REG - Mirada PLC - Half-year Report
28/12/2022 07:00
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RNS Number : 9694K Mirada PLC 28 December 2022
Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of
this announcement, this information is now considered to be in the public
domain.
28 December 2022
Mirada plc
("Mirada", the "Company" or the "Group")
Interim results for the six months to 30 September 2022
Mirada plc (AIM: MIRA), a leading provider of integrated software and
solutions for Digital TV operators and broadcasters, announces its unaudited
interim results for the six months to 30 September 2022.
Financial Highlights
· Revenue from activities decreased $0.73m (12.3%) to $5.26m (H1 2021: $5.99m)
due to the investment in product to be deployed during the second half of the
year, which will have a higher level of professional services and associated
turnover.
· Reduction in administrative expenses of $0.49m (7.3%) to $6.22m (H1 2021:
$6.70m).
· EBITDA* profit decreased 22% to $0.88m (H1 2021: $1.12m).
· Net Debt** decreased to $7.33m at 30 September 2022 (31 March 2022: $8.59m).
· Extension to the term of the €3.00 million revolving credit facility with
the Company's largest investor to 30 November 2023.
* 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
· Increased commercial activity due to the end of the Covid-19 pandemic,
especially in Latin America and South East Asia.
· Continued strong pace of deployment of Mirada Android TV-based technology.
· New contract win in September with SkyTel in Mongolia.
Post-period highlights
· Advanced negotiations with new customers in Latin America and EMEA.
Commenting on the outlook for the Group, José Luis Vázquez, CEO of Mirada,
said:
"Mirada has continued to build on the momentum established in FY22,
capitalising on emerging trends and consolidating the widely recognised
quality of our products by further embedding our technology within existing
customers and expanding our customer base.
Following a difficult period for the sector which has seen the Company
navigate a number of testing macroeconomic headwinds, it is pleasing to see
customers beginning to once again invest in our products and services. With
this trend expected to continue, we are confident that Mirada is in a strong
position, with a solid runway to execute on our strong pipeline of contracts.
As previously announced, our advanced negotiations with key strategic
customers in Latin America and EMEA serve to validate our business model and
highlight the opportunity for Mirada as new customers recognise the value of
our products and services."
Enquiries:
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/Liz Kirchner (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
+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/Liz Kirchner (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 almost 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, Telefonica, Sky, Virgin
Media, BBC, ITV and France Telecom. 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 Statement
Overview
I am pleased to present the Group's interim financial results for the six
months ended 30 September 2022.
We had an encouraging start to the financial year, both in subscriber-based
licence revenue, due to the sustained pace of deployment of our Android-TV
based software, and in professional services. Although the majority of the
revenue in this area is expected in the second half of the year due to the
timing of our product deployments, we are satisfied with the progress in the
first half. The growing commercial momentum, including the success seen in the
Asian market and the potential new contracts in Latin America, are encouraging
signs of the market recovery post-pandemic, and we believe that we have
emerged stronger than ever from the turbulence of the last two years.
Post-period, we have been able to quickly progress on new contract
negotiations, particularly in the Latin America and EMEA regions, which if
executed will mean strong growth prospects, especially during the next two
fiscal years.
We are, as always, incredibly grateful to our shareholders, partners,
customers and employees. In difficult markets, there are companies that cannot
maintain growth and companies that learn to survive and profit on the new
emerging trends. We are confident that we have been able to strengthen Mirada
and are able to benefit from these emerging trends as we navigate the
challenges and work towards sustainable growth.
Capitalising on a changing landscape
The technology sector is experiencing an era of rapid change and Mirada is at
the very forefront. The increased capabilities of artificial intelligence, the
ubiquitous access to broadband connectivity and the possibilities of virtual
and augmented reality are just a few examples of how technology is advancing
at pace, and the opportunity is there for Mirada to capitalise.
Mirada has already shown its ability to take advantage of the ever-changing
trends in the market by becoming a leading provider of Android TV-powered
software in the wake of consumer demand in the pandemic. Within the sector,
there are a number of opportunities as customer demands continually evolve and
these include the incredible growth of streaming video, the transition to
remote working and the shift of news and media, from broadcast to personalised
and on-demand.
During the last few months, we have seen how the 'Over The Top' (OTT) market,
especially Subscription Video On Demand (SVoD) services like Netflix, have
reached a "plateau" as a result of the maturity of adoption of these
entertainment modes. Trends like 'FAST' (Free ad-supported streaming TV) and
'aVoD' (Advertising-based Video On Demand) continued to grow as customers
became more price sensitive due to the increased cost of living. Subscription
models are transitioning to a hybrid form, offering advertising tiers to
capture those segments while they start to explore ways to reduce the widely
reported account-sharing problem; all clear signs of the technologies reaching
maturity.
