One Media iP Group Plc ("One Media" or the "Group") Unaudited half yearly report for the six-month period ended 30 April 2013 Acquisition of video content and extension of existing rights One Media iP (AIM: OMIP) the digital media content provider which exploits intellectual property rights around music and video, is pleased to announce its half year results to the period ended 30 April 2013 and an interim dividend. Maiden Interim Results as an AIM Listed Company Highlights - On 18 April 2013 the Group's shares were admitted for trading on AIM; - £750,000 was raised pursuant to the Placing of 9,375,000 ordinary shares at 8p a share; - Turnover increased by 32.2% to £1,325,119 (2012: £1,002,302); - Profit before tax from continuing operations, excluding AIM floatation and associated costs, increased by 28.1% to £262,180 (2012: £204,596); - USD$2,250,000 advance against royalties was received from The Orchard, in line with the distribution agreement signed on 1 November 2012, with a further USD$250,000 to be received on or by 30 June 2013; - Cash balances of £1,919,668 at 30 April 2013 (2012: £792,938), and - Interim dividend of 0.078p per share for the six month period ended 30 April 2013 The Group is also pleased to announce the acquisition of two new video catalogues today, including `The Adventures of Skippy', `Alien Autopsy' and an extension of its existing rights to a previously acquired catalogue of over 400 hours of music documentaries at a cost of USD $100,000 plus an ongoing royalty. Content and Rights Acquisition The first new catalogue of video contains 38 episodes of `The Adventures of Skippy', as well as `Skippy the Movie' first produced in the 1990s, the episodes follow on from the original `Skippy' series of the 1960s, and developed a widespread following when first broadcast. The second video content catalogue contains footage know as `Alien Autopsy' and documentaries relating to the 1990s autopsy on the body of an extraterrestrial purported to have been recovered from the crash of a UFO near Roswell, New Mexico. The documentary about the autopsy, presented by Jonathan Frakes, was widely considered to be one of the most controversial TV documentary specials ever aired on US Prime Time television. The autopsy footage was subsequently used in the movie `Alien Autopsy' starring Ant & Dec. Finally, the Group is pleased to announce that it has secured exclusive digital rights to a catalogue of video programs first licensed to the company in September 2011. The content will be made available and exploited exclusively by One Media digitally via YouTube. Containing over 400 hours of content, the 200+ music video-documentaries feature behind-the-scenes and `fan-based special feature' looks at artists such as; David Bowie, the Rolling Stones, Marc Bolan, Limp Bizkit, Lennon & Harrison (the Guitars that Gently Weep), Thin Lizzy, Elvis, Bob Marley, The Royal Philharmonic Orchestra, Andy Williams and the late Tony Bennett. Michael Infante, Chairman and CEO, commented: "We are very pleased that our first announcement of results on AIM is so positive. The Group continues to deliver shareholder value, both through improved financial performance and the acquisition of content which we believe adds real value to One Media. The new catalogues acquired today are exactly the types of content we target, and the extension of our existing rights on the third catalogue is also a real positive. We can look forward with confidence as the digital media space continues to grow and the Group grows with it." Enquiries: Michael Infante One Media iP Group Plc 44 (0) 175 378 500 Chairman and CEO Liam Murray / Jo Turner Cairn Financial Advisers 44 (0) 207 148 7900 LLP Nominated Adviser Claire Noyce / William Hybridan LLP 44 (0) 207 947 4004 Lynne Broker John West / Niall Walsh Tavistock Communications 44 (0) 207 920 3150 Public Relations Chairman's Statement Introduction Welcome to my inaugural statement as Chairman of your AIM listed company. It has long been my intention to list the company on AIM, and I am pleased to be listed on a market which matches the company's ambition. The last six months have been a very busy time for the Group. We negotiated an advance against royalties of $2.5m USD from our digital distributor, maintained our dividend policy and have been nominated for national awards from both the Institute of Directors and the Small Cap Markets Awards. Most pleasing of all, however, was our successful move to the AIM market. The fundraising associated with our listing, I am happy to report, was fully subscribed. We raised the targeted £ 750,000, and brought several institutional investors on-board. The Group's turnover has increased by 32% to over £1.3m, our profits increased by 28% to £0.26m (before AIM costs) and the Group's cash balance remains healthy at £1.9m. We will now look to focus our energies on acquiring more content, whether branded (as with the Men & Motors deal in December 2012) or not, and will continue to develop the skills of our in-house team of Creative Technicians. Financial Overview In April 2013, gross proceeds of £750,000 were raised from the Placing of 9,375,000 0.5p ordinary shares at a price of 8p a share, with direct costs associated with the Placing of £50,501. Subsequent to the Placing, the Group's shares were admitted to trading on the AIM market with an additional one off cost of £196,559 directly related to the Admission. The Group reported a consolidated turnover of £1,325,119, an increase of 32.2% on the equivalent period last year, resulting in a profit before tax from continuing activities (excluding AIM float and associated costs) of £262,180, an increase of 28.1% on the £204,596 achieved for the same six months in 2012. During the period the Group invested a further £273,209 in copyrights and received a USD$2,250,000 advance against royalties from its primary distribution partner, The Orchard. As per an agreement signed on 1 November 2012, a further USD$250,000 is due on or by 30 June 2013. Cash balances of £1,919,668 are reported as of 30 April 2013 (2012: £792,938). Profit after tax for the period, after the AIM float and associated costs, was £17,467. On the reported Net Profit after tax, basic earnings per share are 0.031p. However, "like for like" earnings per share on the post tax profit from continuing activities is 0.38p. Dividend A dividend of 0.037p per share was paid in November 2012 for the year ended 31 October 2012, and the Group is pleased to announce that it intends to pay an interim dividend of 0.078p per ordinary share in respect of the 6 month period ended 30 April 2013. The ex-dividend date of this payment is 26 June 2013, the record date is 28 June 2013 and the expected payment date is 9 July 2013. Operational Overview During the period, we have acquired significantly more visual content, from early Sooty episodes to the entire brand of the Men & Motors shows from Granada /ITV. Despite a focus on video content, the Group has not neglected its audio catalogue. We recently acquired the Peppermint Music catalogue (featuring hits from Alvin Stardust, Connie Francis and Kid Creole to name a few). We are also delighted that today, outside the period covered by this report, we have announced the acquisition of two new video catalogues, including `The Adventures of Skippy' and `Alien Autopsy', and an extension of its existing rights to a previously acquired catalogue of over 400 hours of music documentaries at a cost of USD $100,000 plus an ongoing royalty. We currently provide over 170,000 music tracks and over 5,000 visual programs, and we view this as just the beginning. Now, as an AIM Listed company, we will invest further into our chosen genres and continue to monetise content, which can then be accessed by a broad viewing public. This expansion strategy is not limited to the UK, with most of our content available world-wide as the digital stores we deal with expand the territories in which they operate Market Overview The world of both audio and visual media is changing rapidly, as digital delivery providers seek to stay ahead of the curve in their bid for market share. BT, Virgin Media/Liberty Global and Sky continue to flex their muscles financially for market position as they jockey to become the preferred option for broadband delivery. Apple has finally announced its streaming site, iTunes Radio, and YouTube is destined to become a new program provider as Internet Protocol TV (`IPTV') becomes a standard in Smart TV applications. None of us can predict who will win your subscription pound at this stage, but what we do know is that a world of change is upon us all. Those of a certain age will remember when the choice of programming was restricted to four terrestrial TV channels and four analogue national radio stations, a video-cassette recorder was your in-home entertainment centre and a cassette player in the car was considered to be a mobile device. Now we live in a world of infinite content possibilities. Thousands of TV programmes of all genres are broadcast 24/7, catering to any appetite or taste via every digital medium, through a choice of viewing devices both mobile and static. As these various mediums emerge and become more established customers are consuming their chosen doses of media entertainment at a variety of price points, ranging from those who only stream for free to those who spend hundreds of pounds a month. Viewers and investors alike can be sure of one thing: content is a key driver in this expanding market. Yes, we need pipes of delivery, and yes, technology will provide the platform for that delivery; but without good