REG - Mirriad Advertising - Unaudited interim results
23/09/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240923:nRSW1344Fa&default-theme=true
RNS Number : 1344F Mirriad Advertising PLC 23 September 2024
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the company's obligations under Article 17 of
MAR.
23 September 2024
Mirriad Advertising plc
("Mirriad" or the "Company")
Unaudited interim results
Mirriad, the leading in-content advertising and virtual product placement
company, today announces unaudited interim results for the six months ended 30
June 2024. ("H1 2024" or the "Period").
H1 2024 highlights:
Strategic developments
· Programmatic partnership with major US-based supply-side platform
("SSP")
· Awarded Gold Shield status by the Trusted Partner Network ("TPN"), a
critical enabler of Mirriad's partnerships with the leading entertainment and
media companies in the US
· Signed two-year master services agreement with a leading US media and
entertainment conglomerate renowned for its diverse portfolio of movie studios
and productions, television channels and streaming platforms
Financial headlines
· Revenue for H1 2024 of £390k (H1 2023: £592k) reflecting the
transitional period as sales migrate to partner-driven sales in a
highly-competitive market with multiple delays to agreed campaigns
· Gross proceeds from Placing, Retail Offer and Directors' Subscription
in May and June 2024 of £6.8m (£6.3m net)
· Significant further cost savings identified and c. £0.25m
(annualised) already implemented in the second half
· Cash at the end of June 2024 of £8.3m (30 June 2023: £9.8m)
· H1 2024 operating loss for the Period reduced to £5.0m (H1 2023
restated: loss of £7.3m) as a result of cost reductions announced in 2023
· Loss per share 0.8p (H1 2023 Restated: loss 2.2p)
KPIs - continuing operations
KPI H1 2024 H1 2023 Change
Supply side
1. Active supply partnerships* 18 18 0%
2. Supply partners represented 85 68 +25%
Demand side
1. Active agency relationships 12 18 -33%
2. Number of advertisers who have run campaigns 25 31 -19%
3. Strategic and commercial partnership agreements with advertisers and 0%
agencies
1 1
* Defined as the number of supply partners who ran a campaign during the
period
Stephan Beringer, CEO of Mirriad, said: "As previously outlined, Mirriad's
success will be driven by platform, programmatic and partnerships - and this
continues to be true at a time when the traditional advertising models are
under immense pressure.
"Our first half has not delivered the revenue we had expected, but we are
confident that the second half - as a traditionally busier period - will yield
success, although it is likely that we will see revenue for the year below
current market expectations. This should be partly offset by a reduced cost
base. The whole team at Mirriad is committed to delivering against the
substantial opportunity that is within our grasp. The decisions we have made
to focus on building deeper partnerships with the largest media companies,
advertisers and agencies, launching the Diverse Media Alliance and targeted
cost cutting measures, combined with the recent fundraise, mean we can proceed
at pace with our adoption strategy."
ENDS
For further information please visit www.mirriad.com (http://www.mirriad.com)
or contact:
Mirriad Advertising plc Tel: +44 (0)20 7884 2530
Stephan Beringer, Chief Executive Officer
Nic Hellyer, Chief Financial Officer
Nominated Adviser & Broker: Tel: +44 (0)20 3328 5656
Allenby Capital Limited
James Reeve / Lauren Wright (Corporate Finance)
Guy McDougall / Matt Butlin (Sales and Corporate Broking)
Financial Communications:
Charlotte Street Partners
Tom Gillingham Tel: +44 (0) 7741 659021
About Mirriad
The leader in virtual product placement and in-content advertising, Mirriad's
multi-patented and award-winning platform dynamically inserts products and
brands into Television, SVOD/AVOD, Music, and Influencer content. Mirriad
creates net-new revenue opportunities for content owners with an ad format
that virtually integrates brands in entertainment content, drives exceptional
performance for advertisers and dramatically improves the viewing experience.
Mirriad currently operates in the US, Europe, and India.
