TIDMMIRI
RNS Number : 9791J
Mirriad Advertising PLC
22 August 2023
22 August 2023
Mirriad Advertising plc
("Mirriad" or the "Company")
Unaudited interim results
Mirriad, the leading in-content advertising company, today
announces unaudited interim results for the six months ended 30
June 2023 (the "Period" or "H1").
H1 results webinar
The Company will host a webinar for analysts and investors at
14:00 BST on 22 August 2023 following which the presentation will
be made available on the Company's website. If you would like to
attend, please email
mirriad@charlottestreetpartners.com to register for dial-in details.
H1 2023 highlights:
Strategic developments
-- The Company completed a strategic review during the Period,
concluding that a restructuring to significantly reduce net cash
burn alongside an equity capital raise was the most appropriate
route forward
-- Continued development of the Company's proprietary platform
to deliver fully programmatic advertising sales, initially focused
on the US market, with expectation of first recurring programmatic
revenues in 2024
-- Continued development and penetration of the US supply-side
customer base with strong focus on the major entertainment and
connected TV players resulting in an expectation of contracting for
a programmatic service with at least one of these US tier 1
customers by the end of 2023
-- Continued development and penetration of the US demand-side
with strong focus on the top 20 advertisers by spend, significantly
increased number of repeat buyers across key industry
categories
-- Technology collaboration with Microsoft announced, targeting
joint market activity and accelerated roadmap advancement including
integration of advanced AI capabilities
-- New partner signed in the Middle East boosting revenue in the EMEA region
Financial headlines
-- Revenue for H1 of GBP592k (H1 2022: GBP577k) despite market
headwinds in the US. Due to seasonal nature of key advertising
markets and the sales pipeline, higher revenues are expected in H2
2023
-- Gross proceeds from Placing and Open Offer in May 2023 of GBP6.3m (GBP5.7m net)
-- Restructuring programme completed with cost of change of
GBP186k recognised in the Period and Company on track to reduce net
cash burn by approximately 35% from GBP1.1m in the 12 months to
June 2023 to around GBP700k per month for the 12 months to June
2024
-- Final closure of Chinese operations at the end of Q1 2023
-- Closing cash at the end of June 2023 of GBP9.8m (30 June
2022: GBP17.7m) and no debt give a forecast runway to end August
2024
-- Marginal increase in cash consumption in the Period to
GBP7.0m (H1 2022: GBP6.7m) due to a number of one-off receipts in
the prior Period
-- Operating loss for the Period reduced to GBP7.5m (H1 2022:
loss of GBP8.5m) as a result of cost reductions announced in
2022
-- Loss per share 2p (H1 2022: loss 3p)
KPIs - continuing operations*
KPI H1 2023 H1 2022 Change
Supply side
1. Active supply partnerships 18 17 +6%
2. Supply partners represented 68 60 +13%
3. Seconds of content available 410,808 337,862 +22%
---------- ---------- -------
Demand side
1. Active agency relationships 18 9 +100%
2. Number of advertisers who have run campaigns 31 18 +72%
3. Strategic and commercial partnership agreements with advertisers and agencies
1 2 -50%
---------- ---------- -------
* data restated to exclude Chinese operations in H1 2022
comparatives
Stephan Beringer, CEO of Mirriad , said: "Our growing momentum
with the biggest entertainment companies in the US and Europe shows
Mirriad is now leading the in-content advertising category and that
the overall market environment is turning in our direction because
of the pressing need for new revenue streams. Our collaboration
with Microsoft, which we announced in May 2023, has accelerated the
development of our platform as an enterprise level solution that is
ready for programmatically sold inventory - a key building block
for tier 1 partnerships and prerequisite for the increased scale
we've been working towards.
"On the demand side, the Company is focusing on a key account
strategy for advertisers. Even before enabling programmatic
trading, we already work with nine of the top twenty US
advertisers, which account for over ten billion dollars in total
combined annual advertising spend. We are also pleased to see an
increase in repeat bookings in H1 from large customers in the
automotive, retail, FMCG, food & beverage, healthcare and
financial services industries.
"We are now moving from market building to growth phase, which
we expect to kick in with programmatic revenues in 2024. This will
move the Company from its current manual sales process to an
automated sales process, facilitating scale. So far in 2023 we've
seen improvements across the majority of our KPIs, despite
continuing advertising market headwinds in the US and the fact that
this is our first year without meaningful revenue from China.
"We expect materially higher revenues in H2 based on the
seasonality of the advertising business. The recent cost-cutting
measures required some difficult decisions but, following a
successful equity fundraise and the strong focus on platform,
programmatic and partnerships, we are confident the business is now
on a strong footing moving into H2 and beyond."
