TIDMOMIP
RNS Number : 9759I
One Media iP Group PLC
22 April 2022
22 April 2022
One Media iP Group Plc
("One Media", "the Company" or the "Group")
Final Results for the year ended 31 October 2021 and Posting of
Accounts
Another year of double-digit earnings growth and investment
into
complementary Group platforms
One Media iP (AIM:OMIP), the digital media content provider
which exploits intellectual digital property rights around music,
video and copyright technology, announces its Final Results for the
12-month period ended 31 October 2021.
Financial Highlights
-- 10% increase in total revenue and 11% uplift in EBITDA to
GBP4,389,581 (2020: GBP4,005,385) and GBP1,648,598 (2020:
GBP1,485,645) respectively, driven by organic growth and active
management of portfolio in line with strategy to maximise
commercialisation of rights under ownership
-- Organic revenue growth in the year of 4.5%
-- 10% average organic revenue growth over the last five years,
reflecting the inherent potential of the portfolio before
commercialisation
-- 13% uplift in net revenue to GBP2,780,526 (2020: GBP2,439,352)
-- Operating profit increased 5.5% to GBP1,075,958 (2020: GBP1,019,884)
-- Cash at 31 October 2021 of GBP2,565,813 (2020: GBP6,766,424)
following investment into TCAT Ltd and providing flexibility for
investment into accretive opportunities
-- Catalogue valuation of GBP34.8m, conducted by independent valuers
-- IFRS NAV per Ordinary Share increased to 7p (2020: 6p)
-- Operative NAV per Ordinary Share 17p (Operative NAV is
calculated by using the IFRS NAV, adjusting for the revaluation of
catalogues assets to fair value and then adding back the catalogue
amortisation)
-- Final dividend declared of 0.055p per share
Operational and Post-Period Highlights
-- GBP4.3m of investment across nine acquisitions at an average
blended 11.2 multiple, including the producer's income royalties to
Take That's 'A Million Love Songs', 'Could It Be Magic' and 'I
Found Heaven', all from Take That's 1992 debut studio album, Take
That & Party
-- Largest acquisition undertaken by the Company to date,
comprising the composition rights to over 200 tracks by country
music star Don Williams
-- All acquisitions in 2021 undertaken via Harmony IP business
division, further diversifying Group revenue streams and generating
additional strategic partnerships
-- GBP0.8m of capex deployed into software development subsidiary TCAT Limited ("TCAT")
-- Board and management team appointed to further progress TCAT business plan
-- Fundraise underway to support next phase of growth for TCAT
directly into the limited company subsidiary
-- Positive early trials for TCAT with two major labels, the
world's largest digital aggregator and music trade body, the
BPI
Outlook
-- Ongoing supportive market backdrop with music industry growth projections accelerating
-- Technology advances delivering increasing opportunities to place content and grow royalties
Michael Infante, CEO said: "2021 has been active year for One
Media, delivering another strong set of results, driven largely by
our independently valued GBP34.8 million content catalogue. We
welcomed some high-profile names to our stable, including some of
Take That's highest profile hits through the acquisition of their
producer's royalties, as well as music by Kid Creole, Culture Club
and, in our largest acquisition to date, country music star Don
Williams. These income accretive investments are in line with our
strategy of acquiring proven assets that we know can enhance our
recurring revenues, while also providing opportunity to add further
value and grow income. This is supported by our complementary
business ventures - Harmony IP and TCAT - which will both help us
diversify and further improve our revenue.
"The outlook for our industry is extremely encouraging, with
growth accelerating and technology advances providing more and more
opportunities for us to place our assets and maximise royalties.
Against this and with a strong balance sheet we're looking to the
future with great optimism."