Chief Executive Officer's Statement
Revenue and current trading
Revenue for H1 2024 was £0.39m. This is a decline compared to H1 2023
(£0.59m) and management is under no illusions that this must improve. We
noted in the AGM statement of 28 June that we expected second half
contributions from our inclusion for the first time in the US Network
Upfronts* - the Upfronts are now largely concluded at the top media and agency
level, and indications are that contractual allocations will not be at the
level we expected with the large media partners with whom we have Master
Service Agreements not having signed allocations due to delays in content
clearance. However, these partners are planning actively to engage in the
so-called "scatter market" with Mirriad-driven content post the Upfronts.
To strengthen this opportunity, we have held substantive discussions with
large global agency groups to work on partnerships whereby their clients are
given access to virtual product placement content clusters packaged around
seasonal events and specific contextual parameters. We have already initiated
planning for the important upcoming Holiday season and will progress
discussions further with regard to medium and long-term business.
The potential revenue from these partnerships is significant but it is
premature to evaluate precisely how much revenue will accrue in 2024. Our
revenue potential for the full year is therefore more skewed to the last
quarter than usual, additionally due to a number of other initiatives made in
the course of this year only just beginning to bear fruit. Excluding potential
revenue from these agency partnerships, revenue booked to date plus "near to
close" pipeline deals suggests outturn US revenue for the full year is now
expected to be in the range of $1.5m to $3m, with the upper end of this range
dependent broadly equally on the outturn of a number of prospective contracts
with long-standing existing customers (some of which are of significant size)
and similarly with new customers (including some large contracts in the
Diverse Media Marketplace). Alongside this, Europe & the Middle East
("EMEA") continues to perform well and we currently expect a full year
contribution in the order of £0.4m.
We expect to be able to update shareholders further in Q4 on both the progress
of the pipeline deals referenced above as well as the agency partnerships, but
clearly achievement of the top end of our revised full year revenue
expectations is contingent on the outturn of these partnerships.
*In TV advertising, the "Upfront" is the long-established practice of buying
and selling TV advertising time months in advance, typically in the Spring of
each year, for advertising space scheduled to air in the coming television
broadcast year. The most significant of these events is the US Network
Upfronts, an annual, weeklong event in New York.
Programmatic
On the platform side, we continue to develop our proprietary technology to
ensure we maintain our first-mover advantage in the in-content space. There
was a delay to the roll out of programmatic in H1 2024 principally due to a
change in the key SSP's priorities which delayed the necessary development
work. We have now moved to working in parallel with an additional SSP, and
work is proceeding with both that SSP and supply partners to enable a
programmatic launch as soon as practical.
Cost savings
Alongside the completion of the recent fundraise, we have implemented a
comprehensive cost-cutting programme to ensure the Company is the strongest
possible footing going forward. We have already initiated the vast majority of
the annualised administrative cost reductions set out in the fundraising
announcement of 2 May 2024. In addition, we have now implemented approximately
£250k out of the £750k of potential annualised operating cost savings that
had been identified as part of the same process. We have been stringent on
budgeted costs over the year and we expect to be able to implement further
cost savings in H2 2024, with some offset by selected recruitment, in
particular to maintain Trusted Partner Network (TPN) Gold status - which is
vital to our work with tier one partners in the US - and to scale programmatic
activation and sales.
Technology update
Our revenue profile continues to be based on a labour-intensive manual sales
process, and delays to programmatic implementation are hugely frustrating, but
vital alignment work continues at pace to ensure we can progress as soon as
third-party constraints pass. Programmatic selling is expected to open up
increased volumes, far shorter lead times, automated transactions and true
scale.
Outlook
Our fundraise in H1 2024 means that management is absolutely focused on the
task of programmatic integration - with the US as our ongoing primary market,
and the concurrent improvement in revenues.
We have identified further cost cutting measures and will continue to operate
as efficiently as possible. At the same time, our pipeline remains robust, and
the strong performance of our solution as a true differentiator in what is a
saturated and constrained global ad market drives ongoing and positive
conversations with significant industry players.