We have seen the emergence and consolidation of the super-aggregation models,
and now we have traditional pay-TV operating alongside Direct-To-Consumer
content, allowing both worlds to profit together from new streaming trends.
Mirada has been an active player in this field, reducing the gap between both
worlds, and integrating streaming platforms into the pay-TV players as a new
way to bring all available content into one simple search, aggregation,
recommendation and viewing interface. We are proud to have been able to help
our customers transition from the old grid model to the new advanced anytime
anywhere user experiences that customers now demand. Our ability to bring
these technologies to several devices, including the fast-growing Android-TV
based set-top boxes, is one of the key achievements of Mirada over the last
few years.
Customer rollouts
Our largest customer, izzi Telecom (part of the Televisa Group) in Mexico,
continued deploying our product over the available devices, including Linux
boxes (our legacy platform), the new Android-TV based boxes, and companion
devices including phone and web-based consumer electronics. As at 30 September
2022, more than 3.7 million households in Mexico were using Mirada technology,
with nearly 40% of them being companion devices users, with sustained rapid
growth of the Android-TV base.
With ATN International, we are working on deploying our new product lines into
their two present properties (Viya in Bermuda and OneComm in US Virgin
Islands). SkyTel in Mongolia is on track for the deployment of our full
product suite after the contract announcement in September. Zapi in Spain is
steadily growing its installed base, with an updated version of our product.
Further deployments will allow these and other customers to easily integrate
new content providers as they reach distribution agreements. Digital TV Edmund
in Bolivia restarted commercial activities after the pandemic, and the aim is
to have the new product suite completely deployed over the next quarter.
Funding requirements
On 26 September 2022 the Company announced the extension of the €3.0 million
debt facility granted by a related party. 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 of 87.21% of Mirada's total voting rights. 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. Post-period
end, the Company announced an increase of the facility to €4.37 million as a
result of forecast working capital needs to continue supporting the growth of
the Group.
Financial Overview
Revenue from activities was $5.26 million for the six months to 30 September
2022 (H1 2020: $5.99 million), a $0.73 million decrease on the same period
last year. This decrease is mainly a result of a reduced revenue recognition
of professional services during the period related to timings on the
deployments at customers, with most of them happening during the second half
of the year.
EBITDA decreased $0.22 million to $0.88 million (H1 2021: $1.12 million).
EBITDA in this context is defined as earnings before interest, tax,
depreciation, amortisation and share-based payments.
Loans and borrowings decreased by $1.2 million to $7.41 million (31 March
2022: $8.61 million). Of these facilities, $1.00 were long-term credit lines,
$1.29 million were long-term bank loans, $1.00 million were long-term
zero-coupon loans from Spanish Government entities, $3.05 million was the
facility from Leasa, $0.24 million were short-term credit lines, $0.30 million
were short-term bank loans, $0.18 million were short-term zero-coupon loans
from Spanish Government entities, and $0.35 million were short-term invoice
factoring facilities. Cash and cash equivalents increased to $0.87 million at
the end of the period (31 March 2022: $0.25 million). Net Debt decreased to
$7.33 million (31 March 2022: $8.59 million).
Outlook
Mirada is experiencing an increased level of activity among new potential customers in the three main areas of the market: Americas, where it is a well-known and established provider; APAC, where the increased commercial and marketing activity is resulting in a strong pipeline of potential new contracts; and EMEA, with new prospects appearing over the period. We are confident that this level of activity will result in new announcements over the next few months and, in combination with the sustained growth of our licence-based revenues and a stable activity on professional services, will result in a continued improvement in our financial performance.
Jose Luis Vazquez
Chief Executive Officer
23 December 2022
Consolidated Income Statement
for the six months ended 30 September 2022
6 months ended 6 months ended
30 September 2022
30 September 2021
(Unaudited)
(Unaudited)
$000 $000
Revenue 5,257 5,992
Cost of sales (145) (369)
Gross profit 5,112 5,623
Depreciation (106) (168)
Amortisation (1,873) (2,037)
Other administrative expenses (4,237) (4,499)
Total administrative expenses (6,216) (6,704)
Operating profit/ (loss) (1,104) (1,081)
Finance expense (207) (124)
Foreign currency translation differences 284 (11)
Profit/(loss) before taxation (1,027) (1,216)
Taxation (120) (48)
Profit/(Loss) for period (1,147) (1,264)
The above amounts are attributable to the equity holders of the parent
Company.
