.
Despite these challenges, cash performance has been solid with net cash (gross
cash at the bank less government back loans) being £2.3m at 30 June 2023,
down from £2.5m as at 31 December 2022, after corporation tax payments of
£96k and loan repayments of £60k in H1.
The business continues to be highly liquid with total net current assets of
£3.1m at 30 June 2023 (£3.4m at 30 June 2022) driven by gross cash of £2.6m
at the bank.
DIGITALBOX PLC
INTERIM CONSOLIDATED INCOME STATEMENT
for the six months ended 30 June 2023
Unaudited Unaudited Audited
Notes Six months to Six months to 12 months to
30 June 23 30 June 22 31 December 22
£'000 £'000 £'000
Continuing Operations 3
Revenue 1,238 1,877 3,578
Cost of sales (282) (235) (534)
__________ __________ __________
Gross profit 956 1,642 3,044
Administrative expenses (1,245) (1,858) (2,999)
Other operating income - - -
__________ __________ __________
Operating (loss)/profit (289) (216) 45
"Adjusted EBITDA" being operating profit/loss before exceptional charges, (139) 663 1,081
share based payment charge, amortisation and depreciation
Depreciation (7) (3) (7)
Amortisation (105) (121) (191)
Impairment on goodwill and intangible assets - (716) (716)
Share based payment charge (38) (39) (62)
Direct cost of business combinations and capital restructure - - (60)
__________ __________ __________
Operating (loss)/profit (289) (216) 45
Finance income 14 1 8
Finance costs (4) (5) (8)
_________ __________ __________
(Loss)/profit before taxation (279) (220) 45
Tax charge 100 6 759
__________ __________ __________
(Loss)/profit for the period from continuing operations (179) (214) 804
TOTAL INCOME FOR THE PERIOD (179) (214) 804
============= ============= =============
OTHER COMPREHENSIVE INCOME FOR THE PERIOD - - -
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (179) (214) 804
============= ============= =============
Earnings per share 4
Pence Pence Pence
Basic EPS from continuing operations (0.15) (0.18) 0.68
__________ __________ __________
Diluted EPS from continuing operations (0.15) (0.18) 0.67
__________ __________ __________
DIGITALBOX PLC
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2023
Share Capital Share Premium reserve Share based payment reserve Retained earnings Total
£'000 £'000 £'000 £'000 £'000
Balance at 1 January 2022 1,163 11,149 464 297 13,073
Total comprehensive income for the period - - - (214) (214)
Issue of new shares 16 20 - - 36
Share based payment charge - - 39 - 39
_____ _____ _____ _____ _____
Balance at 30 June 2022 1,179 11,169 503 83 12,934
Total comprehensive expense for the period - - - 1,018 1,018
Share based payment charge - - 23 - 23
Reserve transfer for lapsed options - - (330) 330 -
_____ _____ _____ _____ _____
Balance at 31 December 2022 1,179 11,169 196 1,431 13,975
Total comprehensive income for the period - - - (179) (179)
Reserve transfer for lapsed options - - (135) 135 -
Share based payment charge - - 38 - 38
_____ _____ _____ _____ _____
Balance at 30 June 2023 1,179 11,169 99 1,387 13,834
_____ _____ _____ _____ _____
DIGITALBOX PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2023
Unaudited Unaudited Audited
Notes 30 June 23 30 June 22 31 December 22
£'000 £'000 £'000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 5 51 18 52
Intangible assets 6 10,105 9,960 10,194
Deferred tax asset 19 712 - 617
______ ______ _______
TOTAL NON-CURRENT ASSETS 10,868 9,978 10,863
______ ______ _______
CURRENT ASSETS
Trade and other receivables 15 713 1,046 952
Corporation tax recoverable 40 - -
Cash and cash equivalents 16 2,579 2,805 2,827
______ ______ _______
TOTAL CURRENT ASSETS 3,332 3,851 3,779
______ ______ _______
TOTAL ASSETS 14,200 13,829 14,642
______ ______ _______
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 104 95 288
Bank loans 112 94 112
Corporation tax payable - 288 61
_______ _______ ________
TOTAL CURRENT LIABILITIES 216 477 461
_______ _______ ________
NON-CURRENT LIABILITIES
Bank loans 150 281 206
