TIDMMOS
RNS Number : 7734I
Mobile Streams plc
16 December 2020
7.00am 16 December 2020
Mobile Streams plc
("MOS" or "the Company")
Audited Results for the year to 30 June 2020
The Company is pleased to announce its audited results for the
year to 30 June 2020.
The Company will also shortly publish the Notice of Annual
General Meeting ("AGM") on its website, which will be posted to
Shareholders shortly, along with the Accounts and accompanying Form
of Proxy in relation to the AGM and Accounts.
Nigel Burton, Chairman, commented "The Board is pleased to be
able to publish the Audited Results today, and would like to thank
shareholders for their patience given that we had originally
indicated that the Company aimed to release its full audited report
and accounts for the year to 30 June in October 2020.
In November 2019 the Company announced that it would launch a
new data insight and intelligence platform, called Streams, based
on licensing of the Krunch Data platform. The Streams business
provides bespoke services to the B2B (business to business) market
and targets customers in the US, LatAm and Europe. Following the
year end, the Company announced the launch of the Streams SaaS
("Software as a Service") platform on 6 July, and since 14 October
customers have been able to access the service and pay for it
online.
The Board believes that the Streams data offering is the largest
opportunity for the Company to deliver growth in shareholder value
via newly developed products and services. The main focus for the
current year will be growing and developing the product and sales
pipeline.
The traditional content delivery side of the business still
brings in ongoing revenue and therefore will be continued, however
the majority of investment going forwards will be in growing the
new data insight and intelligence business."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further information, please contact:
Mobile Streams plc
Nigel Burton, Chairman
+44 77 8523 4447
www.mobilestreams.com
Beaumont Cornish (Nominated Adviser)
James Biddle and Roland Cornish
+44 (0) 20 7628 3396
Peterhouse Capital Limited (Broker)
Lucy Williams, Duncan Vasey and Eran Zucker
+ 44 (0) 20 7469 0930
AUDITED RESULTS FOR THE YEAR TO 30 JUNE 2020
Chairman's Statement
The Board of Mobile Streams plc presents its audited accounts
for the financial year ended 30 June 2020.
In the year to 30 June 2020 Mobile Streams continued to offer
games and other content direct to consumers across a wide range of
mobile devices in three emerging markets. Market conditions in
Argentina in particular, the peso devaluation, had an adverse
effect on revenues, leading to increased losses. As a result of the
reductions in revenue, a comprehensive cost-cutting programme was
undertaken during the year.
Group revenue for the year ended 30 June 2020 was GBP0.6m (2019:
GBP1.3m). Trading EBITDA (calculated as profit before tax,
interest, amortisation, depreciation, share compensation expense
and impairment of assets) was negative GBP0.6m for year (2019:
negative GBP0.7m). Loss before tax was GBP1.6m (2019: GBP0.6m
loss). Most of the reduction in revenues is attributable to
challenging trading conditions in Argentina. Revenue in Argentina
(which equated to 77% of Group revenue) on a constant currency
basis decreased by 25% from AR$48m to AR$36m.
The Directors do not propose payment of a dividend (2020:
GBPNil). The Group had a net cash balance of GBP1.3m, with no debt,
at 30 June 2020 (2019: GBP0.1m cash with no debt).
The Group's principal business remains the generation of
revenues through relationships with mobile operators and content
aggregators, and the Board expects that in the current financial
year the majority of revenues are again likely to be generated in
Latin America.
In November 2019 the Company announced that it would launch a
new data insight and intelligence platform, called Streams, based
on licensing of the Krunch Data platform. The Streams business
provides bespoke services to the B2B (business to business) market
and targets customers in the US, LatAm and Europe. Following the
year end, the Company announced the launch of the Streams SaaS
("Software as a Service") platform on 6 July, and since 14 October
customers have been able to access the service and pay for it
online.
The Board believes that the Streams data offering is the largest
opportunity for the Company to deliver growth in shareholder value
via newly developed products and services. The main focus for the
current year will be growing and developing the product and sales
pipeline.
The traditional content delivery side of the business still
brings in ongoing revenue and therefore will be continued, however
the majority of investment going forwards will be in growing the
new data insight and intelligence business.
During the year, 5 subsidiaries were closed (Singapore,
Australia, Chile, Appitalism and The Nickels Group). The effect of
the derecognition was duly exposed in the statements.
During the year, the Company raised GBP1.76m before expenses
through Placings in November 2019, April 2020 and May 2020. The
Placing in November 2019 was accompanied by the appointment of new
advisers and a strengthening of the Board. The Placings in April
and May followed a three month suspension in trading of the shares
whilst the new management prepared audited accounts, hampered by
the failure of previous management to make adequate preparations.
The share issues in April and May demonstrated strong investor
support for the strategy of growing the Streams data insight and
intelligence platform, based on licensing of the Krunch Data
platform.
The Directors have considered the impact of the Covid-19
pandemic on the business, and at the time of writing revenues have
not been affected. All our staff work from home, and the online
nature of the existing business, both in terms of content delivery
and revenue collection, means that we do not envisage any
disruption to that business unless a prolonged economic downturn
results in a rise in cancellations. The Streams business is also
largely remote, although in the short term face to face marketing
has been impacted and demand could be affected as clients
themselves respond to the ongoing effects of the pandemic.
The Directors have prepared a cashflow forecast which indicates
that the amount raised during the year to 30 June is expected to
cover the Company's working capital requirements for the
foreseeable future.
Nigel Burton
Chairman
15 December 2020
STRATEGIC REPORT
Operating review
Mobile Streams' performance during the financial year ended 30
June 2020 was driven primarily by its Mobile Internet subscription
sales in Argentina and India.
Group revenue for the year ended 30 June 2020 was GBP0.6m (2019:
GBP1.3m). The gross profit of GBP0.2m (2019: GBP0.5m) decreased by
67%. The gross profit margin decreased from 37.5% to 25.6% as a
result of higher impact of the marketing (direct to consumer) costs
related to its Mobile Internet division.
During the period, both the Group's Mobile Internet revenues and
its Mobile Operator revenues decreased. As consumers steadily
update their phones from legacy feature and flip phone models to
smartphones, they have generally used the operator content portals
less, whilst using independent portals, as well as the open mobile
internet, more actively.
Mobile Internet sales
The Argentine Peso devalued significantly during the period,
affecting the revenues when expressed in GBP. We continue to work
with our longest standing billing partner locally and this remains
the foundation of the overall business.
The Indian mobile market has stabilised after the last years
development. During 2020, network connections have continued
improving throughout the country, lowered prices for data and had
an impact on the financial results of other carriers.
Our largest customer in India merged their Indian businesses,
disrupting the Company's ability to monetise its services as
platforms were merged and new contracts concluded.
Mobile Operator sales
The Group has several contracts with mobile operators that allow
the distribution of content through their mobile portals, although
the revenue has been reduced year on year partially because of
consumer preferences and greater competition.
There was a reduction in the number of consumer visitors to
these portals, which has been a continuing trend for several years.
The Group's teams share and implement the best retailing practices
in order to increase the conversion of visitors into customers to
mitigate the natural decline in this revenue stream as the market
changes.
The mobile operator revenue stream is now immaterial to the
overall Group given its decline and the shift to mobile internet
sales.
Sales by Territory
Operations in Argentina were extremely challenging in the year
as a result of general market conditions and regulation in the
local market for mobile content subscriptions. Revenues in
Argentina decreased 25% in Argentine Pesos terms from AR$48m to
AR$36m. As a result of the Peso devaluation in the year of 26.9%,
the revenues expressed in Sterling show a 42.6% decrease from
GBP0.9m to GBP0.5m, equating to 77% of Group revenues.
Revenues in India represented 19.5% of the revenues of the
Group. Indian revenues have been reducing due to the reduction in
marketing campaigns. Trading was more challenging than anticipated
because of policy changes at one of the Group's key partners and
lower revenue from another.
Financial review
Group revenue for the year ended 30 June 2020 was GBP0.6m, a
52.4% decrease on the previous year (2019: GBP1.3m).
Gross profit was GBP0.2m, a decrease of 67% during the year
(2019: GBP0.5m). The gross profit margin decreased from 37.5% to
25.6% on account of increased efficiency of marketing (Direct to
Consumer) costs related to Mobile Internet.
Selling, marketing and administrative expenses were GBPNil, a
100% decrease (2019: GBP0.2m).
The Group recorded a loss after tax of GBP1.6m for the year
ended 30 June 2020 (2019 loss: GBP0.4m). Basic earnings per share
decreased to a loss of 0.379 pence per share (2019: loss of 0.368
pence per share). Adjusted earnings per share (excluding interest,
depreciation, amortisation, impairments and share compensation
expense) decreased to a loss of 0.379 pence per share (2019: loss
of 0.362 pence per share).
The Group had cash of GBP1.34m at 30 June 2020, with no debt
(2019: GBP0.12m of cash with no debt).
Financial performance
Year to 30 Year to 30
June 2020 June 2019
GBP000's GBP000's
Revenue 636 1,335
Gross profit 163 501
Selling and Marketing Costs (239)
Administrative Expenses* (773) (930)
Trading EBITDA** (610) (668)
Depreciation and Amortisation - (3)
Impairments - -
Share Based Compensation - (3)
Operating loss (610) (674)
Loss on derecognition of subsidiaries (953) -
Finance Income - 113
Finance Expense - (4)
Loss before tax (1,563) (565)
* Administrative expenses exclude amortisation, depreciation and
share compensation expense.
** Calculated as profit before tax, interest, amortisation,
depreciation, share compensation expense and impairment of
assets.
Key performance indicators ("KPI's")
Gross profit as a percentage of revenue is a measure of our
profitability. Gross profit was GBP0.2m for the year ended on 30
June 2020 (2019: GBP0.5m) . The KPIs used by the Group are Trading
EBITDA**, variance in revenue and gross profit. These KPIs are
reviewed on a regular basis, largely by reference to budgets and
reforecasts. Trading EBITDA was a loss of GBP0.6m for the year
ended on 30 June 2020 (2019: loss of GBP0.7m).
Earnings before tax, interest, amortisation, depreciation, share
compensation expense and impairment of assets (Trading EBITDA)
measured exactly as stated. All tax, interest, amortisation,
depreciation, share compensation expense and impairment of assets
entries in the consolidated income statement are added back to
profit after tax in calculating this measure.
Although revenue in Argentina decreased by 42.6% during the
year, like-for-like revenue on a constant currency basis decreased
by 25%.
Gross profit as a percentage of revenue is a measure of the
Group's profitability. Gross profit margin was 25.6% for the year
ended on 30 June 2020 (2019: 37.5%).
**EBITDA is a non-IFRS measure and is calculated as profit
before tax, interest, amortisation, depreciation, share
compensation expense and impairment of assets.
Strategy
The Group's principal business remains the generation of
revenues through relationships with mobile operators and content
aggregators, using the Group's expertise in selling content to
consumers in developing markets.
In November 2019 the Company announced that it would launch a
new data insight and intelligence platform, called Streams, based
on licensing of the Krunch Data platform. The main focus for the
current year will be in growing and developing the product and
sales pipeline.
Share Issue
In November 2019, the Group issued 249,738,938 shares at a value
of 0.113 pence per share. In April 2020, the Group issued
98,437,500 shares at a value of 0.08 pence per share. In May 2020,
the Group issued 182,812,500 shares at a value of 0.08 pence per
share, and 333,333,333 shares at a value of 0.3 pence per share,
and 143,500,000 shares at a value of 0.2 pence per share. The share
issues in April and May demonstrated strong investor support for
the strategy of growing the Streams data insight and intelligence
platform, based on licensing of the Krunch Data platform.
The Group's source of capital is the parent company's equity
shares. The Group has not raised debt financing in the past and
does not expect to do so in the future.
The total number of shares in issue as at 30 June 2020 was
1,148,574,804 (30 June 2019: 140,752,533) with a par value of
GBP0.002 per share. All issued shares are fully paid.
In November 2019, shareholders approved the proposal to
sub-divide the entire existing share capital, both issued and to be
issued, consisting of ordinary shares of 0.2 pence nominal value
each, into ordinary Shares of 0.01 pence nominal value each and
deferred shares of 0.19 pence nominal value each, thus enabling the
company to lawfully implement the placing at the issue price.
Each new ordinary share resulting from the share reorganisation
had the same rights (including voting and dividend rights and
rights on a return of capital) as each existing ordinary share
except that they have a nominal value of 0.01 pence each.
The deferred shares have very limited rights which are deferred
to the ordinary shares and will effectively carry no value as a
result. Accordingly, the holders of the deferred shares are not
entitled (unless they also hold ordinary shares) to receive notice
of, attend or vote at general meetings of the Company, nor be
entitled to receive any dividends or any payment on a return of
capital until at least GBP10,000,000 has been paid on each ordinary
share.
