19th February 2014 One Media IP Group Plc ("One Media" or the "Group") Preliminary Results Strong Performance with Profit from continuing operations up 22.4% and Turnover up 26.8% One Media iP (AIM: OMIP), the digital media content provider which exploits intellectual digital property rights around music, video and spoken word, is pleased to announce its Preliminary Results for the year ended 31st October 2013, the Group's maiden results statement to shareholders since moving to the AIM market in April 2013. Financial Highlights * Revenue up 26.8% to £2,649,130 (2012: £2,089,841); * Profit before tax from continuing operations, excluding AIM flotation and associated costs, up 22.4% to £523,648 (2012: £427,674); * Cash balances of £1,688,093 at 31st October 2013 (2012: £368,655); * Dividends paid in year ending 31st October 2013, totalling £70,135 (2012 £ 70,974), the first on the 29th November 2012 at 0.037p per share and a further Dividend on the 9th July 2013 of 0.078p per share; * Successful listing and Placing on AIM in April 2013 raising £750,000 at 8p per share; and * USD$2.5m (GBP£1.6m) advance against royalties received from The Orchard, the Group's digital distributor. Operational Highlights * Acquisition of Men & Motors catalogue of rights from Granada/ITV, and subsequent launch as a YouTube channel alongside 15 other YouTube channels, including music and special interest, children's content and comedy; * USD $100,000 acquisition of video catalogues, including `The Adventures of Skippy'; `Alien Autopsy' and an extension of its existing rights and terms to a previously acquired catalogue of over 400 hours of music documentaries; * USD $122,550 acquisition of over 300 children's animal documentaries, a selection of `Keep Fit' video content and a contribution to buying out various royalty streams that will improve Group margins on digital sales of previously acquired content; and One Media CEO & Executive Chairman, Michael Infante, commented: "The Board is pleased with the strong performance of the Group in the period under review. One Media is a profitable, debt free and cash resourced media business with a continuing and sustainable dividend policy in place. The Board looks forward to enhancing both shareholder value and consumer digital experiences in 2014 and beyond, capitalising on its new listing on AIM and growing underlying value. I would like to thank all of the One Media team for their support alongside our advisers and shareholders." The financial information set out in this Preliminary announcement has been extracted from the audited Report and Financial statements and does not constitute the Company's statutory accounts for the year ended 31 October 2013. The report of the auditor on the Report and Financial Statements for the year ended 31 October 2013 is unqualified. The Group's Preliminary results announcement for the year ended 31 October 2013 can be viewed on the Company's website, www.onemediaip.com, with effect from Wednesday 19th February 2014. For further information, please contact: One Media Publishing Group Plc Chairman and Chief Executive Michael Infante Tel: +44 (0)175 378 5500 Cairn Financial Advisers LLP Nominated Adviser Liam Murray / Jo Turner Tel: +44 (0)20 7148 7900 Charles Stanley Securities Limited Broker Mark Taylor Tel: +44 (0)20 7149 6000 Yellow Jersey PR Limited Financial PR Kelsey Traynor/Dominic Barretto/Philip Tel: +44(0)7799 003 220 Ranger CEO & Executive Chairman's Statement 2013 was a transformational year for the Group as One Media continued to build on its strong foundation of solid profitability and commercial expertise. This year under review marks the end of a highly productive and busy period for One Media: achieving key financial targets, successfully listing the Group on AIM and maintaining growth. The Board is pleased with the Group's financial performance and sees its dividend policy to be continuing and sustainable. Following a period of uncertainty surrounding the future of the ICAP Securities & Derivatives Exchange ("ISDX"), the Board concluded that the time was opportune for One Media to move to AIM to further grow and protect shareholder value. This was achieved in April 2013 following a successful placing. The decision to move markets followed months of careful planning and resulted in a swift, cost effective and well-publicised transaction where Group shares were placed to a `core' number of institutional investors raising £750,000. The total cost of the listing was completed at a comparatively low cost of £247,060 of which £196,559 is in the profit and loss account and £50,501 set against the share premium account. I would like to thank management, staff and our advisory teams for all their hard work during this intensive period. The Group, which remains profitable, debt free and cash resourced, is well positioned to pursue its acquisitive policy of intellectual copyrights and growth. Financial Overview Once again this year we have