REG-One Media iP Group Plc: Half-year Report
29/06/2020 07:05
29 June 2020
One Media IP Group Plc
(“One Media”, the “Company” or the “Group”)
Interim Results for the six-months ended 30 April 2020
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 2020.
Financial Highlights
* Revenue increased by 28% to £2,032,598 (H1 2019: £1,585,687)
* Operating profit increased 98% to £563,257 (H1 2019: £284,360)
* EBITDA increased 93% to £757,678 (H1 2019: £392,192)
* Cash balances of £1,076,134 at 30 April 2020 (H1 2019: £5,184,301)
Operational Highlights
* Consolidation of five acquisitions completed in 2019
* Appointment of Claire Blunt and Brian Berg to the Board as Non-Executive
Chair and Non-Executive Director, respectively, to join Michael Infante, Alice
Dyson-Jones and Steven Gunning
* Launch of Harmony IP
* Operations unimpacted by COVID-19
Michael Infante, CEO of One Media iP, commented:
“As the world adjusts to life under COVID-19, we continue to observe
changing habits in both music consumption and genres being streamed as a
result of the dramatic changes to people’s daily routines. Coinciding with
this, we have also seen an uplift in streaming of children’s, classical and
ambient music, all of which favour One Media’s diverse catalogue.
“I am very pleased with our staff’s fortitude in decamping from our
offices at Pinewood Studios and working efficiently on a remote basis, which
is a tribute to both technology and team effort. This ‘new normal’ lends
itself to our continuing operations and we have successfully proven our robust
business model in the first six months of 2020.”
This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014. 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 Hartley/Max Gould/Michael Johnson (Sales) Tel: +44 (0)20 7397 8900
Yellow Jersey PR PR and IR
Charles Goodwin/Annabel Atkins Tel: +44 (0)20 3004 9512
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 made significant progress in H1 2020 by continuing to enhance the
value of its existing catalogue and leveraging its in-house capabilities to
grow and protect shareholder value. As outlined in the recent AGM Statement
of 22 May 2020, substantial advancements have been made during the period in
each of the Company’s key operational divisions, including the core business
of purchasing and monetising digital music rights, as well as its service
offerings, the Technical Copyright Analysis Tool (“TCAT”) and Harmony IP.
Responding to interest from major players across the music industry, One Media
continues to examine possibilities to scale its proprietary anti-piracy
technology, TCAT, by sourcing third party interest and possible partner
initiatives for wider implementation across the sector.
Encouraging progress has also been made towards launching the Group’s unique
intellectual property (IP) equity release programme, Harmony IP. The
platform, which looks to grant music rights holders with advanced access to
the future earnings of their IP by purchasing a portion of their rights
upfront, has received good levels of early interest from artists and the Group
is working to take these discussions forward. Harmony IP will enable One Media
to diversify its portfolio and acquire music rights with recurring income
streams at favourable multiples.
Finally, the Group remains focused on enhancing the value of its existing
catalogue and is committed to ensuring its content is fully optimised to
maximise discoverability across global markets. Synchronisation deals offer
One Media an additional avenue through which to generate income, and during
the period a number of the Group’s owned tracks were used in TV series, such
as American drama series, ‘Dare Me’, and films, such as Netflix’s
original film, ‘Coffee & Kareem’.
COVID-19
Notwithstanding the challenging macro-economic environment presented by
COVID-19, One Media retains a healthy cash position and continues to trade in
line with expectations. The safety and well-being of employees is paramount
and the Group adheres to government and Public Health England guidance at all
times. The Group’s staff remain fully employed in its businesses and
continue to work efficiently on a remote basis, effectively liaising with
customers and suppliers to ensure business continuity.
Financial Overview
The Group has continued to manage its financial position over the six-month
period to 30 April 2020 with profitable operations. Group consolidated revenue
was £2,032,598 for the six-months ended 30 April 2020 (30 April 2019:
£1,585,687).
Profit before tax amounted to £399,236 (30 April 2019: £143,738) and EBITDA
increased 93% to £757,678 (2019: £392,192).
