REG - Mobile Streams plc - Half-year Report
25/03/2024 07:00
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RNS Number : 1208I Mobile Streams plc 25 March 2024
25 March 2024
Mobile Streams plc
("MOS" or "the Company")
Interim Results
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 2023.
Highlights
Our focus during the half year to 31 December 2023 was primarily on the
commercialisation of the NFT technology platform (NTP) and preparation to
create the media, publishing and on-line casino and sports book business in
Mexico. Significant progress was made with Capital Media Sports SA and related
key partners in Mexico in shaping the commercial terms of the various
agreements whilst in parallel, certain refinements, tailoring and ongoing
development of our NTP took place in order to optimise it for working in this
new setting. The Company has also significantly reduced costs and focused on
improving operating efficiency.
Operations in our legacy mobile data businesses are now producing a modest
gross profit and this helps to absorb a portion of the group's overhead
expenses.
We remain optimistic that the NTP revenues can grow in line with the
commercial agreements signed and announced The NFT products will be a key part
of the online casino and sports book business with the delivery of a loyalty
programme for Bet and we estimate that significant revenue could be generated
by providing this service. Whilst we continue to bridge across from our legacy
business activities associated with on-line gaming into new business
activities arising from commercialisation of the NTP we have worked hard to
review and reduce our operating expenditures.
Revenue for the period reduced in line with expectations following the
completion of our partnership with International Gaming systems (IGS), as
detailed in the 2023 Annual Report. We have focused on our goal of
transitioning to a media, publishing and online betting and sports book
businesses, whilst also driving efficiencies across the Company in order to
reach operationally profitability on a monthly basis during this calendar
year. The success of this strategy resulted in the pre-tax loss for the 6
months being £289k, substantially lower than the loss of £1,231k in the 6
months to December 2022 (improvement by 76.52%) and £2,558k in the 6 months
to June 2023 (improvement by 88.70%)
The NTP has been recorded as an intangible asset in the financial statements
under IFRS with a net book value at 31 December 2023 of £421k. We believe,
however, that its trade sale value would be significantly higher based on
market comparables.
Outlook
The Company is now well positioned as a business, with a strong suite of
proprietary technology platforms and investments The Directors believe that
the actions taken over the six months to December 2023 will enable the
business to fully capitalise on the opportunities in Mexican Sports
publishing, ,media and online casino and sports book services. We are now also
looking to create synergies driving revenue opportunities to the betting
business from our existing platform portfolio, including both the NTP and
LiveScores sites. Accordingly, we remain on track to
reach operational profitability on a monthly basis during this year.
Mark Epstein, CEO, said:
"We are very pleased with the progress that the organisation has made in the
past 6 months in the start-up of the Mexican sports betting business and
transformation of our business. This has only been possible due to the
quality and capability of our Streams Technology platform combined with the
dedication and skills of our team. Our Company is now well positioned to
emerge from this period of transition and develop into a growing and
profitable business."
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
6 months 6 months ended 31 December 12 months ended 30
ended 31 June
December
2023 2022 2023
£000's £000's £000's
Revenue 169 1,069 1,824
Cost of sales (21) (629) (1,812)
Gross profit 148 440 12
Selling and marketing costs (34) (98) (876)
Administrative expenses ** (414) (1,574) (2,928)
Operating Loss (300) (1,232) (3,792)
Finance income 11 1 3
Finance expense - - -
Loss before tax (289) (1,231) (3,789)
Tax expense - - -
Loss for the period (289) (1,231) (3,789)
Attributable to:
Attributable to equity shareholders of Mobile Streams Plc (289) (1,231) (3,789)
(289) (1,231) (3,789)
Pence per share Pence per share Pence per
share
Basic loss per share (0.006) (0.032) (0.093)