S
For further information please visit www.mirriad.com or
contact:
Mirriad Advertising plc Tel: +44 (0)207 884 2530
Stephan Beringer, Chief Executive Officer
David Dorans, Chief Financial Officer
Nominated Adviser & Broker: Tel: +44 (0)20 7886 2500
Panmure Gordon
James Sinclair-Ford/Daphne Zhang (Corporate
Advisory)
Rupert Dearden (Corporate Broking)
Financial Communications:
Charlotte Street Partners
Tom Gillingham Tel: +44 (0) 7741 659021
Fergus McGowan Tel: +44 (0) 7590 049023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
About Mirriad
Mirriad's award-winning solution unleashes new revenue for
content producers and distributors by creating new advertising
inventory in content. Our patented, AI and computer vision
technology dynamically inserts products and innovative signage
formats after content is produced. Mirriad's market-first solution
seamlessly integrates with existing subscription and advertising
models, and dramatically improves the viewer experience by limiting
commercial interruptions.
Mirriad currently operates in the US, Europe and the Middle
East.
Chairman's Statement
We have now completed the detailed strategic review and closed a
successful equity fundraising round which gives us important
clarity to now deliver on the agreed outcomes.
As has been widely reported, the macro-economic climate we
operate in has not become any easier, but the decisions the Company
has taken are intended to ensure Mirriad can ride out the current
advertising market softness and effectively deploy what is an
effective and scalable solution against global audience fatigue and
shrinking volumes of available inventory.
The restructuring that resulted from the strategic review was
not an easy process, and it's always challenging when a business
has to say goodbye to colleagues. We wish those who have left the
business the best for the next steps in their careers. Throughout
the process we have focused on retaining a motivated workforce and
I'm pleased to say morale is high and we have strong internal
alignment as we drive the business forward.
As part of the strategic review, we have also changed the
composition of our board. Alastair Kilgour and Lois Day have
stepped down and I would like to personally thank them for their
contribution to the business and their strategic insight during the
recent period in particular.
We now look forward to further development in programmatic
delivery, which is the key route to scale for the Company,
particularly in the important US market. As we have indicated, we
anticipate 2024 will be a key year for US revenues stemming from
this transition.
At the same time, we are already starting to realise cost
savings as a result of the steps taken during the strategic review,
and continuing to drive these efficiencies will be a priority as we
deliver on objectives. I have said previously, we will focus our
spend in the areas which will have most impact whilst reducing and
reprioritising expenditure away from areas with less immediate
revenue generating potential, and this remains true today.
H2 is traditionally a busier period for ad campaign booking and
we have a high-quality pipeline. I would like to again thank our
shareholders for their continued engagement and patience during the
strategic review. Management and the whole team are now hard at
work converting the pipeline and preparing the Company for the
transition to programmatic delivery which is the key enabler of
Mirriad's future growth.
John Pearson
Non-executive Chairman
22 August 2023
Chief Executive Officer's Statement
Overview
We recorded a modest increase in overall H1 revenue in 2023
compared to H1 2022, as the Company still operates within its
pre-programmatic sales model. This is set against a backdrop of
significant and ongoing US advertising market pressure, which can
be tracked back to Q4 2022.
It is pleasing to see our ability to make relative revenue
progress in the EU and the Middle East while conditions are less
favourable in the US, but the latter has by far the most potential
and will remain our focus ahead of advertising market confidence
returning.
We have seen improvement across most of the KPIs we regularly
report against, and we expect to see further progress in the areas
that have stayed broadly stable in this most recent reporting
period.
Mirriad's future success will be driven by platform,
programmatic and partnerships. All the work undertaken so far is to
initiate Mirriad's transition to automated programmatic selling at
scale, and with the key building blocks for this now falling into
place, we are confident that the rewards will follow soon. The
collaboration with Microsoft has accelerated our development, and
there is more to come especially as we increasingly leverage
Microsoft's leading AI capabilities in our platform.
Campaigns update
In terms of campaigns delivered in H1 2023, there were notable
achievements with over 20 tier 1 brands across multiple categories
including FMCG, automotive, retail, food & beverages, telco and
alcohol. The number of advertisers who have run campaigns has
increased by 72% since the comparative period in 2022, and now sits
at 31 in total for H1 2023.
The performance of Mirriad campaigns has improved even further,
with recent research results showing brand affinity up by 96%,
purchase intent up by 54% and our format preferred more than eight
times versus traditional TV spot advertising. These results clearly
underline the superiority of our in-content format, as a growing
number of advertisers renew their investments with us.
This month we released a white paper together with Kantar, the
global leader in audience and media research. Our joint study found
that a substantial 86% of all viewers take actions to avoid
interruptive video advertising across broadcast and network TV,
streaming, and online video. In contrast, viewers feel much more
positive about in-content advertising from Mirriad and take no
steps to avoid this integrated ad format. The research adds further
evidence to the value of Mirriad's ad format for the entire
industry across all distribution models including SVOD.
The same Kantar study also found that a viewer's negative
perception of an ad format leads to lower purchase activity.
Viewers are so over-saturated by TV and video advertising that, if
they do see the ads, they purchase the advertised products and
services at a lower rate. Mirriad's virtual in-content format
compares very favourably due to its non-intrusive and natural
nature. It is liked by viewers and, therefore, the research
indicates that it is able to drive 35% more sales.
