Home » Mirriad (MIRI) (Page 4)

Category Archives: Mirriad (MIRI)

Mirriad (MIRI) Investor Newsletter – A Glimpse of the Future

Welcome to our first Investor Newsletter. Going forward we will aim to give you regular additional insight into developments at Mirriad and a glimpse of our exciting future plans.

In March we embarked on a transformative strategy reset, setting incredible pace for the rest of the year. This new approach to growth is balanced by a synchronised demand and supply side strategy, alongside a vision for our technology that will further exploit Mirriad’s uniqueness to unlock scale. It gave us a new and strong focus on China, the UK, France, Germany and, of course, the US as our main markets to develop.

We have changed and accomplished a lot within a remarkably short period of time, thanks to the clarity of our strategy and the steadiness in how we’re executing against our plan.

ENHANCED TECHNOLOGY
Developing our technology to integrate with existing industry frameworks and core systems has been at the centre of our mission this year. Our algorithms are now able to detect and process multiple contextual parameters at high precision for identification of advertiser relevant inventory, and we’ve also completed Segment Streaming Technology APIs that allow scaled delivery to the systems used widely by our partners. These developments are key milestones towards further accelerating scale and automation of Mirriad. Below you can find details on our upcoming Technology Showcase being held in January and we hope to see you there.
MULTIPLE NEW CONTRACTS SIGNED
Our strategic reset led to a wealth of new contracts:
Tencent - France-TV - 6M - Tastemade - US Hispanic Music Agents - Conde Nast
DRIVING GROWTH
These deals have increased demand and interest in our technology in a number of exciting ways:1. The Tencent partnership has been developing very positively from day one, with leading advertisers such as Luckin Coffee, C-Trip and Mengniu Dairy running continual campaigns.
2. We have a new level of demand side interest in the US from 17 of the top 50 US advertisers.
3. We have open contracts with 7 major content platforms in the US and Europe and are in discussions with 5 more streaming services to test our platform.
4. We are receiving a substantial interest from the media, with recent coverage in Business InsiderBeet.TVNew ScientistMediaPost, and Campaign US, confirming trust in our solution as a future-proof alternative advertising stream.
GLOBAL LEADERS JOIN
In April we announced a radical simplification of the organisation, which included the closure of our commercial operations in Brazil and India. As part of this plan, we welcomed global leaders to the team, namely in our technology and product divisions as well as a new leadership in the US. Details of some of our new team members are outlined below.
John Pearson
John Pearson
Non-Executive Chairman
John joined the Board in October 2017 and took up the chairmanship of the Company’s Remuneration Committee following the IPO. He became Non-Executive Chairman in 2019. He has 25 years of experience in Advertising, was the former Chairman of Shazam, and has had a long history in commercialization of media properties and general business development for rapidly growing companies.
Bob Head
Bob Head
Non-Executive Director
Bob joined the Board in June 2019 and has a wealth of experience acting as a CEO and Non-executive Director to a variety of technology and digital businesses. Bob chairs Mirriad’s Audit and Remuneration Committees.
Niteen Crawford-Prajapati
Niteen Crawford-Prajapati
CTO
Niteen Crawford-Prajapati joined Mirriad in April 2019 and is responsible for the technology vision and for accelerating Mirriad’s core technology development as well as the strategy for integrations with global broadcasters and the digital video ecosystem. With over ten years of experience in the digital media and technology space, he joined following a spell as Chief Architect at the European Broadcast Exchange, where he designed, and built the EBX technology offering from the ground up. Prior to EBX he spearheaded AppNexus and FreeWheel Europe expansions.
Mark Melvin
Mark Melvin
EVP, Sales and Brand Partnerships
Mark Melvin joined Mirriad mid March 2019 and is in charge of developing the US program and advertiser and agency market for the company. Mark has more than twenty years of experience in the TV and digital media advertising space, following sales and management positions at Fox, ABC, Comcast, and most recently at Music Choice and Fuse Media.
TECHNOLOGY SHOWCASE JANUARY 2020
Overall, we are hugely optimistic about what the future holds for Mirriad in 2020 and beyond and we feel very encouraged by the steady progress that we’re making.To share more on this, we’ll kickstart the year with a technology showcase which we hope you can attend on 16 January, starting at 9:00 with coffee and registration, and ending by 12:00. The event will take place at The Soho Hotel, 4 Richmond Mews, Soho, London W1D 3DH.
Email investorrelations@mirriad.com to register interest, as seating is limited.Thank you for your sustained support and partnership. Wishing you a joyous holiday season and a Happy New Year!

