TIDMOMIP
RNS Number : 7415F
One Media iP Group PLC
20 July 2021
One Media iP Group Plc
("One Media", the "Group" or the "Company")
Interim Results for the six-months ended 30 April 2021
One Media iP (AIM: OMIP), the digital music rights acquirer,
publisher and distributor, is pleased to announce its interim
results for the six-month period ended 30 April 2021.
Financial Highlights
-- Revenue increased by 3.5% to GBP2,102,848 (H1 2020: GBP2,032,598)
-- Gross profit increased 6.7% to GBP1,066,650 (H1 2020: GBP999,848)
-- Gross profit (excluding Amortisation) increased 5.2% to
GBP1,329,786 (H1 2020: GBP1,264,359)
-- Cash balances of GBP6,373,525 at 30 April 2021 (H1 2020:
GBP1,076,134, Year End 2020: GBP6,766,424)
Operational Highlights
-- Formation of TCAT Ltd as a separate subsidiary
-- Acquisition of Take That producer royalties
-- Launch of Men & Motors TV channel
-- Acquisition of 21 Vision catalogue royalties
-- Dividend Declaration
Post half year end
-- Acquisition of Kid Creole and the Coconuts producer royalties
-- Acquisition of Steve Levine Producer's Royalties of music
performed by Culture Club, Louise, 911 and the Honeyz
-- Acquisition of Barry Blues producer Royalties of music
performed by Heatwave including Boogie Nights and Always and
Forever
-- Acquisition of certain composition and recordings rights in over 200 Don Williams tracks
-- Blended NPS (Net Publisher Share) multiple of 11.73 and
deploying GBP4m (four million pounds - USD$5.5m) on the six
acquisitions to date
Michael Infante, CEO of One Media iP, commented:
"We are far from 'business as normal' as a country, as the
world's press reports and given these extraordinary times I am very
pleased with our half year results. Streaming has now replaced
nearly all aspects of downloading and with iTunes discontinuing its
downloading store, we are set to continue delivering our content
with our expert team of Creative Technicians fully experienced in
the digital environment now for over a decade. Who would have
imagined that vinyl would outlive downloads? We did! We have been
talking of streams and the shifting market now for many years.
We have seen our acquisition program via Harmony IP gain
traction and press acclaim and can report 'face to face' meetings
with targets have now resumed.
It is a refreshing 'reboot' and many of us will be happy not to
see the 'kitchens' and 'lounges' displayed via online conferencing.
I have become an expert in interior design!
During the period under review the trade and assets of TCAT were
transferred into a newly incorporated subsidiary - TCAT Ltd. TCAT's
new team is now in place to expand its software offering to the
music industry at large.
Further information on TCAT can be expected throughout the
year.
This announcement contains inside information for the purposes
of the 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
Max Gould/Giles Balleny/Michael Tel: +44 (0)20 7397
Johnson (Sales) 8900
PPR Publicity Tel: +44 (0)7930 304301
About One Media iP Group Plc
One Media is a digital music rights acquirer, publisher and
distributor. 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, TV and digital gaming whilst its video content is primarily
viewed on YouTube where One Media operates over 20 YouTube channels
as a certified partner.
One Media is listed on the London Stock Exchange on the AIM
index, under the symbol 'OMIP'.
For further information on One Media iP: www.omip.co.uk
TCAT: www.tcat.media
Harmony IP: www.harmonyip.com
Chairman's Statement
Business and Performance Review
The Group delivered pleasing results in H1 2021 and has
continued to execute its strategic plans in that period with
further acquisitions enhancing the value of its existing catalogue.
The six acquisitions made so far this year are delivering a blended
NPS (Net Publisher Share) multiple of 11.73 and deploying circa
GBP4m of the Company's cash resource to date. Due to the timing of
these acquisitions, they have not contributed to the H1 2021
results yet but will do so in the coming financial periods.
Financial pressure from the weaker USD Dollar against GBP has
impacted revenues but the underlying growth remains strong. The
impact of COVID-19 has continued to present challenges in terms of
the rate of acquisitions but the Group has been able to continue to
fully employ all its staff and to work efficiently on a remote and
hybrid working basis.
The Group's subsidiary, TCAT Limited, continues to operate
successfully in further developing its anti-piracy tool, with a
team of 7 staff and has received HMRC approval for VCT/EIS funding
facilitating TCAT Limited to seek new sources of funding.