The prize remains the same, and we continue to break down barriers in our
progress towards it. Progress on programmatic implementation in particular is
undoubtedly slower than we would like, but we are confident in the
fundamentals of the business and the proposition and remain fully concentrated
on driving long-term value for our supportive shareholders.
Financial review
Interim results
Revenues for the Period were £0.39m (H1 2023: £0.59m) a decrease of 34%.
Within this US revenues declined to £0.23m (H1 2023: £0.31m). EMEA also saw
a decrease in revenue, to £0.15m (H1 2023: £0.25m), which was predominantly
due to one Middle Eastern Partner which ran a number of campaigns in H1 2023
but has not delivered any business since then. Against this revenue from
German partners is up 17% for H1 2024 vs. H1 2023 and continues to grow
strongly.
Gross profit for the Period decreased to £0.21m (H1 2023: £0.43m). The
decrease in Gross profit was slightly higher than the decrease in revenue as a
result of a small increase to the Production team based in India which is
included in the cost of sales (which comprises staff costs).
The Group's operating loss decreased by 32% during the Period to £5.0m (H1
2023 restated: £7.3m) largely due to a reduction in administrative expenses
following the FY23 restructuring which impacted both staff and non-staff
costs. In total administrative expenses in the Period decreased by 33% to
£5.2m (H1 2023 restated: £7.7m). Headcount as at 30 June 2024 was 88 (30
June 2023: 91).
At the half year end, we have again reviewed our compliance with IAS 38 and we
continue to believe that the inherent uncertainty of future revenue generation
means that it is not appropriate to capitalise any of our development cost in
the first six months of the year.
For the period ending June 2024 total expenditure on research and development
reduced by 25% to £1.9m (H1 2023: £2.5m). This figure is made up of £1.5m
staff related costs (H1 2023: £1.9m) and £0.4m of IT and software costs (H1
2023: £0.6m).
The loss for the period before tax decreased by 31% to £4.9m (H1 2023
restated: £7.2m) in line with the decrease in operating loss noted above.
Tax
The Group has not recognised any tax assets in respect of trading losses
arising in the current financial period or accumulated losses in previous
financial years. The tax credit recognised in the current and previous period
arises from the receipt of R&D tax credits in the UK. The amount
receivable for the Period ended 30 June 2024 is £179k (H1 2023: £292k).
£457k was received as a cash payment in September in full settlement of the
Group's R&D tax credit claim for FY23.
Earnings per share
The company recorded a loss of 0.8 pence per share (H1 2023 restated: loss of
2.2 pence per share) mainly as a result of the reduced losses. This
calculation is based on the weighted average number of shares in issue during
the Period and so the shares issued in May and June 2024 following the
fundraise had a relatively small impact on the calculation.
Dividend
No dividend has been proposed for the Period ended 30 June 2024 (H1 2023:
£nil).
Cash flow
Net cash used in operations (defined as the sum of net cash used in operating
activities and the net cash used in investing activities) during the Period
decreased to £4.0m (H1 2023: £7.0m). This was largely the result of
operating cost savings flowing through to cash and the collection in H1 2024
of some large client balances that were outstanding at the end of 2023. During
the period no development costs were capitalised (H1 2023: £nil). The Group
also incurred £9k (H1 2023: £8k) of capital expenditure on tangible assets.
543,291,490 Ordinary Shares were issued in the Period (H1 2023: 210,128,596)
as a result of the Placing, Retail Offer and Directors' Subscription which
were announced in May and June 2024.
Balance sheet
The Group has a debt-free balance sheet. Net assets decreased by 20% to £8.2m
(30 June 2023: £10.3m) as the Company used cash balances to fund the Group's
ongoing operations balanced by the net funds raised from the Placing, Retail
Offer and Directors' Subscription of £6.3m. Cash and cash equivalents at 30
June 2023 were £8.3m (30 June 2023: £9.8m).
