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mporium Group PLC - Half Year Results

RNS Number : 0506I
mporium Group PLC
24 August 2016
 

                                                                             24 August 2016

 

mporium Group PLC

 

("mporium" or the "Company")

 

Financial Statements for the 6 months ended 30 June 2016

 

mporium Group PLC (AIM: MPM) ("mporium" or the "Company"), the mobile commerce specialist, today announces its results for the six months ended 30 June 2016.

 

Results Overview

Overall revenue during the period under review increased to £870,473 (2015: £559,065) and the loss from ordinary activities before taxation reduced to £2,939,919 (2015: loss of £3,895,937) compared with the prior period.  The loss per share was 0.01 (2015: loss of 0.03).  The Group had cash reserves at the end of the half year of £662,052.

On 18 July 2016 the Company successfully completed a Placing of 41,379,008 ordinary shares of 0.5 pence each at a price of 7.5 pence per share from a combination of new and existing shareholders.  The net proceeds of the Placing of approximately £3.0m are to be used to continue the Group's core products development, to accelerate growth through investment in sales and marketing activities, in addition to general working capital purposes.

Business Review

The business and the senior management team continue to execute on its revised product strategy focusing mporium's development efforts on the evolution of its two key software products IMPACT & INSIGHTS, whilst re-aligning Fast Web Media Limited (FWM) to complement the Group's vision of the digital marketing agency of the future.

The two key software products have shown encouraging results in live environments during the first half of 2016.  In order to fulfil both products' potential, the technology underpinning the products' commercialisation continues to be developed, taking into account customer feedback and to better address the large scale opportunities the market presents.

INSIGHTS continues to evolve into a decision support tool that delivers actionable information to enable users to manage their websites and the digital advertising campaigns that drive web traffic to their websites.  IMPACT is being further developed into a digital advertising activation technology that enables campaigns to be managed across Google AdWords, Facebook, Instagram and YouTube by reacting in real time to events.  These events can be TV content, weather, news, sports and consumer sentiment amongst others. 

The primary target market for both software products is the large marketing and advertising agencies across the globe.  INSIGHTS will be targeted at agencies as a decision support tool to determine how to operate advertising campaigns, in addition to the optimisation of corporate websites in order to achieve a brand's commercial objectives.  IMPACT is a technology that can be utilised by brands & broadcasters directly, as well as media agencies which buy advertising on behalf of brands.  In practice, the media agencies can use IMPACT to manage the digital advertising campaigns of their brand clients.

The investment in sales and marketing is progressing as planned, with key hires in Business Development and Sales already complete, and a number of other positions identified in readiness for the marketing push in the second half of the year. Furthermore, the Group has strengthened its Board with the appointment of Aidan Casey as a Non-Executive Director in April.

The turnaround in performance of FWM, which was acquired by the Group in September 2015, continues with the business making profit in every month of 2016 to date.  Preparations continue to be made for the re-launch of the Company, placing mporium technology at the core of the offering.

 

Outlook

mporium's strategy to deliver world-class mobile commerce products remains on track, backed by a solid financial platform and capable management team.

The business continues to invest in technology and the patent process, its portfolio of applications now includes aspects of personalisation which has further enhanced the uniqueness and innovative nature of its offering.

The Board believe the business is well positioned to take advantage of the opportunities the mobile commerce market offers during the remainder of the year.

 

24 August 2016

Enquiries

 

mporium:

020 3242 0515

Barry Moat

 

 

 

N+1 Singer:

020 7496 3000

Gillian Martin

Alex Laughton-Scott

 

 

 

Buchanan:

020 7466 5000

Charles Ryland

 

Victoria Hayns

 

 

 

 

 

Consolidated interim statement of total comprehensive income for the period ended 30 June 2016

 

 

Note

6 months to

30 June 2016
unaudited

6 months to     30 June 2015
unaudited

Year ended 31

 December 2015

audited

 

 

£

£

£

Continuing operations

 

 

 

 

