One Media IP Group
Plc
("One Media" or “OMiP” or the "Group” or the Company")
Interim Results
for the six-months ended 30 April
2019
One Media iP (AIM: OMIP), the digital media content owner which
exploits intellectual digital property rights around music, video
and copyright technology, announces its Interim Results for the
six-month period ended 30 April
2019.
Financial Highlights
-
Revenue increased 31.6% to £1,585,687 (30
April 2018: £1,205,262)
-
Operating profit increased 23.9% to £284,360 (30 April 2018: £229,437)
-
EBITDA increased 18.6% to £404,715 (2018: £341,294)
-
Cash balances of £5,184,301 at 30 April
2019 (31 October 2018:
£5,576,379)
Operational Highlights
-
Receipt of a recoupable advance against future digital earnings
of US $1,000,000 (January 2019)
-
Acquisition of the music catalogue of Spanish label, Locomotive
Records, for US $750,000
(February 2019)
-
Acquisition of a composition catalogue from Michael Dulaney, an American country music
songwriter, for US $850,000
(April 2019)
-
Continued success through synchronisation deals with multiple
secured in the first half of the year
-
Post-period end acquisitions of composition catalogues from
Cole Taylor, an American country
music singer-songwriter, for up to US $290,000 and Daniel
Bashta, an American contemporary Christian singer and
songwriter, for US $725,000
-
Invested US $2.6m through the
acquisition of 4 catalogues, on a blended acquisition multiple of
circa 7x
Ivan Dunleavy, Chairman of
OMiP, stated: “The six-months to 30
April 2019 represented the first period on which we can
report acquisitions arising from the Company's enhanced strategy to
acquire and own music rights. New music rights contributed £135,448
and like-for-like revenues grew pleasingly by 20.3% in the
period.
“With funds available to deploy, One
Media is well placed to continue to source and acquire music rights
from our growing pipeline of such opportunities.”
Michael Infante, CEO of OMiP,
added: “We are pleased to have started 2019 with a
succession of rights purchases and to be reporting results in line
with market expectations. Committed to scaling the business and
strengthening our catalogue of content, we were delighted to
identify and complete a number of great value acquisitions in
genres that we see as having strong potential for growth, as more
people begin to use streaming as their primary method of consuming
music around the world. The global recorded music market shows no
signs of slowing, reporting growth of 9.7% in 2018, with streaming
being the driving force behind this, growing 34% in the same
period.
“We now look to the remainder of 2019
with a solid pipeline of opportunities for further acquisitions and
confidence in our ability to capitalise and strengthen our
positioning within this growing market.”
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
One Media iP Group
Plc |
|
Michael Infante -
Chief Executive
Ivan Dunleavy - Chairman
www.omip.co.uk |
+44 (0)175 378
5501
+44 (0)175 378 5500 |
|
|
Cairn Financial Advisers LLP
(Nominated Adviser) |
+44 (0)20 7213
0880 |
Liam Murray
Jo Turner
Ludovico Lazzaretti |
|
|
|
Panmure Gordon (UK) Ltd
(Broker) |
+44 (0)20 7886
2500 |
James Stearns |
|
|
|
Yellow Jersey PR (PR &
IR) |
+44 (0)20 3004
9512 |
Georgia Colkin
Joe Burgess
omip@yellowjerseypr.com |
|
Operational Review
The Group has continued to make steady progress in the first
half of the year and was pleased to announce a series of catalogue
purchases as part of its stated acquisition programme. The Group
has remained focused on seeking catalogues of exceptional value, in
a diverse range of genres where it sees potential for large future
growth in streaming revenues.
In February 2019, the Group
announced it had acquired the catalogue of Locomotive Records for
US $750,000, broadening its music
library with contemporary Spanish progressive rock music, notably
featuring a number of tracks from the acclaimed band Mägo de Oz. A
great addition to One Media’s catalogue, the acquisition will
enhance the Group’s growth of streaming in territories including
Spain, Latin America and the USA.
Following this, in April 2019 One
Media was extremely pleased to announce the acquisition of the
publishing and songwriter’s rights to 93 songs written by Grammy
nominated country music songwriter, Michael
Dulaney, for US $850,000.
Dulaney has been a prolific songwriter over the years and has had
major hit songs performed by the likes of Faith Hill and
Jason Aldean.