Accounting policies
These condensed consolidated interim financial statements for the half-year
reporting period ended 30 June 2024 have been prepared in accordance with the
UK-adopted International Accounting Standard (IAS) 34, 'Interim Financial
Reporting'.
Condensed consolidated statement of profit or loss and condensed statement of
comprehensive income for the six months ended 30 June 2024
Six months ended 30 June 2023 Restated*
(unaudited)
£000
Note Six months ended 30 June 2024 Year ended
(unaudited) 31 December
£000 2023
(audited)
£000
Revenue 5 390 592 1,803
Cost of Sales (182) (159) (313)
Gross Profit 208 433 1,490
Administrative expenses (5,185) (7,715) (12,967)
Operating Loss (4,977) (7,282) (11,477)
Finance Income 31 80 111
Finance costs - (6) (1)
Finance income net 31 74 110
Loss before income tax (4,946) (7,208) (11,367)
Income tax credit 179 292 432
Loss for the period / year (4,767) (6,916) (10,935)
Loss per ordinary share - basic (1p) (2p) (3p)
6
*The prior period comparatives have been restated for a change in the
share-based payment charge for the period. Please see note 4(a) for further
details.
All activities are classified as continuing.
Six months ended 30 June 2024 Six months ended 30 June 2023 Restated* Year ended
(unaudited) (unaudited) 31 December
£000 £000 2023
(audited)
£000
Loss for the financial period / year (4,767) (6,916) (10,935)
Other comprehensive income
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations 8 47 3
Total comprehensive loss for the period / year (4,759) (6,869) (10,932)
*The prior period comparatives have been restated for a change in the
share-based payment charge for the period. Please see note 4(a) for further
details.
Condensed consolidated balance sheet
At 30 June 2024
Note As at 30 June 2024 As at 30 June 2023 Restated* As at 31 December
(unaudited) (unaudited) 2023
£000 £000 (audited)
£000
Assets
Non-current assets:
Property, plant and equipment 123 381 261
Trade and other receivables - 187 20
123 568 281
Current assets
Trade and other receivables 1,233 1,512 2,285
Other current assets 636 821 457
Cash and cash equivalents 8,291 9,791 6,109
10,160 12,124 8,851
Total assets 10,283 12,692 9,132
Liabilities
Non-current liabilities
Lease liabilities - 110 -
- 110 -
Current liabilities
Trade and other payables 1,978 1,997 2,333
Provisions - 41 -
Current tax liabilities 14 14 14
Lease liabilities 48 264 210
2,040 2,316 2,557
Total liabilities 2,040 2,426 2,557
Net Assets 8,243 10,266 6,575
Equity and Liabilities
Equity attributable to owners of the parent
Share capital 7 60 55 55
Share premium 77,719 71,408 71,408
Share based payment reserve 5,990 5,507 5,879
Retranslation reserve (305) (269) (313)
Accumulated losses (75,221) (66,435) (70,454)
Total equity 8,243 10,266 6,575
*The prior period comparatives have been restated for a change in the share
based payment charge for the period. Please see note 4(a) for further details.
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2024
Six months ended 30 June 2023 Restated*
Note Share Capital Share Premium Share based payment reserve Retranslation reserve Accumulated Losses Total Equity
£000 £000 £000 £000 £000 £000
Balance as at 1 January 2023 53 65,755 5,153 (316) (59,519) 11,126
Loss for the period - - - - (7,162) (7,162)
Other comprehensive income for the period - - - 47 - 47
Total comprehensive loss for the period - - - 47 (7,162) (7,115)
Restatement* - - - - 246 246
Total comprehensive loss for the period (restated)* - - - 47 (6,916) (6,869)
Proceeds from shares issued 2 6,302 - - - 6,304
Share issue costs - (649) - - - (649)
Share based payments recognised as expense - - 600 - - 600
Total transactions with shareholders recognised directly in equity 2 5,653 600 - - 6,255
Restatement* - - (246) - - (246)
Total transactions with shareholders recognised directly in equity (restated*) 2 5,653 354 - - 6,009
Balance as at 30 June 2023 55 71,408 5,507 (269) (66,435) 10,266
*The prior period comparatives have been restated for a change in the share
based payment charge for the period. Please see note 4(a) for further details.
