Final Results
29 April 2003 - 5:02PM
UK Regulatory
RNS Number:4753K
Forbidden Technologies PLC
29 April 2003
FORBIDDEN TECHNOLOGIES PLC
Preliminary Results for the year ended 31st December 2002
Forbidden Technologies plc, which has developed and is marketing proprietary
technology for video distribution over the Internet and mobile devices including
phones, announces Preliminary Results for the year ended 31 December 2002
* #2.7m cash in hand, providing 7 years of cover at the current burn rate
* Technology
o High quality video delivery over 56k modem to PCs
o Broadband offering
o Full colour video streaming to mobile devices including mobile
phones over the existing GPRS 2.5G network
o Live video streaming, in development and undergoing trials
* Business Development
o Initial sales being made with signs of widening interest
o Agreement with BT Broadcast services for video distribution
o Announced today; agreement with Cantos the UK's leading online
business broadcaster
Vic Steel, Chairman, commented:
"We are passionate about our dynamic technology. It can play such a key role in
the worldwide change of communications methods that is taking place. Video in
this new environment will become what text and sound have been up to today. By
managing our resources well and continuously and persistently pushing out the
frontiers of video compression we are ensuring that we will be well placed as a
key participant as this change occurs."
29th April 2003
Enquiries:
Forbidden Technologies plc Tel: 020 8879 7245
Stephen Streater, Chief Executive
College Hill Tel: 020 7457 2020
Nicholas Nelson
CHAIRMAN'S STATEMENT
Results
I am pleased to report on the annual results for Forbidden Technologies for the
third completed year of our development. In the year to 31 December 2002 the
company recorded a loss of #430,981 compared to #230,854 in the previous year.
Since there were insignificant sales in both years, the increased loss is the
result of higher investment in resources (mainly for business and sales
development). Our balance sheet continues to be very strong with #2.7 million
cash in the bank. At the present cash burn rate of #361,000 p.a. this cash
represents over 7 years forward cover.
Technology
Over the past three years our proprietary technology has progressed dramatically
and visibly; from our early confidence that video could be compressed
sufficiently to produce results via a 56k modem on a PC to a range of products
now available on PCs via narrowband or broadband, and on PDAs and (as we shall
demonstrate at our results briefing today) on GPRS mobile phones with sound and
colour. We have begun a development programme for live (i.e. immediate)
compression capability.
The Market and Business Development
The economic and political environment over the past six months has seen a
continuation of caution and risk aversion across many of our target markets.
Uncertainty in business represents a barrier to innovation and investment in new
technology.
However, we take a long term view of our markets and we seed development through
flexible business models, even including a recent barter trade which though of
value, is not recordable as sales. Despite the environment we have seen good
development of interest in our ever-improving products. We are currently in
active discussions with more than 30 different organisations - 11 of which
relate to PC delivery, 10 to mobile phone business, 5 to video production
companies and 5 to others. Not all of them will come to fruition but the broad
spread of activities is indicative of the growing acceptance of and interest in
Forbidden Technologies' products.
The separate announcement made today describing our agreement with Cantos
represents a significant opportunity to increase exposure of our products to a
wide range of blue-chip companies who are on the Cantos client list.
Amongst our existing partners we are also seeing the beginnings of real
development. Save the Children plans to expand the number and use of videos
following our sales over the last year. BT Broadcast Services represents an
important audience creation initiative for mobile devices by bringing together
content owners, technology suppliers and mobile operators. Travel TV has
introduced a new website and Forbidden has displaced RealNetworks as the
technology.
Unanimis in the advertising sector had a slow start but trials with advertising
agencies and clients are now beginning to come through. Our discussions with
video production houses will assist penetration in the advertising field.
Corporate Management
One of the key tasks of our board is to achieve the appropriate balance between
cash availability and spending on resources, both R & D and commercial. We
believe that we have the right balance, but have the cash available to increase
spending in line with the emergence of opportunities.
We are passionate about our dynamic technology. It can play such a key role in
the worldwide change of communications methods that is taking place. Video in
this new environment will become what text and sound have been up to today. By
managing our resources well and continuously and persistently pushing out the
frontiers of video compression we are ensuring that we will be well placed as a
key participant as this change occurs.
