TIDMOMIP
RNS Number : 5331U
One Media iP Group PLC
29 March 2023
29 March 2023
One Media iP Group Plc
("One Media", "the Company" or the "Group")
Audited results for the year ended 31 October 2022
Music rights continuing to deliver double digit growth
driven by active management of copyrights and supportive
industry backdrop
One Media (AIM: OMIP), the digital media content owner and
manager which specialises in the active monetisation of music and
video intellectual property rights, together with copyright
protection technology, announces its audited results for the year
ended 31 October 2022.
Financial highlights
-- 17% increase in total revenue and 9% uplift in EBITDA to
GBP5.1 million (2021: GBP4.4 million) and GBP1.8 million (2021:
GBP1.6 million) respectively, driven by acquisition, organic growth
and active management of the portfolio in line with strategy to
maximise income from rights under ownership
-- Organic revenue growth in the year of 7% reflecting both the
active management and the strength of underlying catalogue
resulting from an investment strategy focused on evergreen music
with lasting appeal
-- Compound average annual organic revenue growth of 15% over
the last five years, reflecting the strong fundamentals of the
Group's catalogue before its rights management expertise is applied
to unlock latent income potential
-- 20% uplift in net revenue (net of distribution charges,
royalty and other costs) to GBP3.3 million (2021: GBP2.8
million)
-- Operating profit of GBP0.9 million (2021: GBP1.1 million) and
EPS of 0.20p (2021: 0.24p), reflecting the Group level investment
into TCAT in addition to costs relating to the refinancing
completed with Coutts & Co.
-- Invested GBP1.7 million, including GBP1.2 million into new
acquisitions identified as fitting the Company's appetite for
proven, recurring income streams that have the potential to be
further cultivated
-- Refinancing of GBP1.9 million of unsecured loan notes with a
Coutts & Co. facility with more traditional lending terms and
enabling greater operational flexibility
-- Healthy cash balance of GBP2.2 million (2021: GBP2.6 million)
providing flexibility for strategic investment
-- IFRS NAV per Ordinary Share unchanged at 7p (2021: 7p)
-- Operative NAV per Ordinary Share of 18p
-- Final dividend declared of 0.055p per share
Operational and post period highlights
-- Ongoing successful active management of catalogue of c.
240,000 recordings, including high profile synchronisation ("sync")
placements, including on Netflix series Bridgerton and the
Hulu/Disney+ series 'Only Murders in the Building', contributing to
increased revenue performance
-- GBP1.2 million of investment into new rights at a blended
multiple of below 11 times, including the licensing rights to a
diversified music income rights catalogue featuring José Carreras,
Jo Jo Adams, Irish Tenor Trio, Alexander O'Neal, Sid Vicious, Lee
Perry, The Lambrettas, Suketu, Col Abram, Psy-Co-Billy, Rachel
Porter's all female Orchestra
-- Strategic decision taken to continue to invest into
anti-piracy software subsidiary TCAT to benefit from medium term
value creation potential
-- TCAT business plan advanced with appointment of CEO Nick
Stewart and investment into new skillsets
Board changes
-- Board further strengthened in October with the appointment of
Mark Adams as an Independent Non-Executive Director
Positive market outlook, notwithstanding macroeconomic
headwinds
-- Outlook for the music industry continues to be positive, with
Goldman Sachs raising 2022 and 2023 global music forecasts and
predicting 12% CAGR 2021-2023
-- Emerging opportunities, including in new territories and with
new technology advances, providing increasing opportunities to
license music and grow royalties
-- The current year's trading has started in line with our
expectations. The Group is well positioned for the year ahead and
we continue to work hard on behalf of our shareholders to maintain
our positive performance and to deliver secure and growing
returns
Operative NAV is calculated by using the IFRS NAV, adjusting for
the revaluation of catalogues assets to fair value and then adding
back the catalogue amortisation
Michael Infante, CEO said: "The Group has delivered another
positive performance in 2022, with the results testament to the
underlying strength of our incredible catalogue and the care and
expertise of the One Media team, who are stewards of the music we
own. With the opportunities to grow the royalties from our existing
music catalogue increasing internationally, these will be our
ongoing focus for 2023. Alongside this, following the strategic
decision taken to prioritise capital allocation to TCAT, given the
potential this proprietary software has in meeting the expanding
requirement for digital copyright infringement detection tools, we
will look to escalate its operations and grow the business.
"Our dividend has been maintained and, with a strong balance
sheet underpinning the Group as well as a supportive outlook for
the music industry, we are well placed for 2023 and to continue to
deliver positively on behalf of our shareholders."
This announcement contains inside information for the purposes
of UK Market Abuse Regulation. The person who arranged the release
of this information is Michael Infante, Chief Executive Officer of
the Company.