Year ended 31 December 2023 (audited)
Share Capital Share Premium Share based payment reserve Retranslation reserve Accumulated Losses Total Equity
£000 £000 £000 £000 £000 £000
Balance at 1 January 2023 53 65,755 5,153 (316) (59,519) 11,126
Loss for the financial year - - - - (10,935) (10,935)
Other comprehensive income for the year - - - 3 - 3
Total comprehensive loss for the year - - - 3 (10,935) (10,932)
Proceeds from shares issued 2 6,302 - - - 6,304
Share issue costs - (649) - - - (649)
Share based payments recognised as expense - - 726 - - 726
Total transactions with shareholders recognised directly in equity 2 5,653 726 - - 6,381
Balance as at 31 December 2023 55 71,408 5,879 (313) (70,454) 6,575
Six months ended 30 June 2024
Note Share Capital Share Premium Share based payment reserve Retranslation reserve Accumulated Losses Total Equity
£000 £000 £000 £000 £000 £000
Balance as at 1 January 2024 55 71,408 5,879 (313) (70,454) 6,575
Loss for the period - - - - (4,767) (4,767)
Other comprehensive income for the period - - - 8 - 8
Total comprehensive loss for the period - - - 8 (4,767) (4,759)
Proceeds from shares issued 5 6,786 - - - 6,791
Share issue costs - (475) - - - (475)
Share based payments recognised as expense - - 111 - - 111
Total transactions with shareholders recognised directly in equity 5 6,311 111 - - 6,427
Balance as at 30 June 2024 60 77,719 5,990 (305) (75,221) 8,243
Condensed consolidated statement of cash flows for the six months ended 30
June 2024
Note Six months ended 30 June 2024 Six months ended 30 June 2023 Year ended
(unaudited) (unaudited) 31 December
£000 £000 2023
(audited)
£000
Cash flow used in operating activities 8 (4,032) (7,053) (11,109)
Tax credit received - - 558
Taxation paid (11) (11) (25)
Interest received 31 80 111
Lease interest paid - (6) (1)
Net cash used in operating activities (4,012) (6,990) (10,466)
Cash flow from investing activities
Purchase of tangible assets (9) (8) (39)
Proceeds from disposal of tangible assets - - 3
Net cash used in investing activities (9) (8) (36)
Cash flow from financing activities
Proceeds from issue of ordinary share capital (net of costs of issue) 6,316 5,655 5,655
Payment of lease liabilities (113) (155) (333)
Net cash used in financing activities 6,203 5,500 5,322
Net increase /(decrease) in cash and cash equivalents 2,182 (1,498) (5,180)
Cash and cash equivalents at the beginning of the period / year 6,109 11,289 11,289
Cash and cash equivalents at the end of the period / year 8,291 9,791 6,109
Cash and cash equivalents consists of
Cash at bank and in hand 8,291 9,791 6,109
Cash and cash equivalents 8,291 9,791 6,109
1 Basis of preparation
These condensed consolidated interim financial statements for the six-month
reporting period ended 30 June 2024 have been prepared in accordance with
International Accounting Standard (IAS) 34, 'Interim Financial Reporting'.
The interim report does not include all of the notes of the type normally
included in an annual financial report. Accordingly, this report is to be read
in conjunction with the annual report for the year ended 31 December 2023,
which has been prepared in accordance with UK-adopted international accounting
Standards and with the requirements of the Companies Act 2006 as applicable to
companies reporting under those standards.