Shareholders and Staff
The continuous support and encouragement of our shareholders and staff is
appreciated; by regularly updating our website (www.forbidden.co.uk) we receive
frequent comments and observations from shareholders and customers and these
help to shape the changes and development of our products.
Profit and loss account
for the year ended 31 December 2002
Unaudited
2002 2001
# #
Turnover (Note 4) 9,040 2,672
Administrative expenses (568,302) (441,594)
Operating loss (559,262) (438,922)
Other interest receivable and similar income 128,281 188,268
Loss on ordinary activities before taxation (430,981) (250,654)
Tax on loss on ordinary activities - 19,800
Loss for the financial year (430,981) (230,854)
Basic and diluted per ordinary 0.8 pence share (Note 5) (0.58)pence (0.30)pence
A statement of recognised gains and losses has not been included as part of
these financial statements as the company made no gains or losses in the year
other than as disclosed in the profit and loss account.
A note on historical cost gains and losses has not been included as part of the
financial statements as the results disclosed in the profit and loss account are
prepared on an unmodified historical cost basis.
The results stated above are all derived from continuing operations.
Balance sheet
at 31 December 2002
Unaudited
2002 2001
# # # #
Fixed assets
Tangible assets 14,264 11,441
Current assets
Debtors 142,725 187,957
Cash at bank and in hand 2,673,503 3,021,750
2,816,228 3,209,707
Creditors: amounts falling due
within one year (86,420) (46,095)
Net current assets 2,729,808 3,163,612
Net assets 2,744,072 3,175,053
Capital and reserves
Called up share capital 594,800 594,800
Share premium account 2,896,500 2,896,500
Capital contribution reserve 125,000 125,000
Profit and loss account (872,228) (441,247)
Shareholders' funds - equity 2,744,072 3,175,053
Cash flow statement
for the year ended 31 December 2002
Unaudited
2002 2001
# #
Reconciliation of operating loss to net cash outflow from
operating activities
Operating loss (559,262) (438,922)
Depreciation charges 29,254 31,051
(Increase)/decrease in debtors 27,011 (3,974)
(Decrease)/Increase in creditors 27,734 (8,212)
Net cash outflow from operating activities (475,263) (420,057)
Cash flow statement
Cash flow from operating activities (475,263) (420,057)
Returns on investments and servicing of finance 146,502 182,647
Taxation - (30,211)
Capital expenditure (32,077) (22,467)
Cash outflow before management of liquid resources (360,838) (290,088)
Management of liquid resources 331,377 38,612
Decrease in cash in the year (29,461) (251,476)
Reconciliation of net cash flow to movement in net funds
Decrease in cash in the year (29,461) (251,476)
Cash used to increase liquid resources (331,377) (38,612)
Movement in net funds in the year (360,838) (290,088)
Net funds at the start of the year 3,021,750 3,311,838
Net funds at the end of the year 2,660,912 3,021,750
Notes
1. Accounting policies
The following accounting policies have been applied consistently in dealing with items which are
considered material in relation to the company's financial statements. The company has adopted FRS 18
'Accounting policies' and FRS 19 'Deferred tax' in these financial statements and this has not
resulted in any prior year adjustment.
Basis of preparation
The financial statements have been prepared in accordance with applicable accounting standards and
under the historical cost accounting rules.
2. Taxation
The charge for taxation is based on the result for the year and takes into account taxation deferred
because of timing differences. Deferred tax is recognised, without discounting, in respect of all
timing differences between the treatment of certain items for taxation and accounting purposes which
have arisen but not reversed by the balance sheet date, except as otherwise quoted by FRS 19.
3. Cash and liquid resources
Cash, for the purpose of the cash flow statement, comprises cash in hand and deposits repayable on
demand, less overdrafts payable on demand.
Liquid resources are current asset investments which are disposable without curtailing or disrupting
the business and are either readily convertible into known amounts of cash at or close to their
carrying values or traded in an active market. Liquid resources comprise term deposits of less than
one year and a corporate bond.
4. Turnover
Excluded from turnover and administrative expenses is #15,000 of revenue and costs which result from
a barter transaction for license of our software in return for corporate marketing services.
5. Earnings per share
Diluted earnings per share has not been presented as including all potential ordinary shares in the
calculation would be anti-dilutive.
Basic earnings per share
The weighted average number of shares in issue during the period is 74,350,000 (2001: 74,350,000).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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