Pipeline and partners update
Our KPIs show a steep increase in the number of active agency
relationships, as well as a rising number of advertisers who have
run campaigns. We also saw an increase in repeat customers in H1
with a total of 14 repeat brands advertising in H1 2023 versus 4 in
the same period in 2022. While we don't intend to advance the
headline number of supply-side partnerships as rapidly going
forward, we do expect the depth and breadth of the engagements with
top 10 players in the US we're now focusing on, to take our
business to its next level thanks to enterprise-level integrations,
including the enablement of programmatically transacted inventory.
Our expectation is to sign our first programmatic agreement with a
major US entertainment content company by the end of this year.
Technology update
To date our revenue profile has been based on a labour-intensive
manual sales process, and 2023 is the year we initiate the
transition from this first market building and adoption phase to
programmatic selling, which is expected to open up increased
volumes, far shorter lead times, automated transactions and true
scale. We anticipate this form of revenue building in the US market
in particular in 2024.
Outlook
Now that we have completed the strategic review and the equity
fundraising plan, we have a cash runway to the end of August 2024,
which we expect to give us headroom to unlock the significant
opportunity that exists with programmatic selling in 2024 in the US
in particular.
Our pipeline is strong, with interest from the top players in
the industry, thanks to the progress we have made technologically
and by proving the unique performance of our solution with some of
the biggest networks, advertisers and content owners as a true
differentiator in what is a saturated and constrained global ad
market.
This approach is our route to scaling the Company in line with
its full potential in highly challenged multibillion dollar media
and marketing industries, and to creating long-term shareholder
value. Everyone at Mirriad is laser-focused on this objective, and
I have every confidence in our re-shaped, highly motivated team's
ability to deliver.
Stephan Beringer
Chief Executive
22 August 2023
Chief Financial Officer's Statement
Interim results
In H1 2023 revenues were modestly higher than the same period in
2022 even though this was the first year without material revenues
from China. Revenues for the Period were GBP592k (H1 2022: GBP577k)
an increase of 3%. Looking specifically at continuing operations
results were more impressive with revenues for the Period
increasing by 26% to GBP576k (H1 2022: GBP458k). Within this US
revenues continued to be impacted by the overall slowdown in the US
advertising market, an industry wide phenomenon that started in Q4
2022. This meant that US revenues declined Period on Period to
GBP313k (H1 2022: GBP418k).
Conversely Europe & the Middle East ("EMEA") saw a
significant growth in revenue, albeit from a modest base to GBP261k
(H1 2022: GBP40k). This was a result of the sale of regular
campaigns on both RTL Deutschland and ProSieben in Germany and a
new Middle Eastern partner, MBC.
Gross profit for the Period increased modestly to GBP433k (H1
2022: GBP430k). The increase in Gross profit was slightly lower
than the increase in revenue as a result of inflationary increases
in the cost of sales. As previously stated, cost of sales is
principally expenditure on staff as the increase was due to salary
inflation.
The Group's operating loss decreased by 11% during the Period to
GBP7.5m (H1 2022: GBP8.5m) because of a reduction in administrative
expenses following the exit from our Chinese business and other
cost saving measures instigated in H2 2022. The Company had
previously flagged that the exit from China would lead to
annualised savings of GBP1m and that other cost savings measures
would lead to an incremental reduction in operating expenditure of
around GBP1.5m on an annualised basis with an overall reduction of
GBP2.5m anticipated on an annualised basis. This is before the
impact of the restructuring announced in the Period. In total
administrative expenses in the Period decreased by 10% to GBP8.0m
(H1 2022: GBP8.9m). Headcount as at 30 June 2023 was 91 (30 June
2022: 109).
At the half year end, we have again reviewed our compliance with
IAS 38 and we continue to believe that the inherent uncertainty of
future revenue generation means that it is not appropriate to
capitalise any of our development cost in the first six months of
the year.
The Group continues to prioritise expenditure on research and
development as it builds programmatic capability. Nevertheless, the
Company chose to make some tactical reductions in its technology
function in line with the wider business restructuring with a view
to focusing spend on the transition to programmatic sales. For the
period ending June 2023 total expenditure on research and
development was broadly flat at GBP1.9m (H1 2022: GBP2.0m).
The loss for the period before tax decreased by 12% to GBP7.5m
(H1 2022: GBP8.4m) in line with the decrease in operating loss
noted above.
Tax
The Group has not recognised any tax assets in respect of
trading losses arising in the current financial period or
accumulated losses in previous financial years. The tax credit
recognised in the current and previous period arises from the
receipt of R&D tax credits in the UK. The amount receivable for
the Period ended 30 June 2023 is GBP292k (H1 2022: GBP293k).
Earnings per share
The company recorded a loss of 2 pence per share (H1 2022: loss
of 3 pence per share) mainly as a result of the reduced losses.
This calculation is based on the weighted average number of shares
in issue during the period and so the shares issued following the
placing and open offer in June 2023 had a relatively small impact
on the calculation.
Dividend
No dividend has been proposed for the Period ended 30 June 2023
(H1 2022: GBPnil).
