TIDMMSG
HALF YEARLY REPORT
Milestone Group PLC ("Milestone" or the "Company"), the AIM quoted (AIM:
MSG) provider of digital media and technology solutions, announces its
half yearly report for the six months ended 31 March 2015.
HIGHLIGHTS
-- Revenues of GBP260k in this six-month period exceeded revenues for the
whole of the previous year (half-year to 31 March 2014: GBP44k, year to
30 September 2014: GBP157k)
-- The Passion Project generating revenue through fee-paying corporate
members and sponsorship packages
-- Referrals from the Passion Project creating revenues for the rest of the
Group
-- Relative continues to generate revenue through new and existing clients,
whilst also working on Group digitalisation of Disorder magazine and
Passion Project platform
-- Disorder Magazine re-launched with magazine and new website
-- Winning in the Game of Life Education and Training materials exhibited at
two trade shows
-- Mobile Business Solutions marketing and sales strategy underway
Deborah White, Chief Executive, said:
"The Board is pleased with the continued development of each sector of
the business, particularly the revenues being generated by the Passion
Project following a long development phase. This unique opportunity
offers exciting revenue streams as well as creating a platform for young
people to improve their lives."
For further information:
Milestone Group PLC www.milestonegroup.co.uk
Deborah White, Chief Executive Tel: 020 7929 7826
Cairn Financial Advisers LLP, Nominated Adviser
Liam Murray / Avi Robinson Tel: 020 7148 7900
Hybridan LLP, Broker
Claire Louise Noyce Tel: 020 3764 2341
EXECUTIVE'S STATEMENT
These six months have seen progress across all sectors of the business
as each product and service develops in its own right as well as working
to support and complement each other.
Passion Project
The Passion Project has gone from strength to strength following the
launch on 10 December 2014. As well as signing charities as founding
members, the Project is now attracting fee paying corporate members.
These members benefit from access to the Milestone's products and
services on a chargeable basis as well as help and support to deliver
their Corporate Social Responsibility ("CSR") activities. Members also
benefit from joint marketing with the Passion Project, cross-sector
introductions and joint tenders / bid applications.
There is also the ability for partners to promote news items and job
opportunities to the participants of the Passion Project. For example,
in December 2014, the Rank Group plc joined as a member, bringing with
them in the region of 1,500 employment opportunities to be rolled out
throughout 2015.
In January 2015, Milestone signed a sponsorship deal worth GBP130,000
for the careers profiling tool of the Passion Project, called the Game.
The Game aims to make careers advice simple, fun and interactive. This
deal was followed in March 2015 by the 5-month sponsorship of BE United,
the football related engagement activity, for a total of GBP50,000 per
month.
As well as generating income directly, the Passion Project is also
proving the perfect tool for introducing opportunities and work to the
rest of the group, including digital work for Relative, Mobile Business
Solutions and Education and Training.
Relative
Milestone's creative agency, Relative, has continued to work with
external clients, including various projects for Sudler and Hennessey (a
division of the Young and Rubicam Group). In addition to this
self-generated work, Relative have been very busy developing the digital
presence for the Group including a new website for Milestone Group,
developing the Passion Project and digitising Disorder Magazine. They
have also received referrals for work through the Passion Project
partners.
Disorder
As well as re-launching Disorder Magazine with two new issues during the
period, Milestone, through Relative, has also created a new website for
the magazine (www.disordermagazine.com). The team is accessing grant
funding to allow them to provide young people with work experience and
training opportunities in a variety of areas including journalism,
photography and fashion. The recent activity has resulted in Disorder
receiving new commercial enquiries from Vogue Italia, London Fashion
Week and a number of UK colleges and brands.
Education and Training
In January 2015, Milestone showcased "Winning in the Game of Life", the
emotional intelligence curriculum based programme for schools, at the
BETT exhibition in London and was later followed by the Education show
in Birmingham. These events triggered a number of enquiries, which the
Company continues to follow up. The emotional intelligence training
programme is also being developed to become a core part of the Passion
Project, offering training and development opportunities for the
participants.
Mobile Business Solutions
The Company's core mobile product has been developed into a modular
format, allowing Milestone to meet new client needs without having to
undertake major software development. In recent months, the Company has
provided solutions as varied as quotation administration for a building
management organisation, through to training and personnel management
for the Green Skills Partnership. The transport industry continues to
provide opportunities and we will shortly begin a pilot to provide an
incident management tool for a major rail operating company.
The marketing and sales strategy is underway following the production of
new collateral and a revised product website. The email marketing
campaign continues to gather momentum and we have had a number of
enquiries and request for proposals from online marketing portals, as
well as referrals from the Passion Project.