Acquisition momentum continued post-period end, with further
acquisitions announced in May and July. In May 2019, the Group acquired the songwriter’s
share of a number of songs written by Cole
Taylor, a country singer-songwriter for a total
consideration of US $260,000 at
completion, and a maximum deferred consideration based on financial
performance of US $30,000 within 24
months. The catalogue includes some of his major hits including two
that reached No.1 in the Billboard Country charts.
In July 2019 One Media announced
the acquisition of the income from the publishing and songwriter’s
share of the song ‘God’s not Dead’ by Daniel Bashta for US $725,000. The song has become the signature tune
to the films of the same name ‘God's Not Dead’, ‘God’s Not Dead 2’
and ‘God’s Not Dead: A Light in Darkness’. The films have grossed
close to US $100m. The song was
first released as a single on 12 October
2011, peaking at No. 2 on 9 June 2012 after spending 22
weeks on the Billboard Hot Christian Songs chart and
then charting again when the film of the same name was released in
2014.
To date, the four catalogues, acquired for a total of
approximately US $2.6m, represent a
blended acquisition multiple of circa 7x. With these acquisitions
the Company has now broadened the breadth and depth of content in
the One Media library to include Spanish and Country music, areas
which are seeing tremendous growth in global consumption.
Latin America has seen the highest
rate of music revenue growth globally for four consecutive years
according to research by the International Federation of the
Phonographic Industry, and Country music amassed almost 51 billion
streams in 2018, a 46 percent growth over the 2017 numbers
according to Nielsen Music.
Whilst the Group has focused on securing key acquisitions it has
also remained committed to maximising the value of the existing
catalogue. Over the last six months, One Media has licenced songs
for synchronisation deals with a number of TV series such as Amazon
Prime’s, ‘Too Old To Die Young’ and Marvel’s ‘Cloak and Dagger’, as
well as a TV advert for Unison, the world’s first home co-investing
company and Abercrombie & Fitch.
In addition, progress continues on TCAT, One Media’s Technical
Copyright Analysis Tool, and the work on digital fingerprinting is
an exciting addition to its development. The Group continues
to service the requirements of a major record label and
distributor as previously announced. At the period end, the
carrying value for research and development in TCAT was
£547,268.
Financial Review
The Group has continued to manage its financial position over
the six-month period to 30 April 2019
with profitable operations. Group consolidated revenue was
£1,585,687 for the six-months ended 30 April
2019 (30 April 2018:
£1,205,262).
Profit before tax amounted to £143,738 (30 April 2018: £213,144) and EBITDA increased
18.6% to £404,715 (2018: £341,294). During the period, the Company
has not issued new shares as consideration for acquisitions and has
used existing cash resources as consideration. Cash balances at
30 April 2019 were £5,184,301
(30 April 2018: £880,267).
Litigation
The Company is pleased to report that there are no current or
pending litigation issues.
Dividend
The Group continues to review the dividend policy in line with
its cash resources and requirements. No dividend is announced at
this time.
Outlook
We have entered the second half of 2019 with a strong, expanding
pipeline of potential deals and we are confident that we will
maintain this momentum as we progress into the second half of the
year.
Michael
Infante
Chief Executive
10 July 2019
Unaudited Consolidated Statement of Comprehensive Income
For the six months ended 30 April
2019
|
|
Unaudited |
Unaudited |
Audited |
|
|
6 months
ended
30 April 2019 |
6 months
ended
30 April 2018 |
12 months
ended
31 October 2018 |
|
|
£ |
£ |
£ |
|
|
|
|
|
Revenue |
|
1,585,687 |
1,205,262 |
2,702,374 |