Stephan Beringer and John Pearson
CEO and Chairman

A MIRRIAD OF AWARDS

 

Mirriad Plc (MIRI) lines up technology showcase event in London to kick off 2020

Mirriad Plc, the computer vision and AI platform company, today announces it will be holding a technology showcase event in central London.

The presentation will take place on Thursday 16 January, between 9am and midday and will give attendees the chance to see Mirriad’s game-changing technology in action.

Those who wish to attend can email investorrelations@mirriad.com to register interest. Places will be limited, and the event will be held at The Soho Hotel, 4 Richmond Mews, Soho, London W1D 3DH.

Mirriad has also launched a regular newsletter designed to give interested parties updates on the company. The first edition of the newsletter can be read in full here.  

It features a review of the company’s achievements in 2019 from Chairman John Pearson and CEO Stephan Beringer, a link to some of the company’s recent campaigns, technology developments, a summary of new partners and profiles of senior leaders who joined in 2019

ENDS

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 China.

Enquiries:

For further information please visit www.mirriad.com or contact:

Mirriad Advertising plc

Stephan Beringer, Chief Executive Officer

David Dorans, Chief Financial Officer          

Tel: +44 (0)207 884 2530

Numis Securities Limited (Nominated Adviser & Broker)

Nick Westlake                  

James Black        

Hugo Rubinstein

Tel: +44 (0) 207 260 1200

Financial Communications – Charlotte Street Partners

Andrew Wilson

Tel: +44 (0) 7810 636995

Tom Gillingham

Tel: +44 (0) 7741 659021

 

Mirriad (MIRI) unaudited half-year results for the six months ended 30 June 2019

Mirriad transformation gathers pace following implementation of new strategy

Mirriad, the computer vision and AI platform company, announces unaudited half-year results for the six months ended 30 June 2019.

Highlights

Strategic Development

·    The Group announced a substantial change in strategy in March 2019

·    Appointment of new CTO, Niteen Prajapati, on 1 April 2019

·    Appointment of new commercial leadership in the US in April 2019

·    Important new two year contract, including guaranteed revenues, signed with Tencent in July 2019 with effective date of 1 April 2019

·    First campaigns run with TF1 in France

·    Framework contract signed with France Télévisions shortly after the period end in July 2019

·    New Chairman and Non-executive Director

Financial

·    £16.2m (gross proceeds) from new share issue announced on 31 July 2019

·    Revenue of £429k (30 June 2018 £120k) as the Group’s new go-to-market strategy shows early signs of success

·    Cash and cash equivalents £9.2m (30 June 2018 £22.1m), prior to the impact of the fundraise which completed post period end. Cash balance at end August 2019 is £22.8m.

·    Cash consumption £6.0m (30 June 2018 £6.2m) as the Group implemented its new strategy

·    Operating loss of £7.2m (30 June 2018 £6.7m) in line with management expectations including restructuring costs of £351k

·    Loss per share 7p (30 June 2018 6p)

 

Stephan Beringer, Chief Executive of Mirriad, said:

“The idea behind Mirriad’s award-winning technology is future proof, but it required a market strategy to match. Following the announcement of this new market strategy in March, we have already passed several key milestones in the first half of this year, including a significant new fundraise and the signing of an innovative new contract with Tencent. H1 revenues have increased year-on-year, and we now have several new opportunities – including the commercial partnership with France Télévisions – to steadily grow our revenues further. 

“We have also added talent, capability and experience especially in our technology team and our team in the US, to help deliver our strategic priorities. The company is on a stronger footing going into the second half of 2019.”

 

For further information please visit www.mirriad.com, or contact:

 

Mirriad Advertising plc

Stephan Beringer, Chief Executive Officer

David Dorans, Chief Financial Officer

 

Tel: +44 (0)207 884 2530 

Numis Securities Limited

(Nominated Adviser & Broker)

James Black

Hugo Rubinstein

 

Tel: +44 (0) 207 260 1000

Financial Communications:

Charlotte Street Partners            

Andrew Wilson

Tom Gillingham                                                

 

 

Tel: +44 (0) 7810 636995

Tel: +44 (0) 7741 659021

 

 

Chairman’s Statement

This has been an important period for Mirriad. Following lower-than-expected revenues in 2018 the Board acted decisively in Q4 2018 and brought in a new management team to lead the business. As well as bringing in Stephan Beringer as CEO, Stephan has built an impressive and experienced senior management team.

 

Under Stephan’s leadership, a new strategy was presented to shareholders in March 2019, and we have started to see positive outcomes from this refreshed approach.

