REG - Mirada PLC - Final results for the year ended 31 March 2022
30/09/2022 07:00
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RNS Number : 2617B Mirada PLC 30 September 2022
30 September 2022
Mirada plc
("Mirada", "the Company" or "the Group")
Final results for the year ended 31 March 2022
Mirada (AIM: MIRA), a leading provider of integrated software solutions for
digital TV operators and broadcasters, announces its audited final results for
the year ended 31 March 2022.
Financial Highlights
· Revenue of $11.02 million (2021: $11.13 million)
· Gross profit of $10.25 million (2021: $10.84 million)
· Adjusted EBITDA* of $1.65 million (2021: $1.70 million)
· Net loss for continuing activities of $2.87 million (2021: loss of $2.99
million)
· Net debt** of $8.59 million (2021: $7.07 million), including utilisation of
€2.3 million out of the €3.0 million revolving credit facility with Leasa,
owned by the Group's largest shareholder.
* EBITDA is defined as earnings before interest, tax, depreciation,
amortisation and share-based payments
** Net Debt is defined as Gross Debt minus Cash
Operational Highlights
· Significant growth in licences from existing customers, up 50% over FY21,
helped to offset a decrease in professional services.
· Consolidated position as a leading provider of Android TV-powered software,
with set-top box deployments increasing to approximately 1.5 million in the
year ended 31 March 2022.
· Boosted marketing and sales reach through reseller agreements in Asia and
North America
Post-period Highlights
· Approximately $3.1 million revenue (2021: $3.1 million) and $0.9 million
adjusted EBITDA (2021: $0.7 million) achieved in the first quarter of FY23
· Continued growth on licence fees, with Android TV-powered set-top box
deployments surpassing 2 million in August 2022
· Extension of the revolving credit facility with Leasa to 30 November 2023
· Contract win with SkyMedia for the deployment of their extended video platform
and two more significant deals with new customers in late stage, one in India
where terms have been agreed and one in Latin America.
· Record sales pipeline and confident of delivering meaningful, sustainable
growth in FY23
José-Luis Vázquez, CEO of Mirada, commented:
"To have delivered these results despite the effects of the pandemic
continuing to be felt for much of the period is testament to quality of the
products and services we provide, the dedication of our people, the resilience
of our model and the improvements made to our operational infrastructure.
Looking ahead, with our end markets now operating normally and a pipeline that
has rapidly grown to record levels, we are optimistic about our prospects. It
can often take several months to convert prospects but, as we move through the
new financial year, some lead times are drawing to an end and we are confident
of securing our first major new wins since the pandemic. There remains an air
of uncertainty around the broader economic environment but, at present, we are
not seeing any signs of the demand in our end markets slowing.
We have invested heavily and developed several strategic initiatives ahead of
the curve that position us at the centre of emerging TV and video service
trends. Assuming the worst of the pandemic is now behind us, I am confident
Mirada is equipped to return to its pre-Covid trajectory and grow in a
meaningful and sustainable way."
Annual Report and Accounts
The Company's Annual Report and Accounts will be made available on the
Company's website www.mirada.tv (http://www.mirada.tv/) later today and
will be posted to shareholders today.
Contacts
Mirada plc +44 (0)20 8187 1661
José-Luis Vázquez, Chief Executive Officer investors@mirada.tv (mailto:investors@mirada.tv)
Gonzalo Babío, Finance Director
Allenby Capital Limited (Nominated Adviser & Broker) +44 (0)20 3328 5656
Jeremy Porter/George Payne (Corporate Finance)
Jos Pinnington (Sales and Corporate Broking)
Alma PR (Financial PR Adviser) +44 (0)20 3405 0205
David Ison mirada@almapr.co.uk (mailto:mirada@almapr.co.uk)
Andy Bryant
Matthew Young
About Mirada
Mirada is a leading provider of products and services for Digital TV
Operators and Broadcasters. Founded in 2000 and led by CEO José Luis
Vázquez, the Company prides itself on having spent over 20 years as a pioneer
in the Digital TV market. Mirada's core focus is on the ever-growing demand
for TV Everywhere for which it offers a complete suite of end-to-end modular
products across multiple devices, all with innovative state-of-the-art UI
designs. Mirada's products and solutions, acclaimed for unparalleled
flexibility and optimal time to market, have been deployed by some of the
biggest names in digital media and broadcasting including Televisa, ATN
International, Telefonica, Sky, Virgin Media, BBC, ITV, Skytel and France
Telecom Orange. Headquartered in London, Mirada has commercial representation
across Europe, Latin America and Southeast Asia and operates technology
centres in the UK, Spain and Mexico. For more information,
visit www.mirada.tv (http://www.mirada.tv/) .
Chief Executive Officer's Report
Emerging strongly from the pandemic
This is a robust set of results that bodes well for the future given the
impact of Covid meant virtually no new business activity took place in the
first half of the year and our ability to source and negotiate new business
was impeded for much of the second.