Principal risks and uncertainties
The nature of the Group's business and strategy makes it subject
to a number of risks.
The Directors have set out below the principal risks facing the
business.
Contracts with Mobile Network Operators (MNOs)
While Mobile Streams maintains relationships with numerous MNOs
in the various territories, a small number of operators account for
a high portion of the Group's business. The Group is seeking to
mitigate this risk by broadening its overall offering.
Contracts with rights holders
The majority of content provided by Mobile Streams is licensed
from rights holders. While Mobile Streams is not dependent on any
single rights holder for its entertainment content, termination,
non-renewal or significant renegotiation of a contract could result
in lower revenue.
The Group continues to enter into new content licensing
arrangements to mitigate these risks.
Competition
Competition from alternative providers could adversely affect
operating results through either price pressures, or lost custom.
Products and pricing of competitors are continuously monitored to
ensure the Group is able to react quickly to changes in the
market.
Fluctuations in currency exchange rates
Approximately 99% of the Group's revenue relates to operations
outside the UK. The Group is therefore exposed to foreign currency
fluctuations and the financial condition of the Group may be
adversely impacted by foreign currency fluctuations. Argentina had
an inflation rate of 42.76% for the period July 2019 - June 2020
and the Argentinian economy is designated as a hyper-inflationary.
See note 20 "Foreign currency risk"
The Group has operations in India and Latin America. As a
result, it faces both translation and transaction currency
risks.
Currency exposure is not currently hedged, though the Board
continuously reviews its foreign currency risk exposure and
potential means of combating this risk.
Dependencies on key executives and personnel
The success of the business is substantially dependent on the
Directors and senior management team. The risks have been mitigated
by strengthening the Board and management team during the year.
Technology risk
A significant portion of the future revenues are dependent on
the Group's technology platforms. Instability or interruption of
availability for an extended period could have an adverse impact on
the Group's financial position.
Mobile Streams has invested in resilient hardware architecture
and continues to maintain software control processes to minimise
this risk.
Management controls and reporting procedures and execution
The ability of the Group to implement its strategy in a
competitive market requires effective planning and management
control systems. The Group's future growth will depend upon its
ability to expand whilst improving exposure to operational,
financial and management risk.
Going concern risk
In common with the Going Concern disclosures in the Group
financial statements, the Company financial statements have been
prepared on a going concern basis, which assumes that the Group and
the Company will continue in operational existence for the
foreseeable future, being 12 months from the date of sign-off of
these accounts.
The Group and Company use annual budgeting, forecasting and
regular performance reviews to assess the longer-term profitability
of the Group and make strategic and commercial changes as required
ensuring cash resources are maintained. Although there was a
significant fall in revenues and a loss for the year ending 30 June
2020, the Group actively manages its use of cash, particularly
marketing and other expenditure.
After consideration of the above, the Directors consider that
the continued adoption of the going concern basis is
appropriate.
Financial risk management objectives and policies
The Group uses various financial instruments. These include cash
and various items, such as trade receivables and trade payables
that arise directly from its operations. The numerical disclosures
relating to these policies are set out in the notes to the
financial statements.
The existence of these financial instruments exposes the Group
to a number of financial risks, which are described in more detail
below. The Group does not currently use derivative products to
manage foreign currency or interest rate risks.
The main risks arising from the Group's financial instruments
are market risk, currency risk, liquidity risk and credit risk. The
Directors review and agree policies for managing each of these
risks and they are summarised below. These policies have remained
unchanged from previous periods.
Market risk
Market risk encompasses three types of risk, being currency
risk, fair value interest rate risk and price risk. In this review
interest rate and price risk have been ignored as they are not
considered material risks to the business.
Liquidity risk
The Group seeks to manage financial risk by ensuring sufficient
liquidity is available to meet foreseeable needs and to invest cash
assets safely and profitably.
The Group currently has no borrowing arrangements in place and
prepares cash flow forecasts which are reviewed at Board meetings
to monitor liquidity.
Credit risk
The Group's principal financial assets are bank deposits, cash
and trade receivables. The credit risk associated with the bank
deposits and cash is limited as the counterparties have high credit
ratings assigned by international credit-rating agencies. The
principal credit risk arises therefore from the Group's trade
receivables. Most of the Group's trade receivables are large mobile
network operators or media groups. Whilst historically credit risk
has been low management continuously monitors its financial assets
and performs credit checks on prospective partners.
Revenues
Revenues in Argentina decreased 25% in Argentine Pesos terms
from AR$48m to AR$36m. As a result of the Peso devaluation in the
year of 26.9%, the revenues expressed in Sterling show a 42.6%
decrease from GBP0.9m to GBP0.5m, equating to 77% of Group
revenues.
Revenues in India represented 19.5% of the revenues of the
Group. The Indian Rupee remained stable during the last 12 months
with a devaluation of 5.4% to the British Pound.
Future developments
In November 2019 the Company announced that it would launch a
new data insight and intelligence platform, called Streams, based
on licensing of the Krunch Data platform. The Streams business
provides bespoke services to the B2B (business to business) market
and targets customers in the US, LatAm and Europe. The Streams
business secured its first paying client in April 2020, with
further clients signed in June 2020. Following the year end, the
Company announced the launch of the Streams SaaS ("Software as a
Service") platform on 6 July, and since 14 October customers have
been able to access the service and pay for it online.
The Board believes that the Streams data offering is the largest
opportunity for the Company to deliver growth in shareholder value
via newly developed products and services. The main focus for the
current year will be growing and developing the product and sales
pipeline.
Potential impact of Brexit
The UK's exit from the European Union is unlikely to impact the
Group materially at an operational level, as almost all of the
Group's revenues are derived from customers based outside the
EU.
Section 172 Companies Act disclosure
When making decisions, the Directors of the Company must act in
a way they consider, in good faith, is most likely to promote the
success of the Company for the benefit of its members as a whole,
while also considering the broad range of stakeholders who interact
with and are impacted by the business. Throughout the year, while
discharging their duties, section 172(1) requires a Director to
have regard, amongst other matters, to the:
-- likely consequences of any decisions in the long term
-- interests of the company's employees
-- need to foster the company's business relationships with suppliers, customers and others
-- impact of the company's operations on the community and environment
-- desirability of the company maintaining a reputation for high
standards of business conduct, and
-- need to act fairly as between members of the company.
In discharging their section 172(1) duties, the Directors have
had regard to the factors set out above, as well as other factors
relevant to the decisions being made. The Board acknowledges that
not all decisions made will necessarily result in a positive
outcome for all stakeholders, nevertheless the Board aims to ensure
that the decisions made are consistent and intended to promote the
Company's long-term success.
Examples of how the Directors have engaged with the Company's
stakeholders with regard to section 172(1) are detailed below:
Shareholders
The Board aims to build long term shareholder value by pursuing
the stated strategy. RNS updates are provided as required, and in
addition Directors respond to all queries received from investors,
within the necessary regulatory and commercial constraints.
Employees
The Board strives to maintain and develop a culture where all
employees feel valued and included. The Board has engaged with
employees, within the limits resulting from the Covid-19 pandemic.
The company supports the professional and personal development of
employees, which are viewed as fundamental to the continued success
of the company.
Suppliers, customers and others
The Board recognises that it is crucial that the company
delivers a reliable service to its customers. Strong relationships
with suppliers are maintained, including by seeking to pay
suppliers within their agreed terms wherever possible.
The Board regards compliance will all relevant regulatory
frameworks with the upmost importance. As a data and
telecommunications business it is essential that the company fully
complies with data protection and other regulations across all
territories in which it operates. Audit and Compliance functions
report to the Board on a regular basis. Training and monitoring are
continually developed and open communication between the Board and
stakeholders is encouraged.
Community and environment
Mobile Streams is aware of the different environments in which
it operates. Furthermore, the company has responded pragmatically
to the Covid-19 pandemic, in particular to ensure the safety of our
employees and other key stakeholder groups mentioned above.
The Strategic Report was approved by the Board and signed on its
behalf by:
Nigel Burton
Chairman
15 December 2020
DIRECTORS' REPORT
Items dealt with in the Strategic Report
-- Business review
-- Principal risks and uncertainties
-- Future developments
The principal activities of the Group are the sale of content
for distribution on mobile devices and provision of data insight
and intelligence platforms and services. The Company is registered
in England and Wales under company number 03696108.
Results and dividends
The trading results and the Group's financial position for the
year ended 30 June 2020 are shown in the attached financial
statements, and are discussed further in the Strategic Report.
The Directors have not proposed a dividend for this year (2019:
GBPNil).
Directors and their interests
The Directors of the Company (the "Board" or the "Directors"),
who served during the year, together with their beneficial
interests in the ordinary shares of the Group, as at 30 June 2020,
are set out below. All Directors served on the Board throughout the
year.
Shares held or controlled by Directors
Ordinary Ordinary
shares of shares of
GBP0.001 GBP0.001
each each
30 June 2020 30 June 2019
Nigel Burton 8,849,557 -
Mark Epstein - -
Charles Goodfellow - -
Enrique Benasso (resigned 1 October 2019) - -
S Buckingham (resigned 6 December 2019) - 12.385.500
P Tomlinson (resigned 2 April 2020) - 40.000
J Bill (resigned 26 November 2019) - 10.000
The current Directors of the Company are listed below in the
Corporate Governance Statement.
Options
The table below summarises the exercise terms of the various
options over ordinary shares of 0.01 pence (2019: 0.20 pence) which
have been granted and were still outstanding at 30 June 2020.
Options Options Options Options Exercise Earliest Latest
Held at Granted exercised Held at price date from expiry
1 July during during 30 June which date
2019 the period the period 2020 exercisable
Number Number Number Number GBP
12
E 13 June June
Benasso 285,000 - - 285,000 0.180 2015 2024
The remuneration of the Directors for the year amounted to
GBP275k (2019: GBP316k). The remuneration of the highest paid
Director was GBP79,000 (2019: GBP253,000).
The remuneration of each of the Directors and Senior Management
for the period ended 30 June 2020 is set out below:
Year Year to
to 30 30 June
June 2019
2020
Salary Fees Benefits Post employment Other Termination Total Total
benefits Long Term Benefits
benefits
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
S
Buckingham
* 44 32 3 - - - 79 253
M Epstein 23 - - - - - 23 -
T
Gutteridge
(#) 23 - - - - - 23 -
A Jamieson
(#) 23 - - - - - 23 -
C
Goodfellow 23 - - - - - 23 -
N Burton 23 - - - - - 23 -
P Tomlinson
* - 31 - - - - 31 25
J Bill * - - - - - - - 10
E Benasso
* 50 - - - - - 50 28
Total 209 63 3 - - - 275 316
======================== ================ =================== ======================= ==================== ===================== ================== ======================
* Resigned during the year
(#) Senior management (non-Board role)
Benefits comprise medical health insurance. All items are
considered short term in nature.
The three Directors appointed during the year, namely Nigel
Burton, Charles Goodfellow and Mark Epstein and two senior
employees Annabel Jamieson and Tom Gutteridge, all agreed to annual
remuneration of GBP30,000 each, and also agreed to accept payment
for their services in Ordinary Shares, subject to deduction and
payment of all necessary taxes, until such time as the Directors
are satisfied that the Company is able to make these payments out
of operating cashflow. As outlined in the Placing Circular dated 30
March 2020, to defer the cash costs (principally National Insurance
and PAYE taxes) to the Company it has been agreed that the issue of
these Ordinary Shares will be deferred until the interim results to
31 December 2020 are issued in early 2021, at the Placing Price.
The table includes the accrued director's fees for the year
corresponding to the period from 26 November 2019 to 30 June
2020.
Going Concern
The financial statements have been prepared on a going concern
basis. The Directors acknowledge that there is an uncertainty over
the ability of the Group to meet its funding requirements having
incurred a net loss for the year of GBP1.6m.
Following the successful placing and Board changes in November
2019, the Directors have reduced costs further, and have launched a
new data insight and intelligence platform, called Streams. The
Streams business provides bespoke services to the B2B (business to
business) market and targets customers in the US, LatAm and Europe.
The Streams business secured its first paying client in April 2020,
with further clients signed in June 2020. Following the year end,
the Company announced the launch of the Streams SaaS ("Software as
a Service") platform on 6 July, and since 14 October customers can
access the service and pay for it online. The Group's forecasts
assume that Streams will represent a growing proportion of
revenues.
The Directors have prepared a cashflow forecast which indicates
that existing resources are expected to cover the Company's working
capital requirements for the foreseeable future.
The Directors believe, that based on these developments and the
forecasts and projections prepared, that sufficient liquid
resources are available for the Company to continue to operate as a
going concern for the foreseeable future, and that the Company will
be able to access adequate capital to operate successfully.