These condensed interim consolidated financial statements for the six months
ended 30 June 2024 and for the six months ended 30 June 2023 do not constitute
statutory accounts as defined in Section 434 of the Companies Act and are
unaudited. The financial information for the six months ended 30 June 2024
presents financial information for the consolidated Group, including the
financial results of the Company's wholly owned subsidiaries Mirriad
Advertising Private Limited, Mirriad Inc, Mirriad Software Science and
Technology (Shanghai) Co. Ltd (liquidated in 2023), and Mirriad Limited
(dormant). Comparative figures in the condensed interim financial statements
for the year ending 31 December 2023 have been taken from the Group's audited
financial statements on which the Group's auditors, Pricewaterhouse Coopers
LLP, expressed an unqualified opinion.
The Board approved these interim financial statements on 22 September 2024.
1.1 Going concern
These condensed interim financial statements have been prepared on the going
concern basis, notwithstanding the Group having made a loss for the period of
£4.8 million (June 2023 restated: £6.9 million). The going concern basis
assumes that the Group and Company will have sufficient funds available to
continue to trade for the foreseeable future and not less than 12 months from
the end of the financial period being reported.
The Group's cash balance was £8.3 million at the period end and the Group
remains debt free with no external borrowing.
The Company announced a Placing, Retail Offer and Directors' Subscription that
raised approximately £6.2m after fees on 7 May 2024. The Company said at that
time that the Directors anticipated that the proceeds of this fundraise can
provide sufficient funding to trade cash flow break-even during 2025, based on
base case forecasts which assume both revenue growth and cost savings being
achieved over the next 18 months. After making enquiries and producing cash
flow forecasts for the period up to 31 December 2025, the Directors have
reasonable expectations, as at the date of approving the financial statements,
that the Company and the Group will have adequate resources to fund the
activities of the Company and the Group for the next 12 months from the date
of the financial period being reported.
2 Accounting Policies
The accounting policies applied are consistent with those of the annual report
and accounts for the year ended 31 December 2023, as described in those
financial statements other than standards, amendments and interpretations
which became effective after 1 January 2024 and were adopted by the Group.
These have had no significant impact on the Group's loss for the period or
equity.
There are no items affecting assets, liabilities, equity, net income or cash
flows that are unusual because of their nature, size or incidence which are
required to be disclosed under IAS 34 para 16A(c).
There are no events after the interim reporting period which are required to
be reported under IAS 34 para 16A(h).
There are no financial instruments being measured at fair value which require
disclosure under IAS 34 para 16A(j)
3 Group financial risk factors
The condensed interim financial statements do not contain all financial risk
management information and disclosures required in annual financial
statements; the information should be read in conjunction with the financial
information, as at 31 December 2023, summarised in the 2023 annual report and
accounts. There have been no significant changes in any risk management
policies since 31 December 2023.
4 Critical accounting estimates, judgements and errors
The preparation of interim 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 might differ from these estimates. IAS34(16A)(d)
In preparing these condensed interim financial statements, 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 that applied
to the consolidated financial statements for the year ended 31 December 2023.
There are no changes in estimates of amounts reported in prior financial
years.
(a) Correction of material error in calculating share based payment charge
In December 2022 an employee who held options left the Company and at that
time previously accrued share-based payment charge amounts related to their
options were written back. In 2023 it was established that some of the options
held by this employee vested monthly and were entitled to be retained after
they left the Company. The error resulted in a material understatement of the
share-based payment charge recognised for 2022. There was no impact on any
further prior years.
The correction for this understatement in the share-based payment charge was
originally posted in the June 2023 interim financial statements, but during
the preparation of the 2023 annual report this correction was moved out of
2023 and into 2022, and the 2022 full year numbers were restated. The June
2023 share-based payment charge has now been restated here to reflect the
correction for this error being moved from the 2023 to the 2022 numbers and to
reinstate the amounts related to the options that the employee was entitled to
retain on departure in 2022.