 

We also made significant changes in the composition of the Board. I assumed the role of Chairman on 30 April 2019 and we subsequently strengthened the Board with the addition of Bob Head as Non-executive Director and Chairman of our Remuneration and Audit Committees on 13 June 2019.  Bob brings a wealth of experience in financial management and technology to the business.

 

Much of the work of the Board in the first six months of the year has been focused on ensuring that Mirriad has the resources and financial stability it needs to successfully implement the new go-to-market strategy. I am pleased that our ability to address these strategic imperatives has been enabled by Mirriad’s successful fundraise of £16.2m through the issue of additional shares. This will provide general working capital and help the company continue the implementation of its new market strategy.

 

The support from existing and new investors is a vote of confidence in the Company’s direction of travel, which is best illustrated by the two year Tencent contract that was announced in June.

 

This is a significant piece of news for the company, both in terms of the innovative nature of the partnership, and also the immediate boost it will deliver to 2019/20 revenues. China is a key growth area for advertisers and this partnership offers a clear route to this important market.

 

The international advertising industry faces clear headwinds in the shape of rising ad-blocker use and changing consumer behaviours. Alongside shifting viewer preferences, streaming services are now challenged with raising additional revenue as the number of services proliferate, and users are faced with increased costs to access the content they want to watch.

 

Against these challenges, it is clear audiences have a high preference for the non-disruptive advertising experience that Mirriad’s technology delivers, and this significant market opportunity is something the Company will be looking to capitalise on in the coming months.

 

John Pearson

Non-executive Chairman

12 September 2019

 

Chief Executive’s Statement 

When I joined Mirriad in late 2018, I was convinced of the strong fundamentals of the Company’s technology, but I was also aware that a significant strategic reset would be required to deliver the business growth that this potential offered. This is why we announced a new strategy to shareholders in March 2019.

Three key elements are at the heart of our new strategic approach: a renewed focus on the developed advertising markets in the USA, France, Germany, UK and China; a new go-to-market strategy designed to accelerate sales by seeking to build partnerships with agencies and brands as well as broadcasters and digital publishers; and a focus on developing technology that’s built for scale. Automation and integration will be key in the scalability of the Mirriad platform, and the company is working towards this with a reshaped team under the leadership of our new CTO, Niteen Prajapati.

 

It is important that we acknowledge the missteps that led to the requirement for this new strategy. These were primarily a flawed go-to-market strategy, resources spread over too many markets and the fact that service was being emphasised over Mirriad’s core technology, meaning the platform was not sufficiently integrated and automated for scale.

As a result of the flawed strategy, 2018 full year revenue disappointed at £416k. However, I am pleased to report that our first six months revenue for 2019 at £429k (H1 2018 £120k) demonstrates the first early signs that we are growing our revenues.

We have been busy in the first half of 2019: as well as preparation for the fundraising which closed at the end of July we took decisive steps to exit Brazil, exit our commercial operation in India and refocus our Chinese presence through the Tencent partnership.

There is clear audience appetite for the Mirriad product, evidenced by extremely positive feedback from audiences in the US, for our work with T-Mobile in Spanish-language TV series La Piloto, and in France, for our work with SEAT. The research conducted after these campaigns demonstrated that Mirriad’s advertising drives both significant improvements in brand awareness and substantial uplifts in brand consideration, using a format that viewers feel adds to the authenticity of content.  Our new go-to-market strategy will allow us to capitalise on this significant opportunity.

We anticipate that the new two year contract with Tencent announced in July 2019, taken together with other recent activity, will result in 2019 revenue exceeding that recorded in 2017. It will also be substantially greater than revenues in 2018. We are pleased and encouraged by the volume of work we are undertaking for Tencent in China and currently have 4 brands running in Tencent video content and to end July, orders received already represent c30% of the deal’s Year One minimum annual commitment. Any orders above this minimum level will be incremental.

Following a successful fundraise, we can also now look forward to putting our transformation strategy into action by further accelerating the development of the technology and platform and by growing engagement with content producers and distributors in our key markets, the USA, France, Germany, UK and China.

Outside of China we have contracts with four supply partners in our core markets and this is further underpinned by a significant push in the UK and the USA, in line with our new strategy, where we are currently negotiating seven new deals.

Stephan Beringer

Chief Executive

12 September 2019

 

Finance review

The Company announced in its 2018 annual report that it had sufficient cash to fund its activities throughout the current financial year but that it would need to raise additional funds within 12 months of the date of that announcement. As a result the Board authorised the Chairman, CEO and CFO to actively seek additional funds from existing or new investors.