For further information, please contact:
One Media IP Group Plc
Michael Infante Chief Executive
Tel: +44 (0)175 378
5500
Claire Blunt Chairman
Tel: +44 (0)175 378
5500
Cairn Financial Advisers LLP Nominated Adviser
Liam Murray / Jo Turner / Ludovico Tel: +44 (0)20 7213
Lazzaretti 0880
Cenkos Securities plc Broker
Max Gould / Giles Balleny, (Corporate Tel: +44 (0)20 7397
Finance) 8900
Michael Johnson (Sales)
Claire Turvey, Fourth Pillar Financial PR
claire@thefourthpillar.co.uk Tel: +44 (0)7850 548
198
About One Media iP Group Plc
One Media is a digital music rights acquirer, publisher and
distributor with a diversified catalogue of over 240,000 music
tracks independently valued at GBP34.8 million (as at April 2022).
The Group specialises in purchasing and monetising intellectual
property rights with proven, repeat income streams. One Media adds
value to its content by maximising its availability in over 600
digital stores globally, including Apple Music, YouTube, Amazon and
Spotify.
One Media's music is also widely used for synchronisation in
film and TV whilst its video content is primarily viewed on
YouTube, where One Media operates over 20 channels as a certified
partner. Additionally, its copyright infringement and digital music
audit tool software TCAT is used by major record labels and the
world leading digital international distributor. Men & Motors,
the Company's branded car channel, is now available via YouTube
www.youtube.com/channel/UCNLiybn_9jgQaV0NZlSRwCg
One Media is listed on the AIM Market of the London Stock
Exchange under the ticker 'OMIP'.
For further information, please visit www.omip.co.uk and
www.harmonyip.com/
Chairman's Statement
Once again, we are reporting another positive set of results,
driven by the Group's focus and long track record in increasing
income from digital copyrights, while at the same time growing
their capital value. The team's specialist expertise in this sector
has helped deliver a 17% increase in total revenue to GBP5.1
million (2021: GBP4.4 million) and a 9% uplift in EBITDA to GBP1.8
million (2021: GBP1.6 million).
These results, underpinned by a positive industry backdrop, have
given the Board the confidence to declare an annual dividend of
0.055p per share, subject to shareholder approval at the Company's
forthcoming Annual General Meeting.
With the core business continuing to perform positively and in
line with expectations, during 2022 the Group spent time
strategically evaluating the investment into its proprietary
anti-piracy software, TCAT (Technical Copyright Analysis Tool).
TCAT is delivering an important and much needed service to music
rights holders (including One Media) and to the creative community
by providing protection from and detection of copyright
infringement and loss of due income through the illegal activities
of others. During the period, TCAT signed additional industry
contracts and trials for its proprietary software and it continues
to gain traction internationally with both major and independent
labels.
As set out in the Group's half year results on 19 July 2022, the
Board, together with the newly formed TCAT board, had been
exploring independent funding options for TCAT. However, as we
communicated in the Group's trading update on 6 January 2023, the
Board subsequently undertook a further assessment of the strategic
position of the TCAT business, in conjunction with the Group's
advisers and alongside consultation with major shareholders. This
included a consideration of both the external and internal funding
options available, given the strength of the Group's balance sheet.
As a result of this process and consultation, the Board concluded
that, in its opinion, greater value can be captured by retaining
TCAT within the Group and supporting TCAT in reaching its next
level of growth.
The Board continues to believe that, against the positive
industry growth trajectory, the TCAT business presents a
significant, scalable opportunity with exciting potential. The
Group will therefore continue to use its cash resources to invest
into TCAT's operations, as it has done to date, with a view to
benefitting from the medium-term value creation potential of the
business.
In October, we welcomed Mark Adams to the Board as an
Independent Non-Executive Director . As part of his role, he also
chairs the Audit Committee. In the short time since his arrival,
Mark has already made a significant contribution to the Group. With
a nearly 30-year career working in senior finance roles across a
range of high profile, listed companies, Mark brings extensive
complementary experience to the Company's Board, with a particular
focus on financial strategy and transactions, including M&A and
fundraising, as well as best practice corporate governance. Mark's
appointment further improves our corporate governance and provides
us with important strategic insight built on an extensive track
record of successfully operating in the listed sector at the
highest levels. To have someone of his calibre as part of our team
is a strong endorsement of the Group's potential as we continue our
journey to deliver shareholder value.
Looking at the economic and political backdrop, the last year
has been a challenging one for many businesses and people across
the world, for many different reasons. We are all having to
navigate rising interest rates and inflation, which are
contributing to a cost-of-living crisis; while it is very sad that,
twelve months on, war is continuing in Europe. Our hearts and minds
continue to stand with the people of Ukraine.
Despite these difficulties, the music industry outlook remains
positive. The growing popularity of streaming services and the
technological changes that are creating some incredible new
opportunities for content licensing offer significant potential for
rightsowners such as One Media to proactively grow their
income.
The Group's ongoing positive performance against this
encouraging industry backdrop leaves us optimistic about the year
ahead, including the business plan for TCAT and, importantly, the
opportunities that will be available for the Group to continue to
showcase its deep expertise in driving revenues from digital
copyrights.