Cash flow
Net cash used in operations (defined as the sum of net cash used
in operating activities and the net cash used in investing
activities) during the Period increased marginally to GBP7.0m (H1
2022: GBP6.7m). There are a number of one off items which explain
the divergence between operating loss and cashflow: final cash
closure costs for our China operations were incurred in the Period
whereas the charge was incurred in H2 2022; H1 2022 included a rent
free period on the renegotiated London office lease; and H1 2022
included the receipt for the 2019 restated R&D tax credit
whereas there was no matching receipt in H1 2023. During the period
no development costs were capitalised (H1 2021: GBPnil). The Group
also incurred GBP8k (H1 2022: GBP42k) of capital expenditure on
tangible assets.
210,128,596 Ordinary Shares were issued in the Period (H1 2022:
Nil) as a result of the successful placing and open offer which
closed in May 2023.
Balance sheet
The Group has a debt-free balance sheet. Net assets decreased by
43% to GBP10.3m (30 June 2022: GBP17.9m) as the Company used cash
balances to fund the Group's ongoing operations balanced by the
funds raised from the placing and open offer of GBP5.7m. Cash and
cash equivalents at 30 June 2023 were GBP9.8m (30 June 2022:
GBP17.7m).
Accounting policies
These condensed consolidated interim financial statements for
the half-year reporting period ended 30 June 2023 have been
prepared in accordance with the UK-adopted International Accounting
Standard (IAS) 34, 'Interim Financial Reporting'.
David Dorans
Chief Financial Officer
22 August 2023
Company Information
Directors Independent Auditors
John Pearson PricewaterhouseCoopers LLP
Chairman 7 More London Riverside
Stephan Beringer London
Chief Executive Officer SE1 2RT
David Dorans
Chief Financial Officer Solicitors
Bob Head Osborne Clarke LLP
Non-Executive Director 6th Floor
Nicole McCormack One London Wall
Non-Executive Director London
JoAnna Foyle EC2Y 5EB
Non-Executive Director
Company registration number Company Secretary
09550311 Jamie Allen
-----------------------------------
Registered Office Nominated Adviser & Broker
6(th) Floor Panmure Gordon (UK) Limited
One London Wall 40 Gracechurch St
London London
EC2Y 5EB EC3V 0BT
-----------------------------------
Company website Financial PR
www.mirriad.com Charlotte Street Partners Limited
Prospect House
5 Thistle Street
Edinburgh
EH12 1DF
-----------------------------------
Registrars
Computershare Investor Services
plc
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
-----------------------------------
Condensed consolidated statement of profit or loss and condensed
statement of comprehensive income for the six months ended 30 June
2023
Year ended
31 December
Six months ended 30 June 2023 Six months ended 30 June 2022 2022
(unaudited) (unaudited) (audited)
Note GBP GBP GBP
------------------------------- ------------------------------- --------------
Revenue 5 591,883 577,436 1,507,257
Cost of Sales (158,977) (147,154) (286,316)
---------------------------- ------ ------------------------------- ------------------------------- --------------
Gross Profit 432,906 430,282 1,220,941
---------------------------- ------ ------------------------------- ------------------------------- --------------
Administrative expenses (7,960,508) (8,880,678) (16,863,015)
Other operating Income - - -
---------------------------- ------ ------------------------------- ------------------------------- --------------
Operating Loss (7,527,602) (8,450,396) (15,642,074)
---------------------------- ------ ------------------------------- ------------------------------- --------------
Finance Income 80,122 23,093 71,875
Finance costs (5,501) (18,622) (22,512)
---------------------------- ------ ------------------------------- ------------------------------- --------------
Finance income / (costs)
net 74,621 4,471 49,363
Loss before income tax (7,452,981) (8,445,925) (15,592,711)
Income tax credit 291,984 293,300 491,888
---------------------------- ------ ------------------------------- ------------------------------- --------------
Loss for the period / year (7,160,997) (8,152,625) (15,100,823)
---------------------------- ------ ------------------------------- ------------------------------- --------------
Loss per ordinary share - basic 6 (2p) (3p) (5p)
------------------------------------ ------------------------------- ------------------------------- --------------
All activities are classified as continuing.