This announcement contains inside information for the purposes
of UK Market Abuse Regulation. 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 Tel: +44 (0)20 7213
Lazzaretti 0880
Cenkos Securities plc Broker
Giles Balleny / Max Gould (Corporate Tel: +44 (0)20 7397
Finance) 8900
Michael Johnson (Sales)
Pete Flatt / PPR Publicity PR
Tel: +44 (0)7930 304301
About One Media iP Group Plc
One Media is a digital music rights acquirer, publisher and
distributor with a catalogue independently valued at GBP34.8
million (as at April 2022). 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 and TV whilst its video content is primarily viewed on YouTube
where One Media operates over 20 YouTube channels as a certified
partner. Additionally its copyright infringement and digital music
audit tool software TCAT, is used daily with major record labels
and the world leading digital international distributor. Men &
Motors its branded car channel is now available via YouTube
www.youtube.com/channel/UCNLiybn_9jgQaV0NZlSRwCg
One Media is listed on the AIM Market of the London Stock
Exchange under the symbol 'OMIP'.
For further information, please visit www.omip.co.uk and
www.harmonyip.com/
Chairman's Statement
I am pleased to report, following a busy 12 months, another set
of positive results. The Group has posted a 10% increase in
revenues to GBP4.4 million and, despite some impact from
unfavourable foreign exchange movements with approximately 89% of
revenues generated in US dollars, a very healthy 11% uplift in
EBITDA to GBP1.65 million.
This year's strong performance was driven by the continuing
active management of the portfolio by the One Media team, as well
as organic growth propelled by the increased consumer demand on
streaming platforms and other revenue distributions from digital
platforms.
The organic growth of the portfolio in the period was 4.5%. Over
the last five years average organic growth has been 10%, reflecting
the inherent value of the assets the Group invests in and the
positive structural trends driving the music industry which support
the investment case. This organic growth is further supplemented by
the proactive commercialisation of the portfolio by the Company,
where it adds considerable value, unlocking the latent potential of
the kinds of copyrights it acquires.
The Group retains a healthy cash position with a cash balance of
GBP2.6 million and with GBP1.9 million in structured debt as at 31
October 2021, which puts us in a strong position for the year
ahead, with some important investments having already been
completed post period end.
Given the positive performance, together with the outlook for
the Group and the industry, the Board is pleased to confirm a final
dividend for the year of 0.055p per share .
2021 has been an important year strategically, with further
capital investment into complementary Group activities that will
diversify and supplement our revenue streams, while also expediting
our overall objective of maximising the potential of our
intellectual property assets.
Harmony IP is already proving a hit with composers, writers and
performers and has been the main avenue for investment in 2021,
providing us with an expanded, more flexible route to market and a
vehicle through which to grow our partnerships with rights owners,
while also enhancing revenues.
Alongside this, the business plan for TCAT is progressing well,
with a full management team and board with expertise across the
technology, software and music industries, who are now in place to
market the product's capabilities. TCAT is an exciting prospect for
the Group and an attractive tool for the music industry, which is
already clear from the early stage talks and trials that are
underway with some of the biggest names in our sector.
The year was once again impacted by the pandemic, but we very
much hope that we, and the industry, are through the other side of
this now, albeit to a larger degree in some territories compared to
others.
Attentions have now, sadly, turned to the horrific events in
Ukraine. While recent sanctions around supplying the Russian
Federation via our DSP partners in Russia, such as Apple and
Spotify, may slow growth as these stores have now partially been
suspended, following an audit we are not expecting a material
impact on the Group given the limited levels of business conducted
in these areas.
We are deeply concerned about Russia's invasion of Ukraine and
stand with all of the people who are suffering as a result of the
violence. We join all those around the world who are calling for
peace.
I continue to remain excited for the future of One Media and, as
always, would like to extend my thanks to the experienced team of
directors, staff, consultants and professionals across the Group
who contribute to our continued success, as well as our
shareholders for their ongoing support.
Claire Blunt
Non-Executive Chairman
Chief Executive's Statement
Strategy overview
One Media Plc is an owner, publisher and distributor of digital
music copyrights, which it actively monetises to deliver proven
income streams. We derive the majority of our revenue from
royalties collected from the use of the Company's content
internationally, which we enhance by improving its availability
globally across 600 digital stores (also known as Digital Service
Providers ("DSPs")) including Apple Music, YouTube, Amazon Music
and Spotify.
Royalty returns are largely uncorrelated to the performance of
the public and private equity markets, making them predictable and
generating an annuity-like income for investors, which is at the
core of our investment case. Additionally, we generally focus on
more mature compositions with a proven durability, supporting
reliable revenues.