Claire Blunt
Non-Executive Chairman
Chief Executive's Statement
Strategy overview
One Media is an owner, publisher and distributor of digital
music copyrights with previously proven income streams, which our
specialist team grows further through active monetisation. We
derive the majority of our revenue from royalties collected from
the licensing and use of the Company's content, which we enhance by
actively seeking out and leveraging a range of opportunities around
the world. These include improving its availability globally across
over 600 streaming stores (also known as Digital Service Providers
("DSPs")) including Apple Music, YouTube, Amazon Music and Spotify,
while also working to identify opportunities to drive royalty
revenue via the placement of our music in films, adverts and
television series.
Royalty returns are largely uncorrelated to the performance of
the equity markets, they are predictable and generate an
annuity-like income for investors, which is at the core of our
investment case. Additionally, One Media tends to focus on more
mature compositions with proven durability, underpinning the
delivery of reliable revenues.
We are custodians of an extensive catalogue of over 240,000
music tracks, diversified across a range of genres including pop,
rock, country and classical, which deliver long term, growing and
secure income, around 97% of which is recurring. Our catalogue
includes different types of copyrights associated with high profile
artists, including producer's royalties from certain recordings by
Take That, Culture Club, Heatwave, and Kid Creole. We also own
master rights (recordings) and writers' royalties (compositions)
for Don Williams, Mago De Oz, Philip Wesley, as well as thousands
of other income producing royalties derived from our global
exploitation of music via our many distribution partners in both
audio and video.
Leveraging its expansive industry relationships, the Company is
able to identify proven content which it believes is undervalued or
has latent potential, which we then seek to crystallise on behalf
of shareholders. The Group also comprises complementary initiatives
that support the delivery of our core strategy while also providing
additional, diversified sources of revenue.
Harmony IP was established in 2020 and enables composers and
master rights owners to release portions of equity from their
music, giving artists greater flexibility to access future earnings
while retaining majority ownership of their much-loved intellectual
property. From a One Media perspective, it supplements our existing
revenue streams and creates opportunities for us to build strongly
aligned partnerships and relationships with rights owners, putting
us in a favourable position to increase our exposure to their
assets further down the line. Over GBP5.4 million has been deployed
since Harmony IP's inception, allowing the Group to purchase
selective portions of legacy catalogues.
Finally, the Group's Technical Copyright Analysis Tool ("TCAT"),
is a software as a service ("SaaS") platform - accessed via an
online portal on an ongoing subscription basis centrally hosted by
TCAT using AWS in the cloud. Developed by One Media, it is a
proprietary, specialist anti-piracy tool which identifies illegal
or unlicensed use of digital music (copyright infringement),
helping to maximise revenue for record labels and also for One
Media. Collecting and viewing data in real time and storing said
data for data searches on behalf of its clients to be used by them
on a request by request basis, TCAT's data searches assists clients
in supporting both our acquisition strategy, tracks audit usage and
further de-risking our investment process.
Financial performance
In April 2022, our content catalogue was independently valued at
GBP34.8 million, representing an implied value of 16.1p per share
and, importantly, the fair value of the portfolio that has been
carefully assembled over the last 16 years.
Our catalogue has been instrumental in the Group delivering
double digit growth once again this year, with revenue up 17% to
GBP5.1 million (2021: GBP4.4 million) and EBITDA up 9% to GBP1.8
million (2021: GBP1.6 million).
This continued growth is a reflection of our selective
acquisition strategy, which is focused on investing into evergreen
content that has proven incomes profiles; the active asset
management of our rights by the Group's specialist team; and the
supportive industry backdrop, underpinned by the ongoing positive
trajectory of the music streaming sector.
Net revenue increased by 20% to GBP3.3 million (2021: GBP2.8
million), which is indicative of the strong underlying performance
of our catalogue as well as acquisitions undertaken during the
year. With c. 80% of Group income denominated in US dollars,
revenues were also supported by favourable foreign exchange rates.
Management keeps a close eye on currency exchange markets and takes
a nimble approach to forex decisions to take advantage of
beneficial movements.
Operating profit and earnings per share were down on 2021, to
GBP0.9 million (2021: GBP1.1 million) and 0.20p (2021: 0.24p)
respectively, as a result of the impact of the Group's investment
into TCAT, as well as costs relating to the refinancing completed
with Coutts & Co.
In September, we refinanced GBP1.9 million of outstanding
unsecured loan notes held by British Growth Fund, which carried a
fixed interest rate of 7%. The refinancing was undertaken by way of
a secured facility from Coutts & Co. priced at base rate plus
3.5%, amortising on a straight-line basis over five years. Whilst
secured, the new Coutts facility is on more traditional bank
lending terms and contains fewer restrictions on the operations of
the business, giving us greater flexibility in executing our
strategy.
