TIDMFBT
RNS Number : 0097J
Forbidden Technologies PLC
06 September 2016
6 September 2016
Forbidden Technologies plc
("Forbidden" or the "Company")
Interim results
Forbidden Technologies plc (AIM: FBT), the AIM quoted
market-leading cloud video platform owner, announces its interim
results for the six months ended 30 June 2016.
Financial highlights
-- Increase in invoiced sales by 25% to GBP445k (6 months to 30 June 2015: GBP355k)
-- Revenues GBP327k (6 months to 30 June 2015: GBP327k)
-- Deferred revenue GBP150k (31 December 2015: GBP39k)
-- Operating costs of GBP1,323k (6 months to 30 June 2015: GBP1,399k)
-- EBITDA loss of GBP1,041k (6 months to 30 June 2015: GBP1,119k)
-- Operating cash outflow of GBP965k (6 months to 30 June 2015: GBP1,324k)
-- GBP1,201k received from the issue of new shares, net of costs
-- Liquid funds of GBP1,803k at 30 June 2016 (31 December 2015: GBP1,676k)
Operational highlights
-- Growth in the sales force starting to generate sales momentum
with 25% growth in invoiced sales versus the corresponding period
last year, and growth in deferred revenues of GBP150k from GBP39k
at 31 December 2015.
-- Continued growth and commercial traction in sports video
solutions and overall in the US market.
-- Implemented a leaner cost structure in May with benefits
starting to accrue in the second half of the year.
-- Stephen Streater stepped down as Chairman to be more
intensively involved in technology development, and David Main
moving from Non-Executive Director role to Chairman.
-- Successful fundraising of net GBP1.2m which is being used to
strengthen the Company's sales team.
Aziz Musa, Forbidden Technologies CEO, commented:
"I am pleased with our progress in the first half having secured
25% growth in invoiced sales over the corresponding period last
year. This builds on the early momentum in 2HY2015.
In addition to this we successfully secured new funding,
welcoming new investors to support the Company's development, and
completed an organisational restructuring saving circa GBP1.0m in
operating and capitalised costs on an annualised basis.
Finally, an increase in direct sales capacity has given us a
stronger top-line focus, and I look forward to seeing our growth
continue in the second half."
Enquiries:
Forbidden Technologies plc
Aziz Musa, CEO
Tel: +44 (0)20 8879 7245
Allenby Capital Limited (Nominated Adviser and Broker)
Nick Naylor, John Depasquale, Richard Short, Katrina Perez
Tel: +44 (0)20 7397 8900
Redleaf Communications (Financial PR)
Rebecca Sanders-Hewett, David Ison, Susie Hudson
Tel: +44 (0)20 7382 4730
Email: forbidden@redleafpr.com
About Forbidden Technologies plc
Forbidden Technologies plc (AIM: FBT, www.forbidden.co.uk)
floated in February 2000.
The Company develops and markets a powerful cloud video platform
with multiple applications which can be used by rights holders,
broadcasters, sports and news video specialists, post-production
houses, other mass market digital video channels, corporates and
consumers. The platform applications help customers improve their
time to market on time sensitive content, and efficiently exploit
the full value of their content.
Websites:
www.forbidden.co.uk
www.forscene.com
www.eva.co
www.captevate.com
Social media:
www.facebook.com/FORscene
www.plus.google.com/+Forscenepro/posts
www.linkedin.com/company/forscene
www.twitter.com/forscenepro
www.youtube.com/user/ForsceneTraining
Chairman's Statement
The six-month period to 30 June 2016 was one of building on the
momentum of the second half of last year, driven by an increased
focus on commercialising our cloud video platform. This growing
momentum is reflected in our results, as we look to re-establish a
pattern of growth in our business.
The market for video solutions increasingly demands a range of
tools to be able to fully exploit the value of high quality
content. The range of tools/apps includes those for user generated
content, video upload, logging and editing, non-professional video
editing, rapid generation of web clips and highlights packages, and
multi-channel publishing. We believe we now have the broadest range
of integrated cloud video solutions available, ranging from our
post production solutions for reality TV and other related long
form broadcast shows, to professional sports and news solutions, a
social/user generated video solution - eva, and what we believe is
the simplest video editing and publishing solution on the market -
Captevate.
Our commercial successes in the first half of the year include
strengthening our position in Sports, progressing our sales in the
North American market, securing a sale with the South African
government, achieving our first commercial uses of eva and
Captevate, and securing an agreement with Microsoft to be part of
its Azure marketplace.
Our technology and product development team is intensively
focused on supporting our commercial opportunities going forward
while ensuring we maintain our leading position in providing cloud
video solutions.
During this period, we also successfully raised an additional
net GBP1.2 million in June 2016 and strategically reduced our cost
base, primarily in non-commercial areas of the business. This
provides us with a stronger financial base while we grow our
sales.
Post this interim period, we have continued to make commercial
progress, including most recently securing a contract with an
iconic sports venue in the US to help it accelerate the release of
media highlights from its on-site events. Helping to provide speed
to market of content as well as tools to expand the use of
professional content will be an important focus for us going
forward.
