Back to all announcements

DJ One Media iP Group Plc Half-year Report

 
TIDMOMIP 
 
29 June 2020 
 
                            One Media IP Group Plc 
 
                  ("One Media", the "Company" or the "Group") 
 
            Interim Results for the six-months ended 30 April 2020 
 
One Media iP (AIM: OMIP), the digital music rights acquirer, publisher and 
distributor, is pleased to announce its interim results for the six-month 
period ended 30 April 2020. 
 
Financial Highlights 
 
  * Revenue increased by 28% to GBP2,032,598 (H1 2019: GBP1,585,687) 
  * Operating profit increased 98% to GBP563,257 (H1 2019: GBP284,360) 
  * EBITDA increased 93% to GBP757,678 (H1 2019: GBP392,192) 
  * Cash balances of GBP1,076,134 at 30 April 2020 (H1 2019: GBP5,184,301) 
 
Operational Highlights 
 
  * Consolidation of five acquisitions completed in 2019 
  * Appointment of Claire Blunt and Brian Berg to the Board as Non-Executive 
    Chair and Non-Executive Director, respectively, to join Michael Infante, 
    Alice Dyson-Jones and Steven Gunning 
  * Launch of Harmony IP 
  * Operations unimpacted by COVID-19 
 
Michael Infante, CEO of One Media iP, commented: 
 
"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 
Pinewood Studios 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." 
 
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 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 5501 
 
Cairn Financial Advisers LLP              Nominated Adviser 
 
Liam Murray / Jo Turner/ Ludovico         Tel: +44 (0)20 7213 0880 
Lazzaretti 
 
Cenkos Securities plc                     Broker 
 
Max Hartley/Max Gould/Michael Johnson     Tel: +44 (0)20 7397 8900 
(Sales) 
 
Yellow Jersey PR                          PR and IR 
 
Charles Goodwin/Annabel Atkins            Tel: +44 (0)20 3004 9512 
 
About One 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 London Stock Exchange on the AIM index, under the 
symbol 'OMIP'. 
 
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 
22 May 2020, 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. 
 
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 Public Health England 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. 
 
Financial Overview 
 
The Group has continued to manage its financial position over the six-month 
period to 30 April 2020 with profitable operations. Group consolidated revenue 
was GBP2,032,598 for the six-months ended 30 April 2020 (30 April 2019: GBP 
1,585,687). 
 
Profit before tax amounted to GBP399,236 (30 April 2019: GBP143,738) and EBITDA 
increased 93% to GBP757,678 (2019: GBP392,192). 
 
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 30 April 2020 were GBP1,076,134 (30 April 2019: GBP5,184,301). 
 
Dividend 
 
On 6 May 2020 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. 
 
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 'Counterpoint 
Research'. 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 International Federation of the Phonographic Industry 
(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. 
 
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 ended 30 April 2020 
 
                            Unaudited    Unaudited      Audited 
 
                            6 months     6 months ended 12 months 
                            ended         30 April 2019 ended 
                             30 April                         31 
                            2020                        October 2019 
 
                            GBP            GBP              GBP 
 
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 
 
                            _________    _________      _________ 
 

(MORE TO FOLLOW) Dow Jones Newswires

June 29, 2020 02:00 ET (06:00 GMT)

DJ One Media iP Group Plc Half-year Report -2-

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 Consolidated Statement of Financial Position 
 
As at 30 April 2020 
 
                               Unaudited     Unaudited    Audited 
 
                                  30 April      30 April  31 October 
                               2020          2019         2019 
 
                               GBP             GBP            GBP 
 
Assets 
 
Non-current assets 
 
Intangible assets              8,788,257     4,684,070    8,900,413 
 
Property, plant and            4,166         11,844       7,647 
equipment 
 
                               _________     _________    _________ 
 
                               8,792,823     4,695,914    8,908,060 
 
                               _________     _________    _________ 
 
Current assets 
 
Trade and other                1,095,899     804,944      1,000,595 
receivables 
 
Cash and cash                  1,076,134     5,184,301    860,611 
equivalents 
 
                               _________     _________    _________ 
 
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                820,622       1,431,255    1,053,266 
payables 
 
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                678,018       678,018      678,018 
capital 
 
Share redemption               239,546       239,546      239,546 
reserve 
 
Share premium account          4,314,220     4,314,220    4,314,220 
 
Share based payment            438,326       261,987      364,756 
reserve 
 
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               10,964,856    10,685,159   10,769,266 
liabilities 
 
                               =========     =========    ========= 
 
 
Unaudited Consolidated Statement of Changes in Equity 
 
For the six months ended 30 April 2020 
 
              Share    Share      Share     Share     Retained  Total 
              capital  redemption premium   based     earnings  equity 
                       reserve              payment 
                                            reserve 
 
