PRELIMINARY RESULTS FOR THE YEAR ENDED
("Mirriad", the "Company" or the "Group")
Results for the year ended
Financial overview
· 2018 revenue of
· Net assets reduced 44% to
· Operating loss increased 27% to
· Cash and cash equivalents at
Operational highlights
· Appointment of new senior management team on 1st October when
· Signature of initial contract with Tencent in
·
· Signature of contract with TF1 in
· Awarded the Best Video Marketing and Advertising Platform in the Digiday Technology Awards in September
Post period highlights
· New strategy announced by
· Closure of the Group's operations in
· Appointment of new CTO,
·
· Trading in 2019 to date is in line with the Company's budget and Q1 2019 revenue surpassed H1 2018 revenue
· The Company has sufficient cash to fund its activities throughout the current financial year however will need to raise additional funds in the next 12 months. Cash balances at
"I was under no illusion about the scale of the task ahead when I joined Mirriad in 2018, and the challenge is reflected in these results. We have moved decisively to address the ineffectiveness of the company's previous strategy and to reset our cost base.
"The business is now getting into a far better position to use its award-winning technology to tap into the huge market opportunities we have identified and put the business on a path to growth, creating value for our investors. I am very encouraged by the progress to date and have confidence that our new strategy can and will deliver value for our shareholders."
For further information please visit www.mirriad.com or contact:
|
|
Tel: +44 (0)207 884 2530 |
|
(Nominated Adviser & Broker)
|
Tel: +44 (0) 207 260 1000 |
|
|
Tel: +44 (0) 7810 636995 Tel: +44 (0) 7741 659021
|
Notes to Editors
About Mirriad
Mirriad is an established computer vision and AI-powered platform company, built on Academy-Award winning entertainment tech, with 29 patents and patents pending. Using sophisticated technologies, Mirriad connects people with brands, through seamless ad insertions in popular linear and digital content. Advertisers can now reach very large target audiences in a contextually relevant way without interrupting the viewing experience.
Research has consistently shown in-video advertising to be highly effective for the marketer and preferred by audiences on TV, online, and mobile.
Mirriad is headquartered in London, with offices in New York, Paris, Munich, Mumbai, and Shanghai.
Forward looking statements
Certain information contained in this announcement, including any information as to the Group's strategy, plans or future financial or operating performance, constitutes "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "projects", "expects", "intends", "aims", "plans", "predicts", "may", "will", "seeks" "could" "targets" "assumes" "positioned" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this announcement and include statements regarding the intentions, beliefs or current expectations of the Directors concerning, among other things, the Group's results of operations, financial condition, prospects, growth, strategies and the industries in which the Group operates. The directors of the Company believe that the expectations reflected in these statements are reasonable, but may be affected by a number of variables which could cause actual results or trends to differ materially. Each forward-looking statement speaks only as of the date of the particular statement.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future or are beyond the Group's control. Forward-looking statements are not guarantees of future performance. Even if the Group's actual results of operations, financial condition and the development of the industries in which the Group operates are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods.
Chairman's statement
I am delighted to present Mirriad's Annual Report for the year ended 31st
Looking back
2018 was a year of transition for Mirriad. Although there were operational and technological achievements to be proud of, the financial results were not what the Board had expected. Businesses such as Mirriad that are looking to disrupt established business models require the ability to pivot their strategies to break through. The Board deemed this necessary in 2018 both in leadership and strategy.
Mirriad's DNA is based on Academy Award-winning computer vision and image mapping technology. The Company has developed and evolved this technology to become a solution for advertisers by allowing the insertion of branding, messaging and products at an unprecedented level of quality and speed. Mirriad is currently the only solution in the market that can deliver high impact experiences with 100% realism across linear TV and digital video. It is a technology that has huge potential as a new solution to create inventory and add revenue for broadcasters and digital publishers.