Directors' responsibilities statement
The Directors are responsible for preparing the Strategic
Report, the Director's Report and the Financial Statements in
accordance with applicable laws and regulations.
Company law requires the Directors to prepare financial
statements for each nancial year. Company law requires the
Directors to prepare Group and Company Financial Statements for
each financial year. The Directors are required by the AIM Rules of
the London Stock Exchange to prepare Group Financial Statements in
accordance with International Financial Reporting Standards
("IFRS") as adopted by the European Union ("EU") and have elected
under company law to prepare the Company Financial Statements in
accordance with IFRS as adopted by the EU.
Under company law the Directors must not approve the Financial
Statements unless they are satisfied that they give a true and fair
view of the state of affairs and profit or loss of the Company and
Group for that period. In preparing these Financial Statements, the
Directors are required to:
-- select suitable accounting policies and then apply them consistently,
-- make judgements and estimates that are reasonable and prudent,
-- state whether applicable UK Accounting Standards and lFRSs
have been followed, subject to any material departures disclosed
and explained in the nancial statements, and
-- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Group and the
Company will continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Group's and the
Company's transactions and disclose with reasonable accuracy at any
time the financial position of the Group and the Company and enable
them to ensure that the Financial Statements, and the Directors'
Remuneration Report comply with the Companies Act 2006 and Article
4 of the IAS Regulation. They are also responsible for safeguarding
the assets of the Group and Company and hence for taking reasonable
steps for the prevention and detection of fraud and other
irregularities.
The Directors con rm that:
-- So far as each Director is aware, there is no relevant audit
information of which the Group's auditor is unaware, and
-- The Directors have taken all steps that they ought to have
taken as directors to make themselves aware of any relevant audit
information and to establish that the auditor is aware of that
information.
This confirmation is given pursuant to section 418 of the
Companies Act 2006 and should be interpreted in accordance with and
subject to those provisions.
The Directors are responsible for the maintenance and integrity
of the corporate and nancial information included on the Group's
website. Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.
Auditor
PKF Littlejohn UK LLP have indicated their willingness to
continue in office.
Corporate Governance Statement
The Board is committed to maintaining high standards of
corporate governance.
The Company's Corporate Governance Statement, which includes
full details of the recognised corporate governance code which the
Company complies with and an explanation of any departure from the
code, is maintained on its website, as required by AIM rules. The
information is reviewed at least once per annum and the website
includes the date on which the information was last reviewed. The
most recent review has been undertaken during the process of
preparing the Annual Report and Financial Statements.
As a company whose shares are traded on AIM, the Board seeks to
comply with the Quoted Companies Alliance's Corporate Governance
Code ("the QCA Code"). In addition, the Directors have adopted a
code of conduct for dealings in the shares of the Company by
directors and employees and are committed to maintaining the
highest standards of corporate governance. Nigel Burton, in his
capacity as Non-Executive Director, has assumed responsibility for
ensuring that the Company has appropriate corporate governance
standards in place and that these requirements are followed and
applied within the Company as a whole. The corporate governance
arrangements that the Board has adopted are designed to ensure that
the Company delivers long term value to its shareholders and that
shareholders have the opportunity to express their views and
expectations for the Company in a manner that encourages open
dialogue with the Board. The Board recognises that its decisions
regarding strategy and risk will impact the corporate culture of
the Company as a whole and that this will impact the performance of
the Company. The Board is very aware that the tone and culture set
by the Board will greatly impact all aspects of the Company as a
whole and the way that employees behave. A large part of the
Company's activities is centred upon what needs to be an open and
respectful dialogue with employees, clients and other stakeholders.
Therefore, the importance of sound ethical values and behaviours is
crucial to the ability of the Company successfully to achieve its
corporate objectives. The Board places great importance on this
aspect of corporate life and seeks to ensure that this flows
through all that the Company does.
The resignation of Enrique Benasso as a Director was announced
in October 2019. In November 2019 the resignation of Jonathan Bill
as a Director and the appointment of Nigel Burton, Charles
Goodfellow and Mark Epstein to the Board as Directors were
announced, at the same time Peter Tomlinson stepped down as
Non-Executive Chairman and was replaced by Nigel Burton. The
resignation of Simon Buckingham as a Director and CEO was announced
in December 2019. Mr. Tomlinson resigned as Director on 2 April
2020.
No other material governance related matters occurred during the
financial year ended 30 June 2020.
The Company's Corporate Governance report, which can also be
found on the website, follows.
Corporate Governance Report
The QCA Code sets out 10 principles that should be applied.
These are listed below together with a short explanation of how the
Company applies each of the principles:
Principle One
Business Model and Strategy
The Board has concluded that the highest medium and long term
value can be delivered to its shareholders by the adoption of a
single strategy for the Company. The Company will seek to grow its
business organically, aided by the JV Agreement with Krunch, and
will seek out further complementary partnerships and acquisitions
that create enhanced value.
Principle Two
Understanding Shareholder Needs and Expectations
The Board is committed to maintaining good communication and
having constructive dialogue with its shareholders. The Company has
close ongoing relationships with its private shareholders.
Institutional shareholders and analysts have the opportunity to
discuss issues and provide feedback at meetings with the Company.
In addition, all shareholders are encouraged to attend the
Company's Annual General Meeting. Investors also have access to
current information on the Company though its website,
www.mobilestreams.com, and via Mark Epstein, COO who is available
to answer investor relations enquiries.
Principle Three
Considering wider stakeholder and social responsibilities
The Board recognises that the long-term success of the Company
is reliant upon the efforts of the employees of the Company and its
contractors, suppliers, regulators and other stakeholders. The
Board has put in place a range of processes and systems to ensure
that there is close oversight and contact with its key resources
and relationships. For example, all employees of the Company
participate in a structured Company-wide annual assessment process
which is designed to ensure that there is an open and confidential
dialogue with each person in the Company to help ensure successful
two way communication with agreement on goals, targets and
aspirations of the employee and the Company. These feedback
processes help to ensure that the Company can respond to new issues
and opportunities that arise to further the success of employees
and the Company. The Company has close ongoing relationships with a
broad range of its stakeholders and provides them with the
opportunity to raise issues and provide feedback to the
Company.
Principle Four
Risk Management
In addition to its other roles and responsibilities, the Audit
and Compliance Committee is responsible to the Board for ensuring
that procedures are in place and are being implemented effectively
to identify, evaluate and manage the significant risks faced by the
Company. The risk assessment matrix below sets out those risks, and
identifies their ownership and the controls that are in place. This
matrix is updated as changes arise in the nature of risks or the
controls that are implemented to mitigate them. The Audit and
Compliance Committee reviews the risk matrix and the effectiveness
of scenario testing on a regular basis. The following principal
risks and controls to mitigate them, have been identified:
Activity Risk Impact Control(s)
========================= =========================
Management Recruitment and Reduction in operating Stimulating and
retention of key capability safe working environment
staff Balancing salary
with longer term
incentive plans
=========== ========================= ========================= ==========================
Regulatory Breach of rules Censure or withdrawal Strong compliance
adherence of authorisation regime instilled
at all levels of
the Company
=========== ========================= ========================= ==========================
Strategic Damage to reputation Inability to secure Effective communications
Inadequate disaster new capital or with shareholders
recovery procedures clients coupled with consistent
Loss of key operational messaging to our
and financial customers
data Robust compliance
Secure off-site
storage of data
=========== ========================= ========================= ==========================
Financial Liquidity, market Inability to continue Robust capital
and credit risk as going concern management policies
Inappropriate Reduction in asset and procedures
controls and accounting values Appropriate authority
policies Incorrect reporting and investment
of assets levels as set by
Treasury and Investment
Policies
Audit and Compliance
Committee
=========== ========================= ========================= ==========================
The Directors have established procedures, as represented by
this statement, for the purpose of providing a system of internal
control. An internal audit function is not considered necessary or
practical due to the size of the Company and the close day to day
control exercised by the executive directors. However, the Board
will continue to monitor the need for an internal audit function.
The Board works closely with and has regular ongoing dialogue with
the Company financial controller and has established appropriate
reporting and control mechanisms to ensure the effectiveness of its
control systems.
Principle Five
A Well Functioning Board of Directors
As at the date hereof the Board comprised, the COO Mark Epstein
and two Non-Executive Directors, Nigel Burton and Charles
Goodfellow. Biographical details of the current Directors are set
out within Principle Six below. Executive and Non-Executive
Directors are subject to re-election at intervals of no more than
three years. The letters of appointment of all Directors are
available for inspection at the Company's registered office during
normal business hours.
The Board meets at least eight times per annum. It has
established an Audit and Compliance Committee and a Remuneration
Committee, particulars of which appear hereafter. The Board has
agreed that appointments to the Board are made by the Board as a
whole and so has not created a Nominations Committee. The
Non-Executive Directors are considered to be part time but are
expected to provide as much time to the Company as is required. The
Board considers that this is appropriate given the Company's
current stage of operations. It shall continue to monitor the need
to match resources to its operational performance and costs and the
matter will be kept under review going forward. The Board notes
that the QCA recommends a balance between executive and
non-executive Directors and recommends that there be two
independent non-executives. Nigel Burton and Charles Goodfellow are
considered to be Independent Directors. Further commentary in
relation to the board's assessment of independence is set out
within Principle Six below.
The Directors are of a view that the Company does not currently
require a separate CFO to be appointed to the board due to the
current scale of operations and financial experience of the
directors. In particular the Company's non-executive Chairman,
Nigel Burton, has significant experience as Chief Financial Officer
to a number of private and public companies. The Company's CFO,
Enrique Benasso, reports to the board. The Board will continue to
monitor this position.
As the Company grows and develops the board will periodically
review its corporate governance framework to ensure it remains
appropriate for the size, complexity and risk profile of the
Company
Attendance at Board and Committee Meetings
The Company shall report annually on the number of Board and
committee meetings held during the year and the attendance record
of individual Directors. To date in the current financial year the
Directors have a 100% record of attendance at such meetings. In
order to be efficient, the Directors meet formally and informally
both in person and by telephone. During the year there were 8 Board
meetings, with all directors being present at all meetings. The
volume and frequency of such meetings is expected to continue at a
similar rate. The Audit and Compliance Committee met three times
and the Remuneration Committee, met twice, in each case with all
members present.
Principle Six
Appropriate Skills and Experience of the Directors
The Board currently consists of four Directors led by Chairman
Nigel Burton and, in addition, the Company has contracted the
outsourced services of Pennsec Limited to act as the Company
Secretary. The Company believes that the current balance of skills
in the Board as a whole, reflects a very broad range of commercial
and professional skills across geographies and industries and each
of the Director's has experience in public markets. As demonstrated
below in the descriptions of each Director, the Board has the
necessary commercial, financial and legal skills required for the
effective leadership of the Group.
The Board recognises that it currently has a limited diversity
and this will form a part of any future recruitment consideration
if the Board concludes that replacement or additional directors are
required.
Each Director undertakes a mixture of formal and informal
continuing professional development as necessary to ensure that
their skills remain current and relevant to the needs of the
Group.
Mr Charles Edouard Goodfellow, Non-Executive Director
Charles Goodfellow has over 30 years' experience in the London
capital markets, having worked initially in equity sales and then
in corporate finance for various London investment banks and
corporate finance specialists. He specialises in assisting smaller
companies across a range of sectors in raising growth capital, as
well as targeting industry partners capable of taking strategic
stakes and control.
Dr Nigel John Burton, Non-Executive Chairman
Following over 14 years as an investment banker at leading City
institutions including UBS Warburg and Deutsche Bank, including as
the Managing Director responsible for the energy and utilities
industries, Nigel spent 15 years as Chief Financial Officer or
Chief Executive Officer of a number of private and public
companies. Nigel is currently a Non-Executive Director of AIM
listed companies Digitalbox plc, Corcel plc and eEnergy plc.
Mr Mark Alexander Epstein, Chief Operating Officer
Mark is an experienced CEO, director, entrepreneur, expert in
marketing, communications, technology and mobile. Mark is the
co-founder of Krunch.ai a next generation insight and intelligence
platform, IgniteAMT a digital transformation company and IgniteCAP
an incubation and investment business. Mark also co-founded and was
CEO on its AIM listing of The People's Operator PLC, a cause-based
mobile phone network that had operations the UK and USA. Prior to
that Mark co-founded Mass1 which he grew into one of the UK's most
successful campaign agencies. He has also held numerous senior
management positions in his career.
Dr Burton and Mr Goodfellow are considered to be independent
directors of the Company. In coming to this conclusion, the board
has taken a number of matters into consideration including:
-- the absence of previous employment or material business
relationships with the Company and its Shareholders;
-- that none are party to any performance related share schemes;
and service length with the Company.