Following an in-depth strategic review, TCAT will remain within
the One Media Group, with a view to benefitting from the
medium-term value creation potential of the business. We will
therefore continue to use the Group's cash resources to invest into
TCAT's operations, as we have done to date. The net cash investment
is expected to be up to c. GBP1.4 million in the current financial
year (up from c. GBP0.8 million in FY22) but it is not expected to
impact on the Group's dividend policy. However, whilst the Group
invests in TCAT, we have stated that there will be reduction in
cash resources available to the Group for potential content
acquisitions.
At the end of the period, our cash balance was GBP2.2 million
(2021: GBP2.6 million), meaning our business continues to be
supported by a healthy balance sheet giving the Group capacity to
take advantage of investment opportunities, as well as accretive
reinvestment into the Group.
As a result of the positive performance in the year, a final
dividend of 0.055p per share has been declared by the Board,
pending shareholder approval at the Annual General Meeting.
Operational update
During the year, we invested GBP1.7 million, including into new
acquisitions that we identified as fitting our appetite for proven,
recurring income streams that have the potential to be further
cultivated. This means curating, repurposing, restoring and,
importantly, policing our content with all the care that the
original writers and performers value and now rely on.
We are focused on content that is older and more established,
meaning it can often be overlooked or undervalued, but almost
always recognisable by tune or artist. We take these pieces of
music and nurture them carefully through our in-house team of
expert Creative Technicians, improving the chances of rediscovery
through precise metadata to reach consumers via DSPs across over
200 territories and growing their exposure through licensing
opportunities.
We also take measures to prevent the piracy or copyright
infringement of our music, which results in lost revenues for
rights owners, through the deployment of TCAT. Piracy purportedly
costs the global music industry approximately GBP9 billion per
annum in lost revenues, over GBP300 million of which is lost from
the UK music industry's rightsholders, while 38% of global music
and video streaming listeners acquire music through illegal
exploitation, often without the consumer even knowing it.
TCAT detects copyright infringement across the legitimate DSPs
by alerting rightsowners to instances of corrupted data,
facilitating the removal or correct monetisation of offending
tracks.
During the year, the TCAT business plan was progressed under the
stewardship of Nick Stewart, following his appointment as CEO in
February 2022. Nick has over 40 years of music industry experience,
having held senior roles at Universal Music and Warner Music among
others. Since stepping into the role, he has been leveraging his
network and industry knowledge to further establish the TCAT brand
and develop its customer base.
We believe that TCAT has significant potential and, given
industry needs, can become the 'go to' anti-piracy software for the
music industry. Following the Board's strategic decision, taken
alongside advisors and shareholders, to retain TCAT within the One
Media Group, we will continue to oversee and fund its growth with
caution, with a view to unlocking further value from its
medium-term potential. TCAT's unique set of features position it
well for industry leadership, with the right investment and
guidance. We believe that its technology offers a solution to many
who are not only struggling to battle copyright infringement of
their assets, but also to improve the digital fingerprints - or
metadata - of their catalogues and recoup the full value of what
they have created or own.
To help us on this journey, we have invested in our headcount to
ensure that we have the right level and type of skillset in
software development. As a result, our team across the Group,
including TCAT, has increased to 21. The TCAT team's focus for the
year will be on continuing to develop the product to ensure that it
is on a path to industry leadership, energising the brand and
progressing sales initiatives, especially among the major and
independent record label community.
Finally, at board level, Mark Adams joined us as an independent
Non-Executive Director. Mark's background of significant experience
in the listed sector and capital markets has already proven
invaluable to the business and he is a welcome addition to the
Group.
Investments and rights management
The Company raised GBP5.6 million of equity (net of costs) in
August 2020, of which GBP5.4 million has so far been invested into
the acquisition of eight portfolios of music rights. These
transactions have been completed at an attractive blended multiple
of 9 times and have generated an annualised yield of 12% since we
acquired them.
Where we have made catalogue acquisitions in the year under
review, we have maintained our usual disciplined approach resulting
in a blended investment multiple of below 11 times.
In March 2022, we announced that we had acquired the licensor's
share of the royalty income to the Orbital Digital Ltd catalogue of
rights, which contains several thousand recordings. Orbital/Rapier
Music features more than 40 branded labels across multiple digital
platforms including African Lives, All About Blues, Travelscape
Records, The Music Shed, Rapier Music, and Sunflash. The catalogue
ranges from classical through to dance/hip hop and features a wide
array of artists such as José Carreras, Jo Jo Adams, Kool & the
Gang, Irish Tenor Trio, Alexander O'Neal, Joe Strummer, Sid
Vicious, Chic, Lee Perry, The Lambrettas, Dread Filmstone, Sex
Pistols, Suketu, Col Abram, Psy-Co-Billy, Rachel Porter's all
female Orchestra and Ebn Ozn.
