logo-loader
viewOne Media IP Group

One Media iP Group Plc - Half-year Report

29 June 2020

One Media IP Group Plc

(“One Media”, the “Company” or the “Group”)

Interim Results for the six-months ended30 April 2020

(AIM: OMIP), the digital music rights acquirer, publisher and distributor, is pleased to announce its interim results for the six-month period ended .One Media iP30 April 2020

Financial Highlights

Operational Highlights

, CEO of , commented:Michael InfanteOne Media iP

“As the world adjusts to life under COVID-19, we continue to observe changing habits in both music consumption and genres being streamed as a result of the dramatic changes to people’s daily routines. Coinciding with this, we have also seen an uplift in streaming of children’s, classical and ambient music, all of which favour One Media’s diverse catalogue.

“I am very pleased with our staff’s fortitude in decamping from our offices at and working efficiently on a remote basis, which is a tribute to both  technology and team effort. This ‘new normal’ lends itself to our continuing operations and we have successfully proven our robust business model in the first six months of 2020.”Pinewood Studios

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged the release of this information is , Chief Executive Officer of the Company.Michael Infante

For further information, please contact:

AboutOne Media iP Group Plc

One Media is a digital music rights acquirer, publisher and distributor. 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, TV and digital gaming whilst its video content is primarily viewed on YouTube where One Media operates over 20 YouTube channels as a certified partner.

One Media is listed on the index, under the symbol ‘OMIP’.London Stock Exchange on the AIM

For further information on One Media iP: www.omip.co.uk

TCAT:www.tcat.media

Harmony IP:www.harmonyip.com

Chairman’s Statement  

Business and Performance Review

The Group made significant progress in H1 2020 by continuing to enhance the value of its existing catalogue and leveraging its in-house capabilities to grow and protect shareholder value.  As outlined in the recent AGM Statement of , substantial advancements have been made during the period in each of the Company’s key operational divisions, including the core business of purchasing and monetising digital music rights, as well as its service offerings, the Technical Copyright Analysis Tool (“TCAT”) and Harmony IP.22 May 2020

Responding to interest from major players across the music industry, One Media continues to examine possibilities to scale its proprietary anti-piracy technology, TCAT, by sourcing third party interest and possible partner initiatives for wider implementation across the sector.

Encouraging progress has also been made towards launching the Group’s unique intellectual property (IP) equity release programme, Harmony IP.  The platform, which looks to grant music rights holders with advanced access to the future earnings of their IP by purchasing a portion of their rights upfront, has received good levels of early interest from artists and the Group is working to take these discussions forward. Harmony IP will enable One Media to diversify its portfolio and acquire music rights with recurring income streams at favourable multiples.

Finally, the Group remains focused on enhancing the value of its existing catalogue and is committed to ensuring its content is fully optimised to maximise discoverability across global markets. Synchronisation deals offer One Media an additional avenue through which to generate income, and during the period a number of the Group’s owned tracks were used in TV series, such as American drama series, ‘Dare Me’, and films, such as Netflix’s original film, ‘Coffee & Kareem’.

COVID-19

Notwithstanding the challenging macro-economic environment presented by COVID-19, One Media retains a healthy cash position and continues to trade in line with expectations. The safety and well-being of employees is paramount and the Group adheres to government and guidance at all times. The Group’s staff remain fully employed in its businesses and continue to work efficiently on a remote basis, effectively liaising with customers and suppliers to ensure business continuity.Public Health England

Financial Overview

The Group has continued to manage its financial position over the six-month period to with profitable operations. Group consolidated revenue was £2,032,598 for the six-months ended (: £1,585,687).30 April 202030 April 202030 April 2019

Profit before tax amounted to £399,236 (: £143,738) and EBITDA increased 93% to £757,678 (2019: £392,192).30 April 2019

During the period, the Company has not issued new shares as consideration for acquisitions and has used existing cash resources as consideration. Cash balances at were £1,076,134 (: £5,184,301).30 April 202030 April 2019