Deferred tax - 138 -
_______ _______ ________
TOTAL NON-CURRENT LIABILITIES 150 419 206
_______ _______ ________
TOTAL LIABILITIES 366 896 667
TOTAL NET CURRENT ASSETS 3,116 3,374 3,318
_______ _______ ________
TOTAL NET ASSETS 13,834 12,933 13,975
_______ _______ ________
CAPITAL AND RESERVES
ATTRIBUTABLE TO EQUITY SHAREHOLDERS
Issued share capital 7 1,179 1,179 1,179
Share premium account 11,169 11,168 11,169
Share based payment reserve 99 503 196
Retained earnings 1,387 83 1,431
_______ _______ ________
13,834 12,933 13,975
_______ _______ ________
DIGITALBOX PLC
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 June 2023
Unaudited Unaudited Audited
Six months to Six months to Period to
30 June 23 30 June 22 31 December 22
£'000 £'000 £'000
OPERATING ACTIVITIES
(Loss)/profit from ordinary activities (179) (214) 804
Adjustments for:
Income tax expense
(100) (6) (759)
Share based payment charge 38 39 62
Amortisation of intangibles 105 121 191
Impairment on goodwill and intangible assets - 716 716
Depreciation on property plant and equipment 7 3 7
Loss on disposal of property, plant and equipment - - 30
Finance costs 4 5 8
Finance income (14) (1) (8)
_____ _____ _____
Cash flows from operating activities before changes in working capital (139) 663 1,051
Decrease in trade and other receivables 239 718 818
Decrease in trade and other payables (184) (644) (451)
_____ _____ _____
Cash generated by operations (84) 737 1418
Income tax paid (96) - (235)
_____ _____ _____
Cash generated by operating activities (180) 737 1,183
_____ _____ _____
INVESTING ACTIVITIES
Purchase of property, plant and equipment (6) (6) (43)
Purchase of intangible assets (16) (87) (391)
Proceeds on the sale of property, plant and equipment - 31 -
Finance income 14 1 -
Interested Received - - 8
_____ _____ _____
Cash used in investing activities (8) (61) (426)
_____ _____ _____
FINANCING ACTIVITIES
Issue of new share capital - 35 36
Finance costs - - (8)
Loan and lease repayments (60) (92) (144)
_____ _____ _____
Cash used in financing activities (60) (57) (116)
--------------- --------------- ---------------
INCREASE IN CASH AND CASH EQUIVALENTS (248) 619 641
Cash and cash equivalents brought forward 2,827 2,186 2,186
_____ _____ _____
CASH AND CASH EQUIVALENTS CARRIED FORWARD 2,579 2,805 2,827
_____ _____ _____
Represented by:
Cash at bank and in hand 2,579 2,805 2,827
======== ======== ========
DIGITALBOX PLC
NOTES TO THE INTERIM REPORT
for the six months ended 30 June 2023
1. Corporate information
The interim consolidated financial statements of the group for the period
ended 30 June 2023 were authorised for issue in accordance with a resolution
of the directors on 25 September 2023. 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 2023 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 £2,579k 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 in the consolidated financial statements of the Group
for the year ended 31 December 2022. The policies have been consistently
applied to all the years presented, unless otherwise stated. The Group's
accounting policies have been consistently applied in accordance with IFRS
continued into the six months ended 30 June 2023.
This Interim Statement is prepared in accordance with IAS 34 "Interim
Financial Reporting". Accordingly, whilst
the Interim Statement has been prepared in accordance with IFRS, and the
primary statements follow the format of the annual financial statements, only
selected notes are included - those that provide an explanation of events and
transactions that are significant to an understanding of the changes in
financial position and performance of the Group since the last annual
reporting date. IAS 34 states a presumption that anyone who reads the Group's
Interim Statement will also have access to its most recent annual report.
Accordingly, annual disclosures are not repeated in this Interim Statement.
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 four media assets.
