ONE MEDIA IP GROUP PLC: Preliminary Results Announcement

One Media iP Group Plc                              
               (formerly One Media Publishing Group Plc)                    


                         ("One Media" or "the Group")                          


Preliminary Results

22 February 2013
                                                                               
                       Preliminary Results Announcement                        


                                                                           
One Media IP Group Plc ("One Media" or the "Company") announces its preliminary 


                  results for the year ended 31 October 2012                   


HIGHLIGHTS

  * Increased revenue of 26% to £2,089,941.
      * Pre-tax profits up 29% to £427,888.
      * Announced the acquisition of fifteen further music, video and spoken word
    catalogues, investing £643,341 in the process.
      * Two dividends declared and paid, totalling £70,974 in the year.
      * Post year end acquired the Men & Motors catalogue of rights with over 3,000
    episodes of this iconic TV programme.



OMiP Executive Chairman, Michael Infante commented: 
Having had a good set of results for 2012, I am filled with enthusiasm for the
forthcoming year. The digital music industry is quietly maturing but the jury
is out on video and its exploitation routes. Downloading, streaming and
broadcast `video on demand' are all possibilities. My view is, that people will
listen to a music track multiple times and therefore see value in ownership,
but possibly only watch a film once every few years. So in my opinion,
subscription and streaming wins hands down in the video wars. With this in mind
we currently opt for YouTube style services for our video content, with our
chosen nostalgic genres being instantly consumable, and ultimately disposable,
but certainly not forgotten. It is the type of content that you want to be
available to access at anytime day or night but not take up valuable space on
your mobile device.  The world of film has to now enter what we in the music
industry have seen before, and have either been praised or criticised for in
our handling. One Media is now almost a veteran at seven years old in
understanding trends and being risk averse. We have opted for nostalgia over
front line chart, and now in video, brands will play an important role in our
visual initiative. 2013 brings its own challenges with talk of recessions and
the continuing consolidation of our industry, but we see opportunities for
developing our business. 
The financial information set out in this Preliminary Results Announcement,
which has been extracted from the audited Report and Financial Statements, does
not constitute the Company's statutory accounts for the year ended 31 October
2012. 
The report of the auditor on the Report and Financial Statements for the year
ended 31 October 2011 is not qualified and does not include a statement under
s498(2) to s498(4) of the Companies Act 2006. 
OMiP's Preliminary Results Announcement for the year ended 31 October 2012 can
be viewed on the Company's website, www.onemediaip.com, with effect from 22
February 2013. 
For further information contact: 
One Media Publishing Group plc Tel: +44 (0)17 5378 5500
Michael Infante, Chairman and Chief Executive; michael@ompplc.com
www.ompplc.com 
Hybridan LLP, Corporate Adviser Tel: +44 (0)20 7947 4350
Claire Noyce / Deepak Reddy
claire.noyce@hybridan.com 
Executive Chairman's Statement 
For the year ended 31 October 2012 
Financial Overview 
The digital music industry has entered its tenth year since the sale of the
first iTunes track. In that time globally, digital music has gone from start up
to approaching $7bn of sales. The world of the compact disc has decreased by
over 60% in the same period. For the first time in the UK digital sales of
music outsold physical sales during 2012. Companies such as Facebook have
dominated the social media scene, Twitter has emerged as the strongest mobile
medium and the Group has acquired under a variety of terms over 170,000 tracks
of music and 5,000 digital video programs. As a small group it is hard
competing in a world dominated by multi-nationals but we have carved out a
profitable space and we are confident that we can say that the Group is at its
real beginning. Unlike much of the music industry we are not saddled with the
legacy they carry from the past. The Group's focus six years ago was on