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 2020 were £1,076,134 (30 April 2019: £5,184,301).
Dividend
On 6 May 2020 One Media was delighted to inform the market of a return to its
dividend policy. The Group declared an interim dividend of 0.055p per ordinary
share, which was paid earlier this month. The Board had considered its policy
regarding dividends and has established that the objective of its Dividend
Distribution Policy is to maintain an equilibrium between retention of profit
to finance long-term growth plans whilst rewarding shareholders for their
support.
Industry
Despite significant uncertainty caused by COVID-19, the global recorded music
market has demonstrated resilience, with music-streaming platforms such as
Spotify recording an increase in paid subscribers. Global online music
streaming subscriptions grew 32% year-on-year (YoY) reaching 358 million
subscriptions in CY 2019, according to the latest findings from
‘Counterpoint Research’. This is driven by the availability of content
like podcasts, that attracted people towards the platform and eventually
turned them as subscribers. Additionally, promotional activities such as price
cuts in subscriptions in emerging markets and bundled offers from telcos added
to the growth. It is expected that online music streaming subscriptions will
grow more than 25% YoY to exceed 450 million subscriptions by the end of 2020.
The latest figures published by the International Federation of the
Phonographic Industry (IFPI) for 2019 show that streaming now accounts for
over half of global revenues, and this number is expected to grow as streaming
devices become increasingly accessible and global audiences continue to
expand.
Outlook
With its highly scalable business model, One Media enters H2 2020 in a strong
position to expand its geographical footprint, exploit its new product
offerings and capitalise on the growth of streaming globally. Its track record
of acquiring low-risk content with proven, recurring income streams further
supports the Group’s position as it looks for opportunities to enhance
shareholder value within this growth market.
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 2020
Unaudited Unaudited Audited
6 months ended 30 April 2020 6 months ended 30 April 2019 12 months ended 31 October 2019
£ £ £
Revenue 2,032,598 1,585,687 3,508,891
Cost of sales (1,032,750) (843,177) (1,756,464)
_________ _________ _________
Gross profit 999,848 742,510 1,752,427
Administrative expenses (436,591) (458,150) (873,513)
_________ _________ _________
Operating profit 563,257 284,360 878,914
Share based payments (73,570) (39,728) (142,497)
Finance costs (90,459) (100,970) (189,322)
Finance income 8 76 8
_________ _________ _________
Profit on ordinary activities before taxation 399,236 143,738 547,222
Tax expense (69,078) (24,436) (88,778)
_________ _________ _________
Profit for period attributable to equity shareholders and total comprehensive income for the year 330,158 119,302 458,444
========= ========= =========
Basic earnings per share 0.24p 0.09p 0.34p
========= ========= =========
Unaudited Consolidated Statement of Financial Position
As at 30 April 2020
Unaudited Unaudited Audited
30 April 2020 30 April 2019 31 October 2019
£ £ £
Assets
Non-current assets
Intangible assets 8,788,257 4,684,070 8,900,413
Property, plant and equipment 4,166 11,844 7,647
_________ _________ _________
8,792,823 4,695,914 8,908,060
_________ _________ _________
Current assets
Trade and other receivables 1,095,899 804,944 1,000,595
Cash and cash equivalents 1,076,134 5,184,301 860,611
_________ _________ _________
Total current assets 2,172,033 5,989,245 1,861,206
_________ _________ _________
Total assets 10,964,856 10,685,159 10,769,266
========= ========= =========
Liabilities
Current liabilities
Trade and other payables 820,622 1,431,255 1,053,266
Deferred tax 83,128 58,133 83,128
_________ _________ _________
903,750 1,489,358 1,136,394
Borrowings 1,637,848 1,600,963 1,613,342
_________ _________ _________
Total liabilities 2,541,598 3,090,321 2,749,736
_________ _________ _________
Equity
Called up share capital 678,018 678,018 678,018
Share redemption reserve 239,546 239,546 239,546
Share premium account 4,314,220 4,314,220 4,314,220
Share based payment reserve 438,326 261,987 364,756