Dividend

On One Media was delighted to inform the market of a return to its dividend policy. The Group declared an interim dividend of 0.055p per ordinary share, which was paid earlier this month. The Board had considered its policy regarding dividends and has established that the objective of its Dividend Distribution Policy is to maintain an equilibrium between retention of profit to finance long-term growth plans whilst rewarding shareholders for their support.6 May 2020

Industry

Despite significant uncertainty caused by COVID-19, the global recorded music market has demonstrated resilience, with music-streaming platforms such as Spotify recording an increase in paid subscribers. Global online music streaming subscriptions grew 32% year-on-year (YoY) reaching 358 million subscriptions in CY 2019, according to the latest findings from ‘. This is driven by the availability of content like podcasts, that attracted people towards the platform and eventually turned them as subscribers. Additionally, promotional activities such as price cuts in subscriptions in emerging markets and bundled offers from telcos added to the growth. It is expected that online music streaming subscriptions will grow more than 25% YoY to exceed 450 million subscriptions by the end of 2020. The latest figures published by the (IFPI) for 2019 show that streaming now accounts for over half of global revenues, and this number is expected to grow as streaming devices become increasingly accessible and global audiences continue to expand.Counterpoint Research’International Federation of the Phonographic Industry

Outlook

With its highly scalable business model, One Media enters H2 2020 in a strong position to expand its geographical footprint, exploit its new product offerings and capitalise on the growth of streaming globally. Its track record of acquiring low-risk content with proven, recurring income streams further supports the Group’s position as it looks for opportunities to enhance shareholder value within this growth market.

The Board looks forward to updating shareholders on progress in due course.

Claire Blunt

Chair of One Media

Unaudited Consolidated Statement of Comprehensive Income

For the six months ended30 April 2020

Unaudited Consolidated Statement of Financial Position

As at30 April 2020

Unaudited Consolidated Statement of Changes in Equity

For the six months ended30 April 2020

Unaudited Consolidated Cash Flow Statement

For the six months ended30 April 2020

Notes to the Interim Report

For the six months ended30 April 2020

1.     Nature of operations and general information

and its subsidiaries’ (“the Group”) principal activities are the acquisition and licensing of audio-visual intellectual copyrights and publishing for distribution through the digital medium and to a lesser extent through traditional media outlets.One Media iP Group Plc

is the Group’s ultimate parent company incorporated under the Companies Act in and . The address of registered office is , , , , , SL0 0NH.One Media iP Group PlcOne Media iP Group PlcEnglandWales623 East Props BuildingGoldfinger AvenuePinewood RoadBuckinghamshireIver Heath

The financial information set out in this Interim Report does not constitute statutory accounts. The Group’s statutory financial statements for the year ended are available from the Group’s website. The auditor’s report on those financial statements was unqualified.31 October 2019

2.     Accounting Policies

Basis of Preparation

These interim consolidated financial statements are for the six months ended . They have been prepared following the recognition and measurement principles of IFRS. They do not include all the information required for full annual statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended .30 April 202031 October 2019

This unaudited interim statement has not been subject to a review by the Group’s auditors .James Cowper Kreston

Comparatives

The comparative periods represent the unaudited results for the six months period ended and the audited twelve months figures for the year ended .30 April 202031 October 2019

3.     Earnings per share

The calculation of the earnings per share is based on the profit for the financial period divided by the weighted average number of shares in issue during the period.

The diluted earnings per share would be lower than the basic profit per share as the exercise of warrants and options would be dilutive.

4.     Share capital

5.    Interim statement

Copies of this statement are available from Group's registered Office at:

, , , , , SL0 0NH.623 East Props BuildingGoldfinger AvenuePinewood RoadBuckinghamshireIver Heath

--  Revenue increased by 28% to £2,032,598 (H1 2019: £1,585,687)
    --  Operating profit increased 98% to £563,257 (H1 2019: £284,360)
    --  EBITDA increased 93% to £757,678 (H1 2019: £392,192)
    --  Cash balances of £1,076,134 at  (H1 2019: £5,184,301)30 April 2020
--  Consolidation of five acquisitions completed in 2019
    --  Appointment of  and  to the Board as Non-Executive
        Chair and Non-Executive Director, respectively, to join ,
         and 
    --  Launch of Harmony IP
    --  Operations unimpacted by COVID-19Claire BluntBrian BergMichael InfanteAlice Dyson-JonesSteven Gunning
Chief Executive
                                              Tel: +44 (0)175 378 5500