Revenue

4

870,473

553,623

1,267,189

Cost of sales

 

(154,778)

(378,821)

(854,833)

Gross profit

 

715,695

174,802

412,356

Administrative expenses

 

(3,648,134)

(4,065,057)

(5,523,886)

Operating loss

 

(2,932,439)

(3,890,255)

(5,111,530)

Financial income

 

2,508

131

297

Financial expense

 

(9,988)

(5,813)

(15,949)

Loss on ordinary activities before taxation

 

(2,939,919)

(3,895,937)

(5,127,182)

Taxation

 

-

-

508,299

Total loss

 

(2,939,919)

(3,895,937)

(4,905,930)

Other comprehensive loss for the period

 

 

 

 

Revaluation of investment which will subsequently be reclassified to profit and loss

6

269,023

(55,000)

(80,543)

Total comprehensive losses attributable to  equity holders of the parent company

 

(2,670,896)

(3,950,937)

(4,986,473)

Basic and diluted loss per share for  losses attributable to the owners of the  parent during the period

7

(0.01)

(0.03)

(0.02)

 

The notes on pages 10 to 11 form part of these financial statements
 

 

Consolidated interim statement of financial position as at 30 June 2016

 

 

Note

As at

30 June 2016

unaudited

As at

30 June 2015
unaudited

As at 31

December 2015
audited

 

 

£  

£  

£  

Non-current assets

 

 

 

 

Property, plant and equipment

 

326,006

43,023

334,397

Intangible assets

 

2,277,615

2,057,251

2,689,493

Investments

6

688,480

445,000

419,457

Total Non-current assets

 

3,292,101

2,545,274

3,443,347

 

 

 

 

 

Current assets

 

 

 

 

Trade and other receivables

 

1,574,547

1,670,435

1,958,680

Cash and cash equivalents

 

662,052

2,604,750

2,735,318

Total Current assets

 

2,236,599

4,275,185

4,693,998

 

 

 

 

 

Total assets

 

5,528,700

6,820,459

8,137,345

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

(1,779,228)

(3,087,613)

(1,964,569)

Current proportion of loans and borrowings

 

-

-

-

Total Current liabilities

 

(1,779,228)

(3,087,613)

(1,964,569)

 

 

 

 

 

Total liabilities

 

(1,779,228)

(3,087,613)

(1,964,569)

 

 

 

 

 

Net assets

 

3,749,472

3,732,846

6,172,776

 

 

 

 

 

Shareholders' Equity

 

 

 

 

Share capital

 

2,351,049

2,128,598

2,350,663

Share premium

 

14,614,568

11,559,710

14,614,568

Share option reserve

 

2,101,751

1,731,296

1,889,558

Non-controlling interest

 

-

6,969

-

Merger reserve

 

7,641,598

7,641,598

7,641,598

Retained earnings

 

(22,959,494)

(19,335,325)

(20,323,611)

Equity shareholders' funds

 

3,749,472

3,732,846

6,172,776

 

 

The notes on pages 10 to 11 form part of these financial statements

 

 

 

Consolidated interim statement of changes in equity for the period ended 30 June 2016

 

 

Retained

Share

Share

Share

Merger

Total

 

earnings

capital

premium

option

reserve

 

 

 

 

reserve

reserve

 

 

 

£

£

£

£

£

£

 

 

 

 

 

 

 

31 December 2013 - unaudited

(10,807,038)

79,064

3,995,392

1,150,640

7,641,598

2,059,656

Comprehensive loss for the period

(5,161,653)

-

-

-

-

(5,161,653)

Share-based payments

-

-

-

367,950

-

367,950

Share issue cost

-

-

(307,839)

-

-

(307,839)

Share issues during the year

-

366,200

3,291,300

-

-

3,657,500

31 December 2014 - audited

(15,968,691)

445,264

6,978,853

1,518,590

7,641,598

615,614

Total loss for the year

(4,905,930)

-

-

-

-

(4,905,930)

Other comprehensive loss - revaluation        

 