building the business for the future.  And now, that future is the present, and
we are reaping the rewards. The revenues are modest but our profit ratios are
enviable within our industry. 
Our revenue for this period was £2,089,841 up 26% on last years' revenue of £
1,662,516 (2011) and our profit before tax is reported at £427,888, up 29% 
from
£330,810 in 2011. We are debt free with cash resources and with no gearing. 
Our
dividend policy was underpinned by the payment of £70,974 during the financial
year ending 2012 (2011: £14,994).  We would always consider a dividend policy
at this stage to further demonstrate that the Group is not just a growth stock
but also a yielding stock. 
Review of Activities (The Highlights) 
Acquisitions 
During the past year the Group acquired a significant number of music, video
and spoken word tracks. These acquisitions demonstrate the Group's ability to
work within the cash resources it has and to monetise often-redundant content
catalogues. Not all of the acquisitions mentioned below came with revenue, and
generally, the benefits to the Group will be felt in the year following
acquisition, as we exploit the recordings within the digital arena. 
On the 16th November 2011, the Group acquired over 8,000 recordings, some 800
hours of classical music for a consideration of £104,000. The classical music
catalogue comprises masterpieces by some of the world's greatest composers.
Works by over 150 composers including; Mozart, Handel, Tchaikovsky, Bach,
Verdi, Schubert, Mendelssohn, Brahms, Liszt, Grieg, Elgar, Haydn, Vivaldi,
Beethoven and Debussy just to name a few. The catalogue includes masterpieces
such as; La Traviata, Carmina Burana, Air on a G-string, The Nutcracker Suite,
Peer Gynt, Romeo & Juliet, and Toccata and Fugue as a small example of the many
compositions included in this deal. 
On the 24th November 2011, we extended our contract with a principal provider
to have greater access on more favourable terms for a deal we originally
concluded on 5th February 2009. The original deal that was announced for a
period of five years in February 2009 was extended by a further ten years for
an additional advance against royalties of £10,000. The music catalogue of 
over
400 tracks includes performances by The Sex Pistols, Lou Reed, Paul Weller,
T.REX, Iggy Pop and other 'New Wave' music from the 1970's that have performed
well for the Group digitally. 
On the 28th November 2011, the Group announced that we had purchased and
configured in association with the data-centre at Pinewood Studios and SohoNet
(our provider of connectivity) a new digital storage system to house our
growing audio library and newly acquired film and visual music documentary
content. The investment provides the Group with a substantially increased media
storage ability, increased media delivery bandwidth, a robust disaster recovery
solution and a scalable system to meet future digital storage and delivery
requirements. The investment is a crucial move for the Group to ensure that it
can digitally deliver what the Group acquires. 
On the 2nd December 2011, the Group concluded five recordings with British
actress Anita Harris and created the Group's first five children's stories as
`spoken word' content in the Group's newly established children's `pre-school'
genre. Anita recorded delightful versions of Cinderella, Snow White, Little Red
Riding Hood, The Emperor's New Clothes and Beepo the Bear. 
On the 8th December 2011, the Group acquired a catalogue that comprises over
6,000 karaoke tracks from over the last 50 years of the charts to facilitate
consumers to sing along with great tracks like 'Mamma Mia' to 'Living Doll' and
'Bad Moon Rising' to Dr. Zhivago's  'Somewhere my love'. In addition there was
another 4,000 tracks of original artist performances of a nostalgia genre
including tracks performed by The Libertines, Babyshambles, Bad Manners, The
Stranglers, Emerson Lake &Palmer, Mike Bennett, Pete Doherty, Tom Pepper,
Wishbone Ash, as small example of the many artists included in this deal. 
On the 20th February 2012, the Group acquired a catalogue of American TV
broadcast video content including 420 performances performed by over 150
popular artists. Amongst the performers are `indie bands' such as Kasabian, KT
Tunstall, Athlete, Elbow, Gym Class Heroes, Imogen Heap, Jonas Brothers,
Juliette & The Licks, Paramore, Supergrass and The Cribs. The deal was
concluded together with the acquisition of other audio rights featuring over