Year ended
31 December
Six months Six months
ended 30 June ended 30 June
2023 2022 2022
(unaudited) (unaudited) (audited)
GBP GBP GBP
--------------- --------------- --------------
Loss for the financial period
/ year (7,160,997) (8,152,625) (15,100,823)
------------------------------------------ --------------- --------------- --------------
Other comprehensive income
Items that may be reclassified
to profit or loss:
Exchange differences on translation
of foreign operations 46,903 276,856 43,782
------------------------------------------ --------------- --------------- --------------
Total comprehensive loss for
the period / year (7,114,094) (7,875,769) (15,057,041)
------------------------------------------ --------------- --------------- --------------
Condensed consolidated balance sheet
At 30 June 2023
As at 31
December
As at 30 As at 30
June 20 23 June 2022 2022
(unaudited) (unaudited) (audited)
Note GBP GBP GBP
----------------------------- ----- -------------- -------------- -------------
Assets
Non-current assets:
Property, plant and
equipment 380,557 704,104 544,242
Trade and other receivables 186,826 188,795 187,657
567,383 892,899 731,899
Current assets
Trade and other receivables 1,511,862 1,307,677 2,221,091
Other current assets 821,361 1,135,286 529,377
Cash and cash equivalents 9,791,488 17,714,189 11,289,123
----------------------------- ----- -------------- -------------- -------------
12,124,711 20,157,152 14,039,591
----------------------------- ----- -------------- -------------- -------------
Total assets 12,692,094 21,050,051 14,771,490
----------------------------- ----- -------------- -------------- -------------
Liabilities
Non-current liabilities
Lease liabilities 110,107 357,912 206,988
----------------------------- ----- -------------- -------------- -------------
110,107 357,912 206,988
----------------------------- ----- -------------- -------------- -------------
Current liabilities
Trade and other payables 1,997,476 2,419,427 2,904,311
Provisions 40,743 - 198,199
Current tax liabilities 14,330 - 14,330
Lease liabilities 264,109 345,196 322,401
----------------------------- ----- -------------- -------------- -------------
2,316,658 2,764,623 3,439,241
----------------------------- ----- -------------- -------------- -------------
Total liabilities 2,426,765 3,122,535 3,646,229
----------------------------- ----- -------------- -------------- -------------
Net Assets 10,265,329 17,927,516 11,125,261
----------------------------- ----- -------------- -------------- -------------
Equity and Liabilities
Equity attributable
to owners of the parent
Share capital 7 54,791 52,690 52,690
Share premium 71,406,966 65,754,666 65,754,666
Share based payment
reserve 5,506,616 4,527,838 4,906,855
( 269,369 ( 83,198 ( 316,272
Retranslation reserve ) ) )
( 66,433,675 ( 52,324,480 ( 59,272,678
A ccumulated losses ) ) )
----------------------------- ----- -------------- -------------- -------------
Total equity 10,265,329 17,927,516 11,125,261
----------------------------- ----- -------------- -------------- -------------
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2023
Six months ended 30 June 2022
--------------------------------------------------------------------------------------------
Share
Share Share based payment Retranslation Accumulated Total
Capital Premium reserve reserve Losses Equity
Note GBP GBP GBP GBP GBP GBP
----------------- ---------- --------- ----------- --------------- -------------- ------------- ------------
Balance as at
1 January 2022 52,690 65,754,666 3,665,525 (360,054) (44,171,855) 24,940,972
----------------- ---------- --------- ----------- --------------- -------------- ------------- ------------
Loss for the
period - - - - (8,152,625) (8,152,625)
Other
comprehensive
income for the
period - - - 276,856 - 276,856
----------------- ---------- --------- ----------- --------------- -------------- ------------- ------------
Total
comprehensive
loss for the
period - - - 276,856 (8,152,625) (7,875,769)
----------------- ---------- --------- ----------- --------------- -------------- ------------- ------------
Share based
payments
recognised as
expense - - 862,313 - - 862,313
----------------- ---------- --------- ----------- --------------- -------------- ------------- ------------
Total transactions
with shareholders
recognised directly
in equity - - 862,313 - - 862,313
----------------------------- --------- ----------- --------------- -------------- ------------- ------------
Balance as
at 30 June 2022 52,690 65,754,666 4,527,838 (83,198) (52,324,480) 17,927,516
----------------------------- --------- ----------- --------------- -------------- ------------- ------------
Year ended 31 December 2022 (audited)
----------------------------------------------------------------------------------
Share based
Share Share payment Retranslation Accumulated Total
Capital Premium reserve reserve Losses Equity
GBP GBP GBP GBP GBP GBP
----------------------- --- ---------- ----------- ------------ -------------- ------------- -------------
Balance at 1
January 2022 52,690 65,754,666 3,665,525 (360,054) (44,171,855) 24,940,972
Loss for the
financial year - - - - (15,100,823) (15,100,823)
Other comprehensive
income for the
year - - - 43,782 - 43,782
----------------------- --- ---------- ----------- ------------ -------------- ------------- -------------
Total comprehensive
loss for the
year - - - 43,782 (15,100,823) (15,057,041)
----------------------- --- ---------- ----------- ------------ -------------- ------------- -------------
Share based payments
recognised as
expense - - 1,241,330 - - 1,241,330
----------------------- --- ---------- ----------- ------------ -------------- ------------- -------------
Total transactions
with shareholders