I am proud of the efforts of our teams and particularly encouraged by the way
we were able to strengthen and deepen our relationships with existing
customers in the period, with licences across our base increasing 50% over
FY21. Working closely with them throughout, not only did we support them
through tough times, we helped them continue moving forwards with their
respective growth strategies.
While the market recovery in the second half was somewhat stop-start as the
pandemic continued to impact sentiment and logistics, appetite for our
products and services steadily increased, our sales pipeline reached record
levels, and we were able to make progress in advancing opportunities (albeit
at a slower pace than originally anticipated).
As we move through the new financial year and with our new global sales
strategy bedded in, we are now beginning to convert some significant
opportunities such as those with Mongolian telco Skytel, a relevant Indian
telco and TV provider in India and a major telco in Latin America and are
confident in our ability to continue in a similar vein. This, combined with
continued revenue momentum from existing customers, has led to a growing sense
of stabilisation in the business and optimism that we are now back on track.
Continued operational and commercial progress
Despite the challenges, particularly in the first half, we made encouraging
progress in rolling out our new global sales strategy which centres around
partnering with local experts to provide greater and more targeted access to
international markets. We now have an established presence in Asia-Pacific
that has already delivered major new business leads, and with several exciting
prospects referred by our sales team, resellers and partners, pipelines are
growing across the board, particularly in India. In November 2021, we signed a
significant reseller deal with Shift 2 Stream, a TV as a Service provider
active in North America and the Caribbean, enabling us to expand our reach
into North America and strengthening our presence in the Caribbean, both of
which are important target markets for Mirada.
Also in November 2021, driven mainly by the continued success of our
relationship with Mexican telco giant izzi Telecom, we announced that we had
surpassed the deployment of one million set-top boxes ("STBs") powered by our
Android TV Operator Tier offering. Using 2021 statistics published by
technology research firm Omdia, Mirada STBs constituted approximately 5% of
the expected 20 million global Android TV Operator Tier STBs at the time. By
period end, deployments of Mirada-powered Android TV set-to-boxes worldwide
had increased to approximately 1.5 million and by August 2022, that figure
surpassed 2 million.
To have rolled out our Android TV Operator Tier STBs at such a rate despite
the global chipset shortage and installation challenges posed by the pandemic
is both a great achievement and strong validation of our decision to back this
technology. Omdia forecasts that 50 million Android TV Operator Tier STBs will
be in use in 2024 and, with existing and prospective customers actively
considering replacing their legacy platforms, we continue to be confident in
our ability to consolidate our market share.
Ideally positioned versus technology trends
The Directors believe that market trends continue to move in Mirada's favour.
Super-aggregation, which involves consolidating video streaming services and
traditional linear channels into a single viewing experience, remains the
dominant strategy for Pay TV operators looking to adapt to the industry
disruption caused by the emergence of Netflix, Amazon Prime Video and other
content providers.
At the same time, with the landscape for these direct-to-consumer ("D2C")
content providers becoming increasingly competitive and dominant players such
as Netflix approaching saturation point, they themselves are becoming more and
more reliant on super-aggregation as a method of customer acquisition and
retention, alongside tactics such as limiting account sharing and creating new
advertising-driven subscription tiers. Super-aggregation plays a key role in
increasing subscriber loyalty, which at present is an important priority for
these providers.
This mutually beneficial relationship between Pay TV operators and content
providers means super-aggregation is set to be an enduring trend and Mirada's
proposition puts it right at the centre.
The Directors believe that Mirada's flagship software, Iris, now boasts one of
the most comprehensive sets of integrated content providers available, with
all the key players including Disney+, Amazon Prime Video, Netflix, HBO, Fox
and more represented. This is a technically challenging feat to achieve and
maintain - particularly in the small and medium operator space - giving Mirada
a strong competitive advantage as we look to capitalise on improved trading
conditions.
At the same time, Android TV, Google's operating system ("OS"), continues to
cement its position as the OS of choice for set-top boxes and other devices,
due to its versatility, reliability, and ability to quickly and conveniently
deliver the premium content and multiscreen functionality needed to reduce
churn and increase premium subscriptions and viewing times. According to a
February 2022 report by streaming analytics provider Conviva, Android TV is
the fastest-growing TV platform, with 42% growth in the final quarter of 2021
compared to the same period in 2020.
Mirada boasts an enviable track record of large-scale deployments and has
established itself as one of the world's preeminent providers of the
technology, with well over 2 million of its Android TV-powered STBs currently
in circulation.
Geographic expansion facilitated by new sales strategy
Our decision to sell into international markets via local resellers has
provided us with access to a wealth of new international opportunities that
would otherwise have been difficult to reach. The success we are having in
India is a great example of this. A hugely populous nation with a burgeoning
middle class, research by Omdia forecasts the Indian Pay TV market to grow by
nearly 30% over the next five years, with the average revenue per user
("ARPU") increasing by 35% by 2025. With a substantial addressable market and
a well-connected presence on the ground sourcing new prospects, we continue to
expect India, and the wider APAC region, to become key markets for Mirada in
the coming years.