However, the company had consistently been unable to grow revenues at the pace that reflected its potential. The Board therefore decided that a new perspective and market experience was needed to drive the business forward. As a consequence at the beginning of the fourth quarter we changed senior management bringing in Stephan Beringer as CEO to review the company, its technology and its go-to-market strategy.
Stephan quickly and decisively reset the company's Strategy, repositioned its presence in the market, reviewed its cost base and refocused its technology road map to better serve its customers. The Board fully endorses Stephan's new strategy and believes strongly that while there is much to do, the business is now on the right track to deliver on its promise. Mirriad has never had difficulty getting potential customers excited about its technology. Now we firmly believe we have a team and go-to-market strategy that will deliver on the financial potential brought by those customers. We look forward to the impact of the new strategy on the company's results during 2019.
Corporate governance
Shareholders will be aware that during 2018, companies were required to formally adopt a corporate governance code. The Board have chosen to fully adopt the Quoted Companies Alliance Corporate Governance Code.
Board
In
Shortly before the publication of this report in
Culture
The new management team, with support from the Board, is renewing the cultural and skill mix of the organisation. The organisation is being re-focused, and the markets it operates in are changing. Mirriad needs to hire the best senior talent, with the right skills, that it can economically justify. It needs to fill in advertising industry knowledge skill gaps - which is why we have brought Stephan and Jana into the organisation. I also want to see the business develop and retain its top talent in the extremely competitive markets in which it operates.
Engaging with our stakeholders
The Board and I take our responsibilities to shareholders and other stakeholders seriously. Each of the Board members brings a different set of skills to the business, along with a different network of contacts, and so has something different to offer stakeholders. Shortly after Stephan's appointment, he met with a range of major shareholders to understand their perceptions of the company, their expectations and their concerns. These meetings were followed up in late March with presentations, including a webinar open to investors and analysts, setting out the Company's new strategy and giving an overview of performance since Stephan joined. The Company intends to engage more frequently with shareholders now that the management transition is complete. The Company itself continues to engage actively with its employees via regular biannual staff surveys and bimonthly
The year ahead
The Company is changing its market focus as we believe it had stretched across too many geographies. The emphasis now is on the US, Germany, France, the UK and China, which the Company considers to be the highest value media markets. The Company is also changing its go-to-market strategy to enable it to scale more quickly and aligning its product with industry nomenclature and metrics. At heart, Mirriad is a technology company, and it will continue to invest in automation and further develop its artificial intelligence capability. I, along with the rest of the Board, believe that the development of these foundations in 2019 will set the business up for growth in 2020.
John Pearson
Non-executive chairman
CEO's statement
Mirriad has many strengths and areas of competitive advantage and I believe that Mirriad's core proposition is more powerful than ever. Mirriad is the only cross-platform solution that offers a true in-video format which looks as real as the content it integrates with. However, the business had been taken on a path to market that was not ideal, it stretched across too many geographies, it had been relying on too few market opportunities, the strategy was not followed through and foremost the Company was significantly out of touch with its content and distribution partners as well as advertisers and their agencies. A reset was clearly needed.
I came to Mirriad with a plan to assess the business within my first 100 days. Revenues were significantly below expectations due to sporadic campaign work. I wanted to assess where the business had come from and what I saw it needed to be in the future. I also wanted the entire team to own that plan so that it was not just my vision of where we need to go but the whole Company's. We have actively involved all departments in looking at how they work, what their issues are, how they can better address our customers, what potentially blocks them from delivering excellence and what ideas they have to make a leap forward from a technology and solution standpoint.
At the same time we have been very actively engaged with the external market and stakeholders. We have talked to many C-level executives at brands, media agencies and broadcasters/distributors to get their view on our product, the opportunities it opens and how we change the way we engage with the market. I have also met and talked to many of our key shareholders to get their perspective on the business.
2018 highlights
There have been a number of successes in 2018.
