REG - One Media iP Group - Half-year Report

One Media IPAnnouncement

20/07/2021 07:05

RNS Number : 7415F
  
One Media iP Group PLC
  
20 July 2021
  
 

 
One Media iP Group Plc 
("One Media", the "Group" or the "Company")
 
Interim Results for the six-months ended 30 April 2021
 
One Media iP (AIM: OMIP), the digital music rights acquirer, publisher and distributor, is pleased to announce its interim results for the six-month period ended 30 April 2021.
 
Financial Highlights
·      Revenue increased by 3.5% to £2,102,848 (H1 2020: £2,032,598)
·      Gross profit increased 6.7% to £1,066,650 (H1 2020: £999,848)
·      Gross profit (excluding Amortisation) increased 5.2% to £1,329,786 (H1 2020: £1,264,359)
·      Cash balances of £6,373,525 at 30 April 2021 (H1 2020: £1,076,134, Year End 2020: £6,766,424)
 
Operational Highlights 
·      Formation of TCAT Ltd as a separate subsidiary
·      Acquisition of Take That producer royalties
·      Launch of Men & Motors TV channel
·      Acquisition of 21 Vision catalogue royalties
·      Dividend Declaration
 
Post half year end
 
·      Acquisition of Kid Creole and the Coconuts producer royalties
·      Acquisition of Steve Levine Producer's Royalties of music performed by Culture Club, Louise, 911 and the Honeyz
·      Acquisition of Barry Blues producer Royalties of music performed by Heatwave including Boogie Nights and Always and Forever
·      Acquisition of certain composition and recordings rights in over 200 Don Williams tracks
·      Blended NPS (Net Publisher Share) multiple of 11.73 and deploying £4m (four million pounds - USD$5.5m) on the six acquisitions to date
 
Michael Infante, CEO of One Media iP, commented: 
 
"We are far from 'business as normal' as a country, as the world's press reports and given these extraordinary times I am very pleased with our half year results. Streaming has now replaced nearly all aspects of downloading and with iTunes discontinuing its downloading store, we are set to continue delivering our content with our expert team of Creative Technicians fully experienced in the digital environment now for over a decade. Who would have imagined that vinyl would outlive downloads? We did! We have been talking of streams and the shifting market now for many years. 
 
We have seen our acquisition program via Harmony IP gain traction and press acclaim and can report 'face to face' meetings with targets have now resumed.
 
It is a refreshing 'reboot' and many of us will be happy not to see the 'kitchens' and 'lounges' displayed via online conferencing. I have become an expert in interior design! 
 
During the period under review the trade and assets of TCAT were transferred into a newly incorporated subsidiary - TCAT Ltd. TCAT's new team is now in place to expand its software offering to the music industry at large.
 
Further information on TCAT can be expected throughout the year.
 
This announcement contains inside information for the purposes of the UK Market Abuse Regulation. The person who arranged the release of this information is Michael Infante, Chief Executive Officer of the Company.
 
For further information, please contact: 
 



One Media IP Group Plc  








Michael Infante


Chief Executive
Tel: +44 (0)175 378 5500
 




Claire Blunt


Chairman
Tel: +44 (0)175 378 5501
 














Cairn Financial Advisers LLP


Nominated Adviser




Liam Murray / Jo Turner/ Ludovico Lazzaretti
 


Tel: +44 (0)20 7213 0880
 














Cenkos Securities plc 


Broker




Max Gould/Giles Balleny/Michael Johnson (Sales)
 


Tel: +44 (0)20 7397 8900














PPR Publicity
 


Tel: +44 (0)7930 304301



About One Media iP Group Plc
One Media is a digital music rights acquirer, publisher and distributor. The Group specialises in purchasing and monetising intellectual property rights with proven, repeat income streams.  One Media adds value to its content by maximising its availability in over 600 digital stores globally, including Apple Music, YouTube, Amazon and Spotify.
One Media's music is also widely used for synchronisation in film, TV and digital gaming whilst its video content is primarily viewed on YouTube where One Media operates over 20 YouTube channels as a certified partner.
One Media is listed on the London Stock Exchange on the AIM index, under the symbol 'OMIP'.
For further information on One Media iP: www.omip.co.uk 
TCAT: www.tcat.media 
 
Harmony IP: www.harmonyip.com
 
 
 