350 modern jazz titles featuring works by Lennie Tristano, Art Hordes, Robert
Lockwood, Stephan Grappelli and Chris Barber. 
On the 23rd February 2012, the Group invested into three diverse catalogues of
music. The first catalogue originally traded as the 'Dressed to Kill' catalogue
of rights and comprises of over 100 albums of popular easy listening and off
beat punk music tributes and original artists such as Tina Charles and Gloria
Gaynor. The second catalogue of rights is a `Rap Hop' collection of over 200
recordings with artists such as, 50 Cent, Mase, G-Unit, Lil Wayne, Lloyd Banks,
Prodigy, Snoopy Blu, Spider Loc, Lil Vic, 40 Glocc, The Team, Young Buck,
RasKass, Seven, Chamillionaire, Lil Scrappy, Mike Jones, Mobb Deep and  Bobby
Greek.  The third catalogue is a collection of over 100 traditional Yiddish
Homeland Folk songs, which should prove a successful addition to our
'World-Music' collections. Further, a Spoken Word version of 'Peter Pan' was
acquired to add to the growing audio books collection. 
On the 14th May 2012 the Group invested US$33,000 to partner with a production
house to deliver up to 3,000 music tracks in the 'easy listening',
'instrumental' and 'TV & Film' music genres. Whilst some of the music library
already existed, we retained the additional right to select new tracks (not yet
recorded) over the 36 months following. This allows the Group to keep its
library populated with new tunes as required at a fixed price. We use this
style of music extensively in both the digital distribution to our consumers
via digital stores, such as Spotify, Amazon, iTunes, YouTube and E-music, and
to the world of film, TV, websites and gaming industries for background music
known as `Synchronisation'. 
On the 15th June 2012, the Group announced that we had acquired under a long
term license the label OVOW (One Voice One World) that had traded on iTunes for
several years previously and has over 100 pop videos featuring performances by
the Moody Blues, Phil Collins, Neil Sedaka, Dusty Springfield, Gene Pitney,
Iggy Pop, Santana, Eric Clapton and Elton John, to name just a few.   
On the 18th June 2012, the Group acquired under license the management rights
to exploit in excess of 30,000 various artist tracks from over the last 50
years for a consideration of US$400,000. Much of the content was already
ingested to our principal distributer (The Orchard), which afforded a smooth
transition of the rights management and the income. 
On the 25th June 2012, the Group announced that it had acquired, under license,
over 50 hours of Children's audio narrated by Britain's celebrity elite. The
collection features kids stories and `early learning' recordings performed by
stars such as Rik Mayall, Judi Dench, Stephen Fry, Patrick Moore, Tony 
Robinson, Phillip Schofield, Lenny Henry, David Bellamy and Bill Oddie, reading
a selection of stories which includes Aladdin, Sleeping Beauty, Learning
to Count, Spelling games, Dinosaur stories, Space Travel, Kids Quizzes
and Learning French. 
On the 28th June 2012, the Group extended the deal with Miki Dallon
Productions, who was originally contracted in 2007. The Group has
been exploiting the rights successfully for the past 5 years. Dallon is an
English musician, songwriter and producer of music from the 1960s and 70s.
Dallon's first published work was a Mickie Most track called "That's Alright"
on which Dallon also played piano. Dallon also produced the Elias Hulk album
`Unchained', the Bearded Lady single `Rockstar', `Country  Lady' and `Apollo
100' for Youngblood Records. The catalogue of 900 songs includes tracks also
performed by JJ Jackson, ABC, Billy Ocean, Johnny Kid & The Pirates and
Greyhound to name just a few of the other artists featured. 
On the 8th August 2012, English comedian Bobby Davro added six further `One Man
Pantos' to the growing children's catalogue of rights that the Group continues
to build. His renditions of the Hare & the Tortoise, Rumpelstiltskin, Rapunzel,
Jack and the Beanstalk, Hansel & Gretel, and the Adventures of Alice in
Wonderland are both comical and appealing to younger ears. 
On the 3rd September 2012, the Group announced that it had acquired the
music-video content from Tropicana currently being exploited via the 'YouTube'
channels featuring all of the Motor City, High Energy & Northern Soul videos
produced by legendary producer Ian Levine. The 'Levine' YouTube channel has had
in excess of over 15 million views to date. The Group has now annexed this