Diluted loss per share (0.006) (0.032) (0.093)
* *Administrative expenses include depreciation, amortisation, impairment and
share based compensation.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
31-Dec-23 31-Dec-22 30-Jun-23
£000's £000's £000's
Assets
Non- Current
Goodwill - 360 -
Intangible assets 422 396 -
Other investments - - -
422 756 -
Current
Trade and other receivables 395 649 148
Unsettled share subscription monies** 407 - -
Cash and cash equivalents 337 1,597 913
1,139 2,246 1,061
Total assets 1,561 3,002 1,061
Equity
Equity attributable to equity holders of Mobile Streams plc
Called up share capital 864 757 768
Share Premium 21,909 20,752 21,331
Translation reserve (3,050) (3,050) (3,050)
Share Based Payment Reserve 62 13 25
Retained earnings (18,832) (15,983) (18,541)
Total equity 955 2,489 533
Trade and other payables 565 469 487
Bank debt 40 44 41
605 513 528
Total liabilities 605 513 528
Total equity and liabilities 1,561 3,002 1,061
** The unsettled share subscription monies at 31 December 2023 in the amount
of £407,000 were received in full in the first four days of January 2024.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to equity holders of Mobile Streams plc
Called up share capital Share premium Translation reserve Share-based payment reserve Retained earnings Non- Controlling Interest Total Equity
£000's £000's £000's £000's £000's £000's £000's
Balance at 1 July 2021 567 16,765 (3,050) 13 (11,480) 1 2,816
Loss for the 6 months - - - - (639) - (639)
Warrants charge - - - - - - -
Issue of shares 18 510 - - - - 528
Balance at 31 December 2021 585 17,275 (3,050) 13 (12,119) - 2,705
Loss for the 6 months - - - - (2,125) - (2,125)
Warrants charge - - - 255 - - 255
Issue of shares 74 2,059 - - - - 2,133
Acquisition of 51% of KrunchData Limited - - - - (763) (1) (764)
Balance at 30 June 2022 659 19,334 (3,050) 268 (15,007) - 2,204
Prior Year Adjustment - - - (255) 255 - -
Balance at 1 July 2022 659 19,334 (3,050) 13 (14,752) - 2,204
Loss for the 6 months - - - - (1,231) - (1,231)
Share Options charge - - - - - - -
Issue of shares 98 1,418 - - - - 1,516
Balance at 31 December 2022 757 20,752 (3,050) 13 (15,983) - 2,489
Loss for the 6 months - - - - (2,558) - (2,558)
Share Options charge - - - 12 - - 12
Issue of shares 11 579 - - - - 590
Balance at 30(th) June 2023 768 21,331 (3,050) 25 (18,541) - 533
Loss for the 6 months - - - - (289) - (289)
Share Options charge - - - 37 - - 37
Issue of shares 96 579 - - - - 675
Balance at 31(st) December 2023 864 21,909 (3,050) 62 (18,832) - 955
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 months ended 31 December 2023 6 months ended 31 December 2022 12 months ended 30 June 2023
£000's £000's £000's
Operating activities
Profit before taxation (289) (1,231) (3,789)
Adjustments:
Amortisation of intangible assets - 111 296
Impairment of Intangible assets (305) - 708
Impairment of receivables - - (15)
Share based payments expense 37 - 12
Profit on disposal of investment - (22) (22)
Remuneration paid to Senior managers in shares 100 67 67
Consultant fees paid in shares - 129 719
Interest received (11) (1) (3)
Changes in Trade and other receivables (246) (489) 28
Changes in Trade and other payables 78 27 45
Total cash utilised in operating activities (636) (1,409) (1,954)
Investing Activities
Additions to intangible assets (116) (177) (318)
Proceeds from sale of Gfinity shares - 192 192
Interest received 11 1 3
Interest paid - - -
Net Cash used in investing activities (105) 16 (123)
Issue of share capital (net of expenses paid) 168 1,320 1,320
Bank loan (1) (3) (6)
Net Cash generated from financing activities 167 1,317 1,314
Net change in cash and cash equivalents (575) (76) (763)
Cash and cash equivalents at beginning of period 913 1,675 1,675
Exchange (loss)/ gain on cash and cash equivalents (1) (2) 1
Cash and cash equivalents at end of period 337 1,597 913
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 2023.
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 2023
has been extracted from the statutory accounts for that period. In addition,
the financial information for the 6 months ended 31 December 2022 has been
extracted from the unaudited Interim results which were published on 27 March
2023.
The full audited accounts of the Group for the 12 months ended 30 June 2023
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 and have been delivered to the
Registrar of Companies. All references to IFRS in these statements refer to
IFRS as adopted by the UK.