On 5 July 2019 the Company issued a circular to shareholders announcing that it had secured commitments to invest £14.2m in new shares of the Company and that it was also inviting existing shareholders to participate in this fundraising via an open offer mechanic which could raise up to an additional £3.9m. On 31 July 2019 the Company announced it had successfully raised gross proceeds of £16.2m (£15.3m net), comprising the £14.2m previously announced, £1.2m from existing shareholders under the open offer mechanic and an additional £800k placed by the Company’s brokers.  These funds will be used as general working capital to implement the new go-to-market strategy.   

Current period results

During the period the Group discontinued activities in Brazil, and discontinued commercial activity in India in line with the new strategy. The Group also restructured its operations in China removing some activities, such as sales and research, which are now being handled directly by Tencent. The Group removed some roles in the London office and made changes in staffing in the USA.  All costs related to the restructuring of the business, which amounted to £351k have been accounted for in the period.

Revenues increased substantially year on year. Revenue for the period was £429k (30 June 2018 £120k) an increase of 258% and also an increase over the equivalent period in 2017 (30 June 2017: £352k). Much of this increase has been driven by our new 24 month contract with Tencent in China.  This innovative new contract includes a minimum guaranteed monthly revenue in return for provision of technology, operational services, exclusivity in the People’s Republic of China and a base volume of advertising. Any advertising delivered to Tencent in excess of this base volume will generate additional revenue.  

In other markets we have successfully signed new supply partners in Europe (shown under the UK heading in note 4) though revenues continue to be modest and sporadic as the partners test services in those markets. Revenue in the USA remains low. We have recruited a new sales team in the USA and significant senior management time and resource is being spent on cultivating this market using our new go-to-market strategy. 

Gross margin for the period was £351k (30 June 2018: £54k) as the volume of activity increased.

Operating loss increased to £7,179k (30 June 2018: £6,652k). As previously noted the Group’s principal cost is staff and its Administrative expenses increased to £7,555k (30 June 2018: £6,783k) as the Group restructured operations and re-oriented spend towards its technology team (now the biggest departmental staff budget) and sales efforts. Total costs incurred in the restructuring, which is now complete, were £351k.

In the full year accounts for 2018 the Company took an impairment charge against previously capitalised development costs amounting to £1.24m. This was partly based on the uncertainty of future revenue generation. Following a review at the half year the Company has assessed its compliance with IAS 38 and is not capitalising any of its development cost in the first six months of the year.

For the period ending June 2019 total expenditure on research and development was £1,137k (30 June 2018: £1,109k). None of this has been capitalised in the current period, whereas in the period ended 30 June 2018 £410k was capitalised.

Stripping out the impact of the restructuring costs and the impact of capitalisation of development cost in 2018 the comparable operating loss figures would be £6,828k for the period ended 30 June 2019 versus £7,062k in the period ended 30 June 2018, a reduction of £234k.

The loss for the period before tax increased to £7,181k (30 June 2018: £6,644k) in line with the increase 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. The amount receivable for the period ended 30 June 2019 is £40k.

Earnings per share

As a result of the investment notes above, earnings per share were a loss of 7 pence per share (30 June 2018: loss of 6 pence per share). This calculation is based on the weighted average number of shares in issue during the period and takes into account the small increase in operating loss noted above.

Dividend

No dividend has been proposed for the period ended 30 June 2019 (30 June 2018: £nil).

Cash flow

Net cash used in operations during the period was £5,889k (30 June 2018: £5,768k) as the Group completed its restructuring. During the period no development costs were capitalised (30 June 2018: £410k). The Group also incurred £28k (30 June 2018: £44k) of capital expenditure on tangible assets.  

No shares were issued in the period (30 June 2018 £1.9m) but the Company announced on 31 July that it had successfully raised an additional £16.2m (gross) of new capital.

Balance sheet

The Group has a debt-free balance sheet. Net Assets decreased to £8.5m (30 June 2018: £23.4m) as the Group consumed cash and after taking into account the impairment of intangible assets noted in the 2018 full year accounts. Cash and cash equivalents at 30 June 2019 was £9.2m (30 June 2018: £22.1m).

Accounting policies

The Group’s consolidated financial information has been prepared in accordance with IFRS as adopted in the EU.