Funding
The Board is pleased to see revenues into the Group during this
six-month period of GBP261,353. This amount exceeds the GBP157,337
raised in the whole of last year and demonstrates the exciting progress
made to date.
While each sector of the business is making strides to produce revenues,
there has still been a need for the Company to continue to raise funds
through the issue of shares. During the period, the Company raised
GBP130,000 cash and a further GBP217,000 cash was raised after the
period end. These funds have been raised at a significant premium to the
market price and have been used for working capital purposes as well as
for the development of the business. The management team is focused on
continuing to grow revenues. However, further fund raises are expected
in the short-term to allow revenues to grow and the business to develop.
Outlook
The Board is pleased with the continued development of each sector of
the business, particularly the revenues being generated by the Passion
Project following a long development phase. This unique opportunity
offers exciting revenue streams as well as creating a platform for young
people to improve their lives.
Deborah White
Chief Executive Officer
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 31 March 30 Sept
2015 2014 2014
GBP GBP GBP
Revenue 261,353 44,420 157,377
Cost of sales (99,706) (67,021) (247,087)
Gross profit 161,647 (22,601) 89,710
Other operating income - 50,536 1,500
Realised gain on disposal - 335,304 409,453
Administrative expenses (779,617) (573,514) (1,428,018)
(779,617) (187,674) (1,017,065)
Loss from operations (617,970) (210,275) (1,106,775)
Net Finance income/(expense) (856) 36,927 35,392
Loss before taxation (618,826) (173,348) (1,071,383)
Taxation credit - - -
Net loss for period (618,826) (173,348) (1,071,383)
Items which may be reclassified
subsequently to profit or loss
Adjustment in carrying value of available
for sale investments - (14,080) (14,080)
Recycling of realised gain on sale of
available for sale financial assets - (335,304) (335,304)
Total comprehensive loss for the year (618,826) (522,732) (1,420,767)
Attributable to equity shareholders of
the parent (618,826) (522,732) (1,420,767)
Total basic and diluted loss per share (0.11) (0.12) (0.23)
There were no comprehensive income and expense items (2014: nil) other
than those reflected in the above income statement. All results relate
to continuing activities.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 31 March 30 Sept
2015 2014 2014
Note GBP GBP GBP
Non-current assets
Intangible fixed assets 37,821 170,581 56,728
Investments - 61,713 -
37,821 232,294 56,728
Current assets
Trade and other receivables 87,420 73,840 114,983
Cash and cash equivalents 59,411 64,327 75,855
146,831 138,167 190,838
Current liabilities
Trade and other payables (1,522,832) (1,339,813) (1,336,289)
Interest-bearing loans (208,527) (74,727) (73,527)
(1,731,359) (1,414,540) (1,409,816)
Net Liabilities (1,546,707) (1,044,079) (1,162,250)
Capital and reserves attributable
to equity holders of the company
Share capital 4 570,136 470,924 553,961
Share premium account 13,199,369 12,309,348 13,056,175
Shares to be issued 115,000 90,000 40,000
Merger reserve 11,119,585 11,119,585 11,119,585
Capital Redemption Reserve 2,732,904 2,732,904 2,732,904
Retained losses (29,283,701) (27,766,840) (28,664,875)
Total Equity (1,546,707) (1,044,079) (1,162,250)
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 2015 31 March 2014 30 Sept 2014
GBP GBP GBP
Loss for the period (618,826) (173,348) (1,071,383)
Adjustments for:
Amortisation of intangible assets 18,907 18,907 37,814
Impairment of investments - - 61,713
Realised gain on disposal of held for
sale investments - (335,304) (409,453)
Impairment of goodwill - - 94,847
Net bank and other interest (income) /
charges 856 (38,161) (35,392)
Issue of share options / warrant charge - - -
Services settled by the issue of shares 29,368 17,049 27,049
Net loss before changes in working
capital (569,695) (510,857) (1,294,705)
(Increase)/decrease in trade and other
receivables 27,563 (23,114) (64,225)
Increase/(decrease) in trade and other
payables 261,544 172,298 119,754
Cash from operations (280,588) (361,673) (1,239,206)
Interest received 8 4 56
Interest paid (864) (1,843) (5,866)
Net cash flows from operating
activities (281,444) (363,512) (1,245,016)
Investing Activities
Purchase of available for sale
investments - - (232,937)
Proceeds from sale of held for sale
investments - - 350,057
Acquisition of intangible assets - - (1)
Net cash flows used in investing
activities - - 117,119
Financing Activities
Issue of ordinary share capital 130,000 431,554 1,207,467
Repayment of loan (30,000) (23,740) (23,740)
New loans raised 165,000 3,000 3,000
Net cash flows from financing
activities 265,000 410,814 1,186,727
Net (decrease) / increase in cash (16,444) 47,302 58,830
Cash and cash equivalents at
beginning of period 75,855 17,025 17,025
Cash and cash equivalents at end of
period 59,411 64,327 75,855
NOTES TO THE HALF YEARLY REPORT
1. General information
The principal activity of Milestone Group PLC ("Milestone" or "the
Company") and its subsidiaries (together "the Group") is the provision
of multimedia and technology solutions.