recognised directly
in equity - - 1,241,330 - - 1,241,330
---------------------------- ---------- ----------- ------------ -------------- ------------- -------------
Balance as
at 31 December
2022 52,690 65,754,666 4,906,855 (316,272) (59,272,678) 11,125,261
---------------------------- ---------- ----------- ------------ -------------- ------------- -------------
Six months ended 30 June 2023
--------------------------------------------------------------------------------------------
Share
Share Share based payment Retranslation Accumulated Total
Capital Premium reserve reserve Losses Equity
Note GBP GBP GBP GBP GBP GBP
----------------- ---------- --------- ----------- --------------- -------------- ------------- ------------
Balance as at
1 January 2023 52,690 65,754,666 4,906,855 (316,272) (59,272,678) 11,125,261
----------------- ---------- --------- ----------- --------------- -------------- ------------- ------------
Loss for the
period - - - - (7,160,997) (7,160,997)
Other
comprehensive
income for the
period - - - 46,903 - 46,903
----------------- ---------- --------- ----------- --------------- -------------- ------------- ------------
Total
comprehensive
loss for the
period - - - 46,903 (7,160,997) (7,114,094)
----------------- ---------- --------- ----------- --------------- -------------- ------------- ------------
Proceeds from
shares issued 2,101 6,301,757 - - - 6,303,858
Share issue
costs - (649,457) - - - (649,457)
Share based
payments
recognised as
expense - - 599,761 - - 599,761
----------------- ---------- --------- ----------- --------------- -------------- ------------- ------------
Total transactions
with shareholders
recognised directly
in equity 2,101 5,652,300 599,761 - - 6,254,162
----------------------------- --------- ----------- --------------- -------------- ------------- ------------
Balance as
at 30 June 2023 54,791 71,406,966 5,506,616 (269,369) (66,433,675) 10,265,329
----------------------------- --------- ----------- --------------- -------------- ------------- ------------
Condensed consolidated statement of cash flows for the six months ended 30 June 2023
Note Year ended
31 December
Six months 2022
ended 30
June 2023 Six months ended 30 June 2022
(unaudited) (unaudited) (audited)
GBP GBP GBP
--------------- ------ -------------- ------------------------------- --------------
Cash flow used
in operating
activities 8 (7,052,411) (6,941,442) (14,017,146)
Tax credit
received - 274,335 1,116,320
Taxation paid (10,848) (14,291) (39,829)
Interest
received 80,122 23,093 71,875
Lease interest
paid (5,501) (18,622) (22,512)
--------------- ------ -------------- ------------------------------- --------------
Net cash used
in operating
activities (6,988,638) (6,676,927) (12,891,292)
--------------- ------ -------------- ------------------------------- --------------
Cash flow from
investing
activities
Purchase of
tangible
assets (8,225) (42,462) (75,647)
Proceeds from - - -
disposal of
tangible
assets
--------------- ------ -------------- ------------------------------- --------------
Net cash used
in investing
activities (8,225) (42,462) (75,647)
--------------- ------ -------------- ------------------------------- --------------
Cash flow from
financing
activities
Proceeds from 5,654,401 - -
issue of
ordinary share
capital (net
of costs of
issue)
Payment of
lease
liabilities (155,173) (67,636) (245,152)
--------------- ------ -------------- ------------------------------- --------------
Net cash used
in financing
activities 5,499,228 (67,636) (245,152)
--------------- ------ -------------- ------------------------------- --------------
Net decrease
in cash and
cash
equivalents (1,497,635) (6,787,025) (13,212,091)
Cash and cash
equivalents
at the
beginning of
the period /
year 11,289,123 24,501,214 24,501,214
Cash and cash
equivalents
at the end of
the period /
year 9,791,488 17,714,189 11,289,123
--------------- ------ -------------- ------------------------------- --------------
Cash and cash equivalents
consists of
Cash at bank and in hand 9,791,488 17,714,189 11,289,123
Cash and cash equivalents 9,791,488 17,714,189 11,289,123
---------------------------- ---------- ----------- -----------
1 Basis of preparation
These condensed consolidated interim financial statements for
the half-year reporting period ended 30 June 2023 have been
prepared in accordance with the UK-adopted International Accounting
Standard (IAS) 34, 'Interim Financial Reporting'.
The interim report does not include all of the notes of the type
normally included in an annual financial report. Accordingly, this
report is to be read in conjunction with the annual report for the
year ended 31 December 2022, which has been prepared in accordance
with UK-adopted international accounting Standards and with the
requirements of the Companies Act 2006 as applicable to companies
reporting under those standards.
These condensed interim consolidated financial statements for
the six months ended 30 June 2023 and for the six months ended 30
June 2022 do not constitute statutory accounts as defined in
Section 434 of the Companies Act and are unaudited. The financial
information for the six months ended 30 June 2023 presents
financial information for the consolidated Group, including the
financial results of the Company's wholly owned subsidiaries
Mirriad Advertising Private Limited, Mirriad Inc, Mirriad Software
Science and Technology (Shanghai) Co. Ltd, and Mirriad Limited
(dormant). Comparative figures in the condensed interim financial
statements for the year ending 31 December 2022 have been taken
from the Group's audited financial statements on which the Group's
auditors, Pricewaterhouse Coopers LLP, expressed an unqualified
opinion.
The Board approved these interim financial statements on 22
August 2023.