David Dorans

Chief Financial Officer

12 September 2019

 

 

Our key performance indicators

 

Revenue (£000)

Cash consumption (£000)

Customers under contract

6 months to June 2019

429

6 months to June 2019

6,038

As at 30 June 2019

9

6 months to June 2018

120

6 months to June 2018

6,222

As at 30 June 2018

9

12 months to Dec 2018

416

12 months to Dec 2018

13,106

As at Dec 2018

11

 

Company Information

 

Directors

John Pearson

Chairman

Stephan Beringer

Chief Executive Officer

David Dorans

Chief Financial Officer

Alastair Kilgour

Non-Executive Director

Dr Mark Reilly

Non-Executive Director

Bob Head

Non-Executive Director

Independent Auditors

PricewaterhouseCoopers LLP

3 Forbury Place

23 Forbury Road

Reading

RG1 3JH

 

Solicitors

Osborne Clarke LLP

6th Floor

One London Wall

London

EC2Y 5EB

Company registration number

09550311

Company Secretary

Hannah Coote

Registered Office

6th Floor

One London Wall

London

EC2Y 5EB

Nominated Advisor & Broker

Numis Securities Limited

10 Paternoster Square

London

EC4M 7LT

Company website

www.mirriad.com

Financial PR

Charlotte Street Partners Limited

The Charlotte Building

6 Evelyn Yard

London

W1T 1QL

Registrars

Computershare Investor Services plc

The Pavilions

Bridgwater Road

Bristol

BS99 6ZZ

Consolidated statement of profit or loss and statement of comprehensive income for the six months ended 30 June 2019

Six months ended 30 June 2018

(unaudited)

£

Note

Six months ended 30 June 2019

(unaudited)

£

Year ended

31 December

2018

(audited)

£

Revenue

4

429,067

120,191

415,886

Cost of Sales

(77,719)

(65,779)

(143,548)

Gross Profit

351,348

54,412

272,338

Administrative expenses

(7,554,771)

(6,783,402)

(14,872,725)

Other operating Income

24,421

76,991

171,433

Operating Loss

(7,179,002)

(6,651,999)

(14,428,954)

Finance Income

14,773

7,557

57,968

Finance costs

(17,264)

Finance (costs) / income net

(2,491)

7,557

57,968

Loss before income tax

(7,181,493)

(6,644,442)

(14,370,968)

Income tax credit

40,129

95,237

42,217

Loss for the period / year

(7,141,364)

(6,549,205)

(14,328,769)

Loss per ordinary share – basic                            5                 

(7p)

(6p)

(14p)

 

All activities are classified as continuing.

 

Six months ended 30 June 2019

(unaudited)

£

Six months ended 30 June 2018

(unaudited)

£

Year ended

31 December

2018

(audited)

£

Loss for the financial period / year

(7,141,364)

(6,549,205)

(14,328,769)

Other comprehensive expense

Items that may be reclassified to profit or loss:

Currency translation differences

(24,642)

(29,381)

(88,346)

Total comprehensive expense for the period / year

(7,166,006)

(6,578,586)

(14,417,115)

 

 

 

Consolidated balance sheet

At 30 June 2019

 

Note

As at 30 June 2019

(unaudited)

£

As at 30 June 2018

(unaudited)

£

As at 31 December

2018

(audited)

£

Assets

Non-current assets:

Property, plant and equipment

1,043,004

402,718

414,062

Intangible assets

1,526,509

170,053

Trade and other receivables

210,439

212,362

186,321

1,253,443

2,141,589

770,436

Current assets

Trade and other receivables

992,481

760,072

973,750

Tax receivable

119,123

304,077

288,009

Cash and cash equivalents

9,166,343

22,090,400

15,203,920

10,277,947

23,154,549

16,465,679

Total assets

11,531,390

25,296,138

17,236,115

Current liabilities

Trade and other payables

2,083,712

1,907,311

1,622,460

Lease liabilities

324,724

Current tax liabilities

16,023

36,952

Total liabilities

2,424.459

1,907,311

1,659,412

Non-current liabilities

Lease liabilities

575,756

Total non-current liabilities

575,756

Net Assets

8,531,175

23,388,827

15,576,703

Equity and Liabilities

Equity attributable to owners of the parent

Share capital

6

50,949

50,949

50,949

Share premium

25,643,192

25,643,192

25,643,192

Share based payment reserve

2,318,157

2,114,689

2,141,094

Retranslation reserve

(303,473)

(219,866)

(278,831)

Retained earnings / (accumulated losses)

(19,177,650)

(4,200,137)

(11,979,701)

Total equity

8,531,175

23,388,827

15,576,703

 

 

Consolidated statement of changes in equity

For the six months ended 30 June 2019

 

 

Six months ended 30 June 2018

Note

Share Capital

£

Share Premium

£

Share based payment reserve

£

Retranslation reserve

£

Retained earnings / (Accumulated Losses)

£

Total Equity

£

Balance as at 1 January 2018

50,917

23,717,390

1,964,835

(190,485)