acquisition to the deal it originally completed with him on the 7th April 2010
(Regulated News Service, "RNS"). Featured on the channel are 550 exclusive
videos of Disco, High-Energy, Motorcity and Northern Soul videos, including
Evelyn Thomas performing 'High Energy' and The Trammps performing 'Hold Back
The Night' which together have achieved over 2 million views so far. As a
YouTube Premier Partner, the Group is able to monetise its content viewed on
YouTube through advertisements and the forthcoming subscription accounts. 
Relationship with the Orchard 
On the 12th March 2012, the Group announced that it had negotiated and received
a cash advance payment of US$750,000 from The Orchard, our digital distributor. 
AIM and name change 
On the 15th May 2012, the Group announced, further to the announcement made by
Plus SX Markets (14th May 2012), that it [Plus SX] was issuing a six-month
notice to potentially quit trading and close the Plus SX trading platform. We
were quick to comment (RNS 15th May 2012) on this to reassure our shareholders
that we would be seeking an alternative trading platform in this event and
started the process of examination of alternative markets. The Group has
subsequently announced (RNS 2nd January 2013) its intention to list on the AIM
Market (the London Stock Exchange's international market for smaller growing
companies). 
On the 18th October 2012, the Group changed its name and dropped the word
`Publishing'. I said at the time that this change in name reflects the Group's
expansion from being a purely audio content exploitation business to further
reflect the monetisation of music, Film, TV programs and the associated brand
licensing rights that the Group will develop further over the coming years. The
Group intends to be a far more encompassing copyrights organisation with a
focus on significantly expanding its digital asset base and intellectual
property ownership in varying entertainment sectors. 
Outlook 
The Group is embracing and driving the shift in the marketplace with the
intention of not only continuing to acquire music catalogues but to focus on
the digital video side of our business as well. The Group is not only a B2B
business but now delivers content direct to the video platforms such as YouTube
making it a direct to consumer (B2C) `Netlabel' as well. Digital video content
will be the next `big boom' in our evolution from the physical world of CD and
DVD to the MP3 and MP4. The Group continues a policy of not manufacturing
physical products and remains faithful to the business model of expanding
digital rights library in all arenas. 
As more consumers turn to mobile devices to access their social media sites
such as Facebook and with the advent of Smart Televisions, more consumers will
view and browse the Internet on their TVs. Google state that currently 30m
consumers watch YouTube channels on Smart TVs, and they predict this to rise to
1bn by 2018. The Group's focus as a content provider therefore is to continue
to acquire nostalgic content to meet these growing audiences. Google's `Advert
Funded' and forthcoming subscription model partnership deals, offer a great
medium for visual nostalgia and monetisation for content owners.  
Post period end, we announced on 12th December 2012 our acquisition of the Men
& Motors catalogue of rights to over 3,000 episodes and the of ownership to the
brand itself, which is already opening new doors to revenues for the Group
compared to previous years where it was not technically possible. 
Our staff head count remains small at nine personnel (excluding directors). The
Group is intending to grow to nearer 12 or 13 over the next financial year. To
cater for this the Group moved within the Pinewood complex to a larger suite of
offices in July 2012. This affords the headroom for further growth. In addition
we have taken secure storage here at Pinewood to house the growing video and
music master asset, as we make more acquisitions in this area. We continue to
enjoy the facilities here at Pinewood and now fully utilise the Postproduction
services as well as the Data Centre services to repurpose and store our digital
content.  
I would like to thank the team for all their continued hard work and that of
our professional advisers. 
And, as always, my special thanks to all of my co-directors for all of their
valuable contributions and dedication. 
Michael A Infante
Chairman
22 February 2013 
Consolidated Statement of Comprehensive Income 
For the year ended 31 October 2012 