This error has been corrected by restating each of the affected financial
statement line items for the prior periods as follows:
Condensed consolidated statement of profit or loss (extract)
Group
Period ended 30 June 2023 Increase / (decrease) £000 Period ended 30 June 2023 (Restated)
£000 £000
Administrative expenses (7,961) 246 (7,715)
Operating loss (7,528) 246 (7,282)
Loss before income tax (7,454) 246 (7,208)
Loss for the period (7,162) 246 (6,916)
Condensed consolidated statement of changes in equity (extract)
Group
As at 1 Jan 2023 Increase / (decrease) £000 As at 1 Jan 2023 (Restated)
£000 £000
Share based payment reserve 4,907 246 5,153
Accumulated losses (59,273) (246) (59,519)
Basic loss per share for the prior period has been restated, and the impact of
the correction for basic loss per share was a decrease of 0.1p per share.
The correction further affected some of the amounts disclosed in notes 5 (loss
before tax), 6, and 8. The share-based payment expense for the prior period
decreased by £246k.
There was no impact on cash flows in 2023.
5 Segment information
Management mainly considers the business from a geographic perspective since
the same services are effectively being sold in every Group entity. Therefore,
regions considered for segmental reporting are where the Company and
subsidiaries are based, namely the UK, the USA, India and China (company
liquidated in 2023). The revenue is classified by where the sales were booked
not by the geographic location of the customer.
In the current and prior reporting period there is no income outside of the
primary business activity.
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief operating
decision-maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the steering
committee that makes strategic decisions. The steering committee is made up of
the Board of Directors. There are no sales between segments. The revenue from
external parties reported to the strategic steering committee is measured in a
manner consistent with that in the income statement.
The Parent company is domiciled in the United Kingdom. The amount of revenue
from external customers by location of the Group billing entity is shown in
the tables below.
Revenue
Six months ended Six months ended Year ended
30 June 2024 30 June 2023 31 December
(unaudited) (unaudited) 2023
£000 £000 (audited)
£000
Turnover by geography
USA 234 314 1,429
UK 156 261 357
China - 17 17
Total 390 592 1,803
Loss before tax
EBITDA is the loss for the year before depreciation, amortisation, interest
and tax. The loss before tax is broken down by segment as follows:
Six months ended Six months ended Year ended
30 June 2024 30 June 2023 Restated 31 December
(unaudited) (unaudited) 2023
£000 £000 (audited)
£000
UK (4,537) (6,423) (10,310)
USA 160 105 82
India (342) (416) (732)
China - (30) 525
Adjusted EBITDA (4,719) (6,764) (10,435)
Share-based payment expense (111) (354) (726)
Total EBITDA (4,830) (7,118) (11,161)
Depreciation (147) (164) (316)
Finance income / (costs) net 31 74 110
Loss before tax (4,946) (7,208) (11,367)
Seasonality of Operations
Due to the seasonal nature of the US and UK advertising markets higher
revenues are generally expected in the second half of the year than the first
six months and this is the expectation for 2024. In the financial year ended
31 December 2023, 22% of US revenues accumulated in the first half of the
year, with 78% accumulating in the second half. For the Group as a whole 33%
of revenues accumulated in the first half of 2022 and 67% in the second half.
Within this, the UK company revenue unusually showed higher revenue in the
first half of the year, 73%, vs. 27% in the second half, and this was largely
due to one new customer in the Middle East which only contributed revenue in
the first half of the year.
6 Loss per share
(a) Basic
Basic loss per share is calculated by dividing the loss for the period / year
by the weighted average number of ordinary shares in issue during the period /
year. Potential ordinary shares are not treated as dilutive as the Group is
loss making and such shares would be anti-dilutive.
Group Six months ended Six months ended Year ended
30 June 30 June 31 December
2024 2023 Restated 2023
Loss attributable to owners of the parent (£000) (4,767) (6,916) (10,935)
Weighted average number of ordinary shares in issue Number 594,832,369 309,365,026 400,076,713
The loss per share for the period was 0.8p (six months to 30 June 2023
Restated: 2.2p; year ended 31 December 2023: 2.7p).
No dividends were paid during the period (six months to 30 June 2023: £nil;
year ended 31 December 2023: £nil).