                     GBP          GBP         GBP         GBP         GBP         GBP 
 
At 1 November 678,018  239,546    4,314,220 222,259   1,981,765 7,435,808 
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 October 678,018  239,546    4,314,220 364,756   2,422,990 8,019,530 
2019 
 
Profit for    -        -          -         -         330,158   330,158 
the six 
months to 
30 April 2020 
 
Share based   -        -          -         73,570    -         73,570 
payment 
charge 
 
              ________ _________  _________ _________ _________ _________ 
 
Balance at 30  678,018    239,546 4,314,220 438,326   2,753,148 8,423,258 
April 2020 
 
              ======== =========  ========= ========= ========= ========= 
 
Unaudited Consolidated Cash Flow Statement 
 
For the six months ended 30 April 2020 
 
                             Unaudited     Unaudited     Audited 
 
                             6 months      6 months      12 months 
                             ended         ended         ended 
                                30 April      30 April   31 October 
                             2020          2019          2019 
 
                                         GBP             GBP             GBP 
 
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       (95,304)      (123,985)     (306,094) 
receivables 
 
(Decrease)/increase in       (276,957)     816,442       333,210 
payables 
 
Corporation tax paid         (59,433)      (2,272)       - 
 
Finance cost paid            (55,790)      -             (99,404) 
 
                             _________     _________     _________ 
 
Net cash inflow from         324,163       1,106,439     1,146,934 
operating activities 
 
                             _________     _________     _________ 
 
Cash flows from investing 
activities 
 
Investment in copyrights /   (133,154)     (1,461,080)   (5,881,529) 
TCAT 
 
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         24,506        (34,312)      22,010 
financing activities 
 
                             _________     _________     _________ 
 
Net change in cash and cash  215,523       (392,078)     (4,715,768) 
equivalents 
 
Cash at the beginning of the 860,611       5,576,379     5,576,379 
period 
 
                             _________     _________     _________ 
 
Cash at end of the period    1,076,134     5,184,301     860,611 
 
                             =========     =========     ========= 
 
Notes to the Interim Report 
 
For the six months ended 30 April 2020 
 
1.      Nature of operations and general information 
 
One Media iP Group Plc 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 England and Wales. The address of One Media iP Group 
Plc registered office is 623 East Props Building, Goldfinger Avenue, Pinewood 
Road, Iver Heath, Buckinghamshire, SL0 0NH. 
 
The financial information set out in this Interim Report does not constitute 
statutory accounts. The Group's statutory financial statements for the year 
ended 31 October 2019 are available from the Group's website. The auditor's 
report on those financial statements was unqualified. 
 
2.      Accounting Policies 
 
Basis of Preparation 
 
These interim consolidated financial statements are for the six months ended 30 
April 2020. 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 31 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 30 April 2020 and the audited twelve months figures for the year 
ended 31 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. 
 
                      Unaudited         Unaudited        Audited 
 
Basic earnings per    6 months ended    6 months ended   12 months 
share                 30 April 2020     30 April 2019    ended 
                                                         31 October 

(MORE TO FOLLOW) Dow Jones Newswires

June 29, 2020 02:00 ET (06:00 GMT)

DJ One Media iP Group Plc Half-year Report -3-

                                                         2019 
 
Profit for period     330,158           119,302          458,444 
attributable to 
equity shareholders 
 
Weighted average      135,603,699       135,603,699      135,603,699 
number of shares in 
issue at period end 
 
                      _________         _________        _________ 
 
Basic earnings per    0.24p             0.09p            0.34p 
share 
 
                      =========         =========        ========= 
 
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 
 
                               Unaudited     Unaudited    Audited 
 
                                  30 April   30 April     31 October 
                               2020          2019         2019 
 
Group and company                          GBP            GBP              GBP 
 
Authorised: 
 
200,000,000 ordinary shares of 1,000,000     1,000,000    1,000,000 
0.5p each 
 
                               ==========    ==========   ========== 
 
Issued: 
 
Ordinary shares of 0.5p each 
 
135,603,699 (2019: 
135,603,699) ordinary shares   678,018       678,018      678,018 
of 0.5p each 
 
                               ==========    ==========   ========== 
 
5.     Interim statement 
 
Copies of this statement are available from Group's registered Office at: 
 
623 East Props Building, Goldfinger Avenue, Pinewood Road, Iver Heath, 
Buckinghamshire, SL0 0NH. 
 
 
 
END 
 

(END) Dow Jones Newswires

June 29, 2020 02:00 ET (06:00 GMT)