Whilst the strategic decision has been taken at Group level to
prioritise investment into TCAT, our core business of music
monetisation remains key. We view the coming months as an
opportunity to consolidate and focus on our existing catalogue of
240,000 recordings, including the global positioning and continued
exploitation of these tracks via our partners, The Orchard; wider
third party opportunities such as YouTube; and sync licensing of
our content for film and television use.
Our day-to-day work is largely focused on this aspect of the
business, which is how we generate the majority of revenues and
deliver value for shareholders. It is a highly specialist skill
that requires knowledge of the copyright and rights management
landscape, a detailed understanding of the growing opportunities
that are available for music and content placement and,
importantly, a network of trusted contacts in various roles across
the media business and beyond, which gives us early sight of
opportunities to monetise our catalogue.
The massive growth of television streaming over recent years
continues to offer an increasing number of opportunities to secure
sync deals, where we agree an initial payment for the licensing of
the tracks for use, as well as ongoing payments for any subsequent
airing. Our Point Classics catalogue, which is a world leading
library of classical music, is a good example of where we agreed
several high-profile sync licensing deals during the year,
including on Netflix's 'Bridgerton' and the Hulu/Disney+ series
'Only Murders in the Building'. Our classical catalogue was also
used by HBO Max, ABC and Amazon Prime.
We are always exploring new ways to further maximise the
availability of our tracks for commercial use and deepen our
relationships with music supervisors, whose role in the industry is
to select music for film, TV, adverts, brand partnerships and video
games. To date, the sector has lacked an affordable, simple
solution for clearing music for film, TV and other uses, including
music projects in school and universities. To this end, One Media
launched a new annual subscription model for our sync platform,
Syncphonnix. Working in a similar way that Shutterstock does for
photography and image rights, Syncphonnix reduces time spent on
administration and track by track negotiations, providing a regular
and more efficient income stream for One Media. It also enables
music supervisors to more easily access readily licensed music for
their projects, a guarantee not always afforded by larger
rightsowners.
Via Syncphonnix, t ailored annual rates are offered to each
customer, based on their sector (film production, education,
advertising) and the intended usage. Initially, users will have
access to copyright-cleared popular classical music by Mozart,
Handel, Bach, Vivaldi, Tchaikovsky, Chopin and others. Subscribers
will be able to create and tailor projects via the website app and
download broadcast quality files in full, or in specially edited
30-second and five-second stings. The intention is to broaden the
platform out to provide tracks through subscription across all
genres, including One Media's wider catalogue.
Another major income stream for One Media's digital rights is
music streaming. As an illustration of our innovative approach, for
World Mental Health Month and World Mental Health Day, One Media
partnered with consultant chartered psychologist, Marie-Clare
Mendham at UK Psychology Ltd. Together we created a series of five
specialist playlists, including calming music for anxiety relief,
brain stimulation and music to aid sleeplessness, to mark the day
and offer expertly selected music through Spotify.
Maximising the availability of our music to audiences, including
through specialist playlists, helps to improve its exposure,
increases the number of streams and directly translates into
revenues.
Market backdrop and outlook
Despite economic and political difficulties being felt,
unfortunately, around the world, including the ongoing war in
Ukraine and the challenges presented by the cost of living,
indicators for the music industry remain supportive. Research from
the International Federation of the Phonographic Industry ("IFPI")
suggests that global recorded music revenues grew for the seventh
consecutive year in 2021, increasing by 18.5%.
Goldman Sachs, in its annual 'Music in the Air' report, backs
this narrative. In June last year, it announced that it had raised
its 2022 and 2023 global music forecasts by 7% and 5% respectively.
While we have seen redundancies announced across the tech sector
and questions around how the cost-of-living crisis might impact
discretionary spend, the consensus is that music streaming is
unlikely to be affected to any discernible degree. Indeed, Goldman
Sachs last year predicted that it would deliver a 12% CAGR over the
2021-2023 period, driven by volume, price and additional emerging
opportunities.
Moreover, as we have highlighted in the past, the digital
marketplace is still a relatively young forum and the format of
monetised streaming is less than 15 years old. There is significant
road to run as platforms continue to expand their reach and
technological innovations improve access to and recognition of
intellectual property rights. In addition, there is a host of
burgeoning opportunities across the digital marketplace, including
those being created by companies like Meta and Peloton, or, more
broadly, Web3, the Metaverse and the growth of non-fungible tokens
("NFTs") and now ChatGPT, OpenAI's latest tool in data research.
Our Creative Technicians are already experimenting with where and
how the Group's opportunities for further content discovery by
consumers will be enhanced by greater technology reducing searching
times, linking music to other searched categories during daily
interrogation on search engines and greater opportunities to
increasingly monetise existing Group owned content.
We remain confident that our model for steady growth and
continual investment in copyrights is a proven, recurring cash
generative business and the Board and management remain strongly
aligned with investors through their 12% shareholding in the
Company.
The current year's trading has started in line with our
expectations. The Group is well positioned for the year ahead and
we continue to work hard on behalf of our shareholders to maintain
our positive performance and to deliver secure and growing
returns.