Chairman's Statement
 
Business and Performance Review
The Group delivered pleasing results in H1 2021 and has continued to execute its strategic plans in that period with further acquisitions enhancing the value of its existing catalogue. The six acquisitions made so far this year are delivering a blended NPS (Net Publisher Share) multiple of 11.73 and deploying circa £4m of the Company's cash resource to date. Due to the timing of these acquisitions, they have not contributed to the H1 2021 results yet but will do so in the coming financial periods.
Financial pressure from the weaker USD Dollar against GBP has impacted revenues but the underlying growth remains strong. The impact of COVID-19 has continued to present challenges in terms of the rate of acquisitions but the Group has been able to continue to fully employ all its staff and to work efficiently on a remote and hybrid working basis.
The Group's subsidiary, TCAT Limited, continues to operate successfully in further developing its anti-piracy tool, with a team of 7 staff and has received HMRC approval for VCT/EIS funding facilitating TCAT Limited to seek new sources of funding.
COVID-19
 
The ongoing global disruption caused by Covid-19 is continually monitored and the Group is confident that business will continue as normal and that our services will remain uninterrupted. The business has a robust recurring income model that lends itself to remote working, much like its major partners. As a result of a planned disaster recovery process all of the Group's business operations continue as normal. However, the Group understands that it cannot control the effects on third parties and their business operations. In the event of a material drop in revenue the Group has significant cash reserves that enables it to continue to operate during this period without any adverse impact on the business. The directors have reviewed the Group's assets and believe this current event will not require any impairment, this is based on a review of the performance of the Group's historical catalogue as well as the detailed due diligence on the income profile of recent acquisitions.
 
Financial Overview 
The Group has continued to manage its financial position over the six-month period to 30 April 2021 with profitable operations. Group consolidated revenue was £2,102,848 for the six-months ended 30 April 2021 (30 April 2020: £2,032,598). 
Profit before tax amounted to £359,117 (30 April 2020: £399,236) with an EBITDA figure of £722,761 (2020: £757,678). Gross profit increased by 6.7% to £1,066,650 (2020: £999,848) and Gross Profit (excluding Amortisation) increased by 5.2% to £1,329,786 (2020: £1,264,359).
The Group receives the majority of its income in US Dollars. Recent movements in exchange rates have been unfavourable however the Board carefully monitors exchange rates to ensure the Company can seek to take advantage of the best exchange rates available. One Media deals in a worldwide market and needs to convert its digital income from the many territories' currencies in which it operates on a monthly basis. All of these local currencies are converted to US Dollars which ultimately are reported in Pounds Sterling.
The USD performance of the Company's main distributors (c. 80% of the income) has shown a positive Year on Year increase of 9%.
During the period, the Company has not issued new shares as consideration for acquisitions and has used existing cash resources as consideration. Cash balances at 30 April 2021 were £6,373,525 (30 April 2020: £1,076,134). 
Dividend 
 
On 31 March 2021 the Group declared a final dividend of 0.055p per ordinary share, which was paid in May 2021. The Board continues to review its policy regarding dividends and has established that the objective of its Dividend Distribution Policy continues to maintain an equilibrium between retention of profit to finance long-term growth plans whilst rewarding shareholders for their support.
 
Industry and Outlook
Despite significant uncertainty caused by COVID-19, the global recorded music market has demonstrated resilience and a recent report from Goldman Sachs predicts the global market to grow from $20.5bln to $37bln in 2030. The Group is confident that with its scalable business model, its track record of acquiring assets with recurring revenue streams it will continue to capitalise on the growth of global streaming and deliver increasing shareholder value.
The Board looks forward to updating shareholders on progress in due course.
Claire Blunt 
Chair of One Media 
 
 
 
 
 
Unaudited Consolidated Statement of Comprehensive Income
For the six months ended 30 April 2021
 
 









Unaudited


Unaudited


Audited












6 months ended 
30 April 2021


6 months ended 
30 April 2020


12 months ended               31 October 2020










£


£


£





















Revenue





2,102,848


2,032,598


4,005,385




Cost of sales





(1,036,198)


(1,032,750)


(2,069,203)










_________


_________


_________




Gross profit





1,066,650


999,848


1,936,182





















Administrative expenses





(584,452)


(436,591)


(916,298)