                                  Chairman
                                              Tel: +44 (0)175 378 5501

                  Nominated Adviser

 / /   Tel: +44 (0)20 7213 0880

Cenkos Securities plc                         Broker

// (Sales) Tel: +44 (0)20 7397 8900

Yellow Jersey PR                              PR and IR

Charles Goodwin/                Tel: +44 (0)20 3004 9512One Media IP Group PlcCairn Financial Advisers LLPMichael InfanteClaire BluntLiam MurrayJo TurnerLudovico LazzarettiMax HartleyMax GouldMichael JohnsonAnnabel Atkins
Unaudited      Unaudited      Audited

                          6 months ended 6 months ended 12 months ended 31
                                                        October 2019
                          30 April 2020  30 April 2019

                          £              £              £

Revenue                   2,032,598      1,585,687      3,508,891

Cost of sales             (1,032,750)    (843,177)      (1,756,464)

                          _________      _________      _________

Gross profit              999,848        742,510        1,752,427

Administrative expenses   (436,591)      (458,150)      (873,513)

                          _________      _________      _________

Operating profit          563,257        284,360        878,914

Share based payments      (73,570)       (39,728)       (142,497)

Finance costs             (90,459)       (100,970)      (189,322)

Finance income            8              76             8

                          _________      _________      _________

Profit on ordinary        399,236        143,738        547,222
activities before
taxation

Tax expense               (69,078)       (24,436)       (88,778)

                          _________      _________      _________

Profit for period         330,158        119,302        458,444
attributable to equity
shareholders and total
comprehensive income for
the year

                          =========      =========      =========

Basic earnings per share  0.24p          0.09p          0.34p

                          =========      =========      =========
Unaudited     Unaudited     Audited

                               30 April 2020 30 April 2019 31 October 2019

                               £             £             £

Assets

Non-current assets

Intangible assets              8,788,257     4,684,070     8,900,413

Property, plant and equipment  4,166         11,844        7,647

                               _________     _________     _________

                               8,792,823     4,695,914     8,908,060

                               _________     _________     _________

Current assets

Trade and other receivables    1,095,899     804,944       1,000,595

Cash and cash equivalents      1,076,134     5,184,301     860,611

                               _________     _________     _________

Total current assets           2,172,033     5,989,245     1,861,206

                               _________     _________     _________

Total assets                   10,964,856    10,685,159    10,769,266

                               =========     =========     =========

Liabilities

Current liabilities

Trade and other payables       820,622       1,431,255     1,053,266

Deferred tax                   83,128        58,133        83,128

                               _________     _________     _________

                               903,750       1,489,358     1,136,394

Borrowings                     1,637,848     1,600,963     1,613,342

                               _________     _________     _________

Total liabilities              2,541,598     3,090,321     2,749,736

                               _________     _________     _________

Equity

Called up share capital        678,018       678,018       678,018

Share redemption reserve       239,546       239,546       239,546

Share premium account          4,314,220     4,314,220     4,314,220

Share based payment reserve    438,326       261,987       364,756

Retained earnings              2,753,148     2,101,067     2,422,990

                               _________     _________     _________

Total equity                   8,423,258     7,594,838     8,019,530

                               _________     _________     _________

                               _________     _________     _________

Total equity and liabilities   10,964,856    10,685,159    10,769,266

                               =========     =========     =========
Share    Share      Share     Share based Retained  Total equity
             capital  redemption premium   payment     earnings
                      reserve              reserve

                    £          £         £           £         £            £

At 1         678,018  239,546    4,314,220 222,259     1,981,765 7,435,808
November
2018

Profit for   -        -          -         -           119,302   119,302
the six
months to
30 April
2019

Share based  -        -          -         39,728      -         39,728
payment
charge