1.1 Going concern
These condensed interim financial statements have been prepared
on the going concern basis, notwithstanding the Group having made a
loss for the period of GBP7.16 million (June 2022: GBP8.15
million). The going concern basis assumes that the Group and
Company will have sufficient funds available to continue to trade
for the foreseeable future and not less than 12 months from the end
of the financial period being reported.
The Group's cash balance was GBP9.8 million at the period end
and the Group remains debt free with no external borrowing.
The Company announced a successful placing and open offer that
raised a total of GBP6.3 million, before costs on 2(nd) June 2023.
This amounts to GBP5.65 million after fees and related costs. After
making enquiries and producing cash flow forecasts for the period
up to 31 December 2025, the Directors have reasonable expectations,
as at the date of approving the financial statements, that the
Company and the Group will have adequate resources to fund the
activities of the Company and the Group for the next 12 months from
the date of the financial period being reported. The Group and
Company's base case forecast suggests that the Group will require
additional external funding in August 2024 to be able to continue
as a going concern. However, in a severe but plausible downside
scenario, if either the revenue growth forecasts or cost saving
initiatives fall below expectation, additional funding may be
required, within 12 months of approving these condensed interim
financial statements which is not currently committed.
While these condensed interim financial statements are prepared
on a going concern basis, under a severe but plausible downside
scenario the future of the Group and Company is dependent on
raising additional external funds from new equity, debt or customer
contracts within 12 months from the date of signing these financial
statements.
As such these conditions indicate the existence of a material
uncertainty which may cast significant doubt about the Group's and
the Company's ability to continue as a going concern. These
condensed interim financial statements do not include the
adjustments that would arise if the Group or Company were unable to
continue as a going concern.
2 Accounting Policies
The accounting policies applied are consistent with those of the
annual report and accounts for the year ended 31 December 2022, as
described in those financial statements other than standards,
amendments and interpretations which became effective after 1
January 2023 and were adopted by the Group. These have had no
significant impact on the Group's loss for the period or
equity.
Seasonality of Operations
Due to the seasonal nature of the US and UK advertising markets
higher revenues are usually expected in the second half of the year
than the first six months. In the financial year ended 31 December
2022, 35% of US revenues accumulated in the first half of the year,
with 65% accumulating in the second half. For the UK Company 22% of
revenues accumulated in the first half of 2022 and 78% in the
second half.
There are no items affecting assets, liabilities, equity, net
income or cash flows that are unusual because of their nature, size
or incidence which are required to be disclosed under IAS 34 para
16A(c).
There are no events after the interim reporting period which are
required to be reported under IAS 34 para 16A(h).
There are no financial instruments being measured at fair value
which require disclosure under IAS 34 para 16A(j)
3 Group financial risk factors
The condensed interim financial statements do not contain all
financial risk management information and disclosures required in
annual financial statements; the information should be read in
conjunction with the financial information, as at 31 December 2022,
summarized in the 2022 annual report and accounts. There have been
no significant changes in any risk management policies since 31
December 2022.
4 Critical accounting estimates and judgements
The preparation of interim financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results might differ from these estimates. IAS34(16A)(d) In
preparing these condensed interim financial statements, the
significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty
were the same as those that applied to the consolidated financial
statements for the year ended 31 December 2022.
There are no changes in estimates of amounts reported in prior
financial years.
5 Segment information
Management mainly considers the business from a geographic
perspective since the same services are effectively being sold in
every Group entity. Therefore, regions considered for segmental
reporting are where the Company and subsidiaries are based, namely
the UK, the USA, India and China. The revenue is classified by
where the sales were booked not by the geographic location of the
customer.
In the current and prior reporting period there is no income
outside of the primary business activity.
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating
segments, has been identified as the steering committee that makes
strategic decisions. The steering committee is made up of the Board
of Directors. There are no sales between segments. The revenue from
external parties reported to the strategic steering committee is
measured in a manner consistent with that in the income
statement.
The Parent company is domiciled in the United Kingdom. The
amount of revenue from external customers by location of the Group
billing entity is shown in the tables below.
Revenue
Year ended
Six months Six months 31 December
ended ended
30 June 30 June 2022
2023 2022
(unaudited) (unaudited) (audited)
GBP GBP GBP
----------------------- -------------- -------------- --------------
Turnover by geography
USA 313,425 418,035 1,180,798
UK 261,321 39,654 178,476
China 17,137 119,747 147,983
Total 591,883 577,436 1,507,257
----------------------- -------------- -------------- --------------
Loss before tax
The EBITDA is the loss for the year before depreciation,
amortisation, interest and tax. The loss before tax is broken down
by segment as follows:
Year ended
Six months Six months 31 December
ended ended
30 June 30 June 2022
2023 2022
(unaudited) (unaudited) (audited)
GBP GBP GBP
-------------------------- -------------- -------------- --------------
UK (7,021,637) (7,436,070) (13,483,196)
USA 105,213 (129,500) (253,219)
India (416,438) (321,693) (770,084)
China (30,041) (312,332) (695,848)
Total EBITDA (7,362,903) (8,199,595) (15,202,347)
( 439,727
Depreciation (164,699) (250,801) )
Finance income / (costs)
net 74,621 4,471 49,363
-------------------------- -------------- -------------- --------------
Loss before tax (7,452,981) (8,445,925) (15,592,711)
-------------------------- -------------- -------------- --------------
6 Loss per share
(a) Basic
Basic loss per share is calculated by dividing the loss for the
period / year by the weighted average number of ordinary shares in
issue during the period / year. Potential ordinary shares are not
treated as dilutive as the Group is loss making and such shares
would be anti-dilutive.