We are currently working to replicate the success of the APAC reseller
strategy in the rest of the world, starting with the Americas. According to a
recent report, again by Omdia, Pay TV is the largest video entertainment
segment by revenue across all of Latin America, worth $15 billion annually as
at calendar year 2022, a 4% increase over 2021. In addition, Digital TV
Research points to OTT TV revenues doubling by 2027, reaching $14 billion
annually. As in South-East Asia, economic growth in key Latin American
territories has led to the emergence of a middle class with extra disposable
income and an appetite for advanced video entertainment options. With a strong
existing reputation in the region and the prospect of greater access through
the new sales strategy, Mirada is well-positioned to capitalise.
People and board update
I would like to take this opportunity to again thank everyone associated with
Mirada for their efforts through the year. At times it was another difficult
period for them and their families and yet they rose to the challenges posed
by the pandemic, demonstrating real perseverance and resolve. Our people are
our greatest asset and I feel fortunate to have such a talented, dedicated and
hard-working team, particularly against the backdrop of an extremely
competitive labour market.
Post-period on 1 April 2022, we announced that Francis Coles stepped down as
Chairman and a director of the Company for family reasons. As I mentioned at
the time, Francis played an important role in the transition of Mirada to a
product model and provided valuable guidance as we grew our footprint
internationally. I am grateful for his support over the years and, on behalf
of everyone at Mirada, would like to again wish him and his family all the
best for the future.
Following Francis' departure, I stepped into the role of Interim Chairman. The
Board continues to make good progress in finding Francis' successor, and in
seeking to appoint a further non-executive director and will make a further
announcement at the appropriate time.
Financial overview
Revenue was broadly flat at $11.02 million (FY21: $11.13 million), with
significant growth in licences from existing customers (50% growth over FY21)
offsetting, what the Directors to believe to be, a temporary reduction in
professional services and delays to new contracts caused by the pandemic.
Development revenue decreased to $3.70 million (FY21: $5.61 million). Licence
revenues grew strongly to $5.35 million (FY21: $3.57 million).
Gross profit was also broadly flat at $10.25 million (FY21: $10.84 million)
and operating losses increased to $2.72 million (FY21: $2.59 million). Staff
costs decreased to $6.48 million (FY21: $7.10 million), supported by the
majority of our costs being incurred in Euros and the appreciation of the US
dollar. Other administrative expenses increased to $2.12 million (FY21: $2.05
million).
Adjusted EBITDA (as defined in Note 7) was $1.65 million (FY21: $1.70
million). A tax credit was recognised in the period of $0.03 million (FY21:
$0.17 million) from Mirada Iberia's research and innovation tax deductions.
Net loss for continued activities was $2.87 million (FY21: loss of $2.99
million).
Net Debt increased to $8.59 million (FY21: $7.07 million). Long-term
interest-bearing loans and borrowings and related party loans and interest
increased to $6.66 million (FY21: $5.40 million) and short-term borrowings
increased to $1.95 million (FY21: $1.78 million) - see note 9 for further
details. Trade receivables increased from $1.83 million to $2.07 million.
On 27 September 2021, the Company announced the extension from €1.3 million
to €3.0 million of the facility granted by a related party, of which €2.27
million was utilised at 31 March 2022. The facility is being provided by Leasa
Spain, S.L.U. ("Leasa" or the "Lender"). The Lender is incorporated in Spain
and ultimately owned by Mr Ernesto Luis Tinajero Flores who has a total
beneficial interest in 87.21% of Mirada's share capital. The term of the
Facility was extended until 30 November 2023 ("Maturity Date"), although the
Company retains the option to repay any drawn amounts earlier.
Other intangible assets have decreased by $0.27 million.
The Group generated $2.86 million of cash in operating activities in the year
(FY21: $3.15 million) and spent a further $3.99 million (FY21: $4.17 million)
in investing activities.
Growing new business momentum with major new contracts signed post-period
In recent weeks, we announced the first major contract win since the onset of
the pandemic and the company has two more significant deals with new customers
in late stage, one in India where terms have been agreed and one in Latin
America.
With a large TV operator and telecoms company in India, Mirada has agreed a
five-year contract and is expecting to be able to implement it and start the
project in the new year following receipt of the initial payment. Mirada
will deliver a hybrid DVB ("Digital Video Broadcasting")/OTT ("Over-the-Top")
Android TV Operator Tier platform, powered by its flagship Iris solution. The
platform will provide viewers with on-demand content as well as linear TV on
set-top boxes and on other devices such as smartphones, tablets, computers and
smart TVs. The deal marks Mirada's continued expansion in the Asia-Pacific
market, where it is seeing an increasing number of new opportunities and
demonstrates the success of the Company's new sales and marketing strategy.