Principle Seven
Evaluation of Board Performance
The Board has undertaken an internal review of the Board, the
Committees and individual Directors, in the form of peer appraisal
and discussions, to determine their effectiveness and performance
as well as the Directors' continued independence.
The evaluation concluded that the Board demonstrates the
appropriate level of skills, knowledge and performance for the size
and nature of the Group. The Directors will continue to review the
need to strengthen the Board as the Group develops.
Principle Eight
Corporate Culture
The Board recognises that its decisions regarding strategy and
risk will impact the corporate culture of the Company as a whole
and that this will impact the performance of the Company. The
corporate governance arrangements that the Board has adopted are
designed to ensure that the Company delivers long term value to its
shareholders and that shareholders have the opportunity to express
their views and expectations for the Company in a manner that
encourages open dialogue with the Board. The Board recognises that
their decisions regarding strategy and risk will impact the
corporate culture of the Company as a whole and that this will
impact the performance of the Company. The Board is very aware that
the tone and culture set by the Board will greatly impact all
aspects of the Company as a whole and the way that employees
behave. A large part of the Company's activities is centred upon
what needs to be an open and respectful dialogue with employees,
clients and other stakeholders. Therefore, the importance of sound
ethical values and behaviours is crucial to the ability of the
Company to successfully achieve its corporate objectives.
The Board places great import on this aspect of corporate life
and seeks to ensure that this flows through all that the Company
does. The Directors consider that at present the Company has an
open culture facilitating comprehensive dialogue and feedback and
enabling positive and constructive challenge. There is frequent
dialogue between the Directors and senior management of the
principal operating subsidiaries. The Board monitors the corporate
culture through a mix of formal and informal feedback, based on
which the Board is confident that a healthy culture consistent with
the principles adopted exists.
The Company has adopted, with effect from the date on which its
shares were admitted to AIM, a code for Directors' and employees'
dealings in securities which is appropriate for a company whose
securities are traded on AIM and is in accordance with the
requirements of the Market Abuse Regulation which came into effect
in 2016.
Principle Nine
Maintenance of Governance Structures and Processes
Ultimate authority for all aspects of the Company's activities
rests with the Board, the respective responsibilities of the
Chairman and Chief Operating Officer arising as a consequence of
delegation by the Board. The Board has adopted appropriate
delegations of authority which set out matters which are reserved
to the Board. The Chairman is responsible for the effectiveness of
the Board, while management of the Company's business and primary
contact with shareholders has been delegated by the Board to the
Chief Executive Officer.
Audit and Compliance Committee
The Audit and Compliance Committee comprises Dr Nigel Burton and
Charles Goodfellow and Nigel Burton chairs this committee. The
Audit and Compliance Committee has primary responsibility for
monitoring the quality of internal controls and ensuring that the
financial performance of the Company is properly measured and
reported. It receives reports from the executive management and
auditors relating to the interim and annual accounts and the
accounting and internal control systems in use throughout the
Company. The Audit and Compliance Committee shall meet not less
than twice in each financial year and it has unrestricted access to
the Company's auditors.
Remuneration Committee
The Remuneration Committee comprises Nigel Burton and Charles
Goodfellow, and Charles Goodfellow chairs this committee. The
Remuneration Committee reviews the performance of the executive
directors and employees and makes recommendations to the Board on
matters relating to their remuneration and terms of employment. The
Remuneration Committee also considers and approves the granting of
share options pursuant to the share option plan and the award of
shares in lieu of bonuses pursuant to the Company's Remuneration
Policy.
Nominations Committee
The Nominations Committee comprises Nigel Burton and Charles
Goodfellow, and Nigel Burton chairs this committee.
Non-Executive Directors
The Board has adopted guidelines for the appointment of
Non-Executive Directors which have been in place and which have
been observed throughout the year. These provide for the orderly
and constructive succession and rotation of the Chairman and
non-executive directors insofar as both the Chairman and
non-executive directors will be appointed for an initial term of
three years and may, at the Board's discretion believing it to be
in the best interests of the Company, be appointed for subsequent
terms. The Chairman may serve as a Non-Executive Director before
commencing a first term as Chairman.
In accordance with the Companies Act 2006, the Board complies
with: a duty to act within their powers; a duty to promote the
success of the Company; a duty to exercise independent judgement; a
duty to exercise reasonable care, skill and diligence; a duty to
avoid conflicts of interest; a duty not to accept benefits from
third parties and a duty to declare any interest in a proposed
transaction or arrangement.
Principle Ten
Shareholder Communication
The Board is committed to maintaining good communication and
having constructive dialogue with its shareholders. The Company
responds to all shareholders who contact the Directors, and as a
result has positive ongoing relationships with a wide range of
shareholders. All shareholders and analysts have the opportunity to
discuss issues and provide feedback at meetings with the Company.
The Company also provides shareholder updates whenever appropriate
using both regulatory and other channels. In addition, all
shareholders are encouraged to attend the Company's Annual General
Meeting.
Investors also have access to current information on the Company
though its website, www.mobilestreams.com, and via Mark Epstein,
COO, who is available to answer investor relations enquiries.
The Company includes, when relevant, in its annual report, any
matters of note arising from the audit or remuneration
committees.
On behalf of the Board
Nigel Burton
Chairman
15 December 2020
REPORT OF THE INDEPENT AUDITOR TO THE MEMBERS OF MOBILE STREAMS
PLC
Opinion
We have audited the group financial statements of Mobile Streams
Plc (the 'group') for the year ended 30 June 2020 which comprise
the Consolidated Statement of Comprehensive Income, the
Consolidated Statement of Financial Position, the Consolidated
Statement of Changes in Equity and the Consolidated Statements of
Cash Flows and notes to the financial statements, including a
summary of significant accounting policies. The financial reporting
framework that has been applied in their preparation is applicable
law and International Financial Reporting Standards (IFRSs) as
adopted by the European Union.
In our opinion, the group financial statements:
-- give a true and fair view of the state of the group's affairs
as at 30 June 2020 and of its loss for the year then ended;
-- have been properly prepared in accordance with IFRSs as adopted by the European Union; and
-- have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the
Auditor's responsibilities for the audit of the financial
statements section of our report. We are independent of the group
in accordance with the ethical requirements that are relevant to
our audit of the financial statements in the UK, including the
FRC's Ethical Standard as applied to listed entities, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in
relation to which the ISAs (UK) require us to report to you
where:
-- the directors' use of the going concern basis of accounting
in the preparation of the financial statements is not appropriate;
or
-- the directors have not disclosed in the financial statements
any identified material uncertainties that may cast significant
doubt about the group's ability to continue to adopt the going
concern basis of accounting for a period of at least twelve months
from the date when the financial statements are authorised for
issue.
Our application of materiality
The group materiality for the financial statements as a whole
was set at GBP23,000 (2019: GBP21,000) based on 4% of loss before
tax (2019: 1.5% of revenue). Loss before tax was used as the basis
for materiality as the Group, following the management change in
the year, is diversifying its business model and is therefore in a
transitionary phase and revenue is no longer the key driver.
Performance materiality was calculated at 70% (GBP16,100) of
materiality for the financial statements as a whole as this was a
there is still inherent risk within the accounting function of the
Group.
We have agreed with those charged with governance that we would
report any individual audit difference in excess of GBP1,050 as
well as differences below this threshold that, in our view,
warranted reporting on qualitative grounds.
An overview of the scope of our audit
In designing our audit, we determined materiality and assessed
the risk of material misstatement in the group financial
statements. In particular, we looked at areas involving significant
accounting estimates and judgements by the directors including the
valuation of share options. These areas were however not considered
to constitute Key Audit Matters. We also addressed the risk of
management override of internal controls, including evaluating
whether there was evidence of bias by the directors that
represented a risk of material misstatements due to fraud. Of the
seven reporting components of the Group, a full scope audit was
performed on the complete financial information of three components
(UK, Argentina and India) and, for the other components, a limited
scope review was performed.
The group's key accounting function is based in Argentina and
our audit was performed from our office with regular contact with
relevant personnel throughout. No component auditors were used in
the audit.
Key audit matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the financial
statements of the current period and include the most significant
assessed risks of material misstatement (whether or not due to
fraud) we identified, including those which had the greatest effect
on: the overall audit strategy, the allocation of resources in the
audit; and directing the efforts of the engagement team. These
matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
Key Audit Matter How the scope of our audit responded
to the key audit matter
Going concern (refer to significant
accounting policies)
==================================================================
Based on our planning procedures We performed the following procedures
we have determined there is uncertainty * Obtained and critically analysed cash flow forecasts,
surrounding going concern for management accounts, and budgets from management for
the Group. Whilst the cash position a period of at least 12 months from the date of
of the Group has increased from signing the financial statements and challenged
fund raising activities in the management in relation to assumptions within the
year, revenue has fallen by 52% forecasts;
and the Group's operations are
not cash generative.
* Performed sensitivity analysis on the cash flow
As a result, there is the risk forecast;
that it is not appropriate to
prepare the financial statements
on the going concern basis * Reviewed documents for reasonableness by comparing
previous forecasts to actual results;
* Considered the current available financial headroom
with reference to the current cash balances and
confirmed existence, legality and enforceability of
any financial support arrangements;
* Reviewed meeting minutes for any references to
financial difficulties;
* Reviewed RNS releases and discuss subsequent events
and future plans with management;
* Considered the impact of COVID-19 on going concern;
and
* Ensured sufficient disclosure of Management's
assessment of the impact of COVID-19 and the measures
being taken to mitigate the risks its poses.
==================================================================
Other information
The other information comprises the information included in the
annual report, other than the financial statements and our
auditor's report thereon. The directors are responsible for the
other information. Our opinion on the group financial statements
does not cover the other information and, except to the extent
otherwise explicitly stated in our report, we do not express any
form of assurance conclusion thereon. In connection with our audit
of the financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other
information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required
to determine whether there is a material misstatement in the
financial statements or a material misstatement of the other
information. If, based on the work we have performed, we conclude
that there is a material misstatement of this other information, we
are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act
2006
In our opinion, based on the work undertaken in the course of
the audit:
-- the information given in the strategic report and the
directors' report for the financial year for which the group
financial statements are prepared is consistent with the group
financial statements; and
-- the strategic report and the directors' report have been
prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and
its environment obtained in the course of the audit, we have not
identified material misstatements in the strategic report or the
directors' report.
We have nothing to report in respect of the following matters in
relation to which the Companies Act 2006 requires us to report to
you if, in our opinion:
-- certain disclosures of directors' remuneration specified by law are not made; or
-- we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities
statement, the directors are responsible for the preparation of the
group financial statements and for being satisfied that they give a
true and fair view, and for such internal control as the directors
determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to
fraud or error.
In preparing the group financial statements, the directors are
responsible for assessing the group's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the group or to cease
operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial
statements.
A further description of our responsibilities for the audit of
the financial statements is located on the Financial Reporting
Council's website at: www.frc.org.uk/auditorsresponsibilities. This
description forms part of our auditor's report.
Other matter
We have reported separately on the parent company financial
statements of Mobile Streams Pls for the year ended 30 June
2020.
Use of our report
This report is made solely to the company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
company's members those matters we are required to state to them in
an auditor's report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone, other than the company and the company's members as a body,
for our audit work, for this report, or for the opinions we have
formed.
Joseph Archer (Senior Statutory Auditor) 15 Westferry Circus
For and on behalf of PKF Littlejohn LLP Canary Wharf
Statutory Auditor London E14 4HD
15 December 2020
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Note Year ended Year ended
30 June 30 June 2019
2020
GBP000's GBP000's
Revenue 17 636 1,335
Cost of sales 17 (473) (834)
----------------------------------------- ------- -------------------- ---------------------------
Gross profit 17 163 501
Selling and marketing costs 17 - (239)
Administrative expenses * 17 (773) (936)
----------------------------------------- ------- -------------------- ---------------------------
Operating Loss (610) (674)
Profit (loss) on derecognition of subsidiaries (953) -
Finance income 4 - 113
Finance expense 5 - (4)
----------------------------------------- ------- -------------------- ---------------------------
Loss before tax (1,563) (565)
Tax expense 9 - 151
-------------------- ---------------------------
Loss for the year (1,563) (414)
========================================= ======= ==================== ===========================
Attributable to:
Equity shareholders of Mobile Streams
plc (1,563) (414)
================================================== ==================== ===========================
Earnings per share
Pence per Pence per share
share
Basic earnings per share 8 (0.379) (0.368)
Diluted earnings per share 8 (0.379) (0.368)
* Administrative expenses include Depreciation, Amortisation and
Impairment GBPNil (year ended 30 June 2019: GBP1k); Share Based
Compensation GBP3k (year ended 30 June 2019: GBP3k). Other
administrative expenses GBP0.8m (year ended 30 June 2019:
GBP0.9m).