The auditor's report on the financial statements for the 12 months ended 30
June 2023 was unqualified and did not contain statements under S498 (2) or
S498 (3) of the Companies Act 2006.
2. SEGMENTAL REPORTING
As at 31 December 2023, 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: the sale of mobile content through MNOs (Mobile Operator sales),
the sale of mobile content over the internet (Mobile Internet sales) and the
provision of consulting and technical services (Other Service Fees) which
includes the opening revenues pertaining to the new on-line sports betting and
on-line casino business segment.
All operations are continuing and all inter-segment transfers, if any, are
priced and carried out at arm's length. The segmental results for the 6
months ended 31 December 2023 were as follows:
£000's Europe Asia North America Latin America Group
Pacific
Mobile operator sales - - - 36 36
Mobile internet sales - - - - -
Other service fees 133 - - - 133
Total Revenue 133 - - 36 169
Cost of sales - - - (21) (21)
Gross profit 133 - - 15 148
Operating expenses (570) (4) - (142) (717)
EBITDA* (438) (4) - (127) (568)
Depreciation, amortisation 305 - - - 305
Share based compensation (37) - - - (37)
Finance income - - - 11 11
Profit/(Loss) before tax (170) (4) - (116) (289)
Income tax expense - - - - -
Profit/(Loss) after tax (170) (4) - (116) (289)
*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 2022 were as follows:
Asia Pacific North America Latin America
£000's Europe Group
Mobile operator sales - 2 - 139 141
Streams Data (IGS and NFT) 823 - - 105 928
Other service fees (NFT) - - - -
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* (1,127) (6) - 12 (1,121)
Depreciation, amortisation (111) - - - (111)
Share based compensation - - - - -
Finance income - - - 1 1
Profit/(Loss) before tax (1,238) (6) - 13 (1,231)
Income tax expense - - - - -
Profit/(Loss) after tax (1,238) (6) - 13 (1,231)
*Calculated as profit before tax, interest, amortization, 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 2023 6 months ended 31 December 2022 12 months ended 30 June 2023
£000's £000's £000's
Loss for the period (289) (1,231) (3,789)
Loss earnings per share (pence):
Basic (0.006) (0.032) (0.093)
Diluted (0.006) (0.032) (0.093)
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 2023 6 months ended 31 December 2022 12 months ended 30 June 2023
£000's £000's £000's
Loss for the period (289) (1,231) (3,789)
Add back: share compensation expense 72 - 12
Add back: depreciation and amortisation (305) 111 296
Adjusted Loss for the period (557) (1,120) (3,481)
Pence per share Pence per share Pence per share
Adjusted loss per share (0.012) (0.029) (0.085)
Adjusted diluted loss per share (0.012) (0.029) (0.085)
Weighted average number of shares
6 months ended 31 December 2023 6 months ended 31 December 2022 12 months ended 30 June 2023
Basic 4,469,228,885 3,830,848,477 4,079,984,110
Exercisable share options - - -
Diluted 4,469,228,885 3,830,848,477 4,079,984,110
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 2023 6 months ended 31 December 2022 12 months ended 30 June 2023
£000's £000's £000's
Loss for the period (289) (1,231) (3,789)
Add back: share compensation expense 72 - 12
Add back: depreciation and amortisation (305) 111 296
Adjusted Loss for the period (557) (1,120) (3,481)
Pence per share Pence per share Pence per share
Adjusted loss per share (0.012) (0.029) (0.085)
Adjusted diluted loss per share (0.012) (0.029) (0.085)
Weighted average number of shares
6 months ended 31 December 2023 6 months ended 31 December 2022 12 months ended 30 June 2023
Basic 4,469,228,885 3,830,848,477 4,079,984,110
Exercisable share options - - -
Diluted 4,469,228,885 3,830,848,477 4,079,984,110
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 £0.3m at 31 December 2023 (30 June 2022:
£1m). Having reviewed cash flow forecasts and budgets for the 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. Intangible assets
Intangibles acquired: Platform Development & Software Intangibles added internally Subtotal Goodwill Total
Streams
£'000 £'000 £'000 £'000 £'000
Cost or valuation:
At 1 July 2022 485 308 793 360 1,153
Additions - 177 177 - 177
Disposals - - - - -