Mirada is also in advanced negotiations for a contract to provide Pay TV
services and ad-based entertainment platform available in public spaces to a
Pay TV Operator in Latin America. The Pay TV contract will be delivered via a
SaaS model, an important part of Mirada's growth strategy, with the potential
for revenue to increase as the customer expands its subscriber base. The
expected contract includes initial set-up fees for Mirada, followed by
subscriber fees on a monthly basis (with a minimum revenue guaranteed) once
the service goes live. The entertainment platform contract would see the
Group's Iris solution deployed for the first time as an ad-based service
available in public spaces, such as in government buildings, parks, train
stations and airports.
Encouraging start to FY23
The contract wins described in the above section have been achieved alongside
a strong start to trading from existing customers in FY23. The first quarter
ended 30 June 2022 saw a marked increase in subscriber-based licence fees,
with over 2 million set-top boxes now deployed using Mirada's technology. This
has translated into revenues for the quarter of approximately $3.1 million
(2021: $3.1 million) and adjusted EBITDA of $0.9 million (2021: $0.7 million).
Confidence in delivering continued, sustainable growth in the new financial
year and beyond
To have delivered these FY22 results despite the effects of the pandemic
continuing to be felt for much of the period is testament to quality of the
products and services we provide, the dedication of our people, the resilience
of our model and the improvements made to our operational infrastructure.
We continued to support our customers as they worked to realise their growth
ambitions, and while new business activity across the market suffered a major
setback because of the Covid 19 pandemic - particularly in the first half - we
were able to offset this by securing a significant increase in licences across
our existing base.
As the second half progressed, we saw a recovery in appetite across our target
markets and, although there were pandemic-related challenges along the way and
it can take several months for a new agreement to be signed in our industry,
our sales pipeline quickly grew to the largest it has ever been.
Encouragingly, as demonstrated by the post-period agreements with Mongolian
telco Skytel and a telco in India, and late-stage negotiations in Latin
America, we are now beginning to get those deals over the line.
There remains an air of uncertainty around the broader economic environment
but, at present, we are not seeing any signs of the demand in our end markets
slowing. Our outlook as things stand remains unchanged from the trading update
issued in May - that the new financial year will be one of significant
commercial progress.
We have invested heavily and developed several strategic initiatives ahead of
the curve that position us at the centre of emerging TV and video service
trends. Assuming the worst of the pandemic is now behind us, I am confident
Mirada is equipped to return to its pre-Covid trajectory and grow in a
meaningful and sustainable way.
José-Luis Vázquez
Chief Executive Officer
29(th) September 2022
Note 3.b to the financial statements set out further below provides details on
going concern and which indicates that the Company will require additional
funding prior to 31 March 2023.
Consolidated Statement of Comprehensive Income for the year ended 31 March
2022
2022 2021
$000 $000
Revenue 11,023 11,134
Cost of sales (776) (297)
Gross profit 10,247 10,837
Depreciation (336) (378)
Amortisation (4,032) (3,909)
Staff costs (6,477) (7,095)
Other administrative expenses (2,120) (2,047)
Total administrative expenses (12,965) (13,429)
Operating loss (2,718) (2,592)
Finance income - 70
Finance expense (263) (222)
Foreign currency translation differences 77 (419)
Loss before taxation (2,904) (3,163)
Taxation 33 171
Loss for year (2,871) (2,992)
Other comprehensive income for the period
Amounts that will or may be reclassified to the profit or loss
Forex on translation of foreign operations (299) 338
Total comprehensive loss for the period (3,170) (2,654)
Earnings per share Year ended 31 March 2022 Year ended 31 March 2021
$ $
Earnings per share for the year
- basic & diluted (0.322) (0.336)
Consolidated Statement of Financial Position as at 31 March 2022
2022 2021
$000 $000
Goodwill 5,151 5,435
Other Intangible assets 7,046 7,314
Right of use assets 195 343
Property, plant and equipment 161 223
Other Receivables 334 354
Non-current assets 12,887 13,669
Trade & other receivables 4,986 4,856
Cash and cash equivalents 25 107
Current assets 5,011 4,963
Total assets 17,898 18,632
Loans and borrowings (1,856) (1,774)
Related parties loans and interests (94) (3)
Trade and other payables (1,743) (2,234)
Deferred income (1,403) (973)
Lease liabilities (96) (204)
Current liabilities (5,192) (5,188)
Net current liabilities (181) (225)
Total assets less current liabilities 12,706 13,444
Related parties loans (2,557) (586)
Interest bearing loans and borrowings (4,106) (4,815)
Lease liabilities (105) (145)
Trade and other payables (1,210) -
Non-current liabilities (7,978) (5,546)
Total liabilities (13,170) (10,734)
Net assets 4,728 7,898
Issued share capital and reserves attributable to equity holders of the
company
Share capital 12,015 12,015
Share premium - -
Merger reserve 4,863 4,863
Foreign exchange reserves 13,462 13,761
Accumulated loss (25,612) (22,741)
Equity 4,728 7,898
Consolidated Statement of changes in equity for the year ended 31 March 2022
Share capital Share premium Foreign exchange reserve Merger reserves Accumulated Total
losses
$000 $000 $000 $000 $000 $000
Balance at 1 April 2021 12,015 - 13,761 4,863 (22,741) 7,898
Profit/(loss) for year - - - - (2,871) (2,871)