Research studies have proved two things: viewers like the Mirriad format, they think it makes content richer and better, they regard it as innovative and prefer it over other forms of advertising; secondly, presence in content makes brands more desirable and increases brand consideration. Our product really is unique in the entertainment space as we are the only company that we know of that embeds images into any content our partners supply. This is a key distinction as our advertising looks like it has always been part of the programme and not overlaid afterwards.
The company has continued to develop its core video technology such as that for delivering machine learning solutions to compute proximity and prominence values. The company also continued to develop the platform we use to manage and automate the different processes and workflows introducing new automated "Buy Orders" so that we make the solution work better for all our customers.
We have signed or renewed deals with key distribution partners such as
Changes in the market
Audiences are shifting and moving across platforms, devices and applications, and they are increasingly rejecting intrusive advertising. At the same time, engagement with consumers is being controlled and dominated more and more by the major platforms and developments such as GDPR and e-privacy regulations are adding to advertisers' constraints in terms of differentiation, ownership and growth. Brands need to be hyper-relevant to everybody, deliver fully connected experiences, engage at scale and ensure their messages are high quality and do all of this with maximum efficiency. I believe that this is where Mirriad can make a difference and support advertisers, agencies and media partners. We offer a desirable format which becomes part of the entertainment content that people are most passionate about. We can leverage this passion for the benefit of any brand. We can travel with the content wherever it goes, whether in linear, digital, mobile or on demand. We are safe in terms of the content we use for the inventory we create. This means that we can address many of the challenges that the content industry is facing in terms of the experience it offers and the way it generates revenue as well as offering a product which is future proof.
The new strategy
Our new strategy can be summarised in 4 key points:
· Align with the market, don't re-invent it: We have to become part of the media buying ecosystem, not expect the ecosystem to adapt to us. We have to speak the same language, use the same metrics, integrate with the same systems as the media world in which we operate in order to achieve scale and give both the demand and supply side an easy path to the solution's benefits.
· Build scale: Mirriad is not a niche tool, our technology can deliver the widest possible reach.
We must continue developing our core computer vision and AI technology to, ultimately, allow total automation, further build our content partnerships across platforms, and offer inventory at scale to the agencies and the advertisers they're in charge of.
· Focus on core markets: To live up to our ambition and to deliver growth for all stakeholders, we must allocate resources to activities and geographies that are most central to our development.
· The right kind of revenue: Revenue is a key focus for Mirriad, but not at the expense of the long-term size and health of the business. Our leading position in the ecosystem will in part be determined by the partnerships, deals and integrations we do today, so all of them must reflect the company we want to be in the future.
Cultural change
One of my key tasks has been to start a process of cultural change to foster agility, speed, innovation and the passion to succeed in all staff. We have a great starting point as we have many staff who have served the business loyally and diligently over the last years. We are tapping into that talent pool and making sure that that pride in the "brilliance" of what we deliver as a product is fully aligned with our new pace and strategy.
That means open and frank communication across the business so we can learn from the past while preparing for the future. We want staff to have the freedom to innovate, get on with what they are doing without interference, feel free to speak out and who aren't afraid to fail. This is how we win.
Outlook for 2019
We are accelerating across all areas of activity with a focus on scale and impact. This means an acceleration in development of our technology and platform. Also we need to apply ourselves to the development of our go-to-market strategy and that means adding more supply partners, delivering research cases that prove superior results and ultimately building up the business to become a "line item" in clients' media plans in 2020.
We are ensuring that the organisation has the right skills, in the right places. We have taken some tough decisions and exited the market in Brazil and commercially in India which are low per capita advertising markets so that we can put our efforts into the markets which have the highest sophistication and investment levels. These are the USA, Germany, France, the UK and China. We are extremely ambitious for this business: it has the capability to build on its artificial intelligence skills to connect brands and people in a wholly new way.