Cost of sales |
|
(843,177) |
(615,835) |
(1,325,448) |
|
|
_________ |
_________ |
_________ |
Gross profit |
|
742,510 |
589,427 |
1,376,926 |
|
|
|
|
|
Administrative expenses |
|
(458,150) |
(359,990) |
(738,168) |
|
|
_________ |
_________ |
_________ |
Operating
profit |
|
284,360 |
229,437 |
638,758 |
|
|
|
|
|
Share based payments |
|
(39,728) |
(16,298) |
(115,061) |
Finance costs |
|
(65,953) |
- |
(37,201) |
Fund raise costs |
|
(35,017) |
- |
- |
Finance income |
|
76 |
5 |
8 |
|
|
_________ |
_________ |
_________ |
Profit on ordinary activities
before taxation |
|
143,738 |
213,144 |
486,504 |
Tax expense |
|
(24,436) |
(30,349) |
(81,488) |
|
|
_________ |
_________ |
_________ |
Profit for period attributable to
equity shareholders and total comprehensive income for the
year |
|
119,302 |
182,795 |
405,016 |
|
|
========= |
========= |
========= |
Basic earnings per share |
|
0.10p |
0.21p |
0.44p |
|
|
========= |
========= |
========= |
Unaudited Consolidated Statement of Financial Position
As at 30 April 2019
|
|
Unaudited |
Unaudited |
Audited |
|
|
30
April 2019 |
30
April 2018 |
31 October
2018 |
|
|
£ |
£ |
£ |
Assets |
|
|
|
|
Non-current assets |
|
|
|
|
Intangible assets |
|
4,684,070 |
3,387,479 |
3,351,304 |
Property, plant and equipment |
|
11,844 |
16,100 |
12,221 |
|
|
_________ |
_________ |
_________ |
|
|
4,695,914 |
3,403,579 |
3,363,525 |
|
|
_________ |
_________ |
_________ |
Current assets |
|
|
|
|
Trade and other receivables |
|
804,944 |
588,031 |
680,960 |
Cash and cash equivalents |
|
5,184,301 |
880,267 |
5,576,379 |
|
|
_________ |
_________ |
_________ |
Total current assets |
|
5,989,245 |
1,468,298 |
6,257,339 |
|
|
_________ |
_________ |
_________ |
Total assets |
|
10,685,159 |
4,871,877 |
9,620,864 |
|
|
========= |
========= |
========= |
|
|
|
|
|
Liabilities |
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
1,431,225 |
478,834 |
526,224 |
Deferred tax |
|
58,133 |
46,795 |
58,574 |
|
|
_________ |
_________ |
_________ |
|
|
1,489,358 |
525,629 |
584,798 |
|
|
|
|
|
Borrowings |
|
1,600,963 |
- |
1,600,258 |
|
|
_________ |
_________ |
_________ |
|
|
|
|
|
Total liabilities |
|
3,090,321 |
525,629 |
2,185,056 |
|
|
_________ |
_________ |
_________ |
Equity |
|
|
|
|
|
|
|
|
|
Called up share capital |
|
678,018 |
436,768 |
678,018 |
Share redemption reserve |
|
239,546 |
239,546 |
239,546 |
Share premium account |
|
4,314,220 |
1,786,895 |
4,314,220 |
Share based payment reserve |
|
261,987 |
123,496 |
222,259 |
Retained earnings |
|
2,101,067 |
1,759,543 |
1,981,765 |
|
|
_________ |
_________ |
_________ |
Total equity |
|
7,594,838 |
4,346,248 |
7,435,808 |
|
|
_________ |
_________ |
_________ |
|
|
|
|
|
|
|
_________ |
_________ |
_________ |
Total equity and
liabilities |
|
10,685,159 |
4,871,877 |
9,620,864 |
|
|
========= |
========= |
========= |
|
|
|
|
|
|
|
|
|
|
Unaudited Consolidated Statement of Changes in Equity
For the six months ended 30 April
2019
|
Share
capital |
Share redemption
reserve |
Share
premium |
Share based payment
reserve |
Retained
earnings |
Total
equity |
|
£ |
£ |
£ |
£ |
£ |
£ |
At 1 November 2016 |
355,268 |
239,546 |
1,457,645 |
107,198 |
1,576,749 |
3,736,406 |
Profit for the six
months to
30 April 2018 |
- |
- |
- |
- |
182,794 |
182,794 |
Proceeds from the issue of new
shares |
81,500 |
- |
329,250 |
- |
- |
410,750 |
Share based payment
charge |
- |
- |
- |
16,298 |
- |
16,298 |
|
________ |
_________ |
_________ |
_________ |
_________ |
_________ |
At 30 April 2018 |
436,768 |
239,546 |
1,786,895 |
123,496 |
1,759,543 |
4,346,248 |
Proceeds from the issue of new
shares |
241,250 |
- |
2,653,750 |
- |
- |
2,895,000 |
Fund raise costs |
- |
- |
(126,425) |
- |
- |
(126,425) |
Profit for the six
months to
31 October 2018 |
- |
- |
- |
- |
222,222 |
222,222 |
Share based payment charge |
- |
- |
- |
98,763 |
- |
98,763 |
|
________ |
_________ |
_________ |
_________ |
_________ |
_________ |
At 31 October 2018 |