seen our revenue grow with a final reported figure of £2,649,130, an increase of 26.8% on the £2,089,841 last year. Profit from continuing operations, before the £196,599 spent on the AIM float, is reported at £523,648, a 22.4% improvement on the equivalent figure of £427,674 for 2012. On a "like for like" basis, profit after tax from continuing operations in 2013 is, after an estimated tax charge of £104,683 (2012: £88,668), up 24.3% at £ 421,765 from the reported £339,220 for the financial year ended in October 2012. The profit after tax attributable to equity shareholders of £238,909 (2012: £ 339,220), reported for the financial year, is after costs of £196,559 relating to the AIM float (2012: £nil) and a tax charge of £90,980 (2012: £88,668). At the end of the year we have cash balances of £1,688,093 (2012: £368,655), having raised in the Placing on AIM a gross amount of £750,000, which, after all costs, revenue and capital, resulted in a net fundraising of £502,940. In addition, during the year employees exercised at various times, options and warrants raising a further £23,000. Operationally we received from The Orchard, the Group's digital distributor, an advance of USD$2.5m (GBP£1.6m) against royalties. Finally two dividends paid in the year totaled £70,135 (2012 £70,974). The first was paid on the 29th November 2012 at 0.037p per share and the second on 9th July 2013 of 0.078p per share. Content and Rights Acquisition Historically, the Group has regularly reported its various catalogue acquisitions and marketing initiatives via the Regulated News Service (RNS) system. As part of our AIM strategy this will be reserved for price sensitive information and key corporate news. We will be using the RNS Reach services for non-price sensitive information and followers of One Media will find us very proactive on both Twitter and Facebook together with our web site www.onemediaip.com for more day to day information. Before I expand into the content and rights acquisitions of the past financial year, I would firstly like to address One Media's corporate strategy and how it monetises content is outlined below. There are many misnomers on how money is earned when it comes to consuming content on legitimate, free-to-view web sites. It is obvious when it comes to `downloading' an audio track from an online retailer such as iTunes, the consumer pays a set fee for a music track/ video and receives the content to their device. So how do YouTube and other free streaming sites work for us? Advertising revenues or `Ad-funded' as it is known, achieves this. For every second that a track/video is streamed One Media receives a portion of the advertising revenues paid by the advertisers that appear either within the film (as a banner) or on the `side bars' of a screen or as pre-roll adverts that the consumer must view prior to engaging in the chosen video. Additional revenue is earned should the consumer `click through' for further information on a particular advert. On some sites there is additionally a subscription to pay in which the content provider becomes a share participant based on the number of tracks/minutes consumed. Video content During the period under review, the Board made some significant investments into both audio and video to enhance One Media's content libraries. Our intention to focus primarily on video content was spearheaded by the deal secured with Granada/ITV; following Granada's decision to take the Men & Motors TV Channel off air in 2010 to make way for their High Definition (HD) broadcast channels, One Media acquired the 3,000+ episodes for its `on-line' digitally delivered initiative via YouTube and other similar sites. The first task was to disseminate the original broadcast tapes into a digital format that could be easily manipulated into a data friendly format, compatible with the Group's internal music management system, so that our Creative Technicians could repackage/repurpose the shows. Utilising the services available here at Pinewood Studio it is pleasing to see in a short time we have converted all of the 3,000 programs and created a further 12,500 short excerpts from the original programs within the first year. The excerpts are predominantly short two to three minute clips from the shows that have been deemed entertaining for digital broadcast via YouTube for home or mobile entertainment. These have been well received and we are creating a strong following of digital video viewers. In addition, the Group is in discussions with third parties for further usage of the Men & Motors brand and content and we look forward to bringing you more news on this in the future. To further the Group's initiative of focusing on nostalgic videos, One Media acquired control under license of a variety of TV shows. In November 2012, the Group acquired the classic Sooty TV shows. This included eight TV shows presented by Sooty's creator, Harry Corbett. The shows date back to the original Sooty episodes