We are custodians of an expansive catalogue of over 200,000
music tracks, diversified across a range of genres including pop,
rock, country and classical, which deliver long term, growing and
secure income, around 97% of which is recurring. Leveraging its
expansive industry relationships, the Company is able to identify
proven content which it believes is undervalued or has latent
potential, which we then seek to crystallise on behalf of
shareholders.
In the last two years we have expanded the Group with the launch
of two wholly complementary entities that support the delivery of
our core strategy while also providing additional, diversified
sources of revenue.
Harmony IP, a new business division, was established in 2020. It
enables composers and master rights owners to release portions of
equity from their music, giving artists greater flexibility to
access future earnings while retaining majority ownership of their
intellectual property. From a One Media perspective, it supplements
our existing revenue streams and expands our opportunity to create
strongly aligned partnerships and relationships with rights owners,
putting us in a favourable position to increase our exposure to
their assets in the future.
Our Technical Copyright Analysis Tool business, TCAT Ltd was
established as a subsidiary business last year. It is a software as
a service ("SaaS") platform - a software licensing and delivery
model in which software is licensed on a subscription basis and is
centrally hosted. Developed by One Media, it is a proprietary,
specialist anti-piracy tool which identifies the illegal or
unlicensed use of digital music, helping to maximise revenue for
record labels and also for One Media. It also provides real time
data on the past performance and expected future trends of content,
supporting our acquisition strategy and further de-risking the
investment process.
Financial performance
The year under review saw revenues grow by 10% to GBP4,389,581
(2020: GBP4,005,385) and our EBITDA by 11% to GBP1,648,598 (2020:
GBP1,485,645), driven by increased consumer demand on streaming
platforms and other revenue distributions from digital platforms,
combined with our active asset management, acquisitions and a
continuing focus on maintaining a low cost, largely fixed cost
base.
Net revenue increased by 13% to GBP2,780,256 (2020:
GBP2,459,351), reflecting the strong underlying performance of our
catalogue. Operating profit was also up by 5.5% to
GBP1,075,958.
At the end of the period, our cash balance was GBP2,565,813
(2020: GBP6,766,424), providing a solid balance sheet position from
which to move forward in 2022, and our net margin increased to 63%
(2020: 61%). Admin expenses for the year are reported at
GBP1,040,706 (2020: GBP919,250).
Profit after tax attributable to equity shareholders was
GBP544,575 (2020: GBP630,197), reflecting the increase in revenues
and the maintenance of strong margins.
IFRS NAV per Ordinary Share increased to 7p (2020: 6p) and an
Operative NAV per Ordinary Share of 17p. The Directors are of the
opinion that the Operative NAV (Operative NAV is calculated by
using the IFRS NAV, adjusting for the revaluation of catalogues
assets to fair value and then adding back the catalogue
amortisation) provides a meaningful alternative performance measure
and the values of the catalogues are based on fair values produced
by an independent valuer.
Development work on TCAT is progressing and has moved to the
next phase, including the incorporation of a new subsidiary and the
appointment of an experienced management team, as detailed below.
Circa GBP1.0 million of capex was invested into TCAT during the
year to support the next phase of its growth, which we believe
presents a significant opportunity for the Group and industry
generally.
The Board continues to review the dividend policy, especially
given the current economic climate, but looks to maintain an
equilibrium between retention of profit to finance long term growth
plans whilst rewarding shareholders for their support. As a result
of the positive performance, a final dividend of 0.055p per share
has been declared.
We remain confident that our model for steady growth and
continual investment in copyrights is a proven, recurring cash
generative business and the Board and management remains strongly
aligned with investors through its 11.9% shareholding in the
Company.
Operational update
During the year our focus remained on actively creating value
and finding alternative methods to maximise revenues from our music
assets. This means curating, repurposing, restoring and,
importantly, policing our content with all the care that the
original writers and performers value and now rely on.
Working with content from previous decades - often overlooked
and undervalued by others in the market - has its advantages. The
artists generally are well known with an established reputation and
the tracks are, to a great extent, rooted in much loved music
legacies and are often instantly recognisable. Our job is to ensure
that a music track is available across every territory (currently
over 202) via DSPs and the aggregators that supply those providers,
to maximise exposure, usage and ultimately returns.