content at its core, a platform is largely meaningless, regardless of how sophisticated it may be. With this in mind, it's no wonder we continue to invest so robustly in our program of nostalgic content acquisition, with its established audience and proven track record. Outlook The Directors continue to believe that the Group is well positioned to meet all the demands of the digital market as it continues to evolve and influence consumer demand. We have the technical ability, internal systems, financial controls and personnel to meet the exacting demands of both our digital partners for distribution and those from whom we acquire our audio-visual content. Consumer demand continues to rise in line with market expectation and as a digital content-only `Netlabel' we are not exposed to the vagaries and decline of the high street retailers, which are susceptible to the continued decline and legacy of the physical medium of compact discs and DVDs. I look forward to meeting the demands of the emerging digital markets with our newly established AIM listed company and thank you for your continued support in OMiP. Michael Infante JP Chairman and CEO Unaudited Consolidated Statement of Comprehensive Income For the six months ended 30 April 2013 Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 30 April 30 April 31 October 2013 2012 2012 £ £ £ Revenue 1,325,119 1,002,302 2,089,841 Cost of sales (628,384) (481,863) (983,374) _________ _________ _________ 696,735 520,439 1,106,467 Administrative expenses (434,555) (315,843) (678,793) _________ _________ _________ Profit from continuing activities 262,180 204,596 427,674 Other expenses - Aim float and associated costs (196,559) - - _________ _________ _________ Operating profit 65,621 204,596 427,674 Finance income 1,046 71 214 _________ _________ _________ Profit on ordinary activities before taxation 66,667 204,667 477,888 Taxation (49,200) (43,000) (88,668) _________ _________ _________ Profit for period attributable to equity shareholders 17,467 161,667 339,220 ========= ========= ========= Basic earnings per share 0.031p 0.37p 0.73p ========= ======= ========= Unaudited Consolidated Statement of Financial Position As at 30 April 2013 Unaudited Unaudited Audited 30 April 30 April 31 October 2013 2012 2012 £ £ £ Assets Non-current assets Intangible assets 1,661,416 1,064,033 1,442,140 Property, plant and equipment 38,388 49,673 47,755 _________ _________ _________ 1,699,804 1,113,706 1,489,895 _________ _________ _________ Current assets Trade and other receivables 435,198 443,905 405,762 Cash and cash equivalents 1,919,668 792,938 368,655 _________ _________ _________ Total current assets 2,354,866 1,236,843 774,417 _________ _________ _________ Total assets 4,054,670 2,350,549 2,264,312 ========= ========= ========= Liabilities Current liabilities Trade and other payables 1,720,339 975,052 633,153 _________ _________ _________ _________ _________ _________ Total liabilities 1,720,339 975,052 633,153 _________ _________ _________ Equity Called up share capital 320,018 218,143 273,143 Share redemption reserve 239,546 239,546 239,546 Share premium account 1,370,895 643,271 718,271 Share based payment reserve 18,835 8,384 12,416 Retained earnings 385,037 266,153 387,783 _________ _________ _________ Total equity 2,334,331 1,375,497 1,631,159 _________ _________ _________ _________ _________ _________ Total equity and 4,054,670 2,350,549 2,264,312 liabilities ========= ========= ========= Unaudited Consolidated Statement of Changes in Equity For the six months ended 30 April 2013 Share Share based Share redemption Share payment Retained Total capital reserve premium reserve earnings equity £ £ £ £ £ £ At 1 November 218,143 239,546 643,271 4,791 119,537 1,225,288 2011 Profit for the six months to 30 April 2012 - - - - 161,667 161,667 Share option charge - - - 3,593 - 3,593 Dividends - - - - (15,051) (15,051) ________ _________ _________ _________ _________ _________ At 30 April 2012 218,143 239,546 643,271 8,384 266,153 1,375,497 Profit for the six months to 31 October 2012 177,553 177,553 Issue of share capital 55,000 75,000 130,000 Share option charge - - - 4,032 4,032 Dividends - - - - (55,923) (55,923) ________ _________ _________ _________ _________ _________ At 31 October 2012 273,143 239,546 718,271 12,416 387,783 1,631,159 Issue of share capital 46,875 703,125 750,000 Costs of share issue (50,501) (50,501) Profit for the six months to 30 April 2013 - - - - 17,467 17,467 Share option charge - - - 6,419 6,419 Dividends - - - - (20,213) (20,213) ________ _________ _________ _________ _________ _________ Balance at 30 April 2013 320,018 239,546 1,370,895 18,835 385,037 2,334,331 ======== ========= ========= ========= ========= ========= Pursuant to the Placing of shares on 10 April 2013 9,375,000 ordinary shares