REG - Mobile Streams plc - Half-year Report
27/03/2023 12:45
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RNS Number : 3419U Mobile Streams plc 27 March 2023
27 March 2023
Mobile Streams plc
("MOS" or "the Company")
Interim Results to 31 December 2022
Mobile Streams plc, the AIM quoted mobile content and data intelligence
company, is pleased to announce its unaudited interim results for the six
months ended 31 December 2022 which are now available on the Company's
website, www.mobilestreams.com.
Highlights
· Unaudited revenues £1.1m (31 December 2021: £0.3m). All revenue is
from continuing operations
· Cash and cash equivalents was £1.6m at 31 December 2022 (Was £1.4m
at 31 December 2021)
Post-period end update
· Cash and cash equivalents was £1.4m at 22 March 2023
· Significant upgrade of HeroesNFTclub platform, introduction of card,
Google Pay and Apple Pay payments and NFT contract with Cadiz Football Club
announced
Trading update
Revenues in the half year to 31 December 2022 were mainly from the major
strategic partnership and contract with International Gaming Systems ("IGS"),
the extension of which into the current half year was announced on 30 December
2022.
During the period, the Group announced a number of multi-year contracts to be
the exclusive global producer and provider of NFTs for several prominent
football teams and sports, delivered both through their own websites and our
https://heroesnftclub.com/ site. These include the Pumas, Mexican National,
Atlante and Nexaca football teams, LPGA golfer Gaby Lopez, and the Africa
focused Extreme Fighting Championship (EFC). NFT revenues began in October
2022 and exceeded £0.1m in this interim period.
As previously announced in the annual accounts to 30 June 2022, the Directors
assessed the recoverability of the convertible loan made to Quanta Media Group
(a £414k loan intended to fund them through their pre-IPO phase) and made a
provision in those accounts against the whole amount. As anticipated, Quanta
failed to make repayment of the loan on 31 December 2022 as originally
expected. Discussions continue to resolve the matter, and although the Company
provided against the full value of its loan to Quanta in FY22, the Company
remains hopeful that a significant portion can be recovered and will advise
Shareholders accordingly. Update for Tappit situation referring back to
original agreement announcement along with any other revenues expectations
that need to be updated noting those identified in the table sent.
Additionally, the contract with Tappit Technologies (UK) announced on 12
July 2021 had been cancelled having not delivered the expected revenue.
Since the period end, the Group has announced a further NFT contract with
Cadiz Football Club and the introduction of payments by traditional card as
well as Google Pay and Apple Pay to increase the ease of purchase and simplify
the user journey for NFT customers and significant upgrades to the
HeroesNFTclub technical platform. In addition the number of product lines and
price points have been significantly increased. Further potential contracts
and partnerships are under negotiation.
The Board believes that the LiveScores services, IGS partnership, Streams Data
offering and, in particular, the Group's growing sports NFT business create
significant opportunities for the Company to deliver growth in shareholder
value via newly developed products and services. Resources are currently
focused mainly on our portfolio of licensed NFT brands, which is expected to
be the principal source of growth in 2023. The Board continues to examine
additional sources to broaden the appeal of its content business.
Mark Epstein, CEO, said:
"Since the announcement of the first NFT contract in July 2022, with initial
revenues in October 2022, we have started to generate more meaningful NFT
revenues and expect these to increase even more during the year. We expect
to see continued significant growth in 2023 through our NFT business both in
terms of revenue and product."
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
6 months ended 31 December 6 months ended 31 December 12 months ended 30 June
2022 2021 2022
£000's £000's £000's
Revenue 1,069 281 1,022
Cost of sales (629) (76) (572)
Gross profit 440 205 450
Selling and marketing costs (98) (157) (264)
Administrative expenses * (1,574) (690) (2,954)
Operating Loss (1,232) (642) (2,768)
Profit (loss) on derecognition of subsidiaries - - -
Finance income 1 2 4
Finance expense - - -
Loss before tax (1,231) (640) (2,764)
Tax expense - - -
Loss for the period (1,231) (640) (2,764)
Attributable to:
Attributable to equity shareholders of Mobile Streams plc (1,231) (623) (2,764)
Non-Controlling interest - (17) -
(1,231) (640) (2,764)
* admin expenses including amortisation, depreciation and exchange gain/loss
Earnings Per Share
Pence per share Pence per share Pence per share
Basic loss per share (0.041) (0.026) (0.102)
Diluted loss per share (0.041) (0.026) (0.102)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
6 months ended 6 months ended 12 months ended
31-Dec-22 31-Dec-21 30 June 2022
£000's £000's £000's
Assets
Non- Current
Goodwill 360 360 360
Intangible assets 396 474 326
Other investments - 414 170
756 1,248 856
Current
Trade and other receivables 649 527 162
Cash and cash equivalents 1,597 1,412 1,675
2,246 1,939 1,837
Total assets 3,002 3,187 2,693
Equity
Equity attributable to equity holders of Mobile Streams plc