of the 1950s through to the 1970s including such classics as `The Sooty Olympics' and `Sooty's Birthday'. The popularity of the Sooty brand, which we believe is a British media icon, remains popular with today's `pre-school' groups. In the first half of this financial year, One Media acquired under license `The Adventures of Skippy', as well as `Skippy the Movie', that were first produced in the 1990s. These episodes follow on from the original `Skippy' series of the 1960s, and developed a widespread following when first broadcast. These have been made available for viewing on the Group's YouTube, `Skippy Channel'. During this period, the Group also acquired the footage of an `Alien Autopsy' and the documentaries relating to the 1990s autopsy on the body of an extra-terrestrial purported to have been recovered from the crash of a UFO near Roswell, New Mexico. The Group's acquisition initiative often involves revisiting previously completed deals to either extend or improve the terms of agreement. The Board is pleased to report that it has secured exclusive digital rights to a catalogue of video programs first licensed to the Group in September 2011. 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. Along with extending licensing deals One Media is also committed to profit margin improvement. The Board does not hesitate to use the Group's cash resource to invest in content that has a proven track record under our stewardship. This was demonstrated by the USD$122,550 used to buy-out various onward royalty commitments on past deals, which the Group believes to be a sound investment. Finally, at the end of October 2013, we acquired under license the video distribution rights for over 300 `Animal video documentaries' targeted at younger viewers, `Keep Fit' video material for the health conscience and `Underground Breakdance' video content for the acrobatic. This has further diversified our portfolio of video offering, which we believe is essential in growing our market share. Market Overview The digital world is evolving at a fast pace and we are making sure that we keep up with the developments. iTunes and Amazon remain the largest digital download retailers but the `streaming stores' such as Spotify and Deezer and are becoming increasingly important as the digital markets mature. The Board anticipates these models becoming stronger over the coming years with new streaming services such as `Beats Music', `Apple Radio' and the anticipated launch of `YouTube Music' set to enhance this growing sector. It is still too early to analyse the worldwide music industry digital data for Calendar year 2013 on the growth of digital music, but what we do know is that according to Nielson (an industry data source), in the USA, music streaming grew 32% to 118bn transactions. "Despite shifts in how music is consumed, we see continued growth in overall music consumption," reported Nielsen, "the industry remains vibrant as consumption continues to change and expand." As a cautious management team, we carefully analyse the impact of streaming over downloading as part of our day-to-day business. We greet the streaming models with enthusiasm and anticipate their importance to the digital market will be as important as the introduction of downloading changed the markets back in 2006 when One Media first started and physical product had the lion's share of the market. We also see social media playing a far greater role in the marketing of the Group's content via the many digital stores with which we trade. We have dedicated Twitter and Facebook pages which can be accessed via our website and are used to further our interaction with the market. Broadband providers with their increasing band width now cater for film in high definition to be streamed to every device, whether static or on the move and the advent of `Smart TVs will completely change the way we engage with our video entertainment. A `Smart TV' is now fully enabled to receive more than just the programming broadcasted by either terrestrial or satellite broadcasters constrained within our shores, but also Wi-Fi. Furthermore, the new world of `Apps' gives access to both national and international viewing via Wi-Fi from ones broadband supplier. This will allow content delivery services to supply the public with `genre friendly content' tailored to their individual viewing requirements and made available as and when the consumer is ready to view. In the same way that web pages work, `Play listing' and recommendations from your previous viewing experiences are immediately `on hand' to guide you through the millions of hours now available on-line to view. At present YouTube leads this advance but we expect many more `free-to-view' platforms to launch within the near future. One Media believes this will significantly increase the amount of content that users are consuming on a daily basis. The new challenge facing viewers is how to find time to watch everything that is