During the year, significant strides have been made with our
complementary Group subsidiary TCAT and our Harmony IP
platform.
Harmony IP aims to acquire between 10-30% of IP equity on agreed
multiples, mainly targeting composers' rights which typically
extend to 70 years after the artist's death, providing long term
income streams, expanding and further diversifying One Media's
recurring revenues. There are no other known operators offering
artists this option and while banks offer artists the opportunity
to borrow against their future earnings, the terms are much less
favourable and lack the additional value that an aligned
partnership with One Media delivers, including access to TCAT.
All of our investments this year were made via Harmony IP, as
detailed in the investments section below, and we continue to build
this portfolio, with significant interest from artists and using
TCAT to analyse the past performance and future trends of content,
to predict and identify opportunities to maximise future earnings
for all parties.
At the start of the year, TCAT Ltd ("TCAT") was established as a
separate, limited company within the Group, a decision driven by
the growing external interest in its software capabilities.
TCAT aims to tackle music piracy. Piracy purportedly costs the
global economy alone approximately GBP9 billion per annum in lost
revenues, GBP200 million of which is lost from the UK music
industry's rights holders. 38% of global music listeners acquire
music through illegal means, often without even knowing it, and
TCAT works to detect copyright infringement across the legitimate
DSPs by alerting rights owners to instances of corrupted data,
facilitating the removal or monetisation of offending tracks.
A business plan is in place at TCAT, which is on track and is
expected to be profitable over a medium-term timeframe. A dedicated
team of recognised specialists has been appointed to drive TCAT to
grow towards reaching its full potential, which we believe is
significant based on the piracy statistics and the rapid expansion
of the industry.
In February 2022 Nick Stewart was appointed TCAT CEO. With over
40 years of experience in the music industry, including senior
roles at Universal Music and Warner Music among others, Nick is
extremely well positioned to establish and grow TCAT's customer
base. Nick is exceptionally well connected across the music
industry, with credits including signing U2 to Island Records and
having worked with the Eagles, Neil Diamond and Sir Tim Rice among
others. Nick will leverage his relationships and profile to grow
TCAT's brand and market its capabilities.
Dr. Ed Vernon OBE was appointed TCAT's chairman in November 2020
bringing almost 40 years of experience in running tech businesses,
his successes resulted in him being awarded an OBE for services to
the tech industry. Further appointments include Gareth Waller, an
experienced technical director with over 15 years' experience of
managing large teams of software engineers, to the position of
Chief Technology Officer and Robin Abeysinghe as COO and CFO.
One Media retains two seats on the board held by myself and our
COO Alice Dyson.
The new management team is charged with delivering on the
opportunity to improve and scale TCAT for wider use across the
industry and other territories. A fundraise is underway directly
into the subsidiary TCAT Ltd to support its next phase of growth,
building on the initial client base and trials are ongoing with two
major labels, the world's largest digital aggregator and the BPI,
the trade body whose members include more than 400 independent
music companies and all of the UK's major record companies.
Investments
While our investment activity was somewhat curtailed over the
last two years due to the restrictions imposed by the pandemic, our
relationships and network, established over many years in the
industry, enabled us to make some important income accretive
acquisitions, leveraging our newly launched Harmony IP platform
through which all our 2021 investments were undertaken.
Nine investments were completed during the year for a total of
GBP4.3 million, delivering a blended Net Publisher Share ("NPS")
multiple of 11.2. This includes the largest acquisition undertaken
by One Media to date - the composition rights to the catalogue of
over 200 tracks of country music star Don Williams. Described by
Rolling Stone Magazine as 'one of the finest singers of the genre',
the acquisition covers Williams' 1970s and '80s output, during
which time he delivered 17 number one hits and became a global
superstar, winning fans from all over the world, especially in the
UK. In 1975, The Who's Pete Townshend covered Don's No.1 hit ' Till
the Rivers All Run Dry ' with Faces legend Ronnie Lane. Don's 1978
hit ' Tulsa Time ' was a regular on Eric Clapton's live set and he
often jammed with contemporary stars such as Jimmy Page and Jeff
Beck.
