TIDMICON
RNS Number : 3147I
Iconic Labs PLC
31 March 2020
Iconic Labs Plc ("Iconic Labs" or the "Company")
INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHSED 31 DECEMBER
2019
The Company is pleased to introduce the statement and accounts
which cover the six-month period to 31 December 2019. The period
covers both the continued shutting down of the old Widecells
business as well as setting the operational platform from which we
could start building the Iconic Labs business.
Significant progress was made in putting together the core
elements from which we can now implement the strategy of building a
new media and technology business with a view to ensuring the long
term success of the business.
The Group was clearly constrained by capital during this and
previous periods, with much needed funds being diverted to legacy
issues. However, the work already done in the first half of 2019
led to a sizeable reduction in the losses for the period, from
GBP6,260,394 in the 18 month period ended 30 June 2019 to
GBP848,233 to the period ended 31 December 2019. These losses
include funds being spent on legacy debts and also costs related to
investing in the start of the new media and technology businesses
of Iconic Labs.
Going forward, the plan for the new media and technology
business continues to have two related elements: organic growth
based upon deploying the team's skills and commercial experience in
the sector alongside acquiring publishing platforms which we can
leverage to sell those skills.
The Group made its first acquisition in September with the
purchase of the intellectual property of Gay Star News (GSN) for
GBP33,000. We have spent limited funds but a significant amount of
time redeveloping and redesigning the website and brand and
rebuilding the business operations before the business's formal
relaunch. The Group is delighted that it now has an asset with
millions of users and a significant and substantive brand in a key
and growing sector that it can now build on. We feel the relaunched
GSN will not only contribute to future revenues but also prove to
have been an exceptionally good value acquisition through the
increased capital value of the brand and intellectual property.
Building the business through organic growth of revenue
contracts continues to be a focus of the business. The Group
developed the new corporate website of the company and launched it
in November. Investing in essential developments such as the
website and sales materials are all direct investments in future
revenues. While understandably small revenue of GBP2,500 was
recognised in this period, of greater significance is that work
commenced on developing a pipeline that is already starting to
result in contracts and partnerships. We have made several
announcements in relation to this post the end of the period. Due
to the nature of the industry the lead times for contracts and
partnerships can be several months and some of the success in the
early part of 2020 clearly reflects the hard work put in by the
team during the period.
The pattern of building brands, audience and a healthy pipeline
of contracts before seeing substantial revenue recognition in the
future is something that the team successfully did in their
previous business of UNILAD and believe that a similar 'playbook'
will work at Iconic Labs.
The Group is fully aware that the convertible facility with
European High Growth Opportunities Securitization Fund (EHGOSF) we
inherited has led to a capital structure that is a source of
frustration to the directors and to shareholders. The Group has
sought to address these concerns with a settlement and financing
agreement agreed post 31 December 2019 which will see a
considerably healthier balance sheet in the future. Further details
are as set out in the recent Notice of General Meeting, and the
board is very grateful to members for their support of the
proposals that we put forward.
It is also unfortunate but important that we recognise and take
account of the current Coronavirus Covid-19 pandemic. Although it
is still too soon to tell the exact effects of the virus on the
Iconic Labs business, there has been a widespread cessation in
current and new advertising campaigns and production during the
current period of uncertainty which will clearly have an impact on
branded content and campaign revenue. This will continue for at
least as long as the country remains in lockdown, which renders the
practical activity of producing content impossible. Whether there
will be any meaningful impact on the core programmatic advertising
revenue remains to be seen.
More generally, however, as more people spend time at home the
Group remains confident that it will see a long term increase in
demand for its online publishing content and platforms like GSN.
While this is an unprecedented time for everyone, the Group
believes that many content and technological trends may accelerate
as a result, and the Group aims to be best positioned to benefit
from the long term trends through the skillset and experience of
the senior management team and the foundations they have put in
place.
Going Concern Assessment
The directors have carefully considered the financial position
of the Group with particular attention to the economic and social
effects of the current Covid-19 pandemic. They have concluded that
as a result of the GBP5 million facility in place with the European
High Growth Opportunities Securitisation Fund, together with
conservative assumptions as to revenues based on core programmatic
advertising sales, that the Group remains a going concern.