Other comprehensive income
Movement in foreign exchange - - (299) - - (299)
Total comprehensive income for the year - - (299) - (2,871) (3,170)
Balance at 31 March 2022 12,015 - 13,462 4,863 (25,612) 4,728
Company number 03609752 Share capital Share premium Foreign exchange reserve Merger reserves Accumulated Total
losses
$000 $000 $000 $000 $000 $000
Balance at 1 April 2020 12,015 - 13,423 4,863 (19,749) 10,552
Profit/(loss) for year - - - - (2,992) (2,992)
Other comprehensive income
Movement in foreign exchange - - 338 - - 338
Total comprehensive income for the year - - 338 - (2,992) (2,654)
Balance at 31 March 2021 12,015 - 13,761 4,863 (22,741) 7,898
Consolidated Statement of Cash Flows for the year ended 31 March 2022
2022 2021
$000 $000
Cash flows from operating activities
(Loss)/profit after tax (2,871) (2,992)
Adjustments for:
Depreciation of property, plant and equipment 336 378
Amortisation of intangible assets 4,032 3,909
Finance income - (70)
Finance expense 263 222
Foreign currency translation differences (77) 419
Taxation (33) (171)
Operating cash flows before movements in working capital 1,650 1,695
Decrease/(increase) in trade and other 134 1,375
receivables
(Decrease)/increase in trade and other payables 1,018 (74)
Interest paid (10) (13)
Taxation received 71 162
Net cash used in operating activities 2,863 3,145
Cash flows from investing activities
Interest and similar income received - 70
Purchases of property, plant and equipment (16) (53)
Purchases of other intangible assets (3,972) (4,185)
Net cash used in investing activities (3,988) (4,168)
Cash flows from financing activities
Interest and similar expenses paid (253) (209)
Payment of principal on lease liabilities (269) (301)
Loans received 832 3,264
Related parties loans received 2,557 -
Repayment of loans (1,114) (956)
Repayment of related parties (556) (704)
Net cash from financing activities 1,197 1,094
Net decrease in cash and cash equivalents 72 71
Cash and cash equivalents at the beginning of the period 107 185
Exchange losses on cash and cash equivalents (153) (149)
Cash and cash equivalents at the end of the year 25 107
Selected notes to financial statements year ended 31 March 2022
1. General information
Mirada plc is a company incorporated in the United Kingdom. The address of the
registered office is 3rd Floor Chancery House, St Nicholas Way Sutton, Surrey
SM1 1JB. The nature of the Group's operations and its principal activities
are the provision and support of products and services in the Digital TV and
Broadcast markets.
2. Changes in accounting policies
a. New and amended standards mandatory for the first time for
the financial periods beginning on or after 1 April 2021
The International Accounting Standards Board (IASB) issued various amendments
and revisions to International Financial Reporting Standards and IFRIC
interpretations. The amendments and revisions were applicable for the year
ended 31March 2022 but did not result in any material changes to the Financial
Statements of the Group.
b. New Standards, interpretations and amendments not yet
effective
There are a number of standards, amendments to standards, and interpretations
which have been issued by the IASB that are effective in future accounting
periods that the group has decided not to adopt early.
The following amendments are effective for the period beginning 1 January
2022:
Standard Impact on initial application Effective date
IFRS 16 (Amendments) Property, plant, and equipment *1 January 2022
IAS 1 (Amendments) Classification of Liabilities as Current or Non-Current 1 January 2022
Annual improvements 2018-2020 Cycle 1 January 2022
IAS 37 (Amendments) Provisions, contingent liabilities and contingent assets *1 January 2022
IAS 8 (Amendments) Accounting estimates 1 January 2023
* Subject to endorsement
The Group has not early adopted any of the above standards and the directors
are assessing the impact on future financial statements. There are no other
IFRS or IFRIC interpretations that are not yet effective that would be
expected to have a material impact on the Group.
3. Significant accounting policies
a. Basis of accounting
These consolidated financial statements have been prepared in accordance with
international accounting standards in conformity with the requirements of the
Companies Act 2006 and UK-adopted International Accounting Standards (UK
IASs).
The consolidated financial statements have been prepared under the historical
cost convention, as modified by the revaluation of financial assets and
financial liabilities (including derivative instruments) at fair value through
profit or loss, assets held for sale measured at fair value less costs to
sell; and defined benefit pension plans for which the plan assets are measured
at fair value.
All amounts disclosed in the consolidated financial statements and notes have
been rounded off to the nearest thousand currency units, unless otherwise
stated.
The preparation of consolidated financial statements requires the use of
certain critical accounting estimates. It also requires management to exercise
its judgement in the process of applying the group's accounting policies. The
areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the consolidated financial
statements, are disclosed in Note 4.
b. Going concern
These financial statements have been prepared on the going concern basis. The
Directors have reviewed the Company and Group's going concern position taking
account of its current business activities, budgeted performance and the
factors likely to affect its future development, which are set out in this
Annual report, and include the Group's objectives, policies and processes for
managing its capital, its financial risk management objectives, its exposure
to credit and liquidity risks and the impact of the COVID-19 pandemic.