COVID-19
The ongoing global disruption caused by Covid-19 is continually
monitored and the Group is confident that business will continue as
normal and that our services will remain uninterrupted. The
business has a robust recurring income model that lends itself to
remote working, much like its major partners. As a result of a
planned disaster recovery process all of the Group's business
operations continue as normal. However, the Group understands that
it cannot control the effects on third parties and their business
operations. In the event of a material drop in revenue the Group
has significant cash reserves that enables it to continue to
operate during this period without any adverse impact on the
business. The directors have reviewed the Group's assets and
believe this current event will not require any impairment, this is
based on a review of the performance of the Group's historical
catalogue as well as the detailed due diligence on the income
profile of recent acquisitions.
Financial Overview
The Group has continued to manage its financial position over
the six-month period to 30 April 2021 with profitable operations.
Group consolidated revenue was GBP2,102,848 for the six-months
ended 30 April 2021 (30 April 2020: GBP2,032,598).
Profit before tax amounted to GBP359,117 (30 April 2020:
GBP399,236) with an EBITDA figure of GBP722,761 (2020: GBP757,678).
Gross profit increased by 6.7% to GBP1,066,650 (2020: GBP999,848)
and Gross Profit (excluding Amortisation) increased by 5.2% to
GBP1,329,786 (2020: GBP1,264,359).
The Group receives the majority of its income in US Dollars.
Recent movements in exchange rates have been unfavourable however
the Board carefully monitors exchange rates to ensure the Company
can seek to take advantage of the best exchange rates available.
One Media deals in a worldwide market and needs to convert its
digital income from the many territories' currencies in which it
operates on a monthly basis. All of these local currencies are
converted to US Dollars which ultimately are reported in Pounds
Sterling.
The USD performance of the Company's main distributors (c. 80%
of the income) has shown a positive Year on Year increase of
9%.
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 2021 were GBP6,373,525
(30 April 2020: GBP1,076,134).
Dividend
On 31 March 2021 the Group declared a final dividend of 0.055p
per ordinary share, which was paid in May 2021. The Board continues
to review its policy regarding dividends and has established that
the objective of its Dividend Distribution Policy continues to
maintain an equilibrium between retention of profit to finance
long-term growth plans whilst rewarding shareholders for their
support.
Industry and Outlook
Despite significant uncertainty caused by COVID-19, the global
recorded music market has demonstrated resilience and a recent
report from Goldman Sachs predicts the global market to grow from
$20.5bln to $37bln in 2030. The Group is confident that with its
scalable business model, its track record of acquiring assets with
recurring revenue streams it will continue to capitalise on the
growth of global streaming and deliver increasing shareholder
value.
The Board looks forward to updating shareholders on progress in
due course.
Claire Blunt
Chair of One Media
Unaudited Consolidated Statement of Comprehensive Income
For the six months ended 30 April 2021
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended 31 October
30 April 30 April 2020
2021 2020
GBP GBP GBP
Revenue 2,102,848 2,032,598 4,005,385
Cost of sales (1,036,198) (1,032,750) (2,069,203)
_________ _________ _________
Gross profit 1,066,650 999,848 1,936,182
Administrative expenses (584,452) (436,591) (916,298)
_________ _________ _________
Operating profit 482,198 563,257 1,019,884
Share based payments (30,125) (73,570) (62,465)
Finance costs (92,956) (90,459) (223,384)
Finance income - 8 8
_________ _________ _________
Profit on ordinary
activities before
taxation 359,117 399,236 734,043
Tax expense (61,780) (69,078) (103,846)
_________ _________ _________
Profit for period
attributable to equity
shareholders and total
comprehensive income
for the year 297,337 330,158 630,197
========= ========= =========
Basic earnings per
share 0.15p 0.24p 0.42p
========= ========= =========
Unaudited Consolidated Statement of Financial Position
As at 30 April 2021
Unaudited Unaudited Audited
30 April 30 April 31 October
2021 2020 2020
GBP GBP GBP
Assets
Non-current assets
Intangible assets 8,432,165 8,788,257 8,884,158
Investments 971,679 - -
Property, plant
and equipment 86,849 4,166 91,260
_________ _________ _________
9,490,693 8,792,823 8,975,418
_________ _________ _________
Current assets
Trade and other
receivables 1,385,946 1,095,899 1,141,555
Cash and cash equivalents 6,373,525 1,076,134 6,766,424
_________ _________ _________
Total current assets 7,759,471 2,172,033 7,907,979
_________ _________ _________
Total assets 17,250,164 10,964,856 16,883,397
========= ========= =========
Liabilities
Current liabilities