available. From the home entertainment revolution, as aforementioned, coupled with the in-car revolution, with cars moving to `Bluetooth' and `4G', One Media anticipates a growing demand of content, both old and new, to meet this new technologically savvy audience. Employees As Chairman and Chief Executive, and on behalf of my fellow Board members, I would like to formally thank our staff for the contribution they have made in a year where we have continued to grow our business successfully. It is our aim to become a leading player within our space. It is the enthusiasm, dedication and creativity of our wider team that realises the delivery of our strategy each year. Our staff remains motivated and are committed to the achievement of our agreed 2014 business plan, which projects further growth across all aspects of the Group. Outlook The Group's modus operandi of supplying all routes to market with nostalgic content is now well established within the digital community; `Content is King' remains our basic mantra. We are repurposing our vast library of content to suit consumer requirements, whether it be for a three minute clip for a mobile device or a full length version of a programme for television. This will be key in our success in light of the developments we have identified in the market overview above. One Media's team of Creative Technicians remain diligent in the preparation of both audio and visual content in defining the metadata, our digital DNA, which remains key to identifying and finding One Media content online and adhering to the moving pace of the digital stores individual `style guides'. This is the `hub' of One Media's marketing initiative. The Board anticipates further expansion and investment in the Group's expansive library of content in the coming period. One Media invests time and expertise to fully understand the changing nature and viewing habits of its consumers, in order to adapt content to match consumer routines. With the considerable amount of content being input into cyberspace on the increase, our teams are trained to not only monitor the content being produced but also further promote and market our content through all aspects of social media. We believe 2014 will continue to be a progressive year for One Media. The digital music and video industry remains in a state of evolution and your Company will continue to exploit and develop its model to meet the demands of these changes as it has done since its launch in 2006. One Media has continued to acquire further content, within our digital arena, enhancing our catalogue and library of rights. The Group retains a strong cash position; is debt free; profitable and is paying a healthy dividend. The digital music and video industry remains in a state of evolution and your Company will continue to exploit and develop its model to meet the demands of these changes as it has done since its launch in 2006. We are focusing on greater exploitation combined with our growing industry market knowledge to deliver more shareholder-enhanced value within the sectors in which we operate. The Board looks forward to enhancing both shareholder value and consumer digital experiences in 2014 and beyond, capitalising on its new listing on AIM and growing underlying value. Michael Infante JP Chairman and CEO 19TH February 2014 Consolidated Statement of Comprehensive Income For the year ended 31 October 2013 Year ended Year ended 31 October 31 October 2013 2012 £ £ Revenue 2,649,130 2,089,841 Cost of sales (1,273,592) (983,374) Gross profit 1,375,538 1,106,467 Administration expenses (851,890) (678,793) Profit from continuing 523,648 427,674 operations Other expenses -AIM float (196,559) - and associated costs Operating profit 327,089 427,674 Finance income 2,800 214 Profit on ordinary 329,889 427,888 activities before taxation Tax expense (90,980) (88,668) Profit for period 238,909 339,220 attributable to equity shareholders Basic adjusted earnings 0.70p 0.73p per share Diluted adjusted earnings 0.61p 0.62p per share Basic earnings per share 0.40p 0.73p Diluted earnings per 0.35p 0.62p 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 2013 Share Share Share Share Retained Total Capital redemption premium based earnings equity reserve payment reserve £ £ £ £ £ £ 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 1 November 2012 273,143 239,546 718,271 12,416 387,783 1,631,159 Proceeds from the 51,625 - 670,874 - - 722,499 issue of new shares Share based - - - 13,776 - 13,776 payment charge Profit for the - - - - 238,909 238,909 year Dividends - - - - (70,135) (70,135) At 31 October 2013 324,768 239,546 1,389,145 26,192 556,557 2,536,208 The following share capital transactions were undertaken: For the year ending 31 October 2012: * During the year a total of 11,000,000 warrants were exercised by Directors and Employees between June and September 2012. As summarised above, the nominal value of the warrants exercised was £55,000 and the Share