28th Jun 2013 15:34
28th June 2013
PeerTV PLC
("PeerTV" or "the Company")
Results for the year ended 31 December 2012
PeerTV (AIM:PTV), a provider of technology solutions for the OTT (TV over the internet) market and PCB (printed circuit board) production solutions announces its audited results for the year ended 31 December 2012.
Key Developments
·; Total revenue of $1.96 million (2011: $5.07 million)
·; Operating Loss excluding Exceptional Items $2.5 million (2011 $5.3 million).
·; Total Comprehensive Loss of $5.1 million (2011 loss: $11.6 million). This includes $1.4 million of financing costs and a $1.9 million non-cash write down of the value of goodwill acquired in the purchase of Digitek Holdings Ltd.
·; Operating expenses reduced from $4 million in 2011 to $2 million in 2012.
·; Total equity fundraising of approximately $3 million during the year
·; Restructuring and refinancing of the Digitek business through the issue of secured loan notes and reaching settlement with bankers.
·; Recruitment of new customers and strong measures to reduce costs, including concentrating the two businesses on the same site under the same Chief Executive Officer.
·; Rebuilding relationship with major customers.
·; Focus on the development of the Android based Set Top Box and the receipt of first order from PeerTV Ltd's major customer, which has been delivered satisfactorily in 2013.
Post Year-end Events
In April 2013 the company announced the resignation of Leon Nahon as Chairman. In May 2013 Eitan Yanuv was appointed in his place.
During the first six months of 2013 an additional $960,000 was raised by Digitek SMT Assemblies Ltd under the secured loan note facility.
In May 2013 the company issued a Private Placement Memorandum under which it has received commitment for gross investment of £750,000.
The Annual report and the auditor's report include the following statements
Auditors Report: Emphasis of matter - going concern
In forming our opinion, which is not modified, we have considered the adequacy of the disclosures made within note 1e of the accounting policies concerning the group's and the parent company's ability to continue as a going concern. The group incurred a net loss of $5,170,000 during the year ended 31 December 2012 and had net liabilities of $4,615,000 as at that date. This, along with the other matters explained within note 1e of the accounting policies, indicate the existence of a material uncertainty which may cast a significant doubt about the group and company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the group and company were unable to continue as a going concern.
Annual Report: Going concern
During the year the group incurred a loss of $5,170,000 and had net liabilities of $4,615,000 as at the year end. The directors are in the process of raising additional funds to provide working capital.
The directors are encouraged by a strong inflow of orders and Letters of Intent which are expected to convert into firm orders for both the PeerTV and Digitek businesses later in 2013 and in 2014. They are confident that in due course the acquisition of Digitek Holdings Ltd will produce significant operational benefits for the Group. During 2012 Digitek SMT Assemblies Ltd was created to serve as a marketing and financing company. Secured Loan Notes issued by that company has enabled the company to reduce its liability to its principal bank and to provide working capital. The group has also been successful in soliciting new customers.
The directors believe that due to the aforementioned developments, including the private placement that is currently in progress that the company is a going concern. However, the future of the Group is dependent on it achieving its trading projections and on the directors being successful in their bid to secure finance.
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Subject to the above, the directors consider that it is appropriate to prepare the financial statements on the going concern basis. If additional financing by whatever means is not secured in the next twelve months, then it is unlikely that the group be able to continue in its present form.
The financial statements do not include any adjustments that would be necessary should this basis not appropriate. |
The full audited accounts are available from the Company's website: www.peertvplc.com and will be posted to shareholders in the next few days.
Further enquiries:
Further enquiries:
PeerTV Plc
Eitan Yanuv, Chairman +972 974 07315
Libertas Capital Corporate Finance Limited
Thilo Hoffmann /Sandy Jamieson +44 (0) 20 7569 9650
CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2012
I joined the Group as Chairman in May 2013. We are aiming to realize the potential of the business and bring about a period of period of stability to the Board and the management of the Group.
Peer TV
During 2012 and early 2013 our main achievement in Peer TV was to stabilise our principal product, our Android set top box, and to regain the confidence of our major traditional customer. We hope to build on this foundation during the second half of 2013. We believe the markets for our products are still in their infancy and we hope to achieve substantial gains during the coming year.
Following the resignation of Moshe Bartov in October 2012, Avi Vermus stepped in as CEO and has succeeded in moving the business forward both internally and with our customers.
We have a leaner team and we are now located in the premises of Digitek which makes for a more efficient management structure and lower operating costs.
We attended two major events in London and Amsterdam during 2012 and generated a number of interesting quality leads which we are seeking to convert into business. We have appointed a new head of sales and are currently recruiting additional members to the R&D team to enable us to support an increasing number of customers.
Digitek
The recovery of the Digitek business has taken longer to achieve than originally expected. Avi Vermus assumed the management of Digitek in January 2012 and has done an excellent job strengthening the customer base. Having obtained the necessary standards approvals, he is positioning the company in the military and medical equipment high growth segments which offer the possibility of mass production orders.