Retained earnings 2,753,148 2,101,067 2,422,990
_________ _________ _________
Total equity 8,423,258 7,594,838 8,019,530
_________ _________ _________
_________ _________ _________
Total equity and liabilities 10,964,856 10,685,159 10,769,266
========= ========= =========
Unaudited Consolidated Statement of Changes in Equity
For the six months ended 30 April 2020
Share capital Share redemption reserve Share premium Share based payment reserve Retained earnings Total equity
£ £ £ £ £ £
At 1 November 2018 678,018 239,546 4,314,220 222,259 1,981,765 7,435,808
Profit for the six months to 30 April 2019 - - - - 119,302 119,302
Share based payment charge - - - 39,728 - 39,728
________ _________ _________ _________ _________ _________
At 30 April 2019 678,018 239,546 4,314,220 261,987 2,101,067 7,594,838
Proceeds from the issue of new shares - - - - - -
Fund raise costs - - - - - -
Profit for the six months to 31 October 2019 - - - - 321,923 321,923
Share based payment charge - - - 102,769 - 102,769
________ _________ _________ _________ _________ _________
At 31 October 2019 678,018 239,546 4,314,220 364,756 2,422,990 8,019,530
Profit for the six months to 30 April 2020 - - - - 330,158 330,158
Share based payment charge - - - 73,570 - 73,570
________ _________ _________ _________ _________ _________
Balance at 30 April 2020 678,018 239,546 4,314,220 438,326 2,753,148 8,423,258
======== ========= ========= ========= ========= =========
Unaudited Consolidated Cash Flow Statement
For the six months ended 30 April 2020
Unaudited Unaudited Audited
6 months ended 30 April 2020 6 months ended 30 April 2019 12 months ended 31 October 2019
£ £ £
Cash flows from operating activities
Profit before taxation 399,236 143,738 547,222
Amortisation 245,018 128,315 332,423
Depreciation 3,372 3,579 7,885
Share based payments 73,570 39,728 142,497
Finance income (8) (76) (127)
Finance costs 90,459 100,970 189,322
(Increase)/decrease in receivables (95,304) (123,985) (306,094)
(Decrease)/increase in payables (276,957) 816,442 333,210
Corporation tax paid (59,433) (2,272) -
Finance cost paid (55,790) - (99,404)
_________ _________ _________
Net cash inflow from operating activities 324,163 1,106,439 1,146,934
_________ _________ _________
Cash flows from investing activities
Investment in copyrights / TCAT (133,154) (1,461,080) (5,881,529)
Investment in fixed assets - (3,201) (3,310)
Finance income 8 76 127
_________ _________ _________
Net cash used in investing activities (133,146) (1,464,205) (5,884,712)
_________ _________ _________
Cash flow from financing activities
Proceeds from the issue of new shares - - -
Share issue costs - (35,017) -
Loan notes 24,506 705 22,010
_________ _________ _________
Net cash inflow from financing activities 24,506 (34,312) 22,010
_________ _________ _________
Net change in cash and cash equivalents 215,523 (392,078) (4,715,768)
Cash at the beginning of the period 860,611 5,576,379 5,576,379
_________ _________ _________
Cash at end of the period 1,076,134 5,184,301 860,611
========= ========= =========
Notes to the Interim Report
For the six months ended 30 April 2020
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 2019 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 2020. 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 2019.
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 2020 and the audited twelve months figures for the year
ended 31 October 2019.
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 2020 6 months ended 30 April 2019 12 months ended 31 October 2019
Profit for period attributable to equity shareholders 330,158 119,302 458,444
Weighted average number of shares in issue at period end 135,603,699 135,603,699 135,603,699
_________ _________ _________
Basic earnings per share 0.24p 0.09p 0.34p
========= ========= =========
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 2020 30 April 2019 31 October 2019
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
135,603,699 (2019: 135,603,699) ordinary shares of 0.5p each 678,018 678,018 678,018
========== ========== ==========
5. Interim statement
Copies of this statement are available from Group's registered Office at:
623 East Props Building, Goldfinger Avenue, Pinewood Road, Iver Heath,
Buckinghamshire, SL0 0NH.
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