Year ended Year ended
30 June 2020 30 June 2019
GBP000's GBP000's
Loss for the year (1,563) (414)
Amounts which may be reclassified to profit
& loss
Exchange differences on translating foreign
operations 956 (219)
Total comprehensive loss for
the year (607) (633)
============================================= =================== ====================
Total comprehensive loss for the year attributable
to:
Equity shareholders of Mobile
Streams plc (607) (633)
============================================= =================== ====================
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Year ended Year ended
30 June 2020 30 June
2019
Note GBP000's GBP000's
Assets
Current
Trade and other receivables 11 221 347
Cash and cash equivalents 12 1,340 115
------------------------------ ----- ---------------------- ----------------------
1,561 462
Total assets 1,561 462
============================== ===== ====================== ======================
Equity
Equity attributable to equity holders of Mobile Streams
plc
Called up share capital 15 382 280
Share premium 14,126 12,610
Translation reserve (3,050) (4,005)
Retained earnings (10,463) (8,974)
Total equity 995 (89)
============================== ===== ====================== ======================
Current
Trade and other payables 13 566 551
566 551
Total liabilities 566 551
============================== ===== ====================== ======================
Total equity and liabilities 1,561 462
============================== ===== ====================== ======================
The notes below form part of these financial statements.
The financial statements were approved by the Board of Directors
on 15 December 2020 and are signed on its behalf by:
Nigel Burton
Chairman
Consolidated STATEMENT OF CHANGES IN EQUITY
Equity attributable to equity holders of Mobile Streams plc
Called up Share premium Translation Retained Total Equity
share capital reserve earnings
GBP000's GBP000's GBP000's GBP000's GBP000's
Balance at 30
June 2018 200 12,550 (3,786) (8,563) 401
--------------- ----------------------- ---------------- ------------------- -------------------- ---------------------
Balance at 1
July 2018 200 12,550 (3,786) (8,563) 401
Credit for
share based
payments - - - 3 3
New Equity 80 60 - - 140
Transactions
with owners 80 60 - 3 143
--------------- ----------------------- ---------------- ------------------- -------------------- ---------------------
Disposal of - - - - -
subsidiary
Loss for the
12 months
ended 30 June
2019 - - - (414) (414)
Exchange
differences
on
translating
foreign
operations - - (219) - (219)
Total
comprehensive
loss for the
year - - (219) (414) (633)
--------------- ----------------------- ---------------- ------------------- -------------------- ---------------------
Balance at 30
June 2019 280 12,610 (4,005) (8,974) (89)
--------------- ----------------------- ---------------- ------------------- -------------------- ---------------------
Balance at 1
July 2019 280 12,610 (4,005) (8,974) (89)
New Equity 102 1,516 - 73 1,691
Transactions
with owners 102 1,516 - 73 1,691
--------------- ----------------------- ---------------- ------------------- -------------------- ---------------------
Disposal of - - - - -
subsidiary
Loss for the
12 months
ended 30 June
2020 - - - (1,563) (1,563)
Exchange
differences
on
translating
foreign
operations - - 956 - 956
Total
comprehensive
loss for the
year - - 956 (1,563) (607)
--------------- ----------------------- ---------------- ------------------- -------------------- ---------------------
Balance at 30
June 2020 382 14,126 (3,050) (10,463) 995
--------------- ----------------------- ---------------- ------------------- -------------------- ---------------------
consolidated CASH FLOW statement
Year ended Year ended
30 June 30 June
2020 2019
GBP000's GBP000's
Operating activities
Loss before taxation (1,563) (565)
Adjustments:
Share based payments - 3
Depreciation - 3
Interest received 4 - (113)
Interest paid 5 - 4
Changes in trade and other receivables 126 557
Changes in trade and other payables 15 (859)
Loss on foreign exchange 953
Tax paid - (62)
Exchange (losses) 36 (141)
Total cash generated in operating
activities (433) (1,173)
----------------------------------------- --- ------------------------ ------------------------
Investing activities
Additions to property, plant and equipment - -
Interest received 4 - 113
Interest paid 5 - (4)
Net Cash generated from investing
activities - 109
----------------------------------------- --- ------------------------ ------------------------
Financing activities
Equity fundraise (net of expenses paid) 1,658 140
Net Cash generated from financing
activities 1,658 140
----------------------------------------- --- ------------------------ ------------------------
Net change in cash and cash equivalents 1,225 (924)
Cash and cash equivalents at beginning
of year 115 1,039
Cash and cash equivalents, end
of year 12 1,340 115
----------------------------------------- --- ------------------------ ------------------------
No net debt reconciliation has been shown as the Company has no
debt.
GROUP ACCOUNTING POLICIES
Mobile Streams plc (the Company) and its subsidiaries (together
'the Group') sell digital content, primarily for distribution on
mobile devices. The Group has subsidiaries in Europe, Asia, North
America and Latin America. The Group has made various strategic
acquisitions to build its market share in these regions.
The Company is a public limited company incorporated and
domiciled in the United Kingdom. The address of its registered
office is 125 Wood Street, London, EC2V 7AW.
The Company is listed on the London Stock Exchange's Alternative
Investment Market.
These consolidated financial statements were approved for issue
by the Board of Directors on 15 December 2020.
Summary of significant accounting policies
Basis of preparation
The Group financial statements consolidate those of the parent
company and all of its subsidiary undertakings drawn up to 30 June
2020. They have been prepared in accordance with applicable
International Financial Reporting Standards as adopted by the EU
and with those parts of the Companies Act 2006 applicable to
companies reporting under IFRS. All references to IFRS in these
statements refer to IFRS as adopted by the EU.
The financial statements have been prepared under the historical
cost convention.
Consolidation
Control is achieved where the Company is exposed to, or has
rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power over
the entity. Subsidiaries are fully consolidated from the date on
which control is transferred to the Group. They are de-consolidated
from the date on which control is lost.
Intercompany transactions, balances and unrealised gains on
transactions between group companies are eliminated in full.
Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred.
Subsidiaries' accounting policies have been changed where necessary
to ensure consistency with the policies adopted by the Group.
The separate financial statements and related notes of the
Company are prepared in accordance with FRS 101.
Foreign currency translation
(a) Presentational currency
The consolidated and parent company financial statements are
presented in British pounds. The functional currency of the parent
entity is also British pounds.
(b) Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the date the
transaction occurs. Any exchange gains or losses resulting from
these transactions and the translation of monetary assets and
liabilities at the consolidated statement of financial position
date are recognised in the consolidated income statement, except to
the extent that a monetary asset or liability represents a net
investment in a subsidiary when exchange differences arising on
translation are recognised in equity within the translation
reserve. Amount due from or to subsidiaries are treated as part of
net investment in the subsidiary when settlement is neither planned
nor likely to occur in the foreseeable future. Upon settlement,
amounts that have arisen are taken directly to profit or loss.
Foreign currency balances are translated at the year-end using
exchange rate prevailing at the year-end.
(c) Group companies
The financial results and position of all group entities that
have a functional currency different from the presentation currency
of the Group are translated into the presentation currency as
follows:
i assets and liabilities for each consolidated statement of
financial position are translated at the closing exchange rate at
the date of the consolidated statement of financial position.
ii income and expenses for each consolidated income statement
are translated at average exchange rates (unless it is not a
reasonable approximation to the exchange rate at the date of
transaction).
iii all resulting exchange differences are recognised as a
separate component of equity (cumulative translation reserve).
Hyper-inflationary currencies
The Argentinian economy is designated as a hyper-inflationary.
The financial statements of the Argentinian subsidiary are stated
in terms of the purchasing power at the end of the reporting period
through the selection of a general price index before translation
into the Group's presentation currency being GBP.
Going Concern
The financial statements have been prepared on a going concern
basis, which assumes that the Group and the Company will continue
in operational existence for the foreseeable future, being 12
months from the date of sign-off of these accounts.
The Group uses annual budgeting, forecasting and regular
performance reviews to assess the longer-term profitability of the
Group and make strategic and commercial changes as required
ensuring cash resources are maintained. Although there was a
significant fall in revenues and a loss for the year ending 30 June
2020, the Group actively manages its use of cash, particularly
marketing and other expenditure. Post year-end and following the
change in Directors the Group raised funds through the issue of new
equity.
After consideration of the above the Directors consider that the
continued adoption of the going concern basis is appropriate.
New standards and interpretations not yet adopted
At the date of approval of these financial statements, the
following standards and interpretations which have not been applied
in these financial statements were in issue but not yet effective
(and in some cases had not been adopted by the EU):
- Amendments to References to Conceptual Framework in IFRS
Standards - effective from 1 January 2020
- Definition of Material (Amendments to IAS 1 and IAS 8) - effective from 1 January 2020
- Amendment to IFRS 3 Business Combinations - effective 1 January 2020*
- Amendments to IAS 1 Presentation of Financial Statements:
Classification of Liabilities as Current or Non-current - effective
1 January 2022*
*subject to EU endorsement
The effect of all other new and amended Standards and
Interpretations which are in issue but not yet mandatorily
effective is not expected to be material.
Taxation
Current tax is the tax currently payable based on taxable profit
for the year.
Deferred income tax is provided, using the liability method, on
temporary differences arising between the tax base of assets and
liabilities and their carrying amounts in the consolidated
financial statements. However, deferred tax is not provided on the
initial recognition of goodwill, nor on the initial recognition of
an asset or liability unless the related transaction is a business
combination or affects tax or accounting profit. Deferred tax on
temporary differences associated with shares in subsidiaries is not
provided if reversal of these temporary differences can be
controlled by the Group and it is probable that reversal will not
occur in the foreseeable future.
Deferred income tax is determined using tax rates known by the
consolidated statement of financial position date and that are
expected to apply when the deferred income tax asset is realised or
the deferred income tax liability is settled. Deferred income tax
assets are recognised only to the extent that it is probable that
future taxable profit will be available against which the temporary
differences can be utilised. Deferred tax liabilities are provided
in full. There is no discounting of assets or liabilities.
Changes in deferred tax assets or liabilities are recognised as
a component of the tax expense in the consolidated income
statement, except where they relate to items that are charged or
credited directly to equity or other comprehensive income, in which
case the related deferred tax is also charged or credited directly
to equity or other comprehensive income.
Provisions
Provisions, including those for legal claims, are recognised
when the Group has a present legal or constructive obligation as a
result of past events, it is probable that an outflow of economic
benefits will be required to settle the obligation and the amount
can be reliably estimated.
Provisions are measured at the present value of management's
best estimate of the expenditure required to settle the present
obligation at the consolidated statement of financial position
date. The discount rate used to determine the present value
reflects current market assessments of the time value of money and
the risks specific to the liability.
Financial Assets
a) Classification
The Group classifies its financial assets as receivables. The
classification depends on the purpose for which the financial
assets were acquired. Management determines the classification of
its financial assets at initial recognition.
Receivables
Receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. They
are included in current assets, except for maturities greater than
12 months after the Statement of Financial Position date. These are
classified as non-current assets. The Group's receivables comprise
trade and other receivables and cash and cash equivalents in the
Statement of Financial Position.
b) Recognition and Measurement
Financial assets are initially measured at fair value plus
transactions costs. Receivables are subsequently carried at
amortised cost using the effective interest method, except for
short term receivables.
c) Impairment of Financial Assets
The Group assesses at the end of each reporting period whether
there is objective evidence that a financial asset, or a group of
financial assets, is impaired. A financial asset, or a group of
financial assets, is impaired, and impairment losses are incurred,
only if there is objective evidence of impairment as a result of
one or more events that occurred after the initial recognition of
the asset (a "loss event"), and that loss event (or events) has an
impact on the estimated future cash flows of the financial asset,
or group of financial assets, that can be reliably estimated.
The criteria that the Group uses to determine that there is
objective evidence of an impairment loss include:
-- significant financial difficulty of the issuer or obligor;
-- a breach of contract, such as a default or delinquency in
interest or principal repayments;
-- the disappearance of an active market for that financial asset because of financial difficulties;
-- observable data indicating that there is a measurable
decrease in the estimated future cash flows from a portfolio of
financial assets since the initial recognition of those assets,
although the decrease cannot yet be identified with the individual
financial assets in the portfolio; or
-- for assets classified as available-for-sale, a significant or
prolonged decline in the fair value of the security below its
cost.
Assets carried at amortised cost
The amount of impairment is measured as the difference between
the asset's carrying amount and the present value of estimated
future cash flows (excluding future credit losses that have not
been incurred), discounted at the financial asset's original
effective interest rate. The asset's carrying amount is reduced,
and the loss is recognised in the Statement of Comprehensive
Income. As a practical expedient, the Group may measure impairment
on the basis of an instrument's fair value using an observable
market price.
If, in a subsequent period, the amount of the impairment loss
decreases and the decrease can be related objectively to an event
occurring after the impairment was recognised (such as an
improvement in the debtor's credit rating), the reversal of the
previously recognised impairment loss is recognised in the
Statement of Comprehensive Income.