Called up share capital 757 1,075 659
Share Premium 20,752 16,786 19,334
Translation reserve (3,050) (3,050) (3,050)
Retained earnings (15,970) (12,090) (14,739)
Non-Controlling interest - (16) -
Total equity 2,489 2,705 2,204
Trade and other payables 469 432 442
Bank debt 44 50 47
513 482 489
Total liabilities 513 482 489
Total equity and liabilities 3002 3,187 2,693
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 months ended 31 December 2022 6 months ended 31 December 2021 12 months ended 30
June
2022
£000's £000's £000's
Operating activities
Profit before taxation (1,231) (640) (2,764)
Adjustments:
Amortisation of intangible assets 111 95 262
Impairment of Intangible assets - - 106
Impairment losses of financial assets - - 80
Impairment of receivables - - 283
Impairment of Convertible Loan - - 414
Share based payments expense - - 255
Interest received (1) (2) (4)
Changes in Trade and other receivables (1,174) (202) (120)
Changes in Trade and other payables 714 79 89
Loss on Foreign Exchange (34) 3 -
Interest paid - - -
Exchange losses (38) (3) 22
Total cash utilised in operating activities (1,653) (670) (1,377)
Investing Activities
Additions to other intangible assets internal (70) - -
Acquisitions - Other investments - - (414)
Acquisitions - cash acquired - - (265)
Other investments 128 (164) -
Interest received 1 2 4
Interest paid - - -
Net Cash generated from investing activities 59 (162) (675)
Issue of share capital (net of expenses paid) 1,516 529 2,015
Bank loan (3) - (3)
Net Cash generated from financing activities 1,516 529 2,012
Net change in cash and cash equivalents (78) (303) (40)
Cash and cash equivalents at beginning of period 1,675 1,715 1,715
Exchange (loss)/ gain on cash and cash equivalents - - -
Cash and cash equivalents, end of period 1,597 1,412 1,675
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The interim results of Mobile Streams plc are prepared in accordance with the
requirements of IAS 34 Interim Financial Reporting as adopted by the EU and
prepared in accordance with the accounting policies set out in the last
financial statements for the 12 months ended 30 June 2022.
The interim results, which are not audited, do not comprise statutory accounts
within the meaning of section 434 of the Companies Act 2006.
The comparative financial information for the twelve months ended 30 June 2022
has been extracted from the statutory accounts for that period. In addition,
the financial information for the 6 months ended 31 December 2021 has been
extracted from the unaudited Interim results. The full audited accounts of the
Group for the 12 months ended 30 June 2022 were prepared in accordance with
International Financial Reporting Standards ("IFRS") as adopted by the UK and
with those parts of the Companies Act 2006 applicable to companies reporting
under IFRS. All references to IFRS in these statements refer to IFRS as
adopted by the UK, and have been delivered to the Registrar of Companies. The
auditor's report on these financial statements was unqualified and did not
contain statements under S498 (2) or S498 (3) of the Companies Act 2006.
The financial statements have been prepared on a going concern basis, which
assumes that the Group and the company will continue in operational existence
for the foreseeable future, as outlined in note 4.
2. SEGMENT REPORTING
As at 31 December 2022, the Group was organised into four geographical
segments: Europe, North America, Latin America, and Asia Pacific. Revenues
were from external customers only and generated from three principal business
activities: Streams Data services (including NFT related revenues), the sale
of mobile content through MNO's (Mobile Operator sales) and the provision of
consulting and technical services (Other Service Fees).
All operations are continuing and all inter-segment transfers are priced and
carried out at arm's length.
The segmental results for the 6 months ended 31 December 2022 are as follows:
£000's Europe Asia Pacific North America Latin America Group
Streams Data (IGS and NFT) 823 - - 105 928
Mobile Operator sales - 2 - 139 141
Other service fees - - - - -
Total Revenue 823 2 - 244 1,069
Cost of sales (573) - - (56) (629)
Gross profit 250 2 - 188 440
Operating expenses (1,377) (8) - (176) (1,561)
EBITDA* (1127) (6) - 12 (1,121)
Depreciation, amortisation (111) - - - (111)
Share based compensation - - - - -
Revenue/expense intercompany - - - - -
Finance income - - - 1 1
Profit/(Loss) before tax (1238) (6) - 13 (1,231)
Income tax expense - - - - -
Profit/(Loss) after tax (1238) (6) - 13 (1,231)
*Calculated as profit before tax, interest, amortization, depreciation, share
compensation expense and impairment of assets.
The segmental results for the 6 months ended 31 December 2021 were as follows:
£000's Europe Asia Pacific North America Latin America Group
Streams Data 125 - - - 125
Mobile internet sales - 7 - 149 156
Other service fees - - - - -
Total Revenue 125 7 - 149 281
Cost of sales 18 (3) - (91) (76)
Gross profit 143 4 - 58 205
Operating expenses (682) (6) (2) (62) (752)
EBITDA* (539) (2) (2) (4) (547)
Depreciation, amortisation (95) - - - (95)
Share based compensation - - - - -
Revenue/expense intercompany - - - - -
Finance income - - - 2 2
Profit/(Loss) before tax (634) (2) (2) (2) (640)
Income tax expense - - - - -
Profit/(Loss) after tax (634) (2) (2) (2) (640)
*Calculated as profit before tax, interest, amortisation, depreciation, share
compensation expense and impairment of assets.
