27th Sep 2007 07:01
Forbidden Technologies PLC27 September 2007 27 September 2007 Forbidden Technologies plc Interim Results for six months to 30 June 2007 Chairman's statement In the six months to 30th June 2007 the Company recorded sales of £33,447compared with £68,228 in the first half of the previous year. Administrativeexpenses were £398,251 (2006: £440,398) and the loss in the six months was£361,725 (2006: £360,274). At 30th June 2007 the balance sheet showed £27,821 of net current assets (2006:£655,474) and cash and liquid resources of £38,847 (2006: £645,676). Although turnover in the first six months of 2007 is lower than in the sameperiod last year, this reflects in part a change in the Company's pricing model.Previously we invoiced for one-off sales for specific uses - normally for aparticular production or series. Now we sell annual user licences. This is moreflexible and more understandable for our customers and partly, we believe, as aresult of this we are already seeing the development of a steady and increasingstream of income including repeat and referral business. One of the effects ofthis change is that our income is now recognised over the life of the licence.This means that a proportion of the income arising from our sales in the firstsix months of 2007 has been deferred to later periods. Shortly before 30th June 2007 the Company concluded the arrangement of a £1million loan agreement which provides liquidity going forwards and did notaffect the balance sheet in the period. The Board believes that the loanagreement was well timed, bearing in mind the current credit crunch in thefinancial markets. Strategy The Company has focused specifically on its two key products: FORscene andClesh. In FORscene we have developed a truly powerful web-based tool for use byprofessionals in broadcast post-production to log, edit, review, and publishvideo at up to broadcast quality. It requires no installation and works onalmost any computer with internet access helping to transform collaborativeworking between any number of different locations. The recent announcement by the Company that FORscene can now output material atbroadcast (DV) quality is a significant development. It demonstrates thatFORscene is on the verge of being sufficient to make entire programmes. The consumer version of the product (Clesh) can be used for editing videos onthe web and then publishing to different devices such as mobile phones, iPods,or on web sites. In addition, Clesh is a complete solution for websitesaccepting and displaying User Generated Video (UGV). To see some currentexamples of UGV, go to the Clesh Showreel page: http://clesh.com/videos/. Prospects As the conservative and highly critical broadcast community begins to recognisethe increasing usefulness of web-based post production, the Company is gainingimportant recognition as a provider of web-based services. With customers suchas the BBC and ITV in the UK, CBC in Canada, and All Three Media (one of thelargest UK independent production companies) using FORscene, the credibility ofthe Company and its products increases. The growing use of FORscene byeducational institutions to train the next generation of producers and editorsis a further benefit for the longer term. With a loan facility in place and care being taken to monitor the relationshipbetween spending and income, the Board is confident that we can become asignificant participant in the huge marketplace that should emerge in bothprofessional video production and in User Generated Video. Note This announcement, with P&L, Balance Sheet and Cash Flow statement (includingcomparatives), will be posted on the company website http://www.forbidden.co.uk/. The Company does not intend to issue paper copies, thus helping to save theenvironment - and a little money. Contacts: Forbidden Technologies plc 020 8879 7245Stephen Streater (Chief Executive Officer) Brewin Dolphin Securities Limited 0141 314 8114Ken Fleming Profit and loss account Unaudited Unaudited half year to half year to Year to 30 June 30 June 31 December 2007 2006 2006 £ £ £ Turnover 33,447 68,228 131,535 Administrative expenses -398,251 -440,398 -973,884 Operating loss -364,804 -372,170 -842,349 Interest receivable and similar income 3,079 11,896 18,648 Loss on ordinary activities before taxation -361,725 -360,274 -823,701 Tax on loss on ordinary activities 0 0 38,513 Loss for the period -361,725 -360,274 -785,188 Basic and diluted loss per ordinary -0.48 -0.48 -1.04 The results for the year are all derived from continuing operations. There areno recognised gains or losses other than the loss for the year. Reconciliation of movements in Unaudited Unauditedshareholders' funds half year to half year to Year to 30 June 30 June 31 December 2007 2006 2006 £ £ £ Loss for the period -361,725 -360,274 -785,188 FRS 20 employee share option costs 34,553 55,638 101,884 New share capital subscribed (net of issue costs) 0 0 75,000 Net reduction in shareholders' funds -327,172 -304,636 -608,304 Opening shareholders' funds 358,794 967,098 967,098 Closing shareholders' funds 31,622 662,462 358,794 Balance sheet Unaudited Unaudited half year half year Year to 31 to to 30 June 30 June December 2007 2006 2006 £ £ £ Fixed assets Tangible assets 3,750 6,988 5,063 Current assets Debtors 99,717 117,751 94,912 Current asset 38,847 645,676 360,626investments 138,564 763,427 455,538 Creditors (Related Shares:
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