Acquisitions undertaken during the period were as follows:
-- January 2021: acquired from Ian Levine the producer's income
royalties to Take That's 'A Million Love Songs', 'Could It Be
Magic' and 'I Found Heaven', all from Take That's 1992 debut studio
album, Take That & Party. This attracted much press and
introduced Harmony IP to the market.
-- February 2021: acquired the licensor's share of the royalties
to the 21 Vision catalogue of rights, comprising over 2,000
recordings from some of the all-time music greats from over the
last seven decades. The 21 Vision catalogue had been licensed to
One Media on a royalty-sharing basis. As part of the deal, One
Media has acquired the licensor's royalty share of the catalogue on
an in-perpetuity basis.
-- May 2021: acquired the writer's share to the royalties of
over 250 tracks performed by Kid Creole and the Coconut's best
known music tracks, including chart toppers 'Annie I'm Not Your
Daddy' and 'Stool Pigeon'.
-- June 2021: acquired the award-winning producer, Steve
Levine's rights into music performed by Culture Club, including the
global hit 'Karma Chameleon' and 'Do you really want to hurt me',
as well as nineties stars Louise Redknapp, 911 and the Honeyz. The
Honeyz, an English R&B girl group, enjoyed three UK top 10 hits
produced by Levine - 'Finally Found', 'End of the Line' and 'Love
of a Lifetime' - which made Levine one of the most sought-after
producers in the industry.
-- June 2021: acquired the producer royalties to three albums by
the 1970s funk/disco band Heatwave, produced by the legendary
musician, songwriter, producer and artist Barry Blue: 'Too Hot To
Handle' (1976), 'Central Heating' (1978) and 'Current' (1982). This
includes the hits 'The Groove Line' (1978), 'Always and Forever'
(1976), 'Mind-Blowing Decisions' (1978) and the million-selling
global smash 'Boogie Nights' (1976), credited as one of the
defining songs of the disco age.
-- July 2021: secured our largest acquisition to date,
comprising the composition rights to the catalogue of over 200
tracks of country music star Don Williams. Described by Rolling
Stone Magazine as 'one of the finest singers of the genre', the
acquisition includes Williams's output across the 1970s and 1980s,
during which time he delivered 17 number one hits and became a
global superstar, winning fans from all over the world, especially
in the UK. In 1975, The Who's Pete Townshend covered Don's number
one hit 'Till The Rivers All Run Dry' with Faces legend Ronnie Lane
and his 1978 hit 'Tulsa Time' was a regular on Eric Clapton's live
set.
-- August 2021: with 50% already under our ownership, we
acquired the remaining 50% of the licensor's royalty share of the
royalties in the 5868 Ltd catalogues of rights. This added to the
Company's bottom line the income derived from over 1,000 recordings
supplied by 5868 Ltd and its respective partners.
-- September 2021: exclusively signed a further deal to include
three new recordings from multimillion selling US artist Evelyn
Thomas. Evelyn Thomas has recorded has recorded 48 singles and EPs,
four albums and has featured on over 1000 compilations and
playlists over the years, including the number one hit 'High
Energy', which charted in the UK in 1984. One Media will represent
Evelyn Thomas on her publishing and part ownership to the three new
tracks.
-- October 2021: buy out of the licensor's royalty share of the
income in the Mike Bennett Productions catalogue of rights,
containing the income derived from over 6,000 recordings supplied
by British songwriter and producer Mike Bennett and his respective
partners. The recordings feature many 'backing tracks' and 'karaoke
songs' together with some live albums or re-recordings performed by
the Rubettes, the Stranglers, Wee Papa Girl Rappers and Wishbone
Ash.