 

 

 

 

 

    of investment

(80,543)

-

-

-

-

(80,543)

Share-based payments

-

-

-

1,002,521

-

1,002,521

Transfer related to lapsed share options

631,553

-

-

(631,553)

-

-

Share issue cost

-

-

(293,070)

-

-

(293,070)

Share issues during the year

-

1,905,399

7,928,785

-

-

9,834,184

31 December 2015 - audited

(20,323,611)

2,350,663

14,614,568

1,889,558

7,641,598

6,172,776

Total loss for the period

(2,939,919)

-

-

-

-

(2,939,919)

Other comprehensive loss - revaluation        

 

 

 

 

 

 

    of investment

269,023

-

-

-

-

269,023

Share-based payments

-

-

-

247,206

-

247,206

Transfer related to exercised share

 

 

 

 

 

 

options

35,013

-

-

(35,013)

-

-

Share issue during the year

-

386

-

-

-

386

30th June 2016 - unaudited

(22,959,494)

2,351,049

14,614,568

2,101,751

7,641,598

3,749,472

 

 

 

 

 

 

 

 

The notes on pages 10 to 11 form part of these financial statements

 

 

 

Consolidated interim statement of cash flows for the period ended 30 June 2016

 

 

6 months to     

30 June 2016
unaudited

6 months to    

30 June 2015
unaudited

Year ended 31 December 2015

audited

 

£

£

£

Cash flows used in operating activities

Loss before taxation

(2,939,919)

(3,895,937)

(5,127,182)

Adjustments for:

 

 

 

Depreciation of property, plant and equipment

67,183

1,748

32,684

Amortisation of intangible assets

125,000

16,917

157,328

Impairment of intangible assets

575,250

-

77,259

Loss on sale of fixed assets

-

-

4,351

Loss on sale of intangible assets

10,500

-

17,500

Share based payment expense

247,206

797,009

1,002,521

Bad debt expense

-

72,084

64,160

Financial income 

(2,508)

(131)

(297)

Financial expense

9,988

5,813

15,949

Loss before tax on discounted activities

-

-

(262,090)

Cash flows from operating activities before changes in working capital

(1,907,300)

(3,002,497)

(4,017,817)

 

 

 

 

Decrease/(increase) in trade and other receivables

(2,058,444)

343,485

(46,961)

Increase /(decrease) in trade and other payables

2,257,238

747,754

(95,508)

Cash used in operations

198,794

1,091,239

(142,469)

Income taxes received

-

-

78,562

Net cash used in operating activities

(1,708,506)

(1,911,258)

(4,081,724)

 

 

 

 

Cash flows used in investing activities

 

 

 

Interest received

2,508

131

297

Purchase of intangible assets

(298,872)

-

(624,381)

Purchase of property, plant and equipment

(58,794)

-

(328,850)

Sale Proceeds

-

-

2,190

Cash acquired with subsidiary

-

(5,619)

(5,619)

Cash disposed of with subsidiary

-

-

(14,879)

Net cash used in investing activities

(355,158)

(5,488)

(971,242)

Cash flows from financing activities

 

 

 

Interest paid

(9,988)

(5,813)

(15,949)

Issue of share capital

386

3,300,000

6,311,323

Issue cost of share

-

(94,128)

(78,527)

Increase in borrowings

-

250,000

250,000

Repayment of borrowings

-

(250,000)

-

Net cash generated from financing activities

(9,602)

3,200,059

6,466,847

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

(2,073,266)

1,283,313

1,413,881

Cash and cash equivalents at start of period

2,735,318

1,321,437

1,321,437

Cash and cash equivalents at end of period

662,052

2,604,750

2,735,318

 

The notes on pages 10 to 11 form part of these financial statements

 

 

Notes to the consolidated interim financial statements

 

1    Basis of preparation

The interim condensed consolidated financial statements are the unaudited Consolidated Financial Statements of mporium Group plc, for the six months ended 30 June 2016.This non-statutory interim statement has been prepared on a basis consistent with that used in the preparation of the annual accounts, which are prepared under International Financial Reporting Standards as adopted by the EU ("IFRS"). They do not include all of the information required in annual financial statements in accordance with IFRS.