Financial
Our key growth metric of invoiced sales was up 25% to GBP445k
for the six-month period ending 30 June 2016 versus GBP355k in the
corresponding period last year. Invoiced sales relate to licences
and services sold for a series of productions or events over a
period of usually up to 12 months.
Revenue earned in the period from invoiced sales was GBP327k,
flat with the corresponding period last year. Deferred revenue on
the balance sheet to be earned in future accounting periods was
GBP150k, up from GBP39k as at 31 December 2015.
After cost of sales the gross profit generated in the period of
GBP283k continued to produce a high gross margin of 86.5% similar
to the corresponding period last year. Operating costs were
GBP1,323k (30 June 2015: GBP1,399k), net of capitalised development
costs of GBP177k (2015: GBP227k). The EBITDA loss for the period
was GBP1,041k (30 June 2015: GBP1,119k) and the loss for the period
was GBP1,313k (30 June 2015: GBP1,351k).
Operating cash outflow in the period was GBP965k (30 June 2015:
GBP1,324k).
On 6 June 2016 the Company completed a GBP1.3m placing (before
expenses) through the issue of 18,571,421 new ordinary shares of
0.8 pence each at a price of 7 pence per share. The placing
provided cash of GBP1,193k after expenses. The proceeds of the
placing are being used to support the growth programs of the
business. The balance of the total of GBP1,201k raised through
share issues came from an option exercise. The Company remains debt
free and had liquid funds of GBP1,803k at 30 June 2016 (31 December
2015: GBP1,676k, 30 June 2015: GBP2,863k).
On 31 May 2016 the Company completed a restructuring aimed at
reducing ongoing operating and capitalised costs by around GBP1.0
million on an annualised basis, whilst maintaining a strong
sales-focused organisation in which we have a direct sales resource
of seven full-time employees versus 1.8 at 30 June 2015. These
savings will start to accrue in the second half of 2016.
Prospects
As well as starting this period with a larger base of deferred
revenues than both six and twelve months ago, we have a larger
sales force than we have ever had before. In addition, we continue
to build our base of partners to help drive sales going
forward.
Our recent deal with an iconic sports, music and entertainment
venue in New York reflects an increased focus on helping customers
to more effectively exploit the value of high quality content they
are already generating. It also demonstrates our growing presence
in the US market.
We continue to strengthen our cloud video platform against key
customer needs and ensure that all our solutions are capable of
working together. Expanding the use of our platform within our
existing customer base is a key part of our customer growth and
retention strategy and we are excited about the prospects provided
by further commercial traction and deals.
UNAUDITED AND CONDENSED CONSOLIDATED
STATEMENT OF COMPREHENSIVE INCOME FOR
THE SIX MONTHSED 30 JUNE 2016
Unaudited
Half Unaudited Audited
year Half Year
to year to 31
30 June to December
2016 30 June 2015
2015
GBP GBP GBP
CONTINUING OPERATIONS
Revenue 326,898 327,338 708,717
Cost of Sales (44,145) (47,167) (108,408)
=============================== ============ ============ ============
GROSS PROFIT 282,753 280,171 600,309
Operating costs (1,323,258) (1,398,781) (2,686,059)
=============================== ============ ============ ============
EARNINGS BEFORE INTEREST,
TAXATION, DEPRECIATION
AND AMORTISATION (1,040,505) (1,118,610) (2,085,750)
Depreciation (24,978) (68,114) (156,162)
Loss on disposal of
fixed assets - - (1,309)
Amortisation (208,700) (152,850) (334,602)
Employee share option
costs (41,003) (35,769) (84,783)
(274,681) (256,733) (576,856)
OPERATING LOSS (1,315,186) (1,375,343) (2,662,606)
Finance income 1,705 24,374 27,124
=============================== ============ ============ ============
LOSS BEFORE INCOME TAX (1,313,481) (1,350,969) (2,635,482)
Income Tax - - 79,059
=============================== ============ ============ ============
LOSS FOR THE PERIOD (1,313,481) (1,350,969) (2,556,423)
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD (1,313,481) (1,350,969) (2,556,423)
=============================== ============ ============ ============
Earnings per share expressed
in pence per share:
Basic - continuing and
total operations (0.97p) (1.02p) (1.94p)
=============================== ============ ============ ============
UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
30 JUNE 2016
Unaudited Unaudited Audited
at 30 June at 30 June at 31 December
2016 2015 2015
GBP GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible assets 1,486,690 1,438,553 1,518,666
Property, plant and
equipment 62,225 125,429 74,956
=============================== ============= ============= ================
1,548,915 1,563,982 1,593,622
============================== ============= ============= ================
CURRENT ASSETS
Inventories 6,788 60,318 -
Trade and other receivables 303,466 323,498 233,845
Tax receivable - - 79,059
Cash and cash equivalents 1,802,770 2,862,604 1,675,695
------------------------------- ------------- ------------- ----------------
2,113,024 3,246,420 1,988,599
============================== ============= ============= ================
TOTAL ASSETS 3,661,939 4,810,402 3,582,221
=============================== ============= ============= ================