2,349,068

27,891,725

Loss for the period

(6,549,205)

(6,549,205)

Other comprehensive loss for the period

(29,381)

(29,381)

Total comprehensive loss for the period

(29,381)

(6,549,205)

(6,578,586)

Proceeds from shares issued

32

1,999,968

2,000,000

Share issue costs

(74,166)

(74,166)

Share based payments recognised as expense

149,854

149,854

Total transactions with shareholders recognised directly in equity

32

1,925,802

149,854

2,075,688

Balance as at 30 June 2018

50,949

25,643,192

2,114,689

(219,866)

(4,200,137)

23,388,827

 

 

 

 

Year ended 31 December 2018 (audited)

Share Capital

£

Share Premium

£

Share based payment reserve

£

Retranslation reserve

£

(Accumulated Losses) / Retained earnings

£

Total Equity

£

Balance as at 1 January 2018

50,917

23,717,390

1,964,835

(190,485)

2,349,068

27,891,725

Loss for the financial year

(14,328,769)

(14,328,769)

Other comprehensive loss for the year

(88,346)

(88,346)

Total comprehensive loss for the year

(88,346)

(14,328,769)

(14,417,115)

Proceeds from shares issued

32

1,999,968

2,000,000

Share issue costs

(74,166)

(74,166)

Share based payments recognised as expense

176,259

176,259

Total transactions with shareholders recognised directly in equity

32

1,925,802

176,259

2,102,093

Balance as at 31 December 2018

50,949

25,643,192

2,141,094

(278,831)

(11,979,701)

15,576,703

 

 

 

 

 

Six months ended 30 June 2019

Note

Share Capital

£

Share Premium

£

Share based payment reserve

£

Retranslation reserve

£

Retained earnings / (Accumulated Losses)

£

Total Equity

£

Balance as at 1 January 2019 as previously reported

50,949

25,643,192

2,141,094

(278,831)

(11,979,701)

15,576,703

Adjustment on adoption of IFRS 16 (net of tax)

(56,585)

(56,585)

Adjusted balances at 1 January 2019

50,949

25,643,192

2,141,094

(278,831)

(12,036,286)

15,520,118

Loss for the period

(7,141,364)

(7,141,364)

Other comprehensive loss for the period

(24,642)

(24,642)

Total comprehensive loss for the period

(24,642)

(7,141,364)

(7,166,006)

Share based payments recognised as expense

177,063

177,063

Total transactions with shareholders recognised directly in equity

177,063

177,063

Balance as at 30 June 2019

50,949

25,643,192

2,318,157

(303,473)

(19,177,650)

8,531,175

 

 

 

 

 

Consolidated statement of cash flows for the six months ended 30 June 2019

 

Note

Six months ended 30 June 2019

(unaudited)

£

Six months ended 30 June 2018

(unaudited)

£

Year ended

31 December

2018

(audited)

£

Net cash from operating activities

7

(6,096,021)

(5,775,722)

(11,972,408)

209,015

(6,691)

14,773

7,557

57,968

(17,264)

Net cash used in operating activities

(5,889,497)

(5,768,165)

(11,921,131)

Cash flow from investing activities

(168,587)

(409,952)

(878,500)

(27,995)

(43,923)

(137,386)

Net cash used in investing activities

(27,995)

(453,875)

(1,184,473)

Cash flow from financing activities

(120,085)

1,928,750

1,925,834

Net cash generated from financing activities

(120,085)

1,928,750

1,925,834

(6,037,577)

(4,293,290)

(11,179,770)

15,203,920

26,383,690

26,383,690

Cash and cash equivalents at the end of the period / year

9,166,343

22,090,400

15,203,920

 

 

 

Cash and cash equivalents consists of

Cash at bank and in hand

9,166,343

         22,090,400

15,203,920

Cash and cash equivalents

9,166,343

22,090,400

15,203,920

 

1    Basis of preparation

 

 

The Board approved these interim financial statements on 12 September 2019.

 

1.1   Going concern

These condensed interim financial statements have been prepared on the going concern basis, which assumes that the Group will continue in operational existence for the foreseeable future.

 

After making appropriate enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and for at least one year from the date of approval of these condensed interim financial statements. For these reasons they continue to adopt the going concern basis in preparing the Group’s condensed interim financial statements.

 

The cash flow projections are the sole responsibility of the directors based upon their present plans, expectations and intentions. In this context, the directors have prepared and considered cash flow projections for the Group for a period extending one year from the date of approval of these financial statements. Based on these cash flows the directors are satisfied that the Group are able to meet their liabilities as and when they fall due for the foreseeable future and for a minimum period of twelve months from the date of these condensed interim financial statements.