The interim financial statements were approved by the Board on 24 August 2016. The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.
The financial statements have been prepared under the historical cost convention and the consolidated financial statements incorporate the financial statements of the Company and its subsidiary companies.

The comparative figures for the year ended 31 December 2015 were derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. Those accounts received an unqualified audit report which did not contain statements under sections 498(2) or (3) (accounting record or returns inadequate, accounts not agreeing with records and returns or failure to obtain necessary information and explanations) of the Companies Act 2006.

Going Concern

The interim financial statements have been prepared assuming the Group will continue as a going concern. Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading or seeking protection from creditors pursuant to laws or regulations. In assessing whether the going concern assumption is appropriate, management has considered the Group's existing working capital position. Management are of the opinion that the Group has adequate resources to continue as a going concern.

2    Significant accounting policies

The principal accounting policies and presentation followed in the preparation of this interim report have been consistently applied to all periods in these financial statements and are the same as those applied in the Group's annual accounts for the year ended 31 December 2015. The accounts for the Group can be obtained from the company's website.

3    Critical accounting judgements and key estimation of uncertainty

The preparation of financial statements in conforming with adopted IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and assumptions are based on historical experience and other factors considered reasonable at the time, but actual results may differ from those estimates. Revisions to these estimates are made in the period in which they are recognised. The critical accounting judgements made in preparing this interim report are the same as those in preparing the annual accounts for the Group for the year ended 31 December 2015 which can be obtained from the company's website.

4    Business segments

         The Group's operations are centred on providing software as service and supporting services. Management therefore considers there to be one reporting segment covering the Group.

A supplementary analysis of revenue is as follows:    

 

6 months to   

30 June 2016
unaudited

6 months to    

30 June 2015 unaudited

Year ended 31 December 2015

audited

 

£

£

£

 

 

 

 

Product Revenue

35,282

377,458

787,284

Agency and Project Fees

835,191

176,165

479,905

 

870,473

553,623

1,267,189

               

 

Notes to the consolidated interim financial statements

 

5    Staff numbers

The average number of persons employed by the mporium Group during the period including executive directors is analysed below:

 

6 months to  30 June 2016
unaudited

6 months to

30 June 2015
unaudited

Year ended 31 December 2015

audited

Directors

                  6

4

6

Administration

                  3

2

2

Research and development

                  4

7

5

Operations

                23

13

19

Customer services

                -

14

12

Sales

                  5

5

5

 

41

45

49

 

6    Investments

On 8 June 2015 as part of the arrangements with Cxense the Company entered into a share swap agreement. The Company allotted and issued 25,000,000 new ordinary shares to Cxense at 2 pence per ordinary share in return for the allotment and issue by Cxense to the Company of 51,177 new shares at an issue price of NOK 113.45 per share with an initial valuation of £500,000.

        

6 months to       30 June 2016
unaudited

6 months to       30 June 2015
unaudited

Year ended 31 December 2015

audited

 

£

£

£

Number of shares

51,177

51,177

51,177

Share price Norwegian Krona

150

108

107

FX NOK/£

11.15

12.42

13.05

Fair value

688,480

445,000

419,457

Revaluation recognised in consolidated statement of income

 

269,023

 

(55,000)

 

(80,543)

 

7    Loss per share

 

6 months to  

30 June 2016
unaudited

6 months to 

30 June 2015
unaudited

Year ended 31 December 2015

audited

 

£

£

£

 

 

 

 

Loss for the period

(2,939,919)

(3,895,937)

(4,986,473)

Deemed average ordinary shares

 

 

 

  in issue during the period

470,206,403

129,973,630

283,731,742

Loss per share

(0.01)

(0.03)

(0.02)

Deemed average ordinary shares are used due to the application of merger accounting.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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