Based on our review of going concern position, we believe that there are
material uncertainties relating to going concern assumptions for the Group and
the company on the grounds that future sources of funding or supporting
evidence are not available at the date of approval of the financial
statements. We have considered a period of at least twelve months from the
date of approval of the financial statements. We acknowledge that the Group
requires additional funding, and we are in the process of exploring
opportunities to raise additional funding and optimistic that we will be able
to raise sufficient funds.
As at 31 March 2022, the Group had cash and cash equivalents of $0.03m (2021:
$0.11m), had net current liabilities of $1.39m (2021: $0.23m) and net assets
of $4.73m (2021: $7.90m.). In the year ended 31 March 2022, the Group
generated net cash from operating activities of $2.86m (2021: $3.15m),
realised a loss for the year of $2.87m (2021: $2.99m).
The €1.30 million credit facility, granted by Leasa Spain, S.L.U. ("the
Lender") on 4 June 2019, was increased up to €3.0 million and its Maturity
Date was extended until 30 November 2022. In addition, the Facility was
novated from Mirada Iberia to Mirada Plc. On 23 September 2022 this was
extended until 30 November 2023. All other terms of the Facility remain
unchanged. The Lender is controlled by Mr. Ernesto Luis Tinajero Flores, who
also owns 87.21% of the voting rights of Mirada.
The Directors have prepared detailed cash flow forecasts for the period to at
least 31 December 2023. The Directors regularly review the detailed
forecasts of sales, costs and cash flows. The assumptions underlying the
forecasts are challenged, varied and tested to establish the likelihood of a
range of possible outcomes, including reasonable cash flow sensitivities. The
expected figures are carefully monitored against actual outcomes each month
and variances are highlighted and discussed at Board level. From a
technology point of view, the Group is also offering and developing the most
advanced features in the market, providing services to a growing subscriber
base in our core markets. To this end a base case cash flow forecast has
been prepared which takes into account the following key assumptions:
· The continued availability of the Group's invoice discounting facility
throughout the foreseeable future.
· An average revenue growth of 13% in the foreseeable future, which Directors
believe, comprise of revenue that is substantially already secured undersigned
contracts.
· Fundraising up to $2.0 million to happen in the year ending in 31 March 2023.
· The extension of the due date of the €3.0 million credit facility granted by
Leasa Spain, S.L.U. until 30 November 2023.
· An expected receipt of US$0.3m of Research and Development tax credit in March
2023 from Spanish tax authorities.
The Company expects to announce in the coming weeks a contract win to provide
Pay TV services and an ad-based entertainment platform available in public
spaces to a Pay TV Operator in Latin America.
The Directors have also considered several downside scenarios, including a
scenario where all revenue growth from new customers is removed and a reverse
stress test. The purpose of the reverse stress test for the Group is to test
at what point the cash facilities would be fully utilised if the assumptions
in the Director's base case forecasts are altered. This reverse stress test
includes both a removal of all revenue growth from new customers and a
reduction of contracted revenue from existing customers for the forecast
period, resulting in an overall reduction of revenue of c.20%, as well as the
removal of any potential future funding and the receipt of the US$0.3m
Research and Development tax credits anticipated. In the event that the
performance of the Group is not in line with the projections, and more akin to
one of our downside scenarios, including the worst-case scenario, action will
be taken by management immediately to address any potential cash shortfall for
the foreseeable future. The actions that could be taken by the Directors
include both a review and restructuring of employment related costs, including
the deferral of any potential bonuses due to employees. These measures alone
could save at least $1.5m in operating costs and therefore cash flows,
although they would compromise the company's future growth. Further, the
Directors could also negotiate access to other sources of finances from the
Group's lenders. Given the Director's current relationship with lenders and
their recent success in negotiations with these financial institutions, whilst
there are no binding agreements currently in place, negotiations are in very
advanced stages for additional funding. Therefore, the Directors are
confident that any additional funding required would be obtained.
Overall, the sensitised cash flow forecasts demonstrate that the Group will be
able to pay its debts as they fall due for the period to at least 31 December
2023 based on a potential fundraising of up to $2.0 million during the period.
The Directors are, therefore, satisfied that the financial statements should
be prepared on the going concern basis.
4. Critical accounting judgements and key sources of estimation
uncertainty
In the application of the Group's accounting policies the directors are
required to make judgements, estimates and assumptions about the carrying
amounts of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
a. Key judgements
The following are the critical judgements that the directors have made in the
process of applying the Group's accounting policies that has the most
significant effect on the amounts recognised in the financial statements.