Stephan Beringer
Chief Executive Officer
Financial review
Introduction
2018 was a challenging year for the Company as the Board concluded that the Company's go-to-market strategy was not going to deliver the revenue growth the Board and shareholders expected. The Board took the decision to change senior management during the second half of the year. From October onwards the Group's senior management team was engaged in a process to review and refresh the strategy. The new strategy was shared with investors in
FY 2018 Results
Revenue for the year was
During the year the Group continued to focus on developing its operations and delivered its first substantive campaign in the USA in Q4 for T-Mobile on Univision. The USA was the market which saw the largest year on year increase in revenues.
While 2018 revenue reduced in most markets there were particular reductions in India and China.
In India, although the Group renewed its deal with Star, this renewal did not include a revenue guarantee as in the prior year. Regrettably, campaigns did not scale as anticipated and post year end the Group has exited the Indian commercial market as management elected to focus on markets with higher per capita advertising spend.
In China the Group announced the signing of a key new deal with
As a result of the reduced volume of campaigns gross margin reduced to
The Group's principal cost is staff and its Administrative expenses increased to
Administrative expenses include an impairment charge of
EBITDA loss increased to
The loss for the year before tax increased to
Tax
The Group has not recognised any tax assets in respect of trading losses arising in the current financial year or accumulated losses in previous financial years. The tax credit recognised in the current and previous financial years arises from the receipt of R&D tax credits.
Earnings per share
Loss per share was
Dividend
No dividend has been proposed for the year ended
Cash flow
Net cash used in operations was
Balance sheet
Net Assets decreased to
Accounting policies
The Group's consolidated financial information has been prepared in accordance with International Financial Reporting Standards as adopted in the EU.
Going concern
The financial statements have been prepared on a going concern basis. After making enquiries and producing cash flow forecasts, the Directors have reasonable expectations, as at the date of approving the financial statements, that the Company and the Group will have adequate resources to fund the activities of the Company and the Group for the next nine months from the date of the financial statements. Albeit that the financial statements are prepared on a going concern basis, there is a material uncertainty in relation to going concern as this is dependent on raising additional external funds from new or existing shareholders within 12 months of the date of this report.
Events after the balance sheet date
The Company presented its revised strategy to shareholders in
The Company has reviewed its cost base following the strategy reset and believes that this review together with the one-off costs of change dropping out of the cost base (c£0.5m in 2019) will result in a reduction in administrative expenses in 2020.
David Dorans
Chief Financial Officer
Consolidated statement of profit or loss
For the year ended
|
|
|
Year ended |
Year ended |
||
|
|
|
31 December |
31 December |
||
|
|
|
2018 |
2017 |
||
|
|
Note |
£ |
£ |
||
|
Revenue |
3 |
415,886 |
874,191 |
||
|
Cost of sales |
|
(143,548) |
(180,587) |
||
|
Gross profit |
|
272,338 |
693,604 |
||
|
Administrative expenses |
|
(14,872,725) |
(12,067,393) |
||
|
Other operating income |
|
171,433 |
101,715 |
||
|
Operating loss |
4 |
(14,428,954) |
(11,272,074) |
||
|
Finance income |
|
57,968 |
776 |
||
|
Loss before income tax |
|
(14,370,986) |
(11,271,298) |
||
|
Income tax credit |
|
42,217 |
208,849 |
||
|
Loss for the year |
|
(14,328,769) |
(11,062,449) |
||
|
Loss per Ordinary Share - basic |
5 |
(14p) |
(19p) |
||
All activities are classified as continuing.
Consolidated statement of comprehensive income
For the year ended
|
|
Year ended |
Year ended |
|
|
31 December |
31 December |
|
|
2018 |
2017 |
|
|
£ |
£ |
|
Loss for the financial year |
(14,328,769) |
(11,062,449) |
|
Other comprehensive expense |
|
|
|
Items that may be reclassified to profit or loss: |
|
|
|
Currency translation differences |
(88,346) |
(14,088) |
|
Total comprehensive expense for the year |
(14,417,115) |
(11,076,537) |
Items in the statement above are disclosed net of tax.