 

 

2     Accounting Policies

The accounting policies applied are consistent with those of the annual report and accounts for the year ended 31 December 2018, as described in those financial statements other than standards, amendments and interpretations which became effective after 1 January 2019 and were adopted by the Group. The only new standard which had a material impact on the Group and required a change in accounting policy and a retrospective adjustment is IFRS 16 “Leases”. The impact of the new leasing standard and the new accounting policies are disclosed in note 2.1 below.

 

The Group’s activities and results are not exposed to any seasonality.

 

2.1   Impact of IFRS 16 adoption

This note explains the impact of the adoption of IFRS 16 “Leases” on the Group’s financial statements and discloses the new accounting policies that have been applied from 1 January 2019 in note 2.1(b) below.

(a)  Adjustments recognised on adoption of IFRS 16

The Group has adopted IFRS 16 retrospectively from 1 January 2019, but has not restated comparatives for the 2018 reporting period, as permitted under the specific transitional provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised in the opening balance sheet on 1 January 2019.

 

On adoption of IFRS 16, the Group recognised lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 January 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on 1 January 2019 was 4% for a UK property lease and 10% for an Indian property lease. The value of the lease liability recognised as at 1 January 2019 was £1,044,601.

 

The associated right-of-use assets for property leases were measured on a retrospective basis as if the new rules had always been applied. There were no onerous lease contracts that would have required an adjustment to the right-of-use assets at the date of initial application. 

 

All right-of-use assets recognised relate to property leases as follows and have been included within property, plant and equipment on the balance sheet.

 

30 June 2019

£

1 January 2019

£

Properties

700,528

820,612

Total right-of-use assets

700,528

820,612

 

 

The change in accounting policy affected the following items in the balance sheet on 1 January 2019:

 

·      Property, plant and equipment (right-of-use assets) – increase by £820,612

·      Lease liabilities – increase by £1,044,601

·      Trade and other payables (rent-free period accrual) – decrease by £167,404

 

The net impact on retained earnings on 1 January 2019 was a decrease of £56,585.

 

(i)   Impact on segment disclosures and earnings per share

EBITDA, segment assets and segment liabilities for 30 June 2019 all increased as a result of the change in accounting policies. The following segments were affected by the change in policy.

 

EBITDA

£

Segment assets

£

Segment liabilities

£

UK

11,157

621,160

658,484

India

6,228

79,368

98,508

Total

17,385

700,528

756,992

 

(ii)   Practical expedients applied

In applying IFRS 16 for the first time, the Group has used the following practical expedients permitted by the standard:

 

·      the accounting for operating leases with a remaining lease term of less than 12 months as at 1 January 2019 as short-term leases

·      the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application, and

·      the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

 

The Group has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date the Group relied on its assessment made applying IAS 17 and IFRIC 4 “Determining whether an Arrangement contains a Lease”.

 

 

(b)  The group’s leasing activities and how these are accounted for.

The Group leases offices in the countries where it operates, and rental contracts are typically made for fixed periods of 1 to 10 years but may be extended in some cases. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

Until the 2018 financial year, leases of property, plant and equipment were classified as either finance or operating leases. Payments made under operating leases (net of any incentives received from the lessor) were charged to profit or loss on a straight-line basis over the period of the lease.

 

From 1 January 2019, leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.

 

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

·      fixed payments (including in-substance fixed payments), less any lease incentives receivable

·      variable lease payment that are based on an index or a rate

·      amounts expected to be payable by the lessee under residual value guarantees

·      the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and

·      payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

 

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.

 

Right-of-use assets are measured at cost comprising the following:

·      the amount of the initial measurement of lease liability

·      any lease payments made at or before the commencement date less any lease incentives received

·      any initial direct costs, and

·      restoration costs

 

Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment.

 

 

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 2018, summarized in the 2018 annual report and accounts. There have been no significant changes in any risk management policies since 31 December 2018. 

 

4      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, Brazil, China and Singapore. The revenue is classified by where the sales were booked not by the geographic location of the customer. For this reporting purpose the Singapore and China entities are considered together.

 

The only income outside of the primary business activity relates to income received from grants which is recognised in other operating income.