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 1,203,890 1,054,518 1,054,518
Share premium 14,368,893 13,317,572 13,317,572
Capital contribution
reserve 125,000 125,000 125,000
Retained earnings (12,460,180) (10,031,262) (11,187,702)
TOTAL EQUITY 3,237,603 4,465,828 3,309,388
=============================== ============= ============= ================
CURRENT LIABILITIES
Trade and other payables 424,336 344,574 272,833
=============================== ============= ============= ================
TOTAL LIABILITIES 424,336 344,574 272,833
=============================== ============= ============= ================
TOTAL EQUITY AND LIABILITIES 3,661,939 4,810,402 3,582,221
=============================== ============= ============= ================
UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
FOR THE SIX MONTHSED 30 JUNE 2016
Called Capital
up share Share contribution Retained Total
capital premium reserve earnings equity
GBP GBP GBP GBP GBP
Balance at
1 January
2015 1,054,518 13,317,572 125,000 (8,716,062) 5,781,028
Changes in
equity
Share based
payment - - - 35,769 35,769
Total comprehensive
income - - - (1,350,969) (1,350,969)
---------------------- ---------- ----------- -------------- ------------- ------------
Balance at
30
June 2015 1,054,518 13,317,572 125,000 (10,031,262) 4,465,828
---------------------- ---------- ----------- -------------- ------------- ------------
Changes in
equity
Share based
payment - - - 49,014 49,014
Total comprehensive
income - - - (1,205,454) (1,205,454)
====================== ========== =========== ============== ============= ============
Balance at
31 December
2015 1,054,518 13,317,572 125,000 (11,187,702) 3,309,388
====================== ========== =========== ============== ============= ============
Changes in
equity
Issue of
share capital 149,372 1,051,321 - - 1,200,693
Share based
payment - - - 41,003 41,003
Total comprehensive
income - - - (1,313,481) (1,313,481)
====================== ========== =========== ============== ============= ============
Balance at
30 June 2016 1,203,890 14,368,893 125,000 (12,460,180) 3,237,603
====================== ========== =========== ============== ============= ============
UNAUDITED AND CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2016
Unaudited Unaudited Audited
Half Half Year
year year to 31
to to December
30 June 30 June 2015
2016 2015
GBP GBP GBP
EARNINGS BEFORE INTEREST,
TAXATION, DEPRECIATION
AND AMORTISATION (1,040,505) (1,118,610) (2,085,750)
(Increase)/decrease
in trade and other receivables (69,623) (29,620) 60,033
(Increase)/decrease
in inventories (6,788) (18,355) 41,963
Increase/(decrease)
in trade and other payables 151,505 (157,003) (228,744)
-------------------------------------- ------------- ------------- -------------
CASH GENERATED FROM
OPERATIONS (965,411) (1,323,588) (2,212,498)
Tax received 79,059 33,650 33,650
-------------------------------------- ------------- ------------- -------------
NET CASH FROM OPERATING
ACTIVITIES (886,352) (1,289,938) (2,178,848)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of intangible
fixed assets (176,724) (226,864) (488,729)
Purchase of tangible
fixed assets (12,247) (3,868) (44,639)
Sale of tangible fixed
assets - - 1,887
Sale of fixed term deposits - 2,000,000 2,000,000
Interest received 1,705 24,374 27,124
-------------------------------------- ------------- ------------- -------------
NET CASH FROM INVESTING
ACTIVITIES (187,266) 1,793,642 1,495,643
CASH FLOWS FROM FINANCING
ACTIVITIES
Share issue (net of
expenses) 1,200,693 - -
NET CASH FROM FINANCING
ACTIVITIES 1,200,693 - -
Increase in cash and
cash equivalents 127,075 503,704 (683,205)
-------------------------------------- ------------- ------------- -------------
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 1,675,695 2,358,900 2,358,900
CASH AND CASH EQUIVALENTS
AT OF PERIOD 1,802,770 2,862,604 1,675,695
-------------------------------------- ------------- ------------- -------------
NOTES TO THE UNAUDITED AND CONDENSED CONSOLIDATED INTERIM
ACCOUNTS
FOR THE SIX MONTHSED 30 JUNE 2016
1. Basis of preparation and accounting policies
These interim statements have been prepared on a basis
consistent with International Financial Reporting Standards (IFRS).
They do not contain all of the information required for full
financial statements, and should be read in conjunction with the
consolidated financial statements of the Company as at and for the
year ended 31 December 2015. These interim financial statements do
not constitute statutory accounts within the meaning of the
Companies Act.
The interim financial information has not been audited. The
interim financial information was approved by the Board of
Directors on -- September 2016. The information for the year ended
31 December 2015 is extracted from the statutory financial
statements for that year which have been reported on by the Group's
auditors and delivered to the Registrar of Companies. The audit
report was unqualified and did not contain a statement under s498
(2) or 498(3) of the Companies Act 2006.
The accounting policies applied by the Company in these interim
financial statements are the same as those applied by the Company
in its financial statements for the year ended 31 December
2015.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LAMFTMBAMBPF
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