of 0.5p each were issued at 8p a share. The difference between the gross proceeds raised of £750,000 and the total nominal value of shares issued of £46,875 has been transferred to the share premium account. Direct costs associated with this transaction were £50,501. Unaudited Consolidated Cash Flow Statement For the six months ended 30 April 2013 Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 30 April 30 April 31 October 2013 2012 2012 £ £ £ Cash flows from operating activities Profit before taxation 66,667 204,667 427,888 Amortisation 53,933 44,598 98,296 Depreciation 13,267 14,574 25,106 Share based payments 6,419 3,593 7,625 Finance income (1,046) (71) (214) (Increase)/decrease in (29,436) (140,372) (102,229) receivables Increase in payables 1,037,986 515,333 210,176 Corporation tax paid - - (82,410) _________ _________ _________ Net cash inflow from operating activities 1,147,790 642,322 584,238 _________ _________ _________ Cash flows from investing activities Investment in copyrights (273,209) (211,626) (643,431) Investment in fixed assets (3,900) (32,548) (41,162) Finance cost - Finance income 1,046 71 214 Corporation tax paid - - _________ _________ _________ Net cash used in investing activities (276,063) (244,103) (684,379) _________ _________ _________ Cash flow from financing activities Proceeds from the issue of new shares 750,000 - 130,000 Share issue costs (50,501) Dividend paid (20,213) (15,051) (70,974) _________ _________ _________ Net cash outflow from financing activities 679,286 (15,051) 59,026 _________ _________ _________ Net change in cash and cash equivalents 368,655 409,770 (41,115) Cash at the beginning of the period 1,551,013 383,168 409,770 _________ _________ _________ Cash at end of the period 1,919,668 792,938 368,655 ========= ========= ========= Notes to the Interim Report For the six months ended 30 April 2013 1. Nature of operations and general information One Media iP Group Plc and 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 2012 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 2013. 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 2012. This unaudited interim statement has not been subject to a review by the Group's auditors James Cowper LLP. Comparatives The comparative periods represent the unaudited results for the six months period ended 30 April 2012 and the audited twelve months figures for the year ended 31 October 2012. 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 6 months ended 12 months ended 30 April 30 April 31 October 2013 2012 2012 Profit for period attributable to equity shareholders 17,467 161,667 339,220 Weighted average number of shares in issue at period end 55,716,405 43,628,698 46,769,794 _________ _________ _________ Basic earnings per share 0.031p 0.37p 0.73p ========= ========= ========= 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 30 April 31 October 2013 2012 2011 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 64,003,698 at 30 April 2013 , 43,628,698 at 30 April 2012 and 54,628,698 at 31 October 2012 ordinary shares of 0.5p each 320,018 218,143 273,143 ========== ========== ========== 5. Dividend The Directors are delighted to announce a second divided for the year of £ 50,000 (0.078p per share) following the earlier dividend of £20,213 (0.037p per share). Our intention is to reward those investors that have been loyal and to further demonstrate that One Media is an investment opportunity providing a return that we believe we will enhance shareholder value. 6. 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. Notes to Editors: One Media is a digital music and video rights owner. The consumer led but B2B (Business-to-business) operation looks to exploit its catalogue of over 170,000 music tracks and over 5,000 hours of video by recompiling the content for sale through over 600 digital music and video stores worldwide. The Company has a team of Creative Technicians who digitise the content, create the metadata and re-compile and prepare the digital music & video releases using bespoke in-house software. Additionally, One Media makes its library of content available for TV shows, movies, adverts, games and websites. One Media operates an online sync database system that enables music supervisors to explore the library and select tracks for music briefs. One Media focuses on music performed by well known artists from every genre, including; pop, rock, reggae, R&B, children's music, karaoke, jazz, soul, blues, rap, hip-hop, gospel, world-music, plus stand-up comedy, spoken-word and over 1,000 hours of classical music. One Media is eligible for Enterprise Investment Schemes ("EIS") and Venture Capital Trusts ("VCT") END -0- Jun/18/2013 06:00 GMT
ONE MEDIA IP GROUP PLC: Half-yearly Report
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