Financial Liabilities
Financial liabilities are obligations to pay cash or other
financial assets and are recognised when the Group becomes a party
to the contractual provisions of the instruments. Financial
liabilities are initially measured at fair value, net of
transactions costs. They are subsequently measured at amortised
cost using the effective interest method.
Financial liabilities are derecognised when the Group or
Company's contractual obligations expire, are cancelled or are
discharged. The Group's financial liabilities consist of trade and
other payables.
Cash and Cash Equivalents
For the purpose of the cash flow statements, cash and bank
overdrafts comprise cash at bank and in hand.
Revenue recognition
Under IFRS 15, Revenue from Contracts with Customers, five key
points to recognise revenue have been assessed:
Step 1: Identify the contract(s) with a customer;
Step 2: Identify the performance obligations in the
contracts;
Step 3: Determine the transaction price;
Step 4: Allocate the transaction price to the performance
obligations in the contract; and
Step 5: Recognise revenue when (or as) the entity satisfies a
performance obligation.
The Group recognises revenue when the amount of revenue can be
reliably measured, it is probable that future economic benefits
will flow to the entity, and specific criteria have been met for
each of the Group's activities, as described below.
The Group bases its estimates on historical results, taking into
consideration the type of customer, the type of transaction and the
specifics of each arrangement. Where the Group makes sales relating
to a future financial period, these are deferred and recognised
under 'deferred revenue' on the Statement of Financial
Position.
Share based payments
Employees (including Directors) of the Group receive
remuneration in the form of share-based payment transactions,
whereby employees render services in exchange for shares or rights
over shares ('equity-settled transactions'). Service providers also
may receive settlement for their services in the form of
share-based payments.
The Group has applied the requirements of IFRS 2 Share-Based
Payments to all grants of equity instruments.
The cost of equity settled transactions with employees is
measured by reference to the fair value at the grant date of the
equity instruments granted. The fair value is determined by using
the Black-Scholes model. The cost of services provided to the
Company settled by share-based payments are either fair valued in
same manner as those for employees or, if available, by reference
to the cash equivalent of those services.
The cost of equity-settled transactions is recognised in the
consolidated income statement, together with a corresponding
increase in retained earnings, over the periods in which the
performance conditions are fulfilled, ending on the date on which
the relevant employees become fully entitled to the award ('vesting
date'). At each consolidated statement of financial position date
before vesting the cumulative expense is calculated, representing
the extent to which the vesting period has expired and management's
best estimate of the achievement or otherwise of non-market
conditions and of the number of equity instruments that will
ultimately vest. Market conditions are taken into account in
determining the fair value of the options granted, at grant date,
and are subsequently not adjusted for. The movement in cumulative
expense since the previous consolidated statement of financial
position date is recognised in the consolidated income statement,
with a corresponding entry in equity.
No expense or increase in equity is recognised for awards that
do not ultimately vest. Awards where vesting is conditional upon a
market condition are treated as vesting irrespective of whether or
not the market condition is satisfied, provided that all other
performance conditions are satisfied.
Share capital
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of new shares or options are
charged to the share premium account.
Operating leases are leases in which the risks and rewards of
ownership are not transferred to the lessee.
Equity balances
a) Called up share capital
Called up share capital represents the aggregate nominal value
of ordinary shares in issue.
b) Share premium
The share premium account represents the incremental paid up
capital above the nominal value of ordinary shares issued.
c) Translation Reserve
The translation reserve represents the cumulative translation
adjustments on translation of foreign operations.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Critical accounting estimates and judgements
Estimates and judgements are evaluated on a regular basis and
are based on historical experience and other factors, such as
expectations of future events that are believed to be reasonable
under the circumstances.
1.1 Critical accounting estimates, judgements and
assumptions
The directors of the group have determined that there are no
critical accounting estimates, judgements and assumptions
associated with the group's activities.
2. Services provided by the group's auditor
The Group (including its overseas subsidiaries) obtained the
following services from the Group's auditor and network firms:
Year ended Year ended
2020 2019
GBP000's GBP000's
Fees payable to the Company's auditor and its
associates for the audit of the parent company
and consolidated accounts 82 42
Non-Audit services:
Fees payable to the Company's auditor and its
associates for other services: - 3
Tax compliance
82 45
=========== ================
3. Operating loss
Operating loss is stated after charging the following Year ended Year ended
items: 2020 2019
GBP000's GBP000's
Depreciation - 3
Loss on foreign currency 55 (117)
55 (114)
==================== ===================
4. Finance income
Year ended Year ended
2020 2019
GBP000's GBP000's
Interest receivable - 113
- 113
======================================== ===============
5. Finance EXPENSE
2020 2019
GBP000's GBP000's
Interest expense - (4)
----------------- -----------------
- (4)
================= =================
6. Directors' and Officers' remuneration
The Directors are regarded as the key management personnel of
Mobile Streams plc. Charges in relation to remuneration received by
key management personnel for services in all capacities during the
year ended 30 June 2020 are detailed in the Directors Report
below.
7. Directors and employees
Staff costs including Directors during the year were as
follows:
2020 2019
GBP000's GBP000's
Wages and salaries 356 892
Social security costs 6 51
362 943
==================================== =================
The average number of employees during the year was as
follows:
Year ended Year ended
2020 2019
Number Number
Management 4 8
Administration - 1
----------- ----------------
4 9
=========== ================
8. EARNINGS PER SHARE ('EPS')
Basic earnings per share is calculated by dividing the loss or
profit attributable to equity holders of the company by the
weighted average number of ordinary shares in issue during the
period. For the year ended 30 June 2020, 4m (2019: 4m) options over
ordinary shares have been excluded from the calculations of
earnings per share; the options were non-dilutive in both years as
the company was loss-making.
Reconciliations of the earnings and weighted average number of
shares used in the calculations are set out below.
The adjusted EPS figures have been calculated to reflect the
underlying profitability of the business by excluding non-cash
charges for depreciation, amortisation, impairments and share
compensation charges.
Year ended Year ended
2020 2019
Pence per Pence per
share share
Basic loss per share (0.379) (0.368)
Diluted loss per share (0.379) (0.368)
Reconciliations of the earnings and weighted average number of shares
used in the calculations are set out below.
2020 2019
GBP000's GBP000's
Loss for the year (1,563) (414)
=============================== ===============================
For adjusted earnings per share GBP000's GBP000's
Loss for the year (1,563) (414)
Add back: share compensation expense 3 3
Add back: depreciation and amortisation - 3
Adjusted loss for the year (1,560) (408)
=============================== ===============================
Weighted average number of shares
Number of Number of
shares shares
For basic earnings per share 411,881,204 112,588,149
Exercisable share options - -
For diluted earnings per share 411,881,204 112,588,149
------------------------------- -------------------------------
Pence per Pence per
share share
Adjusted Loss per share (0.379) (0.362)
Adjusted diluted Loss per share (0.379) (0.362)
9. income tax
The tax (credit)/charge is based on the profit before tax for
the year and represents:
2020 2019
GBP'000 GBP'000
Foreign tax on profits of the period - (225)
-------------------- ------------------
Total current tax - (225)
Deferred tax:
Origination & reversal of timing differences:
(Deferred tax charge/(credit) (Note 17)) - 74
Total Deferred tax - 74
-------------------- ------------------
Total Tax benefit - (151)
-------------------- ------------------
2020 2019
Factors affecting the tax charge for the period GBP'000 GBP'000
--------------------
Loss on ordinary activities before tax (1,563) (565)
-------------------- ------------------
Loss multiplied by weighted average tax rate
applicable
of corporation tax in the United Kingdom of
19% (297) (107)
Adjustment in respect of prior years - foreign
tax - (225)
Prior year tax adjustments - deferred tax - 74
Deferred tax not recognized 297 107
------------------
Tax credit - (151)
-------------------- ------------------
10. DIVIDS
No dividends were paid or proposed during the current year or
prior year.
11. Trade and other receivables
2019 2019
GBP000's GBP000's
Trade receivables 30 63
Accrued receivables 11 57
Other debtors 180 227
221 347
================= =================
The carrying value of receivables is considered a reasonable
approximation of fair value.
In addition, some of the unimpaired trade receivables are
overdue as at the reporting date. The age profile of trade
receivables is as follows:
2020 2019
GBP000's GBP000's
Within terms
Not more than 30 days 12 58
Overdue
Not more than 3 months 16 62
More than 3 months but not more than 6
months - 8
More than 6 months but not more than 1
year 2 23
More than 1 year 29 244
Provision for doubtful debts (29) (49)
30 347
================= ==================
2020 2019
GBP000's GBP000's
Opening provision for doubtful debts 49 157
Change in provision during the year (20) (108)
Closing provision for doubtful debts 29 49
================= =================
Trade and other receivables that are not impaired are considered
to be collectible within the Group's payment terms, negotiated with
each customer.
12. Cash and cash equivalents
Cash and cash equivalents include the following components:
2020 2019
GBP000's GBP000's
Argentina's cash at bank and in hand 52 67
Other companies 1,288 48
Cash at bank and in hand 1,340 115
=============== ================
13. Trade and other payables
2020 2019
GBP000's GBP000's
Trade payables 317 271
Other payables 59 119
Accruals and deferred income 190 161
566 551
================== ================
All amounts are current. The carrying values are considered to
be a reasonable approximation of fair value.
14. Deferred TAX ASSETS AND liabilities
Balance Recognised Balance Recognised Translation Balance
30 June in consolidated 30 June in consolidated Adjustment 30 June
2018 income statement 2019 income 2020
statement
GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's
Deferred tax
asset:
- Expenses
accrued 13 (13) - - - -
- Royalties 20 (20) - - - -
- Bonus - - - - - -
provisions
- Others 41 (41) - - - -
-------------------- -------------------- -------------------- -------------------- --------------------
Deferred tax
asset 74 (74) - - - -
==================== ==================== ==================== ==================== ==================== =========
The deferred tax asset credit was reversed due to uncertainty
over the timing of future taxable profits. The balance in the prior
year resulted from unpaid intercompany balances in Argentina, which
were completely written-off during the year to 30 June 2020.
15. SHARE CAPITAL
The Company only has one class of share. The total number of
shares in issue as at 30 June 2020 was 1,148,574,804 with a par
value of 0.01 pence per share (30 June 2019: 140,752,533 with a par
value of 0.20 pence per share). All issued shares are fully
paid.
The Group's main source of capital is the parent company's
equity shares. The policy which is met by the Group is to retain
sufficient authorised share capital so as to be able to issue
further shares to fund acquisitions, settle share-based
transactions and raise new funds. Share based payments relate to
employee share options schemes. The schemes have restrictions on
headroom so as not to dilute the value of issued shares of the
Company. The Group has not raised debt financing in the past and
does not expect to do so in the future.
Allotted, called up and fully paid Year ended Year ended
2020 2019
In issue at 1 July 140,752,533 100,752,533
Issued during year 1,007,822,271 40,000,000
In issue at 30 June 1,148,574,804 140,752,533
The balance in the share premium account represents the proceeds
received above the nominal value on the issue of the Company's
equity share capital.
In November 2019, the Group issued 249,738,938 shares at a value
of 0.113 pence per share. In April 2020, the Group issued
98,437,500 shares at a value of 0.08 pence per share. In May 2020,
the Group issued 182,812,500 shares at a value of 0.08 pence per
share, and 333,333,333 shares at a value of 0.3 pence per share,
and 143,500,000 shares at a value of 0.2 pence per share.
The Group's source of capital is the parent company's equity
shares. The Group has not raised debt financing in the past and
does not expect to do so in the future.
The total number of shares in issue as at 30 June 2020 was
1,148,574,804 (30 June 2019: 140,752,533) with a par value of 0.01
pence per share (2019: 0.2 pence per share). All issued shares are
fully paid.
In November 2019, shareholders approved the proposal to
sub-divide the entire existing share capital, both issued and to be
issued, consisting of ordinary shares of 0.2 pence nominal value
each, into ordinary Shares of 0.01 pence nominal value each and
deferred shares of 0.19 pence nominal value each, thus enabling the
company to lawfully implement the placing at the issue price.
Each new ordinary share resulting from the share reorganisation
had the same rights (including voting and dividend rights and
rights on a return of capital) as each existing ordinary share
except that they have a nominal value of 0.01 pence each.
The deferred shares have very limited rights which are deferred
to the ordinary shares and will effectively carry no value as a
result. Accordingly, the holders of the deferred shares are not
entitled (unless they also hold ordinary shares) to receive notice
of, attend or vote at general meetings of the Company, nor be
entitled to receive any dividends or any payment on a return of
capital until at least GBP10,000,000 has been paid on each ordinary
share.