678,018 |
239,546 |
4,314,220 |
222,259 |
1,981,765 |
7,435,808 |
Profit for the six
months to
30 April 2019 |
- |
- |
- |
- |
119,302 |
119,302 |
Share based payment
charge |
- |
- |
- |
39,728 |
- |
39,728 |
|
________ |
_________ |
_________ |
_________ |
_________ |
_________ |
Balance at 30 April 2019 |
678,018 |
239,546 |
4,314,220 |
261,987 |
2,101,067 |
7,594,838 |
|
======== |
========= |
========= |
========= |
========= |
========= |
Unaudited Consolidated Cash Flow Statement
For the six months ended 30 April
2019
|
Unaudited |
Unaudited |
Audited |
|
6 months
ended
30 April 2019 |
6 months
ended
30 April 2018 |
12 months
ended
31 October 2018 |
|
£ |
£ |
£ |
Cash flows from operating
activities |
|
|
|
|
|
|
|
Profit before taxation |
178,756 |
213,144 |
486,505 |
Amortisation |
128,315 |
116,109 |
247,406 |
Depreciation |
3,579 |
2,121 |
7,653 |
Share based payments |
39,728 |
16,298 |
115,061 |
Finance income |
(76) |
(5) |
(8) |
Finance costs |
100,970 |
- |
37,201 |
(Increase)/decrease in
receivables |
(123,985) |
(30,210) |
(202,155) |
(Decrease)/increase in payables |
779,424 |
(157,382) |
(87,013) |
Corporation tax paid |
(2,272) |
23,072 |
27,104 |
|
_________ |
_________ |
_________ |
Net cash inflow from operating
activities |
1,104,439 |
183,147 |
631,754 |
|
_________ |
_________ |
_________ |
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
|
|
|
Investment in copyrights / TCAT |
(1,461,080) |
(95,435) |
(215,113) |
Investment in fixed assets |
(3,201) |
(1,251) |
(2,904) |
Finance income |
76 |
5 |
8 |
|
_________ |
_________ |
_________ |
Net cash used in investing
activities |
(1,464,205) |
(96,681) |
(218,009) |
|
_________ |
_________ |
_________ |
|
|
|
|
Cash flow from financing
activities |
|
|
|
|
|
|
|
Proceeds from the issue of new
shares |
- |
410,750 |
3,305,750 |
Share issue costs |
(35,017) |
- |
(126,425) |
Loan notes |
705 |
- |
1,600,258 |
|
_________ |
_________ |
_________ |
Net cash inflow from financing
activities |
(34,312) |
410,750 |
4,779,583 |
|
_________ |
_________ |
_________ |
|
|
|
|
Net change in cash and cash
equivalents |
(392,078) |
497,216 |
5,193,328 |
Cash at the beginning of the
period |
5,576,379 |
383,051 |
383,051 |
|
_________ |
_________ |
_________ |
Cash at end of the
period |
5,184,301 |
880,267 |
5,576,379 |
|
========= |
========= |
========= |
Notes to the Interim Report
For the six months ended 30 April 2019
1. Nature of operations and general information
One Media iP Group Plc and its subsidiaries’ (“the Group”)
principal activities are the acquisition and licensing of
audio and 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
2018 are available from the Group’s website www.omip.co.uk.
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 2019. 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 2018.
This unaudited interim statement has not been subject to a
review by the Group’s auditors James Cowper
Kreston.
Comparatives
The comparative periods represent the unaudited results for the
six months period ended 30 April 2019
and the audited twelve months figures for the year ended
31 October 2018.
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
30 April 2019 |
6 months
ended
30 April 2018 |
12 months
ended
31 October 2018 |
|
|
|
|
Profit for period attributable to
equity shareholders |
119,302 |
182,794 |
405,016 |
Weighted average number of shares in
issue at period end |
116,171,507 |
87,353,698 |
92,244,794 |
|
_________ |
_________ |
_________ |
Basic earnings per share |
0.10p |
0.21p |
0.44p |
|
========= |
========= |
========= |
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 2019 |
30 April
2018 |
31 October
2018 |
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 |
|
|
|
|
|
|
|
135,603,699 (2018: 135,603,699)
ordinary shares of 0.5p each |
678,018 |
436,768 |
678,018 |
|
========== |
========== |
========== |
5. 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.