                                                   Year ended      Year ended
                                                                             
                                                   31 October      31 October
                                                         2012            2011
                                                                             
                                                            £               £


                                                                         
Revenue                                             2,089,841       1,662,516 
                                                                         
Cost of sales                                       (983,374)       (747,862) 
                                                                         
Gross profit                                        1,106,467         914,654 
                                                                         
Administration expenses                             (678,793)       (583,809) 
                                                                         
Operating profit                                      427,674         330,845 
                                                                         
Finance cost                                                -           (198) 
                                                                         
Finance income                                            214             163 
                                                                         
Profit on ordinary                                    427,888         330,810
activities before                                                            
taxation                                                                      
                                                                         
Tax expense                                          (88,668)        (79,995) 
                                                                         
Profit for period                                     339,220         250,815
attributable to equity                                                       
shareholders                                                                  
                                                                         
Basic earnings per share                                0.73p           0.49p 
                                                                         
Diluted earnings per                                    0.62p           0.35p
share                                                                         
The Consolidated Statement of Comprehensive Income has been prepared on the
basis that all operations are continuing activities. 
Consolidated Statement of Changes in Equity 
For the year ended 31 October 2012 
                   Share       Share    Share    Share   Retained      
Total 
                 Capital  redemption  premium     based  earnings     
equity 


                                 reserve           payment                      
                                                    reserve                     
                                                                                
                           £           £        £         £         £      
    £
                                                                                

At 1 November 2010   456,857           -  663,000         -   103,216  
1,223,073
                                                                                

Share buy back     (239,546)     239,546 (23,897)         - (219,500)  
(243,397)
                                                                                

Proceeds from the        832           -    4,168         -         -      
5,000
issue of new                                                                    

shares                                                                          
                                                                                

Share based                -           -        -     4,791         -      
4,791
payment charge                                                                  
                                                                                

Profit for the             -           -        -         -   250,815    
250,815
year                                                                            
                                                                                

Dividends                  -           -        -         -  (14,994)   
(14,994)
                                                                                

At 1 November 2011   218,143     239,546  643,271     4,791   119,537  
1,225,288
                                                                                

Proceeds from the     55,000           -   75,000         -         -    
130,000
issue of new                                                                    

shares                                                                          
                                                                                

Share based                -           -        -     7,625         -      
7,625
payment charge                                                                  
                                                                                

Profit for the             -           -        -         -   339,220    
339,220
year                                                                            
                                                                                

Dividends                  -           -        -         -  (70,974)   
(70,974)
                                                                                

At 31 October 2012   273,143     239,546  718,271    12,416   387,783  
1,631,159
                                                                                


Consolidated Statement of Financial Position at 31 October 2012
                                                   Year ended      Year ended
                                                                             
                                                   31 October      31 October
                                                         2012            2011
                                                                             
                                                            £               £


                                                                         
Assets                                                                        
                                                                         
Non-current assets                                                            
                                                                         
Intangible assets                                   1,442,140         897,005 
                                                                         
Property, plant and equipment                          47,755          31,699 


                                                                             
                                                    1,489,895         928,704


                                                                         
Current assets                                                                
                                                                         
Trade and other receivables                           405,762         303,533 
                                                                         
Cash and cash equivalents                             368,655         409,770 
                                                                         
Total current assets                                  774,417         713,303 
                                                                         
Total assets                                        2,264,312       1,642,007 
                                                                         
Liabilities                                                                   
                                                                         
Current liabilities                                                           
                                                                         
Trade and other payables                              633,153         416,719 
                                                                         
Total liabilities                                     633,153         416,719 
                                                                         
Equity                                                                        
                                                                         
Called up share capital                               273,143         218,143 
                                                                         
Share redemption reserve                              239,546         239,546 
                                                                         
Share premium account                                 718,271         643,271 
                                                                         
Share based payment reserve                            12,416           4,791 
                                                                         
Retained earnings                                     387,783         119,537 
                                                                         
Total equity                                        1,631,159       1,225,288 
                                                                         
Total equity and liabilities                        2,264,312       1,642,007 


                                                                             