During 2012 we financed the company with an investor based revolving loan note facility, which we consider a suitable financing tool until such time as we regain bank credit facilities.
The board is fully aware of the financial challenges being faced by the Group and is continually taking steps to ensure that adequate finance is available to support the recovery of both businesses.
Thanks go to our chief executive, directors and members of staff, together with our advisors for their hard work and support during the year. We look forward to improved results in 2013 and 2014 building on the progress that has already been made in both businesses.
E.Yanuv
Chairman
PEERTV PLC
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2012
2012 | 2011 | ||||||||||||||
| Note | $'000 | $'000 | ||||||||||||
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REVENUE | 1,2 | 1,959 | 5,065 | ||||||||||||
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Cost of sales | (2,418) | (6,365) | |||||||||||||
| -------------- | -------------- | |||||||||||||
GROSS (LOSS)/PROFIT |
| (459) | (1,300) | ||||||||||||
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Research and development |
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| (397) | (1,356) | |||||||||||
Sales and marketing |
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| (152) | (150) | |||||||||||
General and administrative |
| 4 | (1,400) | (1,790) | |||||||||||
Other expenditure |
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| (98) | (716) | |||||||||||
Exceptional items - impairment of intangibles | 5 | (1,913) | (4,013) | ||||||||||||
| ---------------- | -------------- | |||||||||||||
OPERATING LOSS | 3 | (4,419) | (9,325) | ||||||||||||
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Finance costs | 6 | (1,401) | (2,726) | ||||||||||||
Other expense | (32) | - | |||||||||||||
| ---------------- | ---------------- | |||||||||||||
LOSS BEFORE TAXATION | (5,852) | (12,051) | |||||||||||||
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Taxation | 7 | - | (215) | ||||||||||||
Minority interest |
| 682 | 638 | ||||||||||||
---------------- | ---------------- | ||||||||||||||
TOTAL COMPREHENSIVE LOSS FOR THE YEAR | (5,170) | (11,628) | |||||||||||||
======= | ====== | ||||||||||||||
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LOSS PER SHARE |
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| BASIC | 8 | ($0.10) | ($0.53) | ||||||||||||
| ====== | ====== | |||||||||||||
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DILUTED | 8 | ($0.08) | ($0.33) | ||||||||||||
| ====== | ====== | |||||||||||||
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All recognised gains and losses are included in the consolidated income statement.PEERTV PLC COMPANY NUMBER: 7068350
CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2012
| 2012 | 2011 | ||
| Note | $'000 | $'000 | |
ASSETS |
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Non-current assets |
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Intangible assets | 10 | 3,114 | 4,955 | |
Property, plant and equipment | 11 | 1,465 | 1,771 | |
| -------------- | -------------- | ||
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| 4,579 | 6,726 | |
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| -------------- | ------------- | |
Current assets | ||||
Inventories | 13 | 487 | 389 | |
Trade and other receivables | 14 | 495 | 1,688 | |
Cash and cash equivalents | 15 | 81 | 261 | |
| -------------- | -------------- | ||
| 1,063 | 2,338 | ||
| -------------- | -------------- | ||
Total assets |
| 5,642 | 9,064 | |
| -------------- | ------------- | ||
LIABILITIES | ||||
Non-current liabilities | ||||
Other payables | 85 | 52 | ||
2014 loan notes | 22 | 1,492 | 1,315 | |
Other loans and loan notes | 22 | 1,008 | 1,050 | |
| -------------- | -------------- | ||
| 2,585 | 2,417 | ||
| -------------- | ------------- | ||
Current liabilities | ||||
Bank overdraft | 13 | 81 | ||
Trade and other payables | 19 | 3,875 | 4,615 | |
Bank and other borrowings | 20 | 3,575 | 2,401 | |
Provisions | 21 | 209 | 170 | |
| -------------- | -------------- | ||
| 7,672 | 7,267 | ||
| -------------- | -------------- | ||
Total liabilities | 10,257 | 9,684 | ||
| -------------- | -------------- | ||
Net liabilities | (4,615) | (620) | ||
| ======= | ======== | ||
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Called up share capital | 16 | 411 | 296 | |
Share premium account | 21,935 | 20,283 | ||
Share options, warrants and deferred shares | 1,567 | 1,363 | ||
Other reserves - on consolidation under predecessor accounting | (1,817) | (1,817) | ||
Minority interest | (1,531) | (849) | ||
Foreign exchange reserve | 140 | 254 | ||
Other reserves - equity component of preference shares | 18 | 490 | 490 | |
Retained earnings | (25,810) | (20,640) | ||
| -------------- | ------------- | ||
Total equity | (4,615) | (620) | ||
| ======= | ======== | ||
The financial statements were approved and authorised for issue by the Board of Directors on 28 June 2013 and were signed below on its behalf by:
E Yanuv
Director
Related Shares:
PTV.L