premium arising was £75,000. . For the year ending 31 October 2013: * During the year a total of 9,375,000 ordinary shares of 0.5p each were issued at 8p pursuant to the Placing on the AIM market, a total of £750,000 being raised with costs associated with the issue at £50,501. * In addition Employees exercised, at various time during the year, a total of 700,000 options at 2.75p a share and 250,000 warrants at 1.5p a share over ordinary shares of 0.5p each. The total raised as a result of these exercises was £23,000. Consolidated Statement of Financial Position at 31 October 2013 Year ended Year ended 31 October 31 October 2013 2012 £ £ Assets Non-current assets Intangible assets 1,808,535 1,442,140 Property, plant and equipment 26,439 47,755 1,834,974 1,489,895 Current assets Trade and other receivables 481,453 405,762 Cash and cash equivalents 1,688,093 368,655 Total current assets 2,169,546 774,417 Total assets 4,004,520 2,264,312 Liabilities Current liabilities Trade and other payables 1,468,312 633,153 Total liabilities 1,468,312 633,153 Equity Called up share capital 324,768 273,143 Share redemption reserve 239,546 239,546 Share premium account 1,389,145 718,271 Share based payment reserve 26,192 12,416 Retained earnings 556,557 387,783 Total equity 2,536,208 1,631,159 Total equity and liabilities 4,004,520 2,264,312 Consolidated Company Cash Flow Statement For the year ended at 31 October 2013 Year ended Year ended 31 October 31 October 2013 2012 Group Group £ £ Cash flows from operating activities Operating profit 329,889 427,888 before tax Amortisation 118,959 98,296 Depreciation 27,389 25,106 Share based payments 13,776 7,625 Finance income (2,800) (214) (Increase) in (75,691) (102,229) receivables Increase/(decrease) in 819,873 210,176 payables Corporation tax paid (75,694) (82,410) Net cash inflow from 1,155,701 584,238 operating activities Cash flows from investing activities Investment in (485,354) (643,431) intellectual property rights Investment in (6,073) (41,162) property, plant and equipment Finance income 2,800 214 Net cash used in (488,627) (684,379) investing activities Cash flows from financing activities Proceeds from the 773,000 130,000 issue of new shares Share issue costs (50,501) - Dividends paid (70,135) (70,974) Net cash inflow 652,364 59,026 (outflow) from financing activities Net change in cash and 1,319,438 (41,115) cash equivalents Cash at the beginning 368,655 409,770 of the year Cash at the end of the 1,688,093 368,655 year 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 weighted average number of shares in issue for both the basic earnings per share calculations is 59,999,725 (2012: 46,769,794) and for both the diluted earnings per share assuming the exercise of all warrants and share options is 69,244,109 (2012: 54,639,657). * The calculation of adjusted earnings per share, on profit after tax from continuing activities, is based on the profit for the period of £329,889, after adding back Other expenses - AIM float and associated costs of £ 196,559 and adjusting for a tax charge of £104,683 to reflect the underlying profit. A profit after tax of £421,765 results, which is directly comparable with the previously reported figure for 2012 of £ 339,220. Based on the weighted average number of shares in issue during the year of 59,999,725 (2012: 46,769,794) the basic earnings per share is 0.70p (2012: 0.73p). The diluted earnings per share is based on 69,244,109 shares (2012: 54,639,657) and is 0.61p (2012: 0.62p). * The calculation of the basic earnings per share is based on the profit for the period of £238,909 (2012: £339,220) divided by the weighted average number of shares in issue of 59,999,725 (2012: 46,769,794), the basic earnings per share is 0.40p (2012: 0.73p). The diluted earnings per share, assuming the exercise of all warrants and options is based on 69,244,109 (2012: 54,639,657) shares and is 0.35p (2012: 0.62p). EBITDA Profit from continuing activities before interest, tax, depreciation and amortisation for the twelve months ended 31 October 2013 was £669,996 (2012: £ 551,076). Directors' responsibilities The Annual Report, including the financial information contained therein, is the responsibility of, and was approved by the directors on 12th February 2014. Availability of Report and Accounts and Notice of the Annual General Meeting Copies of the Company's Report and Accounts together with the Notice of the Annual General Meeting, to be held at 11.00a.m on Thursday 27th March 2014 at Pinewood Studios, were posted to shareholders on 18th February 2014. Copies of the Company's Report and Accounts will also be available at the registered office of the Company and can be viewed on the companies website, www.onemediaip.com 623 East Props Building Pinewood Studios Pinewood Road Iver Heath Buckinghamshire SL0 0NH END -0- Feb/19/2014 07:00 GMT
ONE MEDIA IP GROUP PLC: Preliminary Results and Notice of AGM
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