Post period end, in March 2022, we announced that we had
acquired the licensor's share of the royalty income to the Orbital
Digital Ltd catalogue of rights, which contains several thousand
recordings. The transaction also established a working relationship
with Dutch content distributor FUGA, which is distributor to this
catalogue. Orbital/Rapier Music features more than 40 branded
labels across all the known digital platforms including African
Lives, All About Blues, Travelscape Records, The Music Shed, Rapier
Music, and Sunflash. The catalogue ranges from classical through to
dance/hip hop and features a wide array of artists such as Jose
Carreras, Jo Jo Adams, Kool & the Gang, Irish Tenor Trio,
Alexandra O'Neal, Joe Strummer, Sid Vicious, Chic, Lee Perry, The
Lambrettas, Dread Filmstone, Sex Pistols, Suketu, Col Abram,
Psy-Co-Billy, Rachel Porter's all female Orchestra and Ebn Ozn.
Catalogue Valuation
Post period end, the Group engaged YM&U Group, well known in
the music industry for its valuation expertise, to undertake a
detailed assessment and fully independent valuation of the full
catalogue of rights.
As a result of this report, the portfolio of rights has been
valued at GBP34.8 million (as at April 2022), reflecting a blended
NPS multiple of 12.5. This compares favourably to One Media's
blended cost and average historic blended multiple over all content
acquired since 2006 of 6 times and a content value applied on the
Company's asset register (as at 31 October 2021) of GBP14
million.
We believe that this independent report provides a true
reflection of the value of our underlying assets and vindicates our
very careful and prudent approach to acquisitions over the last 15
years, whereby we consistently apply conservative multiples when
assessing investment opportunities.
The report concludes:
"The Catalogues acquired by One Media IP (including acquisitions
over the last three years) are varied and across the 7 grouped
areas reviewed they have been performing well. There are steady and
consistent income streams which is what you would like and need to
see from a portfolio of catalogues and there is little reliance on
one 'superstar' catalogue which dominates the revenue
generation.
The "Pre 2019" catalogues collectively are performing well, and
we would expect the collective value to far exceed the original
purchase price. In future periods, and with a great timescale, we
would look to perform a more granular review of the individual
catalogues within this group. Following on our review we would
place an estimated valuation on the catalogue of GBP34.8m, with a
blended multiple of a conservative 12.5x as a method of
calculation."
We continue to demonstrate that our catalogue drives additional
value to the business alongside the growing market values of traded
music content. With many music acquisitions reaching 20-25 times
earnings, our mission of focusing on long term value will continue
to differentiate One Media.
Market backdrop and outlook
This year we have emerged from the other side of the global
pandemic, which had an impact on the industry from an entertainment
and live music perspective in particular. Sadly, we are now also
dealing with the horrors of war in Ukraine. For over 75 years,
Europe has not seen this kind of unrest to both humanity and global
resources. It is an ignominy at every level and almost makes
writing encouraging and optimistic company reports on business
activities seem insensitive to the predicament of the
suffering.
While recent sanctions around supplying the Russian Federation
and the suspension of access to DSPs may hinder growth in affected
territories, the Company has undertaken a brief audit of the
potential impact and, given the very limited levels of business
conducted in these areas, does not envisage any material impact on
revenues.
The broader market backdrop against which we're delivering our
strategy continues to be strongly supportive. In its market
analysis Music in the Air, Goldman Sachs has significantly upgraded
its forecasts, now predicting that music industry revenues are set
to double by 2030 to $131 billion, driven by streaming and growing
demographic trends, including the fact that Millennials and
Generation Z are spending more of their annual budgets on music
than any other age group. Goldman Sachs expects global live music
revenues will reach $38 billion, music publishing $12.5 billion and
the recorded music $80 billion.
The digital marketplace is still a young forum and the format of
monetised streaming is less than 15 years old, so there is
significant road to run as platforms continue to expand their reach
and technology innovations improve access and recognition of
intellectual property rights.
The opportunity landscape for royalty collection is growing far
beyond the traditional DSPs, such as Amazon, Apple Music and
Spotify. New monetisation avenues are continuing to open up,
including Facebook, Peloton, Digital Radio Stations (such as iHeart
Radio), Rakuten, IMusica and YouTube Subscription. As the world of
digital TV music stations grows, supplementing the plethora of
digital radio stations, combined with Smart Speaker technology and
voice activated play listing, the future is looking positive.
Moreover, with advances in the Metaverse and the growth of non
-fungible tokens ("NFTs") we are entering the twilight zone of
music values being used in a variety of ways not imagined five
years ago.