At 31 December 2022 485 485 970 360 1,330
Additions - 141 141 - 141
Disposals - - - - -
At 30 June 2023 485 626 1,111 360 1,471
Additions - 116 116 - 116
Disposals - - - - -
At 31 December 2023 485 742 1,227 360 1,587
Amortisation:
At 1 July 2022 274 193 467 - 467
Charge for the period 50 61 111 - 111
Disposals - - - - -
At 31 December 2022 324 254 578 - 578
Charge for the period 117 68 185 185
Disposals - - - -
Impairment 44 304 348 360 708
At 30 June 2023 485 626 1,111 360 1,471
Charge for the period - - - - -
Disposals - - - - -
Reversal of Impairment (36) (269) (305) - (305)
31 December 2023 449 369 818 360 1,178
Carrying amount:
At 31 December 2022 161 235 396 360 756
At 30 June 2023 - - - - -
At 31 December 2023 36 390 422 - 422
The Directors of Mobile Streams plc reviewed the recoverable amount pertaining
to the company's Streams Data platform in the light of an increase in the
estimated service potential of the asset arising in recent months since the
previous assessment and recognition of impairment at 30th June 2023. The
recoverable amount was determined from value in use calculations using key
assumptions derived from the most recent financial forecast and with a
discount rate of 15% which is a based on comparative businesses weighted
average cost of capital.
As a result of this exercise, the Directors concluded at 31st December 2023
that the asset was no longer impaired and a reversal of the previously
recognised impairment loss of £348,000 has been recognised in the Statement
of Comprehensive Income, adjusted by the quantity of amortisation (£43,000)
that would otherwise have arisen during the 6 months to 31(st) December 2023
had the asset not been impaired at all.
During the 6 months to 31(st) December 2023 the group recognised further
capitalised development costs on this asset in the amount of £116,000.
7. Other Investments
The group has no other investments at 31 December 31 2023 (30 June 2022: Nil).
8. Share Capital and Reserves
31 Dec 2023 31 Dec 2022 30 June 2023
£000s £000's £000's
Ordinary Share capital 864 757 768
Share premium 21,909 20,752 21,331
Translation Reserve (3,050) (3,050) (3,050)
Share Based Payment reserve 62 13 25
Retained earnings (18,832) (15,983) (18,541)
955 513 533
The total number of Ordinary Shares in issue as at 31 Dec 2023 was
5,333,941,619 with a par value of 0.01 pence per share (31 Dec 2023:
4,267,146,922 with a par value of 0.01 pence per share). In addition, there
are 140,753,533 Deferred Shares of 0.19 pence nominal value each in issue. The
Deferred Shares, as their name suggests, have very limited rights which are
deferred to the Ordinary Shares and effectively carry no value as a result.
Allotted, called up and fully paid 6 months 6 months Year
ended ended ended
31 Dec 2023 31 Dec 2022 30 June 2023
In issue at start of period 4,369,655,903 3,285,590,326 3,285,590,326
Issued during the period 964,285,716 981,556,596 1,084,065,577
In issue at end of period 5,333,941,619 4,267,146,922 4,369,655,903
The balance in the share premium account represents the proceeds received
above the nominal value on the issue of the Company's equity share capital.
On 12 December 2023 the Group issued 964,285,716 shares at 0.07 pence per
share via a direct subscription, raising £675,000 of which £168,000 was
received prior to 31 December 2023, £100,000 was in lieu of senior management
services supplied in the 6 months to 31 December 2023 and £407,000 was
received in early January 2024.
9. Post Balance Sheet Event
On 12 January 2024 the Group issued 191,259,992 shares at 0.06 pence per share
via a retail offer, raising £114,756 with all subscription monies duly
received.
On 18 March 2024 the Group issued 777,737,695 shares at 0.0425 pence per share
via a Placing and Subscription, raising £330,359 with all subscription monies
duly received.
On 22 March 2024 the Group issued 58,823,529 shares at 0.0425 pence per share
via a Broker Offer, raising £25,000 with all subscription monies duly
received.
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
Panmure to be added
Simon French
Peterhouse Capital Limited (Joint Broker)
Lucy Williams and Duncan Vasey
+44 (0) 20 7469 0930
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