Finally, we hope that all of you and your families are staying
safe during this period and our thoughts go out to all of those who
are suffering hardship or have lost family members and loved
ones.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX
MONTHSED 31 DECEMBER 2019 (unaudited)
Six months Six months 18 month
ended 31 ended 31 period ended
December December 30 June 2019
2019 2018 (audited)
GBP GBP GBP
----------- ------------ ----------------
Revenue 2,500 - -
----------- ------------ ----------------
Cost of sales (81,468) - -
----------- ------------ ----------------
Gross loss (78,968) - -
----------- ------------ ----------------
Administrative expenses (681,227) - (327,902)
----------- ------------ ----------------
Operating loss (760,195) - (327,902)
----------- ------------ ----------------
Finance costs (1,935) - (1,818,613)
----------- ------------ ----------------
Loss before taxation (762,130) - (2,146,515)
----------- ------------ ----------------
Taxation - - -
----------- ------------ ----------------
Loss for the period from continuing
operations (762,130) - (2,146,515)
----------- ------------ ----------------
Loss for the period from discontinued
operations (86,103) (1,178,036) (4,113,879)
----------- ------------ ----------------
Loss for the period (848,233) (1,178,036) (6,260,394)
----------- ------------ ----------------
Total comprehensive expense
for the period (848,233) (1,178,036) (6,260,394)
----------- ------------ ----------------
Basic and diluted loss per
ordinary share (pence)
* from continuing operations
(0.05) - (0.75)
* from discontinued operations (0.01) (0.85) (1.44)
----------- ------------ ----------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2019
(unaudited)
31 December 31 December 30 June 2019
2019 2018 (audited)
GBP GBP GBP
------------- ------------ -------------
Non-current assets
------------- ------------ -------------
Property, plant and equipment 5,841 291,065 7,093
------------- ------------ -------------
Intangible assets 39,600 93,201 -
------------- ------------ -------------
45,441 384,266 7,093
------------- ------------ -------------
Current assets
------------- ------------ -------------
Trade and other receivables 168,353 700 -
------------- ------------ -------------
VAT recoverable 44,800 15,922 15,922
------------- ------------ -------------
Cash and cash equivalents 26,914 80,326 15,597
------------- ------------ -------------
240,067 96,948 31,519
------------- ------------ -------------
Total assets 285,508 481,214 38,612
------------- ------------ -------------
Equity
------------- ------------ -------------
Shareholders' equity
------------- ------------ -------------
Share capital 4,092,825 378,382 3,498,257
------------- ------------ -------------
Share premium 5,124,900 5,124,900 5,124,900
------------- ------------ -------------
Retained deficit (11,288,503) (7,397,377) (10,440,270)
------------- ------------ -------------
Total equity (2,070,778) (1,894,095) (1,817,113)
------------- ------------ -------------
Non-current liabilities
------------- ------------ -------------
Lease liabilities - 40,670 11,141
------------- ------------ -------------
Current liabilities
------------- ------------ -------------
Trade and other payables 1,610,533 1,526,335 1,736,306
------------- ------------ -------------
Loans and borrowings 650,432 669,769 -
------------- ------------ -------------
Lease liabilities 55,321 138,535 68,278
------------- ------------ -------------
Provisions 40,000 - 40,000
------------- ------------ -------------
2,356,286 2,334,639 1,844,584
------------- ------------ -------------
Total liabilities 2,356,286 2,375,309 1,855,725
------------- ------------ -------------
Total equity and liabilities 285,508 481,214 38,612
------------- ------------ -------------
Net asset value per share
(pence) (0.13) (1.25) (0.13)
------------- ------------ -------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHSED
31 DECEMBER 2019 (unaudited)
Share-based
Share Share Merger Translation payments Retained
capital premium reserve reserve reserve deficit Total equity
GBP GBP GBP GBP GBP GBP GBP
Balance at 1 July
2018 333,798 5,244,484 (185,728) (38,572) 341,184 (6,336,225) (641,059)
---------- ---------- ---------- ------------ ------------ -------------- --------------
Changes in equity
---------- ---------- ---------- ------------ ------------ -------------- --------------
Transactions with
owners:
---------- ---------- ---------- ------------ ------------ -------------- --------------
Issue of share
capital 44,584 (119,584) - - - - (75,000)
---------- ---------- ---------- ------------ ------------ -------------- --------------
Transfers - - 185,728 38,572 (341,184) 116,884 -
---------- ---------- ---------- ------------ ------------ -------------- --------------
Total transactions
with owners: 44,584 (119,584) 185,728 38,572 (341,184) 116,884 (75,000)
---------- ---------- ---------- ------------ ------------ -------------- --------------
Total comprehensive
expense - - - - - (1,178,036) (1,178,036)
---------- ---------- ---------- ------------ ------------ -------------- --------------
Balance at 31
December
2018 378,382 5,124,900 - - - (7,397,377) (1,894,095)
---------- ---------- ---------- ------------ ------------ -------------- --------------
Changes in equity
---------- ---------- ---------- ------------ ------------ -------------- --------------
Transactions with