Michael Infante
Chief Executive and Founder
Consolidated Statement of Comprehensive Income
For the year ended 31 October 2022
Year ended Year ended
Note 31 October 31 October
2022 2021
GBP GBP
Revenue 2 5,128,840 4,389,581
Distribution charges (1,090,703) (1,107,127)
Royalty costs (459,115) (435,386)
Other costs (253,334) (66,542)
------------ ------------
Net revenue 3,325,688 2,780,526
Amortisation of catalogues (806,082) (599,308)
Administration expenses (1,604,863) (1,040,706)
Foreign exchange gains/(losses) 34,365 (64,554)
Operating profit 949,108 1,075,958
Share based payments - (77,178)
Finance costs (384,416) (184,045)
Finance income - 1
Profit from continuing activities 564,692 814,736
Assets disposal - (93,939)
Profit on ordinary activities
before taxation 564,692 720,797
Tax expense 3 (126,442) (176,222)
Profit for period attributable
to equity shareholders and
total comprehensive income
for the year 438,250 544,575
============
Basic earnings per share 5 0.20p 0.24p
============
Diluted earnings per share 5 0.16p 0.20p
============ ============
The Consolidated Statement of Comprehensive Income has been
prepared on the basis that all operations are continuing
activities.
Consolidated Statement of Changes in Equity
For the year ended 31 October 2022
Share Share Share Share Retained Total
Capital redemption premium based earnings equity
reserve payment
reserve
GBP GBP GBP GBP GBP GBP
At 1 November
2020 1,109,731 239,546 9,473,327 427,221 2,995,824 14,245,649
Proceeds from
the issue of
new shares 2,500 - 11,250 - - 13,750
Share based payment
charge - - - 77,178 - 77,178
Profit for the
year - - - - 544,575 544,575
Dividends paid - - - - (122,345) (122,345)
At 1 November
2021 1,112,231 239,546 9,484,577 504,399 3,418,054 14,758,807
Proceeds from
the issue of
new shares - - - - - -
Share based payment
charge - - - - - -
Profit for the
year - - - - 438,250 438,250
Dividends paid - - - - (122,345) (122,345)
At 31 October
2022 1,112,231 239,546 9,484,577 504,399 3,733,959 15,074,712
========== ============ ========== ========= ========== ===========
Consolidated Statement of Financial Position
At 31 October 2022
At At
Note 31 October 31 October
2022 2021
GBP GBP
Assets
Non-current assets
Intangible assets 7 14,438,031 13,484,077
Property, plant and equipment 8 12,998 44,007
14,451,029 13,528,084
------------ ------------
Current assets
Trade and other receivables 1,472,369 1,481,077
Cash and cash equivalents 2,175,663 2,565,813
Total current assets 3,648,032 4,046,890
Total assets 18,099,061 17,574,974
============ ============
Liabilities
Current liabilities
Trade and other payables 993,646 937,622
Deferred tax 158,253 132,830
------------ ------------
Total current liabilities 1,151,899 1,070,452
============ ============
Borrowings 1,872,450 1,745,735
Total liabilities 3,024,349 2,816,187
============ ============
Equity
Called up share capital 1,112,231 1,112,231
Share redemption reserve 239,546 239,546
Share premium account 9,484,577 9,484,577
Share based payment reserve 504,399 504,399
Retained earnings 3,733,959 3,418,054
Total equity 15,074,712 14,758,807
============ ============
Total equity and liabilities 18,099,061 17,574,974
============ ============
Consolidated and Company Cash Flow Statement
For the year ended 31 October 2022
Year ended Year ended Year ended Year ended
31 October 31 October 31 October 31 October
2022 2021 2022 2021
Group Group Company Company
GBP GBP GBP GBP
Cash flows from
operating activities
Operating profit/(loss)
before tax 564,692 720,798 (49,801) (418,586)
Amortisation 806,082 599,169 - 369,263
Depreciation 40,577 50,509 - -
Share based payments - 77,178 - 77,178
Finance income - (1) - (1)
Finance costs 384,416 184,045
(Increase)/decrease -
in receivables (24,879) (313,783) (414,111) (4,070,290)
Increase/(decrease)
in payables (175,323) (69,144) 23,402 144,017
Corporation tax
paid (14,926) (72,063) - -
Net cash inflow/(outflow)
from operating activities 1,580,639 1,176,708 (440,510) (3,898,419)
------------ ------------ ----------------- -------------
Cash flows from
investing activities
Investment in intellectual
property rights
and TCAT (1,760,036) (5,199,087) - -
Investment in property,
plant and equipment (9,569) (3,257) - -
Finance income - 1 - 1
Net cash used in
investing activities (1,769,605) (5,202,343) - 1
------------ ------------ ----------------- -------------
Cash flows from
financing activities
Net proceeds from
the issue of new
shares - 13,750 - 13,750
Finance cost paid (205,554) (114,873) - (114,873)
Bank loan 1,900,000 - 1,900,000 -
Loan notes repayment (1,900,000) - (1,900,000) -
Loan notes 126,715 48,492 126,715 48,492
Dividend paid (122,345) (122,345) (122,345) (122,345)
Net cash inflow/(outflow)
from financing activities (201,184) (174,976) 4,370 (174,976)
------------ ------------ ----------------- -------------
Net change in cash
and cash equivalents (390,150) (4,200,611) (436,140) (4,073,394)
Cash at the beginning
of the year 2,565,813 6,766,424 2,314,653 6,388,047
Cash at the end
of the year 2,175,663 2,565,813 1,878,513 2,314,653
============ ============ ================= =============
Notes to the Preliminary Results
1. Basis of preparation
The Company is a public limited company incorporated and
domiciled in England under the Companies Act 2006. The Board has
adopted and complied with International Financial Reporting
Standards (IFRS) as adopted by the European Union. The Company's
shares were admitted for trading on the AIM market of the London
Stock Exchange on 18 April 2013.