· Presenting financial information in USD
The reporting currency is US Dollar due to the growing exposure to the US
Dollar, as all major contracts and most of the new potential deals for the
Group are denominated in this currency. The board therefore believes that USD
financial reporting provides the best presentation of the group's financial
position, funding and treasury functions, financial performance and its cash
flows. Coupled with the evolution of the business, the group's shareholder
base is now largely comprised of investors to whom financial reporting in GBP
is of limited relevance. Internally, the board also bases its performance
evaluation and many investment decisions on USD financial information.
· Capitalised development costs
Any internally generated intangible asset arising from the Group's development
projects are recognised only once all the conditions set out in the accounting
policy Internally Generated Intangible Assets are met. The amortisation period
of capitalised development costs is determined by reference to the expected
flow of revenues from the product based on historical experience. Furthermore,
the Group reviews, at the end of each financial year, the capitalised
development costs for each product for indications of any loss of value
compared to net book value at that time. This review is based on expected
future contribution less the total expected costs.
The Group capitalises spend on development of new software and the delivery of
innovative software. Management exercises judgement in establishing both the
technical feasibility of completing an intangible asset which can be sold, and
the degree of certainty that a market exists for the asset, or its output,
based on feedback from existing and potential customers, for the generation of
future economic benefits. In addition, amortisation rates are based on
estimates of the useful economic lives and residual values of the assets
involved.
· Impairment of goodwill and intangibles
Determining whether goodwill is impaired requires an estimation of the value
in use of the cash-generating units to which goodwill has been allocated. The
value in use calculation requires the Group to estimate the future cash flows
expected to arise from the cash-generating units and the estimated future cash
flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks
specific to the cash-generating unit. This includes the directors' best
estimate on the likelihood of current deals in negotiation not yet concluded.
Consequently, the outcome of negotiations may vary materially from management
expectation.
5. Revenue from contracts with customers
Year to 31 March 2022 Professional Services Licenses Support & Maintenance Total
$000 $000 $000 $000
Mexico 2,922 3,907 1,625 8,454
Europe 394 486 302 1,182
Other Americas 308 959 - 1,267
Asia 77 - 43 120
3,701 5,352 1,970 11,023
Revenue recognised over a period 3,549 5,278 1,966 10,793
Revenue recognised at a point in time 152 73 5 230
3,701 5,351 1,971 11,023
Year to 31 March 2021 Professional Services Licenses Support & Maintenance Total
$000 $000 $000 $000
Mexico 4,239 2,032 1,713 7,984
Europe 827 556 228 1,611
Other Americas 393 977 - 1,370
Asia 147 - 22 169
5,606 3,565 1,963 11,134
Revenue recognised over a period 5,243 3,450 1,916 10,609
Revenue recognised at a point in time 363 115 47 525
5,606 3,565 1,963 11,134
Licenses revenue are including both contract licenses and SaaS revenue.
Contract balances
The following table provides information about contract assets (included as
accrued income) and contract liabilities (included as deferred income) from
contracts with customers:
31 March 2022 31 March 2021
$000 $000
Contract assets (accrued income) 1,859 1,561
Contract liabilities (deferred income) 1,403 973
3,262 2,534
The movement in the contract assets and liabilities during the year is set out
below:
Contract assets
31 March 2022 31 March 2021
$'000 $'000
At 1 April 1,561 3,478
Transfers in the period from contract assets to trade receivables (1,561) (3,478)
Excess of revenue recognised over cash (or rights to cash) 1,859 1,561
recognised during the period
At 31 March 1,859 1,561
Contract liabilities
31 March 2022 31 March 2021
$'000 $'000
At 1 April 973 1,785
Amounts included in contract liabilities recognised (973) (1,785)
as revenue in the period
Cash received in advance of performance and not recognised 1,403 973
as revenue during the period
At 31 March 1,403 973
Contract assets ('accrued income') and contract liabilities ('deferred
income') are included within 'Trade and other receivables' and 'deferred
income' respectively on the face of the Statement of Financial Position.
They arise from the Group's revenue contracts, where work has been performed
in advance of invoicing customers, and where revenue is received in advance of
work performed. Cumulatively, payments received from customers at each
balance sheet date do not necessarily equate to the amount of revenue
recognised on the contracts.
6. Segmental reporting
Reportable segments
The chief operating decision maker for the Group is ultimately the board of
directors. For financial and operational management, the board considers the
Group to be organised into two operating divisions based upon the varying
products and services provided by the Digital TV & Broadcast. The products
and services provided by each of these divisions are described in the
Strategic Report. The segment headed other relates to corporate overheads,
assets and liabilities.
Segmental results for the year ended 31 March 2022 are as follows:
March 2022
Digital TV & Broadcast Mobile Other Group
$000 $000 $000 $000
Revenue 11,023 - - 11,023
Segmental profit/(loss) 2,677 - (1,027) 1,650
(Adjusted EBITDA, see note 7)
Finance income - - 0 0
Finance expense - - (263) (263)
Depreciation (336) - - (336)
Amortisation (4,032) - - (4,032)
Foreign currency translation differences 77 - - 77
Profit / (Loss) before taxation (1,614) - (1,290) (2,904)
$1.027 million (2021: $0.744 million) disclosed as "Other" comprises
employment, legal, accounting and other central administrative costs incurred
at a Mirada Plc level.