owners:
---------- ---------- ---------- ------------ ------------ -------------- --------------
Issue of share
capital 3,119,875 - - - - - 3,119,875
---------- ---------- ---------- ------------ ------------ -------------- --------------
Total transactions
with owners: 3,119,875 - - - - 3,119,875
---------- ---------- ---------- ------------ ------------ -------------- --------------
Total comprehensive
expense - - - - - (3,042,893) (3,042,893)
---------- ---------- ---------- ------------ ------------ -------------- --------------
Balance at 30 June
2019 3,498,257 5,124,900 - - - (10,440,270) (1,817,113)
---------- ---------- ---------- ------------ ------------ -------------- --------------
Changes in equity
---------- ---------- ---------- ------------ ------------ -------------- --------------
Transactions with
owners:
---------- ---------- ---------- ------------ ------------ -------------- --------------
Issue of share
capital 594,568 - - - - - 594,568
---------- ---------- ---------- ------------ ------------ -------------- --------------
Total transactions
with owners: 594,568 - - - - - 594,568
---------- ---------- ---------- ------------ ------------ -------------- --------------
Total comprehensive
expense - - - - - (848,233) (848,233)
---------- ---------- ---------- ------------ ------------ -------------- --------------
Balance at 31
December
2019 4,092,825 5,124,900 - - - (11,288,503) (2,070,778)
---------- ---------- ---------- ------------ ------------ -------------- --------------
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 31
DECEMBER 2019 (unaudited)
Six months Six months 18 month
ended ended 31 period
31 December December ended 30
2019 2018 June 2019
(audited)
GBP GBP GBP
------------- ------------ ------------
Cash flows from operating activities
------------- ------------ ------------
Total comprehensive loss for the
period (848,233) (1,178,036) (6,260,394)
------------- ------------ ------------
Loss for the period from discontinued
operations 86,103 1,178,036 4,137,879
------------- ------------ ------------
Adjustments for
------------- ------------ ------------
Depreciation 1,252 - 417
------------- ------------ ------------
Finance costs 1,935 - 1,818,613
------------- ------------ ------------
Increase in trade and other receivables (197,231) - -
------------- ------------ ------------
(Decrease)/increase in trade and
other payables (125,773) - 66,000
------------- ------------ ------------
Operating cashflows used by continuing
activities (1,081,947) - (237,485)
------------- ------------ ------------
Operating cashflows used by discontinued
operations (86,103) (1,253,170) (3,241,618)
------------- ------------ ------------
Net cash used in operating activities (1,168,050) (1,253,170) (3,479,103)
------------- ------------ ------------
Cash flows from investing activities
------------- ------------ ------------
Purchase of property, plant and
equipment - - (7,510)
------------- ------------ ------------
Purchase of intangible assets (39,600) - -
------------- ------------ ------------
Investing cash flows used by operating
activities (39,600) - (7,510)
------------- ------------ ------------
Investing cash flows used by discontinued
operations - - (23,919)
------------- ------------ ------------
Net cash used in investing activities (39,600) - (31,429)
------------- ------------ ------------
Cash flows from financing activities
------------- ------------ ------------
Interest paid (1,935) - (604,050)
------------- ------------ ------------
Repayment of finance leases (24,098) - (88,747)
------------- ------------ ------------
Issue of share capital - - 2,060,950
------------- ------------ ------------
Costs of issuing shares - - (230,575)
------------- ------------ ------------
Issue of loan notes 1,245,000 - 2,700,000
------------- ------------ ------------
Financing cash flows from financing
activities 1,218,967 - 3,837,578
------------- ------------ ------------
Financing cash flows used by discontinued
operations - (395,416) (429,490)
------------- ------------ ------------
Net cash from/(used in) financing
activities 1,218,967 (395,416) 3,408,088
------------- ------------ ------------
Increase/(decrease) in cash and
cash equivalents 11,317 (1,648,586) (102,444)
------------- ------------ ------------
Cash and cash equivalents at beginning
of period 15,597 1,728,912 118,041
------------- ------------ ------------
Cash and cash equivalents at end
of period 26,914 80,326 15,597
------------- ------------ ------------
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information for the purposes of
the Market Abuse Regulation (EU) No. 596/2014. Upon the publication
of this announcement via a Regulatory Information Service, this
inside information is now considered to be in the public
domain.
Iconic Labs Plc (LSE:ICON), is a multi-divisional new media and
technology business set up by Liam Harrington, John Quinlan and Sam
Asante. The initial focus is to expand the content platform, suite
of digital brands, and technology products both organically and
through acquisitions in addition to consultancy and agency
services.
**ENDS**
For further information, please visit the Company's website
www.iconiclabs.co.uk or contact:
Damon Heath Shard Capital Partners Tel: +44 (0) 20 7186
LLP 9950
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END
IR UARWRRAUOOAR
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