Consolidated balance sheet
At
|
|
|
Group |
|
|
|
|
As at |
As at |
|
|
|
31 December |
31 December |
|
|
|
2018 |
2017 |
|
|
|
£ |
£ |
|
Assets |
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
|
414,062 |
425,874 |
|
Intangible assets |
|
170,053 |
1,640,690 |
|
Investments |
|
- |
- |
|
Trade and other receivables |
|
186,321 |
212,960 |
|
|
|
770,436 |
2,279,524 |
|
Current assets |
|
|
|
|
Trade and other receivables |
|
973,750 |
1,074,274 |
|
Other current assets |
|
288,009 |
208,840 |
|
Cash and cash equivalents |
|
15,203,920 |
26,383,690 |
|
|
|
14,465,679 |
27,666,804 |
|
Total assets |
|
17,236,115 |
29,946,328 |
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
1,622,460 |
2,054,603 |
|
Current tax liabilities |
|
36,952 |
|
|
Total liabilities |
|
1,659,412 |
2,054,603 |
|
Net assets |
|
15,576,703 |
27,891,725 |
|
Equity and liabilities |
|
|
|
|
Equity attributable to owners of the parent |
|
|
|
|
Share capital |
|
50,949 |
50,917 |
|
Share premium |
|
25,643,192 |
23,717,390 |
|
Share-based payment reserve |
|
2,141,094 |
1,964,835 |
|
Retranslation reserve |
|
(278,831) |
(190,485) |
|
(Accumulated losses) / retained earnings |
|
(11,979,701) |
2,349,068 |
|
Total equity |
|
15,576,703 |
27,891,725 |
Consolidated statement of changes in equity
For the year ended
|
|
|
Year ended |
|||||
|
|
|
|
|
|
|
(Accumulated |
|
|
|
|
|
|
Share-based |
Retranslation |
losses)/retained |
|
|
|
|
Share capital |
Share premium |
payment reserve |
reserve |
earnings |
Total equity |
|
|
|
£ |
£ |
£ |
£ |
£ |
£ |
|
Balance at |
556 |
22,401,586 |
289,564 |
(176,397) |
(10,343,533) |
12,171,776 |
|
|
Loss for the financial year |
|
- |
- |
- |
- |
(11,062,449) |
(11,062,449) |
|
Other comprehensive loss for the year |
|
- |
- |
- |
(14,088) |
- |
(14,088) |
|
Total comprehensive loss for the year |
|
- |
- |
- |
(14,088) |
(11,062,449) |
(11,076,537) |
|
Shares issued in lieu of consideration |
|
1 |
52,543 |
- |
- |
- |
52,544 |
|
Proceeds from shares issued |
|
462 |
27,541,844 |
- |
- |
- |
27,542,306 |
|
Share issue costs |
|
- |
(2,473,635) |
- |
- |
- |
(2,473,635) |
|
Issue of deferred shares |
|
49,898 |
(49,898) |
- |
- |
- |
- |
|
Capital restructuring |
|
- |
(23,755,050) |
- |
- |
23,755,050 |
- |
|
Share-based payments recognised as expense |
|
- |
- |
1,675,271 |
- |
- |
1,675,271 |
|
Total transactions with shareholders recognised directly in equity |
|
50,361 |
1,315,804 |
1,675,271 |
- |
23,755,050 |
26,796,486 |
|
Balance at |
50,917 |
23,717,390 |
1,964,835 |
(190,485) |
2,349,068 |
27,891,725 |
|
|
|
|
Year ended |
|||||
|
|
|
|
|
|
|
(Accumulated |
|
|
|
|
|
|
Share-based |
Retranslation |
losses)/retained |
|
|
|
|
Share capital |
Share premium |
payment reserve |
reserve |
earnings |
Total equity |
|
|
Note |
£ |
£ |
£ |
£ |
£ |
£ |
|
Balance at |
50,917 |
23,717,390 |
1,964,835 |
(190,485) |
2,349,068 |
27,891,725 |
|
|
Loss for the financial year |
|
- |
- |
- |
- |
