Interim results for the six months to 30 June 2013
Forbidden Technologies (AIM: FBT), the AIM-quoted owner and developer of the market leading Cloud video platform, FORscene, is pleased to announce its Interim Results for the six months to 30 June 2012.
- Revenue for the period up 15% to GBP401,278
- Gross profit for the period up 23% to GBP347,697
- Revenue from Broadcast Post-Production up by 61%; News and Sport lower, but up 32%, excluding last years one-off contribution from the Summer Games
- Administrative expenses for the period increased to GBP538,191
- Loss for the period was GBP189,618
- Continuing strong demand for a cloud-based solution in video editing
- New channels to market with ATOS in South Africa, with Key Code Media inc in the United States and with deltatre and EVS in the sport video space
- Post balance sheet, the Company raised GBP8,900,000 through an oversubscribed placing and open offer
Vic Steel, Chairman of Forbidden Technologies, commented:
"Forbiddens growth continues to demonstrate the strength of the FORscene offering. Revenue from Broadcast Post-Production has increased substantially while the Company has continued to build on the foundations that the licence to YouTube created in the sports video environment at last years Olympics."
"The Company continues to develop its presence in lucrative international markets and the successful placing and open offer will allow this process to be accelerated at the same time as strengthening the balance sheet and continuing to improve the market leading technology already in place."
For more information, please visit www.forbidden.co.uk or contact:
Forbidden Technologies plc
Stephen Streater, CEO
Tel: +44 (0)20 8879 7245
Cenkos Securities plc, Nominated Adviser and Broker
Adrian Hargrave, Corporate Finance
Alex Aylen, Sales
Tel: +44 (0)20 7397 8900
Nick Rome / Sam Allen / Matthew Low
Tel: +44 (0)20 7562 3350
Notes for editors
About Forbidden Technologies:
Forbidden Technologies plc (AIM: FBT, www.forbidden.co.uk) floated in February 2000. The Company develops and markets a powerful cloud video platform, FORscene, which is used by broadcasters, in professional web video, in education and by consumers. FORscene is one of the worlds most advanced browser-based and mobile applications.
I am pleased to report that revenue in the six months to 30 June 2013 increased by 15% to GBP401,278 compared to GBP348,159 in the six months to 30 June 2012.
The UK Broadcast Post-production sector provided strong growth for the FORscene platform with revenue increasing by 61% over the corresponding period last year to GBP217,739. This month there are over 90 productions being made using FORscene, compared with a monthly peak of 70 in the last quarter of 2012. This growth reflects not only an increase in the number of programmes being produced using FORscene but also increasing use of FORscenes wide-ranging features for professionals involved in post-production.
First half revenue from the News & Sport sector was lower than that achieved in the first half of 2012 reflecting the absence of a significant proportion of the one-off contribution from last summers major sporting event. Excluding this event, performance increased by 32%.
Administrative expenses increased from GBP442,756 in the six months to 30 June 2012 to GBP538,191 in the six months to 30 June 2013, as a 32% increase in staff costs and a 10% increase in corporate costs gave an overall expense increase of 21%.
The loss for the six months to 30 June 2013 was GBP189,618 compared to GBP156,908 in the six months to 30 June 2012, an increase of 21%.
The successful involvement of FORscene in the 2012 summer games has had a significant impact upon the awareness, recognition and reputation of the FORscene platform in both the Broadcast Post-production and the News & Sport sectors. This has enabled the company to undertake Partnership Agreements, in the first six months of 2013, with a number of major and global companies.
In February 2013 a deal was signed with ATOS, South Africa, a part of the global information technology company with operations in 47 countries. This agreement is Pan-African in scope, with an initial introduction into South Africa where ATOS will operate its own FORscene cloud. This agreement is expected to enable FORscene to become a key platform in the African Broadcast Post-production market.
In Post-production on the West Coast of the USA, Key Code Media, a global leading Avid re-seller, signed a FORscene Partnership Agreement in March 2013, providing an entry point into the US Post-production market which is a multiple of the size of the UK market.
In March 2013 FORscene reached agreements with two leading global deliverers of sports video. deltatre leads in the delivery of sports through the internet and EVS is a leading supplier to the Broadcast Sport video market. FORscene will be integrated into the offerings of both companies.
Post Balance Sheet Event
The recent completion of the placings of new shares and the open offer has raised GBP8,900,000 before costs thus strengthening the balance sheet and providing extra working capital to support accelerated growth into the future.
With new and significant agreements put in place in the first six months of 2013, further agreements will be sought over the coming months.
The increased available funds will enable the Company to extend its practice of continuous development and improvement of its technology so as to take full part in the adoption of Cloud Technology on a wide scale across all facets of video post-production, publishing and distribution.
Funds will be used to exploit marketing opportunities to strengthen our human resources and to demonstrate a strong balance sheet to current and future partners.
The Board believes that Forbidden is now in a strong position to become a leading player internationally in the creation of video content for multiple media channels.