2. Segmental Analysis
IFRS 8 'Operating Segments' requires the Group's segments to be
identified on the basis of internal reports about components of the
Group that are regularly reviewed by the Chief Operating Decision
Maker to allocate resources to the segments and to assess their
performance. The Chief Operating Decision Maker is considered to be
the Chief Executive Officer of One Media IP Group Plc.
The Chief Operating Decision Maker receives and reviews
segmental operating profit. Certain central administrative costs
including Group Directors' salaries are included within the Group's
Licenses result. This is consistent with the results as reported to
the Chief Operating Decision Maker.
Each segment is shown net of intercompany transactions and
balances within that segment. The eliminations remove intercompany
transactions and balances between the different segment which
primarily relate to the net draw down of loans and short-term
working capital funding provided by One Media IP Group Plc to the
other company in the Group. Inter-segment transactions are
undertaken in the ordinary course of business on arm's length
terms.
Information regarding the Group's reportable operating segments
for the year ended 31 October 2022 is shown below:
Licenses TCAT Total
Income statement GBP GBP GBP
Revenue 4,761,943 366,897 5,128,840
--------------------------------- ------------ ---------- ------------
Distribution charges (1,090,703) - (1,090,703)
Royalty costs (459,115) - (459,115)
Other costs (78,730) (174,604) (253,334)
--------------------------------- ------------ ---------- ------------
Net revenue 3,133,395 192,293 3,325,688
Amortisation (720,635) (85,447) (806,082)
Administration expenses (1,146,172) (458,691) (1,604,863)
Foreign exchange gains 25,804 8,561 34,365
Operating profit 1,292,392 (343,284) 949,108
Finance costs (356,732) (27,864) (384,416)
Profit / (loss) before taxation 935,660 (370,968) 564,692
Tax expense (126,442)
Profit for the period 438,250
Licenses TCAT Eliminations Total
Total assets and liabilities GBP GBP GBP GBP
-------------------------------- ------------ ------------ ------------- ------------
Total assets 18,318,839 1,458,896 (1,678,674) 18,099,061
Total liabilities (2,930,914) (1,772,109) 1,678,674 (3,024,349)
-------------------------------- ------------ ------------ ------------- ------------
Total segment net assets/
(liabilities) 15,387,925 (313,213) - 15,074,712
-------------------------------- ------------ ------------ ------------- ------------
Geographical information
Revenue is the amount attributable to the Group's principal
activity undertaken in the United Kingdom. The geographic split of
Group revenue is as follows:
Year ended Year ended
31 October 31 October
Revenue 2022 2021
GBP GBP
United Kingdom 345,121 148,866
North America & rest
of world 4,244,479 3,909,097
Europe 539,240 331,618
5,128,840 4,389,581
============ ============
The Group considers it has two business segments with its Profit
from the acquisition and exploitation of mixed media intellectual
property rights for distribution and a SAAS platform, ultimately
earned from its sole activity in the United Kingdom.
Year ended Year ended
31 October 31 October
Revenue by segment 2022 2021
GBP GBP
Licenses and other media
intellectual property 4,761,943 4,243,787
TCAT 366,897 145,794
5,128,840 4,389,581
============ ============
Included in revenues for the year ended 31 October 2022 it is
estimated that GBP819,000 (2021: GBP867,000) is from its largest
ultimate customer and GBP410,000 (2021: GBP412,000) from its second
largest ultimate customer. Together these represent 24% (2021:
29.1%) of the total Group revenue for the year. In addition, the
company relies on a distribution aggregator (The Orchard) who
channels approximately 51% (2021: 63%) of the Group's turnover.