Trade and other
payables 821,704 820,622 823,151
Deferred tax 117,356 83,128 117,356
_________ _________ _________
939,060 903,750 940,507
Borrowings 1,724,243 1,637,848 1,697,241
_________ _________ _________
Total liabilities 2,663,303 2,541,598 2,637,748
_________ _________ _________
Equity
Called up share
capital 1,112,231 678,018 1,109,731
Share redemption
reserve 239,546 239,546 239,546
Share premium account 9,484,577 4,314,220 9,473,327
Share based payment
reserve 457,346 438,326 427,221
Retained earnings 3,293,161 2,753,148 2,995,824
_________ _________ _________
Total equity 14,586,861 8,423,258 14,245,649
_________ _________ _________
_________ _________ _________
Total equity and
liabilities 17,250,164 10,964,856 16,883,397
========= ========= =========
Unaudited Consolidated Statement of Changes in Equity
For the six months ended 30 April 2021
Share Share Share Share Retained Total
capital redemption premium based earnings equity
reserve 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
Profit for
the six months
to
30 April
2020 - - - - 330,158 330,158
Share based
payment charge - - - 73,570 - 73,570
________ _________ _________ _________ _________ _________
At 30 April
2020 678,018 239,546 4,314,220 438,326 2,770,367 8,440,477
Proceeds
from the
issue of
new shares 431,713 - 5,159,107 - - 5,590,820
Dividends
paid - - - - (74,582) (74,582)
Profit for
the six months
to
31 October
2020 - - - - 300,039 300,039
Share based
payment charge - - - (11,105) - (11,105)
________ _________ _________ _________ _________ _________
At 31 October
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
Profit for
the six months
to
30 April
2021 - - - - 297,337 297,337
Share based
payment charge - - - 30,125 - 30,125
________ _________ _________ _________ _________ _________
Balance at
30 April
2021 1,112,231 239,546 9,484,577 457,346 3,293,161 14,586,861
======== ========= ========= ========= ========= =========
Unaudited Consolidated Cash Flow Statement
For the six months ended 30 April 2021
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
30 April 30 April 31 October
2021 2020 2020
GBP GBP GBP
Cash flows from operating
activities
Profit before taxation 386,118 399,236 734,043
Amortisation 240,411 245,018 523,170
Depreciation 7,552 3,372 18,504
Share based payments 30,125 73,570 62,465
Finance income - (8) (8)
Finance costs 92,455 90,459 223,384
(Increase)/decrease in
receivables (252,240) (95,304) (162,150)
(Decrease)/increase in
payables (94,780) (276,957) (238,909)
Corporation tax paid - (59,433) (127,735)
_________ _________ _________
Net cash inflow from
operating activities 409,641 379,953 1,032,764
_________ _________ _________
Cash flows from investing
activities
Investment in copyrights
/ licenses (303,733) (133,154) (506,919)
TCAT Funding (456,362) - -
Investment in fixed assets (3,141) - (102,117)
Finance income - 8 8
_________ _________ _________
Net cash used in investing
activities (763,236) (133,146) (609,028)
_________ _________ _________
Cash flow from financing
activities
Proceeds from the issue
of new shares 13,750 - 5,590,820
Finance cost paid (53,054) (55,790) (109,136)
Loan notes - 24,506 74,975
Dividend paid - - (74,582)
_________ _________ _________
Net cash inflow from
financing activities (39,304) (31,284) 5,482,077
_________ _________ _________
Net change in cash and
cash equivalents (392,899) 215,523 5,905,813
Cash at the beginning
of the period 6,766,424 860,611 860,611
_________ _________ _________
Cash at end of the period 6,373,524 1,076,134 6,766,424
========= ========= =========
Notes to the Interim Report
For the six months ended 30 April 2021
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-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 2020 are available from
the Group's website. 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 2021. 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 2020.
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 2021 and the audited twelve months
figures for the year ended 31 October 2020.
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 6 months ended 6 months ended 12 months
per share 30 April 2021 30 April 2020 ended
31 October
2020
Profit for period
attributable to
equity shareholders 297,337 330,158 630,197
Weighted average
number of shares
in issue at period
end 192,069,005 135,603,699 149,252,562
_________ _________ _________
Basic earnings
per share 0.15p 0.24p 0.42p
========= ========= =========
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 30 April 31 October
2021 2020 2020
Group and company GBP GBP GBP
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
222,449,249 (H1 2020: 135,603,699,
FY 2020: 221,946,249) ordinary
shares of 0.5p each 1,112,231 678,018 1,109,731
========== ========== ==========
5. Interim statement
Copies of this statement are available from the Group's
registered Office at:
623 East Props Building, Goldfinger Avenue, Pinewood Road, Iver
Heath, Buckinghamshire, SL0 0NH.
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