Consolidated and Company Cash Flow Statement

For the year ended at 31 October 2012
                                                   Year ended      Year ended
                                                                              
                                                   31 October      31 October
                                                         2012            2011
                                                                              
                                                            £               £


                                                                          
Cash flows from operating activities                                           
                                                                          
Operating profit before tax                           427,888         330,810 
                                                                          
Amortisation                                           98,296          75,436 
                                                                          
Depreciation                                           25,106          19,075 
                                                                          
Share based payments                                    7,625           4,791 
                                                                          
Finance costs                                               -             198 
                                                                          
Finance income                                          (214)           (163) 
                                                                          
Decrease/(increase) in receivables                  (102,229)         155,804 
                                                                          
(Decrease)/increase in payables                       210,176       (276,781) 
                                                                          
Corporation tax paid                                 (82,410)        (64,648) 
                                                                          
Net cash inflow from operating activities             584,238         244,522 
                                                                          
Cash flows from investing activities                                           
                                                                          
Investment in copyrights                            (643,431)       (185,837) 
                                                                          
Investment in property, plant and equipment          (41,162)        (24,871) 
                                                                          
Finance cost                                                -           (198) 
                                                                          
Finance income                                            214             163 
                                                                          
Net cash used in investing activities               (684,379)       (210,743) 
                                                                          
Cash flows from financing activities                                           
                                                                          
Purchase of own shares                                      -       (219,500) 
                                                                          
Share redemption costs                                      -        (23,897) 
                                                                          
Proceeds from the issue of new shares                 130,000           5,000 
                                                                          
Dividends paid                                       (70,974)        (14,994) 
                                                                          
Net cash inflow(outflow) from financing                59,026       (253,391)
activities                                                                     
                                                                          
Net change in cash and cash equivalents              (41,115)       (219,612) 
                                                                          
Cash at the beginning of the year                     409,770         629,382 
                                                                         
Cash at the end of the year                           368,655         409,770 
Notes to the Preliminary Results 
Basis of preparation 
The Company is a limited company incorporated and domiciled in England under
the Companies Act 2006. The board has adopted and complied with International
Financial Reporting Standards (IFRS's) as adopted by the European Union. The
Company's shares are listed on the ICAP ISDX market. 
Earnings per share 
The calculation of earnings per share is based on the profit for the financial
period of £339,220 (2011: £250,815) divided by the weighted average number of
shares in issue 46,769,794 (2011: 51,474,705). The diluted earnings per share,
after the exercise of warrants and share options, is calculated on a weighted
average number of shares of 54,639,657 
(2011: 2,208,038). The 2011 basic and diluted average number of shares is
distorted because for the period 1 November 2010 to 17 December 2010, the date
of the share buy back, see note 14, the Group had 91,371,339 ordinary shares in
issue. 
EBITDA 
Earnings before interest, tax, depreciation and amortisation for the twelve
months ended 31 October 2012 was £551,076 (2011: £425,356). 
Directors' responsibilities 
The Annual Report, including the financial information contained therein, is
the responsibility of, and was approved by the directors on 21 February 2013.
The continuing obligations of the ISDX Rules require that issuer's final
results are in accordance with Appendix 4 of ISDX Rules and are disclosed
herein. 
Availability of the annual report 
Copies of the Company's Report and Accounts will be sent to shareholders
shortly together with the Notice of the Annual General Meeting to be held at
15.30 p.m. on Wednesday 17 April 2013 at Pinewood Studios. Copies of the
Company's Report and Accounts will also be available at the registered office
of the Company: 
623 East Props Building             
Pinewood Studios     
Pinewood Road        
Iver Heath           
Buckinghamshire      
SL0 0NH               
END 
-0- Feb/22/2013 07:00 GMT
 
 
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