VMob Group Limited. Unaudited Interim Report. For the 6 months ended 30 September 2014

Transcription

1 Unaudited Interim Report For the 6 months ended 30 September 2014

2 Directors Report The last six months has continued to be a period of growth and development for the Company, highlighted by a number of new commercial agreements, the most significant of which was the securing of a contract with McDonald s Japan. VMob s mission is to use mobile to bring shoppers back into stores and through our work during the period we have continued to prove VMob s ability to achieve this on a global scale. For the six month period ended 30 September 2014, operating revenue grew 283% over the same period last year, to $502k. During this period, VMob has continued to invest in its people and the development of its SaaS platform to deliver against its technology roadmap. This ongoing investment will enable the scalability and features required to take advantage of the growing global demand for mobile marketing by VMob s global clients. Performance Highlights 6 months ended 6 months ended 30 September September 2013 Increase $ 000s $ 000s % Operating revenue % Net loss after tax (1,962) (738) 166% Cash at bank 2, % Annualised Committed Monthly Revenue % Staff (FTE s) % Growth and Momentum The major highlight during the period was the signing of a three-year contract with McDonald s Japan to provide VMob s mobile marketing platform to McDonald s 3,200 restaurants in Japan. This was a fantastic result for the Company following a rigorous RFP process against international competition. Japan is the second largest market outside of the United States for McDonald s. Deployment of this project is currently under way and is expected to be live in early VMob has continued to build its global presence, opening offices in London and New York and establishing wholly owned subsidiaries in the United Kingdom, Japan and the United States. Personnel have been employed in the United Kingdom and Japan and recruitment is under way in the United States for a VP Sales to further accelerate the development of these markets. Expansion into the United States has accelerated to take full advantage of local opportunities and the strong partnership with Microsoft, which will see the technology multinational support VMob in the United States and other markets. The United States presents a key market opportunity for VMob. The appetite for mobile marketing solutions in the United States has increased at a significant rate with every top 100 retailer in the United States deploying a mobile application, compared to about 40% only two years ago. Having a presence in the United States will also allow VMob to take full advantage of the increasing number of integration opportunities with leading SaaS marketing, CRM and ERP systems such as Microsoft Dynamics, Oracle and Salesforce, putting the business in a strong position to build on relationships with these North American headquartered companies. Locally, VMob was successful in securing contracts with Auckland s Heart of the City powering their Where Next mobile application, and Loyalty New Zealand. VMob has partnered with Loyalty New Zealand to provide mobile loyalty capability to the existing Fly Buys coalition loyalty program. Fly Buys is the world s most successful coalition loyalty program with 74% of New Zealand households active and 52% of the population holding a Fly Buys loyalty card. The Company continues to build out its technology platform to address the needs of large scale global organisations while also developing more highly packaged versions of its offering for smaller businesses looking to deploy rapidly and at a lower cost. Awards During the period, the Company won a number of prestigious awards: VMob gained international recognition for the innovative use of big data in the I-COM Big Data Venture Challenge in Seville, Spain. 2

3 VMob was the most recognised company at the annual New Zealand Hi-Tech Awards securing the Best Innovative Hi-Tech Mobile Product; the Best Innovative Hi-Tech Service Product and a commendation in the Innovative Software Product category. VMob was the runner-up in the global Winning with Azure Contest for cloud-based technology solutions. The Winning with Azure Contest recognises the best solutions in market that incorporate Microsoft Azure technology to alleviate customer pain-points or solve a related business problem. VMob was recognised in the Deloitte Fast50 awards in Auckland winning a Rising Star One to Watch award in recognition of the notable potential for growth. Outlook VMob is attracting significant international attention for its mobile marketing platform from some of the largest brands on the planet. The Company has also developed a close working relationship with Microsoft in the United States, which is enabling access to many large prospects at senior levels. In order to pursue these opportunities, the Company s CEO has re-located to the United States to lead business development activities in that market. VMob is proud of the progress it has been able to achieve to date; building a world-class technology platform, developing a strong international market presence and employing a talented team. These are the key building blocks for future success, which the Company is confident will translate into strong revenue growth in the years ahead as a combination of more large enterprise clients and smaller out of the box sales are secured. Phil Norman Chairman 3

4 Condensed Interim Statement Of Comprehensive Income For the 6 Months ended 30 September 2014 Revenues Operating revenue Other income Total revenue & other income Less Amortisation Directors fees Share based payment Staff costs 1, ,020 Other operating expenses Total expenses 2, ,536 Net loss before tax (1,962) (738) (2,024) Taxation expense Net loss after tax for the period attributable to the shareholders of the company (1,962) (738) (2,024) Other Comprehensive Income Exchange difference on translation of international subsidiaries (19) - - Total comprehensive loss for the period attributable to shareholders of the company (1,981) (738) (2,024) Earnings per share: Basic (cents per share) (0.16) (0.59) (0.20) Diluted (cents per share) (0.16) (0.59) (0.20) Calculated on a weighted average basis of the number of shares on issue. 4

5 Condensed Interim Statement Of Changes In Equity For the 6 months ended 30 September 2014 Group (unaudited 30 September 2014) Share Foreign based currency Share payment Accumulated translation Total capital reserve losses reserve equity $ 000s $ 000s Balance at 1 April , (4,764) - 6,802 Net loss after tax - - (1,962) - (1,962) Currency translation movements (19) (19) Total comprehensive loss - - (1,962) (19) (1,981) Transactions with owners Accrual of share based payments Balance at 30 September , (6,726) (19) 5,004 Group (unaudited 30 September 2013) Balance at 1 April , (2,740) Net loss after tax - - (738) - (738) Currency translation movements Total comprehensive loss - - (738) - (738) Transactions with owners Issue of Ordinary Shares 1, ,455 Accrual of share based payments Balance at 30 September , (3,478) - 1,060 Group (audited 31 March 2014) Balance at 1 April , (2,740) Net loss after tax - - (2,024) - (2,024) Currency translation movements Total comprehensive loss - - (2,024) - (2,024) Transactions with owners Issue of Ordinary Shares 8, ,076 Accrual of share based payments Share based payments transfer on exercise 59 (59) Balance at 31 March , (4,764) - 6,802 5

6 Condensed Interim Statement of Financial Position As at 30 September 2014 Notes Current assets Cash and short term deposits 2, ,632 Trade and other receivables 2 1, , ,937 Less current liabilities Trade and other payables Deferred revenue , Working capital 2, ,373 Non-current assets