Unaudited six months to 30 June 2023
Entertainment Daily The Daily Mash The Tab The Poke Head Office Total
Six months to 30 June 2023
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 656 58 422 102 - 1,238
Cost of sales (137) (87) (43) (15) - (282)
Admin expenses* (286) (48) (243) (41) (477) (1,095)
Other operating income
---------------- ---------------- ---------------- ---------------- ---------------- --------------------
Adjusted EBITDA 233 (77) 136 46 (477) (139)
Amortisation and depreciation - - (44) - (68) (112)
Share based payment charge - - - - (38) (38)
Finance income - - - - 14 14
Finance costs - - - - (4) (4)
Tax - - - - 100 100
---------------- ---------------- ---------------- ---------------- ---------------- --------------------
Profit/(loss) for the period 233 (77) 92 46 (473) (179)
---------------- ---------------- ---------------- ---------------- ---------------- --------------------
Unaudited six months to 30 June 2022
Entertainment Daily The Daily Mash The Tab The Poke Head Office Total
Six months to 30 June 2022
£'000 £'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 EBITDA 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
---------------- ---------------- ---------------- ---------------- --------------------
3. Segment Information (continued)
12 months to 31 December 2022
Entertainment Daily The Daily Mash The Tab The Poke Head Office Total
Year to 31 December 2022
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 2,261 243 1,059 15 - 3,578
Cost of sales (224) (190) (118) (2) - (534)
Admin expenses* (529) (111) (398) (6) (919) (1,963)
Other operating income - - - - - -
---------------- ---------------- ---------------- ----------------- ---------------- --------------------
Adjusted EBITDA 1,508 (58) 543 7 (919) 1,081
Amortisation, depreciation and impairment - - -- - (914) (914)
Acquisition and listing costs - - - - (57) (57)
Capital restructure costs - - - - (3) (3)
Share based payment charge - - - - (62) (62)
Finance income 8 8
Finance costs - - - - (8) (8)
Tax - - - - 759 759
---------------- ---------------- ---------------- ----------------- ---------------- --------------------
Profit/(loss) for the period 1,508 (58) 543 7 (1,196) 804
---------------- ---------------- ---------------- -------------- ---------------- --------------------
* 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 2023 Six months to 30 June 2022 Year to 31 December 2022
£'000 £'000 £'000
United Kingdom 607 310 759
Europe 506 810 1,381
Rest of World 125 757 1,438
________ ________ ________
Total 1,238 1,877 3,578
________ ________ ________
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 23 30 June 22 31 December 22
£'000 £'000 £'000
The earnings per share is based on the following:
Continuing earnings post tax (loss)/profit attributable to shareholders (179) (214) 804
========== ========== ==========
Basic Weighted average number of shares 117,718,533 117,516,820 117,718,533
Diluted Weighted average number of shares 119,103,181 120,525,628 120,002,622
========== ========== ==========
pence pence pence
Basic earnings per share (0.15) (0.18) 0.68
Diluted earnings per share (0.15) (0.18) 0.67
========== ========== ==========
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
5. Office equipment
£'000
Cost
At 1 January 2023 58
Additions 6
Disposals -
_____
At 30 June 2023 64
Depreciation
At 1 January 2023 6
Charge for the period 7
Depreciation on disposal -
_____
At 30 June 2023 13
_____
Net book value
30 June 2023 51
_____
31 December 2022 52
_____
6. Intangible Assets
7. Goodwill arising on consolidation Other Intangible Assets Development costs Total
£'000 £'000 £'000 £'000
Cost
At 1 January 2023 9,610 1,696 292 11,598
Additions - - 16 16
_____ _____ _____ _____
At 30 June 2023 9,610 1,696 308 11,614
Amortisation & impairment
At 1 January 2023 321 1,012 71 1,404
Charge for the period - 67 38 105
_____ _____ _____ _____
At 30 June 2023 321 1,079 109 1,509
_____ _____ _____ _____
Net book value
30 June 2023 9,289 617 199 10,105
_____ _____ _____ _____
31 December 2022 9,289 684 221 10,194
_____ _____ _____ _____
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.
7. Share capital
Allotted, issued and fully paid No. Value
£'000
Ordinary shares of 0.01p each 117,923,393 1,179
--------------------------- -------------------------
Total 117,923,393 1,179
============= ============
There were no shares issued in the 6 months to 30 June 2023 (6
months to 30 June 2022: 1,590,936).
8. Related party transactions
During the period, Integral 2 Limited charged £36k (6 months to 30 June 2022:
£37k, 12 months to 31 December 2022: £65k) 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 2023, £6k (30 June 2022: £5k, 31
December 2022: £6k) was owed to Integral 2 Limited. On 13 January 2023 David
Joseph acquired 550,000 shares in Digitalbox plc at 8 pence per share through
Integral 2 Limited taking his total holding to 1,150,000 shares.
During the period, M Capital Investment Partners (Holdings) Limited billed
£6k (6 months to 30 June 2022: £12.5k, 12 months to 31 December 2022: £25k)
to the Group, a company related by virtue of Martin Higginson, a member of key
management personnel during the period, and having control over the entity. As
at 30 June 2023, £nil (30 June 2022: £nil, 31 December 2022: £2.5k) was
owed to M Capital Investment Partners (Holdings) Limited. Martin Higginson
resigned as a director of Digitalbox plc on 30 April 2023.
The key management personnel are considered to be the Board of Directors. Key
management were remunerated £211k in the six months to 30 June 2023 (6 months
to 30 June 2022: £192k, 12 months to 31 December 2022: £406k).
The key management personnel have been provided with a total of 3,008,882
effective share options resulting in a charge of £14k in the period (6 months
to June 2022: £17k, 12 months to 31 December 2022: £17k).
9. Events after the interim period
On 31 August 2023, Digitalbox plc acquired the digital assets of 99 Problems,
Student Problems and The Life Network Shopping from Media Chain Group Limited
(part of "Social Chain AG") for a total cash consideration of $600,000.
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