The prospects ahead of us are extremely exciting and One Media
is well placed to take advantage of these new opportunities on
behalf of shareholders, to generate value by developing and
promoting its rights and exploiting the digital universe,
underpinned by a prudent acquisition strategy that ensures secure
and growing income.
Michael Infante
Chief Executive and Founder
Consolidated Statement of Comprehensive Income
For the year ended 31 October 2021
Year ended Year ended
31 October 31 October
2021 2020
GBP GBP
Revenue 4,389,581 4,005,385
Distribution charges (1,107,127) (1,002,805)
Royalty costs (435,386) (481,832)
Other costs (66,542) (61,397)
------------ ------------
Net revenue 2,780,526 2,459,351
Amortisation of catalogues (599,308) (523,170)
Administration expenses (1,040,706) (919,250)
FOREX gains/(losses) (64,554) 2,953
Operating profit 1,075,958 1,019,884
Share based payments (77,178) (62,465)
Finance costs (184,045) (223,384)
Finance income 1 8
Profit from continuing activities 814,736 734,043
Assets disposal (93,939) -
Profit on ordinary activities
before taxation 720,797 734,043
Tax expense (176,222) (103,846)
Profit for period attributable
to equity shareholders and
total comprehensive income
for the year 544,575 630,197
============
Basic earnings per share 0.24p 0.42p
============
Diluted earnings per share 0.20p 0.33p
============ ============
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 2021
Share Share redemption Share Share Retained Total equity
Capital reserve premium based earnings
payment
reserve
GBP GBP GBP GBP GBP GBP
At 1 November
2019 678,018 239,546 4,314,220 364,756 2,440,209 8,036,749
Proceeds from
the issue of
new shares 431,713 - 5,159,107 - - 5,590,820
Share based payment
charge - - - 62,465 - 62,465
Profit for the
year - - - - 630,197 630,197
Dividends paid - - - - (74,582) (74,582)
At 1 November
2020 1,109,731 239,546 9,473,327 427,221 2,995,824 14,245,649
Proceeds from
the issue of
new shares 2,500 - 11,250 - - 13,750
Share based payment
charge - - - 77,178 - 77,178
Profit for the
year - - - - 544,575 544,575
Dividends paid - - - - (122,345) (122,345)
At 31 October
2021 1,112,231 239,546 9,484,577 504,399 3,418,054 14,758,807
========== ================= ========== ========= ========== =============
Consolidated Statement of Financial Position at 31 October
2021
At At
31 October 31 October
2021 2020
GBP GBP
Assets
Non-current assets
Intangible assets 13,484,077 8,884,158
Property, plant and equipment 44,007 91,260
13,528,084 8,975,418
------------ ------------
Current assets
Trade and other receivables 1,447,490 1,141,555
Cash and cash equivalents 2,565,813 6,766,424
Total current assets 4,013,303 7,907,979
Total assets 17,541,387 16,883,397
============ ============
Liabilities
Current liabilities
Trade and other payables 904,015 823,151
Deferred tax 132,830 117,356
------------ ------------
Total current liabilities 1,036,845 940,507
============ ============
Borrowings 1,745,735 1,697,241
Total liabilities 2,782,580 2,637,748
============ ============
Equity
Called up share capital 1,112,231 1,109,731
Share redemption reserve 239,546 239,546
Share premium account 9,484,577 9,473,327
Share based payment reserve 504,399 427,221
Retained earnings 3,418,054 2,995,824
Total equity 14,758,807 14,245,649
============ ============
Total equity and liabilities 17,541,387 16,883,397
============ ============
Consolidated and Company Cash Flow Statement
For the year ended at 31 October 2021
Year ended Year ended Year ended Year ended
31 October 31 October 31 October 31 October
2021 2020 2021 2020
Group Group Company Company
GBP GBP GBP GBP
Cash flows from
operating activities
Operating profit
before tax 720,798 734,043 (418,586) (57,627)
Amortisation 599,169 523,170 369,263 -
Depreciation 50,509 18,504 - -
Share based payments 77,178 62,465 77,178 (38,560)
Finance income (1) (8) (1) (3)
Finance costs 223,384 - -
184,045
(Increase) in receivables (313,783) (162,150) (4,070,290) 275,472
Increase/(decrease)
in payables (69,144) (238,909) 144,017 178,193
Corporation tax
paid (72,063) (127,735) - -
Net cash inflow
(outflow) from operating