Consolidated statement of comprehensive income
for the six months ended 30 September 2022
6 months ended 6 months ended
30 September 2022
30 September 2021
(Unaudited)
(Unaudited)
$000 $000
(Loss)/profit for the period (1,147) (1,264)
Other comprehensive loss:
Currency translation differences (329) (31)
Total other comprehensive profit/(loss) (329) (31)
Total comprehensive (loss)/profit for the year (1,476) (1,295)
Consolidated statement of financial position
as at 30 September 2022
As at As at
30 September 2022
31 March 2022
(Unaudited)
(Audited)
$000 $000
Goodwill 4,541 5,151
Other Intangible assets 5,996 7,046
Right of use assets 134 195
Property, plant and equipment 119 161
Other Receivables 132 334
Non-current assets 10,922 12,887
Trade receivables 5,447 4,986
Cash and cash equivalents 87 25
Current assets 5,534 5,011
Total assets 16,456 17,898
Loans and borrowings (1,068) (1,856)
Related parties loans and interests (194) (94)
Trade and other payables (3,648) (1,743)
Contract liabilities (2,005) (1,403)
Lease liabilities (84) (96)
Current liabilities (6,999) (5,192)
Net current assets (1,465) (181)
Total assets less current liabilities 9,457 12,706
Related parties loans (2,852) (2,557)
Interest bearing loans and borrowings (3,299) (4,106)
Lease liabilities (55) (105)
Trade and other payables - (1,210)
Non-current liabilities (6,206) (7,978)
Total liabilities (13,205) (13,170)
Net assets 3,251 4,728
Issued share capital and reserves attributable to equity holders of the
company
Share capital 12,015 12,015
Merger reserve 4,863 4,863
Foreign exchange reserves 13,133 13,462
Accumulated loss (26,760) (25,612)
Equity 3,251 4,728
Consolidated statement of changes in equity
for the six months ended 30 September 2022
Share capital Share premium Foreign exchange reserve Merger reserves Accumulated losses Total
$000 $000 $000 $000 $000 $000
Balance at 1 April 2022 12,015 - 13,462 4,863 (25,612) 4,728
Profit for the period - - - - (1,147) (1,147)
Other comprehensive income
Movement in foreign exchange - - (329) - - (329)
Total comprehensive loss for the period 12,015 - 13,133 4,863 (26,760) 3,251
Transactions with owners
Share based payment - - - - - -
Balance at 30 September 2022 12,015 - 13,133 4,863 (26,760) 3,251
Share capital Share premium Foreign exchange reserve Merger reserves Accumulated losses Total
$000 $000 $000 $000 $000 $000
Balance at 1 April 2021 12,015 - 13,761 4,863 (22,741) 7,898
Profit for the period - - - - (1,264) (1,264)
Other comprehensive income
Movement in foreign exchange - - (31) - - (31)
Total comprehensive loss for the period 12,015 - 13,730 4,863 (24,005) 6,603
Transactions with owners
Share based payment - - - - - -
Balance at 30 September 2021 12,015 - 13,730 4,863 (24,005) 6,603
Consolidated statement of cash flows
for the six months ended 30 September 2022
6 months ended 6 months ended
30 September 2022
30 September 2021
(Unaudited)
(Unaudited)
$000 $000
Cash flows from operating activities
Loss after tax (1,147) (1,264)
Adjustments for:
Depreciation of property, plant and equipment 106 168
Amortisation of intangible assets 1,873 2,037
Finance expense 207 124
Foreign currency translation differences (284) 11
Taxation 120 48
Operating cash flows before movements in working capital 875 1,124
Decrease in trade and other receivables 878 260
Increase in trade and other payables 598 20
Interest paid (5) (4)
Taxation paid (258) (227)
Net cash generated from operating activities 2,088 1,173
Cash flows from investing activities
Interest and similar income received - -
Purchases of property, plant and equipment (2) (1)
Purchases of other intangible assets (1,550) (1,872)
Net cash used in investing activities (1,552) (1,873)
Cash flows from financing activities
Interest and similar expenses paid (202) (119)
Payment of principal on lease liabilities (82) (135)
Loans received - 400
Related parties loans received 685 1,302
Repayment of loans (888) (517)
Net cash from financing activities (487) 931
Net increase in cash and cash equivalents 49 231
Cash and cash equivalents at the beginning of the period 25 107
Exchange losses on cash and cash equivalents 13 200
Cash and cash equivalents at the end of the year 87 538
Cash and cash equivalents comprise cash at bank less bank overdrafts.
1. Basis of Preparation
These interim financial statements have been prepared in accordance with the
recognition and measurement requirements of International Financial Reporting
Standards (IFRS and IFRIC Interpretations) issued by the International
Accounting Standards Board ("IASB") as adopted for use in the EU. They do not
include all disclosures that would otherwise be required in a complete set of
financial statements and should be read in conjunction with the 31 March 2022
Annual Report. The financial information for the 6 months ended 30 September
2022 and 30 September 2021 does not constitute statutory accounts within the
meaning of Section 434 (3) of the Companies Act 2006 and both periods are
unaudited. However, selected explanatory notes are included to explain events
and transactions that are significant to an understanding of the changes in
the Group's financial position and performance since the last annual financial
statements.