The segmental results for the year ended 31 March 2021 are as follows:
March 2021
Digital TV & Broadcast Mobile Other Group
$000 $000 $000 $000
Revenue 11,134 - - 11,134
Segmental profit/(loss) 2,439 - (744) 1,695
(Adjusted EBITDA, see note 7)
Finance income - - 70 70
Finance expense - - (222) (222)
Depreciation (378) - - (378)
Amortisation (3,909) - - (3,909)
Foreign currency translation differences (419) - - (419)
Profit / (Loss) before taxation (2,267) - (896) (3,163)
The Group has a major customer in the Digital TV and Broadcast segment that
generates revenues amounting to 10% or more of total revenue that account for
$8.45 million of $11.02m total revenue. This is approximately 77% of all
revenue (2021: $7.9 million, out of $11.03m) of the total Group revenues.
Segment assets and liabilities are reconciled to the Group's assets and
liabilities as follows:
Assets 2022 Liabilities 2022 Assets 2021 Liabilities 2021
$000 $000 $000 $000
Digital TV - Broadcast & Mobile 11,387 10,251 12,847 10,449
Other:
Goodwill 5,151 - 5,435 -
Other financial assets & liabilities 1,360 2,919 350 286
Total other 6,511 2,919 5,785 286
Total Group assets and liabilities 17,898 13,170 18,632 10,734
Assets allocated to a segment consist primarily of operating assets such as
property, plant and equipment, intangible assets, goodwill and receivables.
Liabilities allocated to a segment comprise primarily trade payables and other
operating liabilities.
Geographical disclosures
External revenue by location of customer Total assets by location of assets
2022 2021 2022 2021
$000 $000 $000 $000
Mexico 8,454 7,984 26 14
Europe 1,182 1,611 17,872 18,618
Other Americas 1,267 1,370 - -
Asia 120 169 - -
11,023 11,134 17,898 18,632
Revenues by Products:
Digital TV & Broadcast 2022 Mobile 2022 Digital TV & Broadcast 2021 Mobile 2021
$000 $000
Professional Services 3,701 - 5,606 -
Transactions - - - 0
Licenses 5,351 - 3,565 -
Support & Maintenance 1,971 - 1,963 -
11,023 - 11,134 -
7. Expenses by nature
This has been arrived at after charging:
2022 2021
$000 $000
Depreciation of owned assets 336 378
Amortisation of intangible assets 4,032 3,909
Operating lease charges 220 253
Total R&D expenditure capitalised as intangible assets amounts to $4.13m
(2021: $4.12m).
The total lease expense not subject to IFRS 16 for short-term as well as
low-value leases amounts to $0.220 (2021: $0.253).
Analysis of auditors' remuneration is as follows:
2022 2021
$000 $000
Fees payable to the company's auditor for the audit of the company's annual 72 60
accounts
Audit of the account of subsidiaries 22 30
Reconciliation of operating profit for continuing operations to adjusted
earnings before interest, taxation, depreciation and amortisation:
2022 2021
$000 $000
Operating loss (2,718) (2,592)
Depreciation 336 378
Amortisation 4,032 3,909
Operating profit before interest, taxation, depreciation, amortisation, 1,650 1,695
impairment (EBITDA)
Share-based payment charge - -
Adjusted EBITDA 1,650 1,695
These APM are not International Finacial Reporting Standard measures.
8. Loss per share
Year ended 31 March 2022 Year ended 31 March 2021
Total Total
Loss for year $(2,871,881) $(2,992,569)
Weighted average number of shares 8,908,435 8,908,435
Basic loss per share $(0.322) $(0.336)
Diluted loss per share $(0.322) $(0.336)
After the cancellation of share premium approved by the General Meeting on 10
September 2019, the Company has 41,483 (2021: 41,483) potentially dilutive
ordinary shares arising from share options issued to staff. However, in 2022
and 2021 the loss attributable to ordinary shareholders and weighted average
number of ordinary shares for the purpose of calculating the diluted earnings
per ordinary share are identical to those used for basic earnings per ordinary
share. This is because the exercise of share options would have the effect
of reducing the earning per ordinary share and is therefore anti-dilutive.
9. Non-current liabilities
2022 2021
$000 $000
Interest bearing loans and borrowings:
Bank loans 2,865 3,767
Other loans 1,241 1,048
Related parties loans 2,557 586
6,663 5,401
Other loans relate to loans received by the Group's Spanish operation to
assist in funding the continued development of the Group's Digital TV
products.
Capital risks have been analysed in the Director's report in the Annual Report
and Accounts.
Net Debt
Net Debt is calculated based on short term loans, long terms loans and cash
and cash equivalents:
2022 2021
$000 $000
Loans and borrowings - Current 1,950 1,777
Loans and borrowings - Non Current 6,663 5,401
Cash (25) (107)
Net Debt 8,588 7,071
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