The share premium recognised during the year was GBP1,516,000.
This premium corresponds to the difference between the nominal
value at the time of the share issue and the corresponding proceeds
of the share issue.
16. Share-based payments
The Group operates three share option incentive plans - an
Enterprise Management Incentive Scheme, a Global Share Option Plan
and an ISO Sub Plan - in order to attract and retain key staff. The
remuneration committee can grant options over shares in the Company
to employees of the Group. Options are granted with a fixed
exercise price equal to the market price of the shares under option
at the date of grant and are equity settled, the contractual life
of an option is 10 years. Exercise of an option is subject to
continued employment. Options are valued at the date of grant using
the Black-Scholes option pricing model. The options detailed below
do not include the warrants issued by the Company.
2020 2019
Range of Weighted Number Weighted Weighted Number Weighted
exercise average of Shares average average of Shares average
prices exercise (000's) remaining exercise (000's) remaining
price life price (GBP) life (years):
(GBP) (years):
------------ -------------------------
Contractual Contractual
GBP0 -
GBP0.50 0.282 1,014 2.3 0.282 1,014 3.3
GBP0.51
-
GBP1.00 0.640 3,487 1.1 0.640 3,487 2.1
No share options were exercised during the year ended 30 June
2020 (2019: Nil).
The total charge for the year relating to employee share-based
payment plans was GBP3k (2019: GBP3k), all of which related to
equity-settled share-based payment transactions.
17. Segment reporting
As at 30 June 2020, the Group was organised into 4 geographical
segments: Europe, North America, Latin American, and Asia Pacific.
The operating segments are organised, managed and reported to the
Board of Directors. Revenues are from external customers only and
generated from three principal business activities: the sale of
mobile content through Multi-National Organisation's (Mobile
Operator Services), the sale of mobile content over the internet
(Mobile Internet Services), and the provision of data insight and
intelligence platforms and services (Other Service Fees).
All operations are continuing and all inter-segment transactions
are priced and carried out at arm's length.
GBP000's Europe Asia Pacific North America Latin Consol Group
America
Mobile Operator
Services - 124 4 502 - 630
Mobile Internet - - - - -
Services
Other Service
fees 6 - - - - 6
---------------- ------------------ ------------------- ---------------------- --------------- ---------- ---------------
Total Revenue 6 124 4 502 - 636
Cost of sales - (27) - (446) - (473)
---------------- ------------------ ------------------- ---------------------- --------------- ---------- ---------------
Gross profit 6 97 4 56 - 163
Selling,
marketing and
administration
expenses (595) (2) (23) (153) - (773)
Trading EBITDA* (589) 95 (19) (97) - (610)
---------------- ------------------ ------------------- ---------------------- --------------- ---------- ---------------
Depreciation, - - - - -
amortisation
and impairment
Share based - - - - - -
compensation
Profit (loss)
for
derecognition
of
subsidiaries - (177) (818) 42 (953)
Finance income - - - - -
Finance expense - - - - - -
---------------- ------------------ ------------------- ---------------------- --------------- ---------- ---------------
Loss before tax (589) (82) (837) (55) - (1,563)
Taxation - - - - - -
Loss after tax (589) (82) (837) (55) - (1,563)
================ ================== =================== ====================== =============== ========== ===============
Segmental
assets 1,299 51 1 210 - 1,561
Segmental
liabilities 349 45 5 167 - 566
The segmental results for the year ended 30 June 2019 were as
follows:
GBP000's Europe Asia Pacific North America Latin Consol Group
America
Mobile Operator
Services 3 - 9 - - 12
Mobile Internet
Services - 423 - 900 - 1,323
Total Revenue 3 423 9 900 - 1,335
Cost of sales - (173) (3) (658) - (834)
---------------- ------------------ ------------------- ---------------------- --------------- --------------- --------------
Gross profit 3 250 6 242 - 501
Selling,
marketing and
administration
expenses 1,152 409 (1,098) (1,630) - (1,167)
Trading EBITDA* 1,155 659 (1,092) (1,388) - (666)
---------------- ------------------ ------------------- ---------------------- --------------- --------------- --------------
Depreciation,
amortisation
and impairment - - - (3) (3)
Share based
compensation (5) - - - - (5)
Finance income - - - 113 113
Finance expense (38) - 35 (1) - (4)
---------------- ------------------ ------------------- ---------------------- --------------- --------------- --------------
Loss before tax 1,112 659 (1,057) (1,279) - (565)
Taxation - - - 151 - 151
Loss after tax 1,112 659 (1,057) (1,128) - (414)
================ ================== =================== ====================== =============== =============== ==============
Segmental
assets 34 27 18 383 - 462
Segmental
liabilities 187 117 3 244 - 551
* Earnings before interest, tax, depreciation, amortization,
impairments of assets and share compensation
The totals presented in the Group's operating region segments
reconcile to the Group's key financial figures as presented in its
financial statements as follows:
2020 2019
GBP000's GBP000's
Segment revenues
Total segment revenues 636 1,335
Group's revenues 636 1,335
--------------------- ---------------------
Segment results
Total segment Loss after tax (1,563) (414)
Group's Loss after tax (1,563) (414)
--------------------- ---------------------
Segment assets
Total segment assets 1,561 462
Consolidation eliminations - -
Group's assets 1,561 462
--------------------- ---------------------
Segment liabilities
Total segment liabilities 566 551
Consolidation eliminations - -
Group's liabilities 566 551
--------------------- ---------------------
Revenue in Argentina represents 77% of the total revenue of the
Group (2019: 65%); then India 19.5% (2019: 31%), Mexico 2.3% (2019:
3.1%) and the rest of the companies 1.2%. One main customer in
Argentina comprises 77% of total Group revenue (2019: 65%).
18. Capital commitments
The Group has no capital commitments as at 30 June 2020 (30 June
2019: GBP Nil).
19. Related party transactions
Key Management
The only related party transactions that occurred during the
year were the remuneration of senior management disclosed in the
Remuneration Committee Report.
Related Parties
During the year the Company made payments of GBP70,000 to Krunch
Data Limited ("Krunch"), a company in which Mark Epstein (Board
member) has a beneficial interest. These payments were made in
accordance with the joint venture agreement dated 22 November 2019
(the "JV Agreement"), as described in the Circular dated 6 November
2019. In November 2020 it was agreed to extend the initial revenue
split arrangements in the JV Agreement (whereby the Company retains
100% of revenues) until the end of 2021. Under the JV agreement,
MOS will also continue to pay Krunch client set up costs and the
costs of data clean-up and agreed software development at cost.
20. RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group is exposed to currency and liquidity risk, which
result from both its operating and investing activities. The
Group's risk management is coordinated in close co-operation with
the Board and focuses on actively securing the Group's short to
medium term cash flows by minimising the exposure to financial
markets. The most significant financial risks to which the Group is
exposed are described below. Also refer to the accounting
policies.
Foreign currency risk
The Group is exposed to transaction foreign exchange risk. The
currencies where the Group is most exposed to volatility are
Argentine Peso, Mexican Peso and Indian Rupee.
Currently no hedging instruments are used. The Company will
continue to review its currency risk position as the overall
business profile changes.
Foreign currency denominated financial assets and liabilities,
which are all short-term in nature and translated into local
currency at the closing rate, are as follows.
2020 2019
000's 000's
USD AUS ARS Other USD AUS ARS Other
Nominal GBP GBP GBP GBP GBP GBP GBP GBP
amounts
Financial
assets 1 - 200 61 18 - 366 44
Financial
liabilities (5) - (123) (89) (3) - (190) (171)
Short-term
exposure (4) - 77 (28) 15 - 176 (127)
-------------- --------------- ------------------ ----------- ------------------ --------------- ------------ -------------
Percentage movements for the period in the exchange rates for
the British Pound to US Dollar, Australian Dollar and Argentine
Peso are below. These percentages have been determined based on the
average exchange rates during the period.
2020 2019
US Dollar 4% 4%
Argentine Peso -27% -31%
Liquidity risk
The Group seeks to manage financial risk by ensuring sufficient
liquidity is available to meet foreseeable needs. Management
prepares cash flow forecasts which are reviewed at Board meetings
to ensure liquidity. The Group has no borrowing arrangements.
As at 30 June 2020, the Group's financial liabilities were all
current and have contractual maturities as follows:
30 June 2020 Within 6 months 6 to 12 months
GBP000's GBP000's
Trade and other 566 -
payables
The maturity of the Group's financial liabilities, which were
all current at the previous year end, was as follows:
Within 6 months 6 to 12 months
GBP000's GBP000's
Trade and other 390 -
payables
Capital Management Disclosures
Management assesses the Group's capital requirements in order to
maintain an efficient overall financing structure while avoiding
excessive leverage. The Group manages the capital structure and
makes adjustments to it in the light of changes in economic
conditions and the risk characteristics of the underlying assets.
In order to maintain or adjust the capital structure, the Group
could issue new shares.
The Group considers its capital to comprise the following:
2020 2019
GBP000's GBP000's
Ordinary Share capital 382 280
Share premium 14,126 12,610
translation reserve (3,050) (4,005)
Retained earnings (10,463) (8,974)
995 (89)
=============================== =====================
21. FINANCIAL INSTRUMENTS
The Company's financial instruments comprise primarily cash and
various items such as trade debtors and trade payables which arise
directly from operations. The main purpose of these financial
instruments is to provide working capital for the Company's
operations. The Company does not utilise complex financial
instruments or hedging mechanisms.
The tables below set out the Group's accounting classification
of each class of its financial assets and liabilities.
2020 2019
GBP000's GBP000's
Financial Assets
Accrued Receivables 11 57
Trade receivables 28 63
Cash and Cash equivalents 1,340 115
Total 1,379 235
-------------------- -------------------
Financial Liabilities
Trade Creditors (317) (271)
Accrued content costs (63) (91)
Other Accrued liabilities (127) (70)
Total (507) (432)
-------------------- -------------------
All of the above financial assets' carrying values are
approximate to their fair values, as at 30 June 2020 and 2019.
In the view of management, all of the above financial
liabilities' carrying values approximate to their fair values as at
30 June 2020 and 2019.
22. ULTIMATE CONTROLLING PARTY
The Directors do not consider there to be an ultimate
controlling party due to the composition of the share register.
23. EVENTS AFTER THE REPORTING DATE
The Directors have considered the impact of the Covid-19
pandemic on the business, and at the time of writing revenues have
not been affected. All our staff work from home, and the online
nature of the existing business, both in terms of content delivery
and revenue collection, means that we do not envisage any
disruption to the business unless a prolonged economic downturn
results in a rise in cancellations. Marketing of the Streams Data
platform is also largely remote, although in the short term demand
could be affected as clients themselves respond to the ongoing
situation.
Opinion
We have audited the financial statements of Mobile Streams Plc
(the 'parent company') for the year ended 30 June 2020 which
comprise the parent company Statement of Financial Position, the
parent company Statement of Changes in Equity and notes to the
financial statements, including a summary of significant accounting
policies. The financial reporting framework that has been applied
in their preparation is applicable law and United Kingdom
Accounting Standards, including Financial Reporting Standard 101
Reduced Disclosure Framework (United Kingdom Generally Accepted
Accounting Practice).
In our opinion, the parent company financial statements:
-- give a true and fair view of the state of the parent
company's affairs as at 30 June 2020;
-- have been properly prepared in accordance with United Kingdom
Generally Accepted Accounting Practice; and
-- have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the
Auditor's responsibilities for the audit of the financial
statements section of our report. We are independent of the parent
company in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the UK,
including the FRC's Ethical Standard as applied to listed entities,
and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in
relation to which the ISAs (UK) require us to report to you
where:
-- the directors' use of the going concern basis of accounting
in the preparation of the financial statements is not appropriate;
or
-- the directors have not disclosed in the financial statements
any identified material uncertainties that may cast significant
doubt about the parent company's ability to continue to adopt the
going concern basis of accounting for a period of at least twelve
months from the date when the financial statements are authorised
for issue.
Our application of materiality
The company materiality for the financial statements as a whole
was set at GBP21,445 (2019: GBP18,000). Loss before tax was used as
the basis for materiality as the Group, following the management
change in the year, is diversifying its business model and is
therefore in a transitionary phase and revenue is no longer the key
driver. Performance materiality was calculated at 70% (GBP15,015)
of materiality for the financial statements as a whole.
We have agreed with those charged with governance that we would
report any individual audit difference in excess of GBP1,072 (2019:
GBP900) as well as differences below this threshold that, in our
view, warranted reporting on qualitative grounds.
INDEPENT AUDITOR'S REPORT TO THE MEMBERS OF MOBILE STREAMS
PLC
An overview of the scope of our audit
In designing our audit, we determined materiality and assessed
the risk of material misstatement in the group financial
statements. In particular, we looked at areas involving significant
accounting estimates and judgements by the directors. These areas
were however not considered to constitute Key Audit Matters. We
also addressed the risk of management override of internal
controls, including evaluating whether there was evidence of bias
by the directors that represented a risk of material misstatements
due to fraud.