(b) Diluted
Potential ordinary shares are not treated as dilutive as the Group is loss
making and such shares would be anti-dilutive
7 Share capital
Ordinary shares of £0.00001 each
Allotted and fully paid Number
At 1 January 2024 489,309,404
Issued during the period 543,291,490
At 30 June 2024 1,032,600,894
During the period 543,291,490 Ordinary Shares were issued for £0.0125 per
share as part of a £6.8 million gross fundraise from new and existing
shareholders. This was split as follows:
· 53,751,000 Ordinary Shares issued on 9 May 2024 from the Firm
Placing;
· 435,849,000 Ordinary Shares issued on 28 May 2024 from the
Conditional Placing;
· 39,291,490 Ordinary Shares issued on 28 May 2024 from the Retail
Offer
· 14,400,000 Ordinary Shares issued on 17 June 2024 from the Directors
Subscription.
8 Net cash flows used in operating activities
Six months ended Six months ended Year ended
30 June 2024 30 June 2023 Restated 31 December
(unaudited) (unaudited) 2023
£000 £000 (audited)
£000
Loss for the financial period / year (4,767) (6,916) (10,935)
Adjustments for:
Tax on loss on ordinary activities (179) (292) (432)
Interest income (31) (80) (111)
Lease interest costs - 6 1
Operating loss: (4,977) (7,282) (11,477)
Amortisation of right-of-use assets 125 128 254
Depreciation of tangible assets 22 36 62
Loss on disposal of disposal of tangible assets - 3 3
Bad debts (reversed) / written off (16) (1) 26
Share based payment charge 111 354 726
Foreign exchange variance 8 47 3
Movement in provisions (41) (157) (198)
- Decrease in debtors 1,091 711 49
- (Decrease) / increase in creditors (355) (892) (557)
Cash flow used in operating activities (4,032) (7,053) (11,109)
9 Related party transactions
The Group is owned by a number of investors the largest being Rathbones
Investment Management Limited ("Rathbones"), which owns approximately 16% of
the issued share capital of the Company. Accordingly there is no ultimate
controlling party.
Rathbones and M&G plc ("M&G") are substantial shareholders in the
Company (as defined in the AIM Rules) and are therefore considered to be
related parties of the Company pursuant to the AIM Rules (together, the
"Substantial Shareholders"). During the period M&G agreed to subscribe for
59,920,000 new Ordinary shares in the Company's fundraising in May and
Rathbones agreed to subscribe for 91,685,280 new Ordinary shares. The
participation by each Substantial Shareholder in the fund-raising constituted
a related party transaction for the purposes of Rule 13 of the AIM Rules.
Transaction with Directors
As part of the fundraise in June 2024 the following Directors purchased
Ordinary Shares in the Company at a cost of £1.25 pence per share.
Director Number of shares
James Black 8,000,000
Stephan Beringer 3,200,000
Nic Hellyer 1,600,000
Bob Head 1,600,000
All the related party transactions disclosed above were settled by 30 June
2024 and No guarantees were given or received for any of these transactions.
10 Other disclosures
There are no items affecting assets, liabilities, equity, net income or cash
flows that are unusual because of their nature, size or incidence which are
required to be disclosed under IAS 34 paragraph 16A(c).
There are no events after the interim reporting period which are required to
be reported under IAS 34 paragraph 16A(h).
There are no financial instruments being measured at fair value which require
disclosure under IAS 34 paragraph 16A(j)
11 Availability of Interim Report
Electronic copies of this interim financial report will be available on the
Company's website at www.mirriadplc.com/investor-relations
(http://www.mirriadplc.com/investor-relations) .
ENDS
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FIFVTAAILFISRecent news on Mirriad Advertising
See all newsREG - Mirriad Advertising - Holding(s) in Company
AnnouncementREG - Mirriad Advertising - Holding(s) in Company
AnnouncementREG - Mirriad Advertising - Holding(s) in Company
AnnouncementREG - Mirriad Advertising - Holding(s) in Company
AnnouncementREG - Mirriad Advertising - Holding(s) in Company
Announcement