3. Taxation
Year ended Year ended
31 October 31 October
2022 2021
GBP GBP
Analysis of the charge for
the year
UK corporation tax charge 105,703 171,122
Deferred tax 20,739 5,100
126,442 176,222
============ ============
The standard rate of tax for the year, based on the UK standard
rate of corporation tax is 19% (2021: 19%). The actual tax charge
for the periods is different than the standard rate for the reasons
set out in the following reconciliation:
Reconciliation of current tax Year ended Year ended
charge 31 October 31 October
2022 2021
GBP GBP
Profit on ordinary activities
before tax 564,692 814,737
============ ============
Tax on profit on ordinary activities
at 19% (2021: 19%) 107,292 154,800
Effects of:
Non-deductible expenses 13,619 18,071
Adjustments to tax charge in
respect of previous periods - -
Fixed asset timing differences 8,225 5,100
Depreciation in excess of capital
allowances 5,719 8,768
Research and development (8,413) (10,517)
Total tax charge 126,442 176,222
============ ============
4. Employee information
Year ended Year ended
31 October 31 October
2022 2021
GBP GBP
Directors' emoluments - excluding
applicable share option and pension
charges 485,292 390,565
Fees paid to directors 69,274 59,688
Share option charge - 77,178
TCAT staff payroll and expenses 752,701 534,894
Wages and salaries 188,589 158,439
Social security 46,540 58,679
Pension 8,340 7,011
Benefit in kind - 1,068
1,550,736 1,287,522
============ ============
The average monthly number of Group employees (excluding
non-executive directors) during the year was as follows:
Year ended Year ended
31 October 31 October
2022 2021
Technical, creative technicians
and management 12 11
Developers and management (TCAT
Ltd) 9 7
============ ============
5. Earnings per share
The weighted average number of shares in issue for the basic
earnings per share calculations is 222,446,249 (2021: 222,446,249)
and for the diluted earnings per share assuming the exercise of all
warrants and share options is 267,779,582 (2021: 267,606,979).
The calculation of basic earnings per share is based on the
profit for the period of GBP438,251 (2021: GBP544,575). Based on
the weighted average number of shares in issue during the year of
222,446,249 (2021: 222,446,249) the basic earnings per share is
0.20p (2021: 0.24p). The diluted earnings per share is based on
267,779,582 shares (2021: 267,606,979) and is 0.16p (2021:
0.20p).
6. EBITDA
Profit from continuing activities before interest, tax,
depreciation and amortisation for the twelve months ended 31
October 2022 was GBP1,795,768 (2021: GBP1,648,459).
7 . Intangible assets - Group
Licenses Total
and other Intangible
intangibles TCAT assets
GBP GBP GBP
Cost
At 1 November 2020 11,214,491 - 11,214,491
Additions 4,438,554 854,472 5,293,028
Disposals (93,939) - (93,939)
At 31 October 2021 15,559,106 854,472 16,413,578
Additions 1,225,577 534,459 1,760,036
Disposals - - -
At 31 October 2022 16,784,683 1,388,931 18,173,614
------------- ---------- ------------
Amortisation
At 1 November 2020 2,330,332 - 2,330,332
Charge for the year 553,369 45,800 599,169
Disposals - - -
At 31 October 2021 2,883,701 45,800 2,929,501
Charge for the year 720,635 85,447 806,082
Disposals - - -
At 31 October 2022 3,604,336 131,247 3,735,583
------------- ---------- ------------
Net book value
At 31 October 2022 13,180,347 1,257,684 14,438,031
------------- ---------- ------------
At 31 October 2021 12,675,405 808,672 13,484,077
------------- ---------- ------------
8. Property, plant and equipment - Group
Office Fixtures Right Total
equipment and of Use
fittings assets
GBP GBP GBP GBP
Cost
At 1 November 2020 70,580 11,294 98,692 180,566
Additions 3,256 - - 3,256
Disposals - - - -
At 31 October 2021 73,836 11,294 98,692 183,822
Additions 9,569 - - 9,569
Disposals - - - -
At 31 October 2022 83,405 11,294 98,692 193,391
=========== ========== ======== ========
Depreciation
At 1 November 2020 65,723 11,096 12,487 89,306
Charge for the year 3,351 198 46,960 50,509
Disposals - - - -
At 31 October 2021 69,074 11,294 59,447 139,815
Charge for the year 4,190 - 36,388 40,578
Disposals - - - -
At 31 October 2022 73,264 11,294 95,835 180,393
=========== ========== ======== ========
Net book value
At 31 October 2022 10,141 - 2,857 12,998
=========== ========== ======== ========
At 31 October 2021 4,762 - 39,245 44,007
=========== ========== ======== ========
Directors' responsibilities
The Annual Report, including the financial information contained
therein, is the responsibility of, and was approved by the
directors on 28 March 2023.
Availability of Report and Accounts
Copies of the Company's Report and Accounts will be posted to
shareholders shortly. Copies of the Company's Report and Accounts
will also be available at the registered office of the Company and
can be viewed on the Company's website, www.omip.co.uk .
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identified by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities.
This information is provided by RNS, the news service of the
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END
FR NKFBKOBKDANB
(END) Dow Jones Newswires
March 29, 2023 02:00 ET (06:00 GMT)
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