Key audit matters
Key Audit Matter How the scope of our audit responded
to the key audit matter
Going concern (refer to significant
accounting policies)
==================================================================
Based on our planning procedures We performed the following procedures
we have determined there is uncertainty * Obtained and critically analysed cash flow forecasts,
surrounding going concern for management accounts, and budgets from management for
the Company. Whilst the cash a period of at least 12 months from the date of
position of the Group has increased signing the financial statements and challenged
from fund raising activities management in relation to assumptions within the
in the year, revenue has fallen forecasts;
by 52% and the Group's operations
are not cash generative. The
Company is reliant on the underlying * Performed sensitivity analysis on the cash flow
performance of its subsidiaries forecast;
to continue as a going concern.
As a result, there is the risk
that it is not appropriate to * Reviewed documents for reasonableness by comparing
prepare the financial statements previous forecasts to actual results;
on the going concern basis
* Considered the current available financial headroom
with reference to the current cash balances and
confirmed existence, legality and enforceability of
any financial support arrangements;
* Reviewed meeting minutes for any references to
financial difficulties;
* Reviewed RNS releases and discuss subsequent events
and future plans with management;
* Considered the impact of COVID-19 on going concern;
and
* Ensured sufficient disclosure of Management's
assessment of the impact of COVID-19 and the measures
being taken to mitigate the risks its poses.
==================================================================
Other information
The other information comprises the information included in the
annual report, other than the financial statements and our
auditor's report thereon. The directors are responsible for the
other information. Our opinion on the parent company financial
statements does not cover the other information and, except to the
extent otherwise explicitly stated in our report, we do not express
any form of assurance conclusion thereon. In connection with our
audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required
to determine whether there is a material misstatement in the
financial statements or a material misstatement of the other
information. If, based on the work we have performed, we conclude
that there is a material misstatement of this other information, we
are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act
2006
In our opinion, based on the work undertaken in the course of
the audit:
-- the information given in the strategic report and the
directors' report for the financial year for which the parent
company financial statements are prepared is consistent with the
parent company financial statements; and
-- the strategic report and the directors' report have been
prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the parent
company and its environment obtained in the course of the audit, we
have not identified material misstatements in the strategic report
or the directors' report.
We have nothing to report in respect of the following matters in
relation to which the Companies Act 2006 requires us to report to
you if, in our opinion:
-- adequate accounting records have not been kept by the parent
company, or returns adequate for our audit have not been received
from branches not visited by us; or
-- the parent company financial statements are not in agreement
with the accounting records and returns; or
-- certain disclosures of directors' remuneration specified by law are not made; or
-- we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities
statement, the directors are responsible for the preparation of the
parent company financial statements and for being satisfied that
they give a true and fair view, and for such internal control as
the directors determine is necessary to enable the preparation of
financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the parent company financial statements, the
directors are responsible for assessing the parent company's
ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the
parent company or to cease operations, or have no realistic
alternative but to do so.
Auditor's responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial
statements.
A further description of our responsibilities for the audit of
the financial statements is located on the Financial Reporting
Council's website at: www.frc.org.uk/auditorsresponsibilities.This
description forms part of our auditor's report.
Other matter
We have reported separately on the group financial statements of
Mobile Streams Plc for the year ended 30 June 2020.
Use of our report
This report is made solely to the company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
company's members those matters we are required to state to them in
an auditor's report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone, other than the company and the company's members as a body,
for our audit work, for this report, or for the opinions we have
formed.
Joseph Archer (Senior Statutory Auditor) 15 Westferry Circus
For and on behalf of PKF Littlejohn LLP Canary Wharf
Statutory Auditor
London E14 4HD
15 December 2020
COMPANY STATEMENT OF FINANCIAL POSITION
30 June 2020 30 June
2019
GBP000's GBP000's
Fixed assets
Investments in subsidiaries 1 - -
---------------------------------------- -------------------- ---------------------- ----------------------
Total fixed assets - -
Current assets
Debtors 2 40 24
Cash and cash equivalents 1,259 10
---------------------------------------- -------------------- ---------------------- ----------------------
Total current
assets 1,299 34
Creditors: amounts falling due within
one year 3 (349) (187)
----------------------------------------- -------------------- ---------------------- ----------------------
Current Liabilities (349) (187)
(Net Liabilities) / Net
assets 950 (153)
======================================== ==================== ====================== ======================
Capital and reserves
Called up share capital 4 382 280
Share premium 5 14,126 12,610
Profit and loss
account (13,558) (13,043)
Shareholders deficit / Shareholders
funds 950 (153)
----------------------------------------- -------------------- ---------------------- ----------------------
The parent Company has taken advantage of Section 408 of the
Companies Act 2006 and has not included its own Statement of
Comprehensive Income account in these financial statements. The
parent Company's recognised loss for the year ended 30 June 2020
was GBP588k.
The notes below form part of these financial statements.
The financial statements were approved by the Board of Directors
on 15 December 2020.
Nigel Burton
Chairman
company STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2020
Share Share Profit
capital premium and loss
account account account Total
GBP000 GBP000 GBP000 GBP000
At 1
July1
2018 200 12,550 (14,477) (1,727)
New
equity
issue 80 60 - 140
Loss for
the year - - 1,431 1,431
Share
based
payments
- share
options - - 3 3
At 30
June
2019 280 12,610 (13,043) (153)
============================== =============================== ================================ ================================
At 1
July1
2019 280 12,610 (13,043) (153)
New
equity
issue 102 1,516 73 1,691
Loss for
the year - - (588) (588)
At 30
June
2020 382 14,126 (13,558) 950
============================== =============================== ================================ ================================
Notes to company financial statements
summary of significant accounting policies
Statement of compliance
These financial statements have been prepared in accordance with
applicable accounting standards and in accordance with Financial
Reporting Standard 101 - "Reduced Disclosure Framework" (FRS 101)
The principal accounting policies adopted in the preparation of
these financial statements are set out below. These policies have
all been applied consistently throughout the year unless otherwise
stated.
The financial statements have been prepared on a historical cost
basis. The financial statements are presented in Sterling (GBP) and
have been presented in round thousands (GBP'000).
In preparing these financial statements the Company has taken
advantage of all disclosure exemptions conferred by FRS 101.
Therefore, these financial statements do not include:
1. A statement of cash flows and related notes
2. The requirements of IAS 24 related party disclosures to
disclose related party transactions entered in to between two or
more members of the group as they are wholly owned within the
group.
3. The effect of future accounting standards not adopted.
4. Certain share based payment disclosures.
5. Disclosures in relation to impairment of assets.
6. Disclosures in respect of financial instruments (other than
disclosures required as a result of recording financial instruments
at fair value).
Additionally, the consolidated Group prepares accounts under
IFRS which should be read in conjunction with these statements.
Basis of preparation
The financial statements have been prepared on the historical
cost basis. The principal accounting policies are set out below.
The company has applied the exemption under section 408 of the
Companies Act 2006 and has not included the individual profit and
loss account statement in the financial statements.
Going concern
In common with the Going Concern disclosures in the Group
financial statements, the Company financial statements have been
prepared on a going concern basis, which assumes that the Group and
the Company will continue in operational existence for the
foreseeable future, being 12 months from the date of sign-off of
these accounts.
The Group and Company use annual budgeting, forecasting and
regular performance reviews to assess the longer term profitability
of the Group and make strategic and commercial changes as required
ensuring cash resources are maintained. Although there was a
significant fall in revenues and a loss for the year ending 30 June
2020, the Group actively manages its use of cash, particularly
marketing and other expenditure.
After consideration of the above the Directors consider that the
continued adoption of the going concern basis is appropriate.
Investments IN SUBSIDIARIES
Investments in subsidiaries are stated in the Company's
consolidated statement of financial position at cost less
provisions for impairment.
COMpany profit and loss account
The parent Company has taken advantage of Section 408 of the
Companies Act 2006 and has not included its own profit and loss
account in these financial statements. The parent Company's
recognised loss for the year ended 30 June 2020 was GBP588,000
(2019: GBP1,413,000).
1. Investment in subsidiary companies
30 June 30 June
2020 2019
GBP000's GBP000's
Cost 3,636 3,636
Accumulated impairment (3,636) (3,636)
Net Book Value after impairment - -
=============================== ===============================
Investments in subsidiaries are reviewed for impairment when
events indicate the carrying amount may not be recoverable and are
accounted for in the Company's financial statements at cost less
accumulated impairment losses.
Investments in Subsidiary undertakings
comprise:
Proportion held
Subsidiary Directly By other Total Country Status
by Mobile Group held of incorporation
Streams companies by Group
plc
Mobile Streams Inc. 100% - 100% USA Dormant
Appitalism, Inc. 100% - 100% USA Closed
Mobile Streams de
Argentina
SRL 50% 50% 100% Argentina Active
Mobile Streams
Chile
Limitada 50% 50% 100% Chile Closed
Mobile Streams
Columbia
Limitada. 50% 50% 100% Colombia Dormant
Mobile Streams of
Mexico
de CV 50% 50% 100% Mexico Active
The Nickels Group
Inc. - 100% 100% USA Closed
Mobile Streams
Venezuela
SA 100% - 100% Venezuela Closed
Mobile Streams
Australia
Pty Limited - 100% 100% Australia Closed
Mobile Streams
(Hong
Kong) Limited 100% - 100% Hong Kong Dormant
Mobile Streams
Singapore
Limited - 100% 100% Singapore Closed
Mobile Streams
India
Private Limited 99.99% - 99.99% India Active
Streams Data
Limited 100% - 100% UK Active
All the subsidiaries' issued shares were ordinary shares and
their principal activities were the distribution of licensed mobile
phone content and the provision of data insight and intelligence
platforms and services.
The registered offices addresses are:
Mobile Streams plc
125 Wood Street
London
EC2V 7AW
Mobile Streams, Inc.
PO Box 471191
Celebration
FL 34747-4679
Mobile Streams Australia PTY LTD
ABN: 11 095 019 748
Level 13, Macquarie House
167 Macquarie St
Sydney NSW 2000
AUSTRALIA
Mobile Streams Hong Kong Limite d
B8, 10/F Proficient Industrial Center
6 Wang Kwun Rd
Kowloon Bay, Hong Kong
Mobile Streams Singapore PTE LTD
House 101 - Upper Cross Street #05-35
People's Park Centre
Singapore 058357
Mobile Streams Argentina SRL
Viamonte 1815 3rd Floor appt G
Ciudad Autonoma de Buenos Aires
Republica Argentina
Mobile Streams India:
2106, Wing A, Bldg/2, Raheja Willows, CHS L,
Birchwood, Akruli Rd, Kandivali East, Maharashtra,
India
Mobile Streams Colombia
AV. CRA 13 No. 69-74 OF. 701
Municipio Bogota D.C..
Colombia
Mobile Streams Mexico
Calle Florencia No. 57, 3deg Piso,
Colonia Juarez, Delegacion Cuauhtemoc, Ciudad de Mexico,
C.P. 06600.
Mexico
Streams Data Limited
125 Wood Street
London
EC2V 7AW
2. DEBTORS 2020 2019
GBP000's GBP000's
Trade debtors - 24
Other debtors 40 -
40 24
========================= =========================
We estimate these receivables are fully recoverable during the
next year.
3. CREDITORS
Creditors: amounts falling due within one year
2020 2019
GBP000's GBP000's
Trade creditors 225 129
Accruals and deferred income 124 58
349 187
======================== =========================
4. SHARE CAPITAL
For details of share capital refer to note 15 to the Group
financial statements.
5. share premium account
For details of share capital refer to note 15 to the Group
financial statements.
6. Capital commitments
The Company has no capital commitments at 30 June 2020 (2019:
Nil).
7. Contingent liabilities
As at 30 June 2020 there were no contingent liabilities (2019:
Nil).
8. Related party transactions
During the year the Company remunerated the Directors and
Officers as disclosed in note 7 in the consolidated financial
statements.
The company is taking advantage of the exemption per IAS 24
which does not require disclosure of transactions entered into
between members of a group when one of the transacting parties is a
wholly owned subsidiary.
9. Directors and employees
The average number of employees during the year to 30 June 2020
was as follows:
Year ended Year ended
2020 2019
Number Number
Management 3 2
Administration - -
3 2
===================================== ==================
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR UVSWRRAUUAAA
(END) Dow Jones Newswires
December 16, 2020 02:00 ET (07:00 GMT)
Grafico Azioni Mobile Streams (LSE:MOS)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Mobile Streams (LSE:MOS)
Storico
Da Mar 2023 a Mar 2024