3. EARNINGS PER SHARE
Earnings per share
Earnings per share is calculated by dividing the(loss)/profit attributable to
equity holders of the Company by the weighted average number of ordinary
shares in issue during the period.
Unaudited Unaudited Audited
6 months ended 31 December 2022 6 months ended 31 December 2021 12 months ended 30 June 2022
Loss for the period (£000's) (1,231) (623) (2,764)
Loss earnings per share (pence):
Basic (0.041) (0.026) (0.102)
Diluted (0.041) (0.026) (0.102)
Adjusted earnings per share
Adjusted earnings per share is calculated to reflect the underlying
profitability of the business by excluding non-cash charges for depreciation,
amortisation, impairments and share compensation charges.
6 months ended 31 December 2022 6 months ended 31 December 2021 12 months ended 30 June 2022
£000's £000's £000's
Loss for the period (1,231) (623) (2,764)
Add back: share compensation expense - 255
Add back: depreciation and amortisation 111 95 262
Adjusted Loss for the period (1,120) (528) (2,247)
Pence per share Pence per share Pence per share
Adjusted loss per share (0.038) (0.022) (0.092)
Adjusted diluted loss per share (0.038) (0.022) (0.092)
Weighted average number of shares
6 months ended 31 December 2022 6 months ended 31 December 2021 12 months ended 30 June 2022
Basic 2,983,500,771 2,392,874,506 2,707,045,225
Exercisable share options - - -
Diluted 2,983,500,771 2,392,874,506 2,707,045,225
Adjusted earnings per share
Adjusted earnings per share is calculated to reflect the underlying
profitability of the business by excluding non-cash charges for depreciation,
amortisation, impairments and share compensation charges.
6 months ended 31 December 2022
6 months ended 31 December 2021
12 months ended 30 June 2022
£000's
£000's
£000's
Loss for the period
(1,231)
(623)
(2,764)
Add back: share compensation expense
-
255
Add back: depreciation and amortisation
111
95
262
Adjusted Loss for the period
(1,120)
(528)
(2,247)
Pence per share
Pence per share
Pence per share
Adjusted loss per share
(0.038)
(0.022)
(0.092)
Adjusted diluted loss per share
(0.038)
(0.022)
(0.092)
Weighted average number of shares
6 months ended 31 December 2022
6 months ended 31 December 2021
12 months ended 30 June 2022
Basic
2,983,500,771
2,392,874,506
2,707,045,225
Exercisable share options
-
-
-
Diluted
2,983,500,771
2,392,874,506
2,707,045,225
Diluted (loss)/earnings per share is calculated adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares. The Company has only one category of ordinary
shares.
The adjusted EPS has been calculated to reflect the underlying profitability
of the business by excluding non-cash charges for depreciation, amortisation,
impairments and share compensation charges.
4. GOING CONCERN
The Group had cash balances of £1.6m at 31 December 2022 (30 June 2021:
£1.4m). Having reviewed cash flow forecasts and budgets for a year ahead the
Directors have a reasonable expectation that the Group has resources to
continue in operational existence for the foreseeable future.
5. FOREIGN CURRENCY TRANSLATION
(a) Presentational currency
The consolidated financial statements are presented in British Pounds, which
is also the functional currency of the parent entity.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency
using the exchange rates prevailing at the date the transaction occurs. Any
exchange gains or losses resulting from these transactions and from the
translation of monetary assets and liabilities at the balance sheet date are
reported in the income statement except when these represent a net investment
in a subsidiary when they are charged or credited to equity.
Foreign currency balances are translated at the balance sheet date using
exchange rates prevailing at the period end.
(c) Group companies
The financial results and position of all group entities that have a
functional currency different from the presentational currency of the Group
are translated into the presentational currency as follows:
i. assets and liabilities for each balance sheet are translated at
the closing exchange rate at the date of the balance sheet
ii. income and expenses for each income statement are translated at
average exchange rates (unless it is not a reasonable approximation to the
exchange rate at the date of transaction)
iii. all resulting exchange differences are recognised as a separate
component of equity (translation reserve)
iv. The exchange rates used in respect of Argentinean Pesos are the
official published exchange rates.
6. Other Investments
Other investments had a zero balance at December 31 2022. (30 June 2021:
414k).
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic
Law by virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.
For further information, please contact:
Mobile Streams plc
Nigel Burton, Adviser
+44 77 8523 4447
www.mobilestreams.com
Beaumont Cornish (Nominated Adviser)
James Biddle and Roland Cornish
+44 (0) 20 7628 3396
Peterhouse Capital Limited (Broker)
Lucy Williams and Duncan Vasey
+44 (0) 20 7469 0930
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