Milestone is the Group's ultimate parent company and is incorporated in
the United Kingdom with registration number 4689130. Milestone is
domiciled in the United Kingdom and has its registered office at 1(st)
Floor, 2 Royal Exchange, London EC3V 3DG, and this is its principal
place of business.
Milestone's shares are quoted on the AIM market of the London Stock
Exchange.
Milestone's consolidated financial statements are presented in Pounds
Sterling (GBP).
This consolidated financial information has been approved for issue by
the Board of Directors on 30 June 2015.
2. Basis of preparation
The financial information in the half yearly report has been prepared
using the recognition and measurement principles of International
Accounting Standards, International Financial Reporting Standards and
Interpretations adopted for use in the European Union (collectively
Adopted IFRSs). The principal accounting policies used in preparing the
half yearly report are those the Group expects to apply in its financial
statements for the year ending 30 September 2015 and are unchanged from
those disclosed in the Group's Directors' Report and consolidated
financial statements for the year ended 30 September 2014.
The financial information for the six months ended 31 March 2015 and the
six months ended 31 March 2014 is unaudited and does not constitute the
Group's statutory financial statements for those periods. The
comparative financial information for the full year ended 30 September
2014 has, however, been derived from the audited statutory financial
statements for that period. A copy of those statutory financial
statements has been delivered to the Registrar of Companies.
While the financial figures included in this half-yearly report have
been computed in accordance with IFRSs applicable to interim periods,
this half-yearly report does not contain sufficient information to
constitute an interim financial report as that term is defined in IAS
34.
Going concern
As stated in the accounts for the year to 30 September 2014, the future
business model of the Group is based around the generation of
sustainable revenues and profits through its wholly owned subsidiary,
Oil Productions trading as Relative, and through its various projects.
As described in the Chief Executive's statement, progress has been and
continues to be made to develop the Group's activities and associated
revenues. However, as also noted in the 30 September 2014 accounts, the
Group needed to raise further funds from the placing of shares whilst
the revenues and profits from these solutions are fully developed.
During the period the Group has raised funds of GBP130,000 through the
placing of shares. Since the period end further funds of GBP217,000 have
also been raised through further share placements.
In line with the plans and projections prepared by the Board, the
Group's activities continue to build, however in accordance with those
plans, in the short term the Group needs to continue to raise funds from
a combination of trading and placement of shares to fund its activities.
3. Loss per share
The calculation of the basic loss per share is based on the loss
attributable to ordinary shareholders divided by the average weighted
number of shares in issue during the period. The calculation of diluted
loss per share is based on the basic loss per share, adjusted to allow
for the issue of shares and the post tax effect of dividends and
interest, on the assumed conversion of all other dilutive options and
other potential ordinary shares.
There were 104,872,000 share options outstanding at 31 March 2015 (2014:
19,765,000), however the figures have not been adjusted to reflect
conversion of these share options as the effects would be anti-dilutive.
Loss for 6
Loss for 6 Weighted months to Weighted
months to average Per share 31 March average Per share
31 March 2015 number of amount 2014 number of amount
GBP shares (pence) GBP shares (pence)
(618,826) 562,138,393 (0.11) (522,732) 440,315,023 (0.12)
4. Share Capital
31 March 30 Sept
2015 2014
Number GBP Number GBP
Authorised
Ordinary shares of
0.1p 2,267,095,595 2,267,096 2,267,095,595 2,267,096
2,267,095,595 2,267,096 2,267,095,595 2,267,096
Allotted, called up
and fully paid
Ordinary shares of
0.1p 570,136,032 570,136 553,961,032 553,961
570,136,032 570,136 553,961,032 553,961
On 19 December 2014, the Company issued 16,175,000 ordinary shares at a
price of 1 penny per share for a cash consideration of GBP130,000 and
for settlement of outstanding trade payables of GBP31,750.
5. Availability of the Half Yearly Report
Copies of the half yearly report are available to shareholders on the
Company's website at www.milestonegroup.co.uk and from Milestone's
registered office: 1(st) Floor, 2 Royal Exchange Steps, London EC3V 3DG.
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Milestone Group PLC via Globenewswire
HUG#1932130
http://www.milestonegroup.co.uk/
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