_________


_________


_________




Operating profit





482,198


563,257


1,019,884






















Share based payments





(30,125)


(73,570)


(62,465)




Finance costs





(92,956)


(90,459)


(223,384)




Finance income





-


8


8










_________


_________


_________




Profit on ordinary activities before taxation





359,117


399,236


734,043




Tax expense





(61,780)


(69,078)


(103,846)










_________


_________


_________




Profit for period attributable to equity shareholders and total comprehensive income for the year





297,337


330,158


 
 
 
630,197










=========


=========


=========




Basic earnings per share





0.15p


0.24p


0.42p










=========


=========


=========



 
 
 
Unaudited Consolidated Statement of Financial Position 
As at 30 April 2021
 









Unaudited


Unaudited


Audited










   30 April 2021


   30 April 2020


31 October 2020










£


£


£




Assets
















Non-current assets
















Intangible assets





8,432,165


8,788,257


8,884,158




Investments





971,679


-


-




Property, plant and equipment





86,849


4,166


91,260










_________


_________


_________










9,490,693


8,792,823


8,975,418










_________


_________


_________




Current assets
















Trade and other receivables





1,385,946


1,095,899


1,141,555




Cash and cash equivalents





6,373,525


1,076,134


6,766,424










_________


_________


_________




Total current assets





7,759,471


2,172,033


7,907,979










_________


_________


_________




Total assets





17,250,164


10,964,856


16,883,397










=========


=========


=========





















Liabilities
















Current liabilities

































Trade and other payables





821,704


820,622


823,151




Deferred tax





117,356


83,128


117,356










_________


_________


_________










939,060


903,750


940,507





















Borrowings





1,724,243


1,637,848


1,697,241










_________


_________


_________





















Total liabilities





2,663,303


2,541,598


2,637,748











_________


_________


_________




Equity

































Called up share capital





1,112,231


678,018


1,109,731




Share redemption reserve





239,546


239,546


239,546




Share premium account





9,484,577


4,314,220


9,473,327




Share based payment reserve





457,346


438,326


427,221




Retained earnings





3,293,161


2,753,148


2,995,824










_________


_________


_________




Total equity





14,586,861


8,423,258


14,245,649










_________


_________


_________



























_________


_________


_________




Total equity and liabilities





17,250,164


10,964,856


16,883,397










=========


=========


=========





































Unaudited Consolidated Statement of Changes in Equity
For the six months ended 30 April 2021
 






Share capital


Share redemption reserve


Share premium


Share based payment reserve


Retained earnings


Total equity







£


£


£


£


£


£




At 1 November 2019


678,018


239,546


4,314,220


364,756


2,440,209


8,036,749




Profit for the six months to 
30 April 2020


-


-


-


-


330,158


330,158




Share based payment charge


-


-


-


73,570


-


73,570







________


_________


_________


_________


_________


_________




At 30 April 2020


678,018


239,546


4,314,220


438,326


2,770,367


8,440,477




Proceeds from the issue of new shares


431,713


-


5,159,107


-


-


5,590,820




Dividends paid


-


-


-


-


(74,582)


(74,582)




Profit for the six months to
31 October 2020


-


-


-


-


300,039


300,039





Share based payment charge


-


-


-


(11,105)


-


(11,105)







________


_________


_________


_________


_________


_________




At 31 October 2020


1,109,731


239,546


9,473,327


427,221


2,995,824


14,245,649




Proceeds from the issue of new shares


2,500


-


11,250


-


-


13,750




Profit for the six months to 
30 April 2021


-


-


-


-


297,337


297,337




Share based payment charge


-


-


-


30,125


-


30,125







________


_________


_________


_________


_________


_________




Balance at 30 April 2021


1,112,231


239,546


9,484,577


457,346


3,293,161


14,586,861







========


=========


=========


=========


=========


=========



 
 
 
 
Unaudited Consolidated Cash Flow Statement
For the six months ended 30 April 2021
 






Unaudited


Unaudited


Audited







6 months
ended  
   30 April 2021


6 months
ended  
   30 April 2020


12 months ended 
31 October 2020







£


£


£




Cash flows from operating activities



























Profit before taxation


386,118


399,236


734,043




Amortisation


240,411


245,018


523,170




Depreciation


7,552


3,372


18,504




Share based payments


30,125


73,570


62,465




Finance income


-


(8)