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 and the President. 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

Six months ended

30 June 2019

(unaudited)

£

Six months ended

30 June 2018

(unaudited)

£

Year ended

31 December

2018

(audited)

£

Turnover by geography

China and Singapore

267,989

66,010

177,395

UK

69,749

7,750

40,062

India

39,200

14,806

USA

27,422

13,491

109,541

Brazil

24,707

32,940

74,082

Total

429,067

120,191

415,886

 

 

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:

Six months ended

30 June 2019

(unaudited)

£

Six months ended

30 June 2018

(unaudited)

£

Year ended

31 December

2018

(audited)

£

UK

(4,672,391)

(3,648,835)

(7,450,953)

USA

(1,307,718)

(1,219,902)

(2,306,067)

India

(313,731)

(349,981)

(716,655)

China and Singapore

(273,008)

(564,353)

(940,649)

Brazil

(236,228)

(277,717)

(516,391)

Total EBITDA

(6,803,076)

(6,060,788)

(11,930,715)

Depreciation

(205,873)

(67,079)

(149,102)

Amortisation

(170,053)

(524,132)

(1,118,862)

Impairment of intangible assets

(1,230,275)

Finance (costs) / income net

(2,491)

7,557

57,968

Loss before tax

(7,181,493)

(6,644,442)

(14,370,986)

 

5       Earnings per share

(a) Basic

Basic earnings per share is calculated by dividing the loss for the period / year by the weighted average number of ordinary shares in issue during the 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 ended

30 June

2019

Six months ended

30 June

2018

Year ended

31 December

2018

Loss attributable to owners of the parent (£)

(7,141,364)

(6,549,205)

(14,328,769)

Weighted average number of ordinary shares in issue Number

105,122,717

103,108,816

104,124,043

 

The loss per share for the period was 7p (six months to 30 June 2018: 6p; year ended 31 December 2018: 14p).

 

No dividends were paid during the period (six months to 30 June 2018: £nil; year ended 31 December 2018: £nil).

 

(b) Diluted

Potential ordinary shares are not treated as dilutive as the Group is loss making and such shares would be anti-dilutive.

6       Share capital

Ordinary shares of £0.00001 each

Allotted and fully paid

Number

At 1 January 2019

105,122,717

Issued during the period

At 30 June 2019

105,122,717

 

No shares were issued during the period.

 

7        Net cash flows used in operating activities

Six months ended

30 June 2019

(unaudited)

£

Six months ended

30 June 2018

(unaudited)

£

Year ended

31 December

2018

(audited)

£

Loss for the financial period / year

(7,141,364)

(6,549,205)

(14,328,769)

Adjustments for:

Tax on loss on ordinary activities

(40,129)

(95,237)

(42,217)

Net finance costs / (income)

2,491

(7,557)

(57,968)

Operating loss:

(7,179,002)

(6,651,999)

(14,428,954)

Amortisation and impairment of intangible assets

170,053

524,132

2,349,137

Depreciation of tangible assets

205,873

67,079

149,102

Loss / (profit) on disposal of tangible assets

15,453

(1,754)

Bad debts written off

625

20,423

Share based payment charge

177,063

149,854

176,259

Foreign exchange variance

(4,300)

(29,381)

43,060

– (Increase)/ decrease in debtors

125,412

314,400

106,740

– Increase in creditors

392,802

(149,807)

(386,421)

Cash flow used in operating activities

(6,096,021)

(5,775,722)

(11,972,408)

 

8      Related party transactions

The Group is owned by a number of investors the largest being IP2IPO Portfolio (GP) Limited (as general partner for IP2IPO Portfolio L.P) who owns approximately 26% 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 which were carried out at arm’s length. 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, the largest 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) £10,000 for the services of Dr. Mark Reilly as a Director during the period. Of this amount, £1,667 was invoiced and unpaid at the period end, and was subsequently paid on 11 July 2019. A further £1,667 was accrued and unpaid at the period end. This outstanding amount was paid on 26 July 2019; (2) £6,000 for the services of the Company Secretary during the period. £3,000 of this amount was accrued and unpaid as at 30 June 2019. This outstanding amount was paid on 26 July 2019; and (3) £756.89 for event hire and refreshments. £82 of this amount was invoiced and unpaid as at 30 June 2019 and was subsequently paid on 11 July 2019.

Parkwalk Advisors Limited – a company which shares a parent company with IP2IPO Portfolio (GP) Limited, the largest 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) £10,000 for the services of Alastair Kilgour as a Director during the period.  £1,667 of this amount was accrued and unpaid as at 30 June 2019 but was subsequently paid on 16 July 2019.

 

9        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. 

 

I would like to receive Brand Communications updates and news...
Free Stock Updates & News
I agree to have my personal information transfered to MailChimp ( more information )
Join over 3.000 visitors who are receiving our newsletter and learn how to optimize your blog for search engines, find free traffic, and monetize your website.
We hate spam. Your email address will not be sold or shared with anyone else.