             ________ _________  _________ _________   _________ _________

At 30 April  678,018  239,546    4,314,220 261,987     2,101,067 7,594,838
2019

Proceeds     -        -          -         -           -         -
from the
issue of new
shares

Fund raise   -        -          -         -           -         -
costs

Profit for   -        -          -         -           321,923   321,923
the six
months to
31 October
2019

             -        -          -         102,769     -         102,769
Share based
payment
charge

             ________ _________  _________ _________   _________ _________

At 31        678,018  239,546    4,314,220 364,756     2,422,990 8,019,530
October 2019

Profit for   -        -          -         -           330,158   330,158
the six
months to
30 April
2020

Share based  -        -          -         73,570      -         73,570
payment
charge

             ________ _________  _________ _________   _________ _________

Balance at    678,018    239,546 4,314,220 438,326     2,753,148 8,423,258
30 April
2020

             ======== =========  ========= =========   ========= =========
Unaudited     Unaudited     Audited

                                     6 months      6 months      12 months ended
                                     ended         ended
                                     30 April 2020 30 April 2019 31 October 2019

                                                 £             £               £

Cash flows from operating activities

Profit before taxation               399,236       143,738       547,222

Amortisation                         245,018       128,315       332,423

Depreciation                         3,372         3,579         7,885

Share based payments                 73,570        39,728        142,497

Finance income                       (8)           (76)          (127)

Finance costs                        90,459        100,970       189,322

(Increase)/decrease in receivables   (95,304)      (123,985)     (306,094)

(Decrease)/increase in payables      (276,957)     816,442       333,210

Corporation tax paid                 (59,433)      (2,272)       -

Finance cost paid                    (55,790)      -             (99,404)

                                     _________     _________     _________

Net cash inflow from operating       324,163       1,106,439     1,146,934
activities

                                     _________     _________     _________

Cash flows from investing activities

Investment in copyrights / TCAT      (133,154)     (1,461,080)   (5,881,529)

Investment in fixed assets           -             (3,201)       (3,310)

Finance income                       8             76            127

                                     _________     _________     _________

Net cash used in investing           (133,146)     (1,464,205)   (5,884,712)
activities

                                     _________     _________     _________

Cash flow from financing activities

Proceeds from the issue of new       -             -             -
shares

Share issue costs                    -             (35,017)      -

Loan notes                           24,506        705           22,010

                                     _________     _________     _________

Net cash inflow from financing       24,506        (34,312)      22,010
activities

                                     _________     _________     _________

Net change in cash and cash          215,523       (392,078)     (4,715,768)
equivalents

Cash at the beginning of the period  860,611       5,576,379     5,576,379

                                     _________     _________     _________

Cash at end of the period            1,076,134     5,184,301     860,611

                                     =========     =========     =========
Unaudited      Unaudited      Audited

Basic earnings per share          6 months ended 6 months ended 12 months ended

                                  30 April 2020  30 April 2019  31 October 2019

Profit for period attributable to 330,158        119,302        458,444
equity shareholders

Weighted average number of shares 135,603,699    135,603,699    135,603,699
in issue at period end

                                  _________      _________      _________

Basic earnings per share          0.24p          0.09p          0.34p

                                  =========      =========      =========
Unaudited     Unaudited     Audited

                                    30 April 2020 30 April 2019 31 October 2019

Group and company                               £             £               £

Authorised:

200,000,000 ordinary shares of 0.5p 1,000,000     1,000,000     1,000,000
each

                                    ==========    ==========    ==========

Issued:

Ordinary shares of 0.5p each

135,603,699 (2019: 135,603,699)
ordinary shares of 0.5p each        678,018       678,018       678,018

                                    ==========    ==========    ==========

Quick facts: One Media IP Group

Price: 7.75

Market: AIM
Market Cap: £10.51 m
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Morning Report: FTSE 100 lower as US infections continue to rise

Headlines from the Proactive UK newsroom. The FTSE 100 headed lower in an uncertain start to the week as investors worried over the surge in US COVID-19 infections. The blue-chip index dipped 24 to 6,135. Deliveroo’s boss has warned that restaurants are 'hurting' due to the coronavirus...

1 week, 4 days ago