Group Six months Six months
ended ended Year ended
30 June 30 June 31 December
2023 2022 2022
---------------------------------- ------------ ------------ -------------
Loss attributable to owners
of the parent (GBP) (7,160,997) (8,152,625) (15,100,823)
---------------------------------- ------------ ------------ -------------
Weighted average number of
ordinary shares in issue Number 309,365,026 279,180,808 279,180,808
---------------------------------- ------------ ------------ -------------
The loss per share for the period was 2p (six months to 30 June
2022: 3p; year ended 31 December 2022: 5p).
No dividends were paid during the period (six months to 30 June
2022: GBPnil; year ended 31 December 2022: GBPnil).
(b) Diluted
Potential ordinary shares are not treated as dilutive as the
Group is loss making and such shares would be anti-dilutive
7 Share capital
Ordinary shares of GBP0.00001 each
Allotted and fully paid Number
-------------------------- ------------
At 1 January 2023 279,180,808
Issued during the period 210,128,596
At 30 June 2023 489,309,404
--------------------------- ------------
On 5 June 2023 210,128,596 Ordinary Shares were issued for 3p
per share as part of a GBP6.3 million fundraise from new and
existing shareholders. This was split as follows:
-- 191,666,667 Ordinary Shares issued on 5 June 2023 from the placing exercise;
-- 18,461,929 Ordinary Shares issued on 5 June 2023 from an open
offer to existing shareholders on the basis of 5 new shares for
every 21 existing Ordinary Shares held.
8 Net cash flows used in operating activities
Year ended
Six months Six months
ended ended 31 December
30 June
30 June 2023 2022 2022
(unaudited) (unaudited) (audited)
GBP GBP GBP
------------------------------------ ---- --------------- -------------- --------------
Loss for the financial period
/ year (7,160,997) (8,152,625) (15,100,823)
Adjustments for:
Tax on loss on ordinary activities (291,984) (293,300) (491,888)
Interest income (80,122) (23,093) (71,875)
Lease interest costs 5,501 18,622 22,512
Operating loss: (7,527,602) (8,450,396) (15,642,074)
Amortisation of right-of-use
assets 128,446 163,550 302,804
Depreciation of tangible assets 36,253 87,251 136,923
(Profit) / loss on disposal 3,392 - -
of disposal of tangible assets
Bad debts (reversed) / written
off (721) (3,732) (890)
Share based payment charge 599,761 862,313 1,241,330
Adjustment to tax credit in
respect of previous periods - - 2,041
Foreign exchange variance 46,903 276,857 43,782
Movement in provisions (157,456) - 198,199
- Decrease / (increase) in
debtors 710,781 562,374 (336,799)
- (Decrease) / increase in
creditors (892,168) (439,659) 37,538
------------------------------------------ --------------- -------------- --------------
Cash flow used in operating
activities (7,052,411) (6,941,442) (14,017,146)
------------------------------------------ --------------- -------------- --------------
9 Related party transactions
The Group is owned by a number of investors the largest being
M&G Investment Management, which owns approximately 14% of the
share capital of the Company. Accordingly there is no ultimate
controlling party.
During the period the Company had the following related party
transactions. No guarantees were given or received for any of these
transactions.
IP2IPO Limited - a company which shares a parent company with
IP2IPO Portfolio (GP) Limited, a major shareholder in the Group,
and which also appoints a Director of the Group charged Mirriad
Advertising plc for the following transactions during the period:
(1) GBP10,000 for the services of Lois Day as a Director from 1
January 2023 until 30 June 2023. Of this amount GBP1,667 was
accrued and unpaid as at 30 June 2023.
Parkwalk Advisors Limited - a company which shares a parent
company with IP2IPO Portfolio (GP) Limited, a major shareholder in
the Group, and which also appoints a Director of the Group charged
Mirriad Advertising plc for the following transactions during the
period: (1) GBP10,000 for the services of Alastair Kilgour as a
Director from 1 January 2023 until 30 June 2023. GBP3,333 of this
amount was invoiced and unpaid as at 30 June 2023, and subsequently
paid on 12 July 2023. GBP1,667 of this amount was accrued and
unpaid as at 30 June 2023.
All the related party transactions disclosed above were settled
by 30 June 2023 except where stated.
10 Availability of Interim Report
Electronic copies of this interim financial report will be
available on the Company's website at
www.mirriadplc.com/investor-relations .
ENDS
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END
IR FLFIRTEILFIV
(END) Dow Jones Newswires
August 22, 2023 02:00 ET (06:00 GMT)
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