(14,328,769) |
(14,328,769) |
|
Other comprehensive loss for the year |
|
- |
- |
- |
(88,346) |
- |
(88,346) |
|
Total comprehensive loss for the year |
|
- |
- |
- |
(88,346) |
(14,328,769) |
14,417,115 |
|
Proceeds from shares issued |
|
32 |
1,999,968 |
- |
- |
- |
2,000,000 |
|
Share issue costs |
|
- |
(74,166) |
- |
- |
- |
(74,166) |
|
Share-based payments recognised as expense |
|
- |
- |
176,259 |
- |
- |
176,259 |
|
Total transactions with shareholders recognised directly in equity |
|
32 |
1,925,802 |
176,259 |
- |
- |
2,102,093 |
|
Balance at |
50,949 |
25,643,192 |
2,141,094 |
(278,831) |
(11,979,701) |
15,576,703 |
|
Consolidated statement of cash flows
For the year ended
|
|
|
Group |
|
|
|
|
|
2018 |
2017 |
|
|
|
|
£ |
£ |
|
|
Net cash used in operating activities |
|
(11,972,408) |
(7,709,471) |
|
|
Tax credit received |
|
- |
184,250 |
|
|
Taxation paid |
|
(6,691) |
- |
|
|
Interest received |
|
57,968 |
776 |
|
|
Net cash used in operating activities |
|
(11,921,131) |
(7,524,445) |
|
|
Cash flow from investing activities |
|
|
|
|
|
Investment in subsidiaries |
|
(168,587) |
(201,953) |
|
|
Capitalisation of development costs |
|
(878,500) |
(842,010) |
|
|
Purchase of tangible assets |
|
(137,386) |
(466,627) |
|
|
Proceeds from disposal of tangible assets |
|
- |
2,660 |
|
|
Net cash used in investing activities |
|
(1,184,473) |
(1,507,930) |
|
|
Cash flow from financing activities |
|
|
|
|
|
Proceeds from issue of Ordinary Share capital (net of costs of issue) |
|
1,925,834 |
25,068,671 |
|
|
Net cash generated from financing activities |
|
1,925,834 |
25,068,671 |
|
|
Net (decrease) / increase in cash and cash equivalents |
|
(11,179,770) |
16,036,296 |
|
|
Cash and cash equivalents at the beginning of the year |
|
26,383,690 |
10,347,394 |
|
|
Cash and cash equivalents at the end of the year |
|
15,203,920 |
26,383,690 |
|
|
Cash and cash equivalents consists of |
|
|
|
|
|
Cash at bank and in hand |
|
15,203,920 |
26,383,690 |
|
|
Cash and cash equivalents |
|
15,203,920 |
26,383,690 |
|
Notes to the consolidated financial statements
For the year ended
1. Corporate Information
The Company is listed on AIM
2. Basis of preparation
The financial information set out above does not constitute the Group's statutory accounts for the years ended
The consolidated financial information has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the
The accounting policies adopted are consistent with those of the annual financial statements for the year ended
New Standards, amendments and interpretations not yet adopted
The Group has applied the following standards and amendments for the first time for their annual reporting period commencing
· IFRS 9 - Financial Instruments
· IFRS 15 - Revenue from Contracts with Customers
The new standards listed above did not have any material impact on the amounts recognised in the current period and are not expected to significantly affect future periods.