activities 1,176,708 1,032,764 (3,898,419) 357,475
------------ ------------ ------------- ------------
Cash flows from
investing activities
Investment in intellectual
property rights
and TCAT (5,199,087) (506,919) - -
Investment in property,
plant and equipment (3,257) (102,117) - -
Finance income 1 8 1 3
Net cash used in
investing activities (5,202,343) (609,028) 1 3
------------ ------------ ------------- ------------
Cash flows from
financing activities
Net proceeds from
the issue of new
shares 13,750 5,590,820 13,750 5,590,820
Finance cost paid (114,873) (109,136) (114,873) (109,136)
Loan notes 48,492 74,975 48,492 74,975
Dividend paid (122,345) (74,582) (122,345) (74,582)
Net cash inflow
(outflow) from financing
activities (174,976) 5,482,077 (174,976) 5,482,077
------------ ------------ ------------- ------------
Net change in cash
and cash equivalents (4,200,611) 5,905,813 (4,073,394) 5,839,555
Cash at the beginning
of the year 6,766,424 860,611 6,388,047 548,492
Cash at the end
of the year 2,565,813 6,766,424 2,314,653 6,388,047
============ ============ ============= ============
Notes to the Final Results
Basis of preparation
The Company is a public limited company incorporated and
domiciled in England under the Companies Act 2006. The Board has
adopted and complied with International Financial Reporting
Standards (IFRS) as adopted by the European Union. The Company's
shares were admitted for trading on the AIM market of the London
Stock Exchange on 18 April 2013.
Year ended Year ended
31 October 31 October
2021 2020
GBP GBP
Analysis of the charge for
the year
UK corporation tax charge 171,122 72,063
Deferred tax 5,100 31,783
176,222 103,846
============ ============
The standard rate of tax for the year, based on the UK standard
rate of corporation tax is 19% (2020: 19%). The actual tax charge
for the periods is different than the standard rate for the reasons
set out in the following reconciliation:
Reconciliation of current tax Year ended Year ended
charge 31 October 31 October
2021 2020
GBP GBP
Profit on ordinary activities
before tax 814,737 734,043
============ ============
Tax on profit on ordinary activities
at 19% (2020: 19%) 154,800 139,468
Effects of:
Non-deductible expenses 18,071 14,869
Adjustments to tax charge in - -
respect of previous periods
Fixed asset timing differences 5,100 31,783
Depreciation in excess of capital
allowances 8,768 (4,430)
Share scheme deduction
Research and development (10,517) (77,844)
Total tax charge 176,222 103,846
============ ============
Earnings per share
The weighted average number of shares in issue for the basic
earnings per share calculations is 223,973,646 (2020: 149,252,562)
and for the diluted earnings per share assuming the exercise of all
warrants and share options is 267,606,979 (2020: 189,047,539).
The calculation of basic earnings per share is based on the
profit for the period of GBP544,575 (2020: GBP630,197). Based on
the weighted average number of shares in issue during the year of
223,973,646 (2020: 149,252,562) the basic earnings per share is
0.24p (2020: 0.42p). The diluted earnings per share is based on
267,606,979 shares (2020: 189,047,539) and is 0.20p (2020:
0.33p).
EBITDA
Profit from continuing activities before interest, tax,
depreciation and amortisation for the twelve months ended 31
October 2021 was GBP1,648,459 (2020: GBP1,485,645).
Directors' responsibilities
The Annual Report, including the financial information contained
therein, is the responsibility of, and was approved by the
directors on 21 April 2022.
Availability of Report and Accounts
Copies of the Company's Report and Accounts will be posted to
shareholders shortly. 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 Company's website, www.omip.co.uk .
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identified by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements reflect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
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END
FR UAOWRUBUSUAR
(END) Dow Jones Newswires
April 22, 2022 02:00 ET (06:00 GMT)
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