The annual financial statements of Mirada plc are prepared in accordance with
IFRS as adopted by the European Union. The comparative financial information
for the year ended 31 March 2022 included within this report does not
constitute the full statutory Annual Report and Financial Statements for that
period. The statutory Annual Report and Financial Statements for the year to
31 March 2022 have been filed with the Registrar of Companies. The independent
Auditors' Report on that Annual Report and Financial Statements was
unqualified, did not draw attention to any matters by way of emphasis, and did
not contain a statement under 498 (2) or 498 (3) of the Companies Act 2006.
The accounting policies applied by the Group in this financial information are
the same as those applied by the Group in its financial statements for the
year ended 31 March 2022 and are those which will form the basis of the 2023
financial statements.
After making enquiries, the directors have concluded that the Group has
adequate resources to continue operational existence for the foreseeable
future. Accordingly, they continue to adopt the going concern basis in
preparing the half-yearly consolidated financial statements.
The Board of Directors approved this interim report on 23 December 2022.
2. Use of judgements and estimates
In preparing these financial statements, management has made judgements and
estimates 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.
The significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty were the
same as those described in the last annual financial statements.
3. Earnings before interest, taxation, depreciation, amortisation, and
share-based charge
Reconciliation of operating loss to profit before interest, taxation, depreciation, amortisation, and share-based payment charge:
6 months ended 6 months ended
30 September 2022
30 September 2021
(Unaudited)
(Unaudited)
$000 $000
Operating loss (1,104) (1,081)
Depreciation 106 168
Amortisation 1,873 2,037
Operating profit before interest, taxation, depreciation and amortisation 875 1,124
(EBITDA)
4. Loss per share
6 months ended 30 September 2022 6 months ended 30 September 2021
(Unaudited) (Unaudited)
Loss for period $(1,147,109) $(1,264,059)
Weighted average number of shares 8,908,435 8,908,435
Basic loss per share $(0.129) $(0.142)
Adjusted loss per share
Adjusted loss per share is calculated by reference to the loss from continuing
activities before interest, taxation, amortisation and depreciation
and share-based payment charge (see note 2).
6 months ended 30 September 2022 6 months ended 30 September 2021
(Unaudited) (Unaudited)
Adjusted EBITDA $875,075 $1,124,292
Weighted average number of shares 8,908,435 8,908,435
Basic adjusted EBITDA per share $0.098 $0.126
The total outstanding share options on 30 September 2022 was 40,594 (41,483 at
30 September 2021).
5. Revenue from contracts with customers
Disaggregation of revenue
6 months ended Development Licenses Managed services Total
30 September 2022
$000 $000 $000 $000
Mexico 1,144 2,334 938 4,415
Europe 233 10 176 419
Other Americas 226 171 - 398
Asia 25 - - 25
1,628 2,515 1,114 5,257
Revenue recognised over a period 1,343 2,515 961 4,819
Revenue recognised at a point in time 285 - 153 438
1,628 2,515 1,114 5,257
6 months ended Development Licenses Managed services Total
30 September 2021
$000 $000 $000 $000
Mexico 1,922 2,127 697 4,746
Europe 231 73 160 464
Other Americas 121 576 - 697
Asia 52 - 33 85
2,326 2,776 890 5,992
Revenue recognised over a period 1,779 2,703 812 5,294
Revenue recognised at a point in time 547 73 78 698
2,326 2,776 890 5,992
6. Related party transactions
On 23 September 2022, Mirada Plc, has agreed an extension to the term of its
€3.00 million credit facility granted by Leasa Spain, S.L.U. The term of the
Facility has been extended by 12 months and now expires on 30 November 2023.
The Board of Mirada considered it prudent to extend the Maturity Date in order
to provide liquidity to the group in a period of forecasted growth due to the
increased level of commercial activity.
7. Cautionary statement
The Company has made forward-looking statements in this announcement,
including statements about the market for and benefits of its products and
services, financial results, the potential benefits of business relationships
with third parties and business strategies. These statements about future
events are subject to risks and uncertainties that could cause the Company's
actual results to differ materially from those that might be inferred from the
forward-looking statements. The Company and its Directors can make no
assurance that any forward-looking statements will prove correct.
8. Other
Copies of the unaudited interim results have not been sent to shareholders.
However, copies will shortly be available from the Company's website:
https://www.mirada.tv/investors/financial-results/
(https://www.mirada.tv/investors/financial-results/) .
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