New standards, amendments and interpretations not yet adopted
A number of new standards and amendments to standards and interpretations are effective for annual periods beginning after
· IFRS 16 "Leases" addresses the definition of a lease, recognition and measurement of leases and establishes principles for reporting useful information to users of historical financial information about the leasing activities of both lessees and lessors. A key change arising from IFRS 16 is that most operating leases will be accounted for on the balance sheet for lessees. The standard replaces IAS 17 "Leases" and related interpretations. The standard is effective for annual periods beginning on or after 2019 and earlier adoption is permitted, subject to EU endorsement and the entity adoption of IFRS 15 "Revenue from contracts with customers" at the same time. The impact of IFRS 16 at
3. Segment information
Management mainly considers the business from a geographic perspective since the same services are effectively being sold in every Group entity. Therefore regions considered for segmental reporting are where the Company and subsidiaries are based, namely the UK, the USA, India, Brazil, China and Singapore. The revenue is classified by where the sales were booked not by the geographic location of the customer. For this reporting purpose the Singapore and China entities are considered together.
The only income outside of the primary business activity relates to income received from grants which is recognised in other operating income.
The amount of revenue from external customers by location of the Group billing entity is shown in the tables below.
|
|
2018 |
2017 |
|
Revenue |
£ |
£ |
|
Turnover by geography |
|
|
|
China and Singapore |
177,395 |
450,864 |
|
USA |
109,541 |
43,733 |
|
Brazil |
74,082 |
29,744 |
|
UK |
40,062 |
101,494 |
|
India |
14,806 |
248,356 |
|
Total |
415,886 |
874,191 |
|
|
2018 |
2017 |
|
|
£ |
£ |
|
Turnover by category |
|
|
|
Rendering of services |
415,886 |
874,191 |
|
Total |
415,886 |
874,191 |
|
|
2018 |
2017 |
|
Revenues from external customers by country, based on the destination of the customer |
£ |
£ |
|
China |
198,863 |
455,962 |
|
USA |
109,541 |
57,831 |
|
Brazil |
74,083 |
29,744 |
|
India |
14,806 |
251,023 |
|
Ireland |
7,750 |
11,050 |
|
Germany |
6,570 |
23,444 |
|
Other |
4,273 |
12,101 |
|
Italy |
- |
33,036 |
|
Total |
415,886 |
874,191 |
4. Operating loss
The Group operating loss is stated after charging/(crediting):
|
|
|
2018 |
2017 |
|
|
|
£ |
£ |
|
Employee benefits |
|
6,879,256 |
6,905,025 |
|
Depreciation of property, plant and equipment |
|
149,102 |
89,770 |
|
Amortisation and impairment of intangible assets |
|
2,349,137 |
822,820 |
|
Foreign exchange movements |
|
(41,341) |
166,523 |
|
Other general and administrative costs |
|
5,680,119 |
4,263,842 |
|
Other operating income |
|
(171,433) |
(101,715) |
|
Total cost of sales, administrative expenses and other operating income |
|
14,844,840 |
12,146,265 |
Other operating income includes income received from government grants. The Group has complied with all the conditions attached to these grant awards.
Included within Employee benefits cost are share based payments for the year ended
5. Earnings per share
(a) Basic
Basic earnings per share is calculated by dividing the loss for the year by the weighted average number of Ordinary Shares in issue during the year. Potential Ordinary Shares are not treated as dilutive as the Group is loss making and such shares would be anti-dilutive.
|
Group |
2018 |
2017 |
|
Loss attributable to owners of the parent (£) |
(14,328,769) |
(11,062,449) |
|
Weighted average number of Ordinary Shares in issue Number |
104,124,043 |
58,030,338 |
The loss per share for the year was 14p (2017: 19p).
No dividends were paid during the year (2017: £nil).
(b) Diluted
Potential Ordinary Shares are not treated as dilutive as the Group is loss making and such shares would be anti-dilutive.
6. Related party transactions
The Group is owned by a number of investors, the largest being
During the year the Company had the following significant related party transactions which were carried out at arm's length. No guarantees were given or received for any of these transactions:
All the related party transactions disclosed above were settled by
During the year ended
The Directors have authority and responsibility for planning, directing and controlling the activities of the Group and they therefore comprise key management personnel as defined by IAS 24, "Related party disclosures". Remuneration of Directors and senior management is disclosed in the Remuneration Report.