(8)




Finance costs


92,455


90,459


223,384




(Increase)/decrease in receivables


(252,240)


(95,304)


(162,150)




(Decrease)/increase in payables


(94,780)


(276,957)


(238,909)




Corporation tax paid


-


(59,433)


(127,735)







_________


_________


_________




Net cash inflow from operating activities


409,641


379,953


1,032,764







_________


_________


_________


















Cash flows from investing activities



























Investment in copyrights / licenses


(303,733)


(133,154)


(506,919)




TCAT Funding


(456,362)


-


-




Investment in fixed assets


(3,141)


-


(102,117)




Finance income


-


8


8







_________


_________


_________




Net cash used in investing activities


(763,236)


(133,146)


 
(609,028)







_________


_________


_________


















Cash flow from financing activities



























Proceeds from the issue of new shares


13,750


-


5,590,820




Finance cost paid


(53,054)


(55,790)


(109,136)




Loan notes


-


24,506


74,975




Dividend paid


-


-


(74,582)







_________


_________


_________




Net cash inflow from financing activities


(39,304)


(31,284)


5,482,077







_________


_________


_________


















Net change in cash and cash equivalents


(392,899)


215,523


5,905,813




Cash at the beginning of the period


6,766,424


860,611


860,611







_________


_________


_________




Cash at end of the period


6,373,524


1,076,134


6,766,424







=========


=========


=========



Notes to the Interim Report
For the six months ended 30 April 2021
 
1.    Nature of operations and general information
 
One Media iP Group Plc and its subsidiaries' ("the Group") principal activities are the acquisition and licensing of audio-visual intellectual copyrights and publishing for distribution through the digital medium and to a lesser extent through traditional media outlets.
 
One Media iP Group Plc is the Group's ultimate parent company incorporated under the Companies Act in England and Wales. The address of One Media iP Group Plc registered office is 623 East Props Building, Goldfinger Avenue, Pinewood Road, Iver Heath, Buckinghamshire, SL0 0NH.
 
The financial information set out in this Interim Report does not constitute statutory accounts. The Group's statutory financial statements for the year ended 31 October 2020 are available from the Group's website. The auditor's report on those financial statements was unqualified.
 
2.    Accounting Policies
 
Basis of Preparation
 
These interim consolidated financial statements are for the six months ended 30 April 2021. They have been prepared following the recognition and measurement principles of IFRS. They do not include all the information required for full annual statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 October 2020.
 
This unaudited interim statement has not been subject to a review by the Group's auditors James Cowper Kreston.
 
Comparatives
 
The comparative periods represent the unaudited results for the six months period ended 30 April 2021 and the audited twelve months figures for the year ended 31 October 2020.
 
3.    Earnings per share
 
The calculation of the earnings per share is based on the profit for the financial period divided by the weighted average number of shares in issue during the period. 






Unaudited


Unaudited


Audited




Basic earnings per share


6 months ended 
30 April 2021


6 months ended 
30 April 2020


12 months ended 
31 October 2020


















Profit for period attributable to equity shareholders


297,337


330,158


630,197




Weighted average number of shares in issue at period end


192,069,005


135,603,699


149,252,562







_________


_________


_________




Basic earnings per share


0.15p


0.24p


0.42p







=========


=========


=========



 
The diluted earnings per share would be lower than the basic profit per share as the exercise of warrants and options would be dilutive.
 
 
4.    Share capital
 
 






Unaudited


Unaudited


Audited







   30 April 2021


30 April 2020


31 October 2020




Group and company


£


£


£


















Authorised: 



























200,000,000 ordinary shares of 0.5p each


1,000,000


1,000,000


1,000,000







==========


==========


==========


















Issued: 



























Ordinary shares of 0.5p each



























222,449,249 (H1 2020: 135,603,699, FY 2020: 221,946,249) ordinary shares of 0.5p each 



1,112,231



678,018



1,109,731







==========


==========


==========



 
 
5.   Interim statement 
 
Copies of this statement are available from the Group's registered Office at:
 
623 East Props Building, Goldfinger Avenue, Pinewood Road, Iver Heath, Buckinghamshire, SL0 0NH.

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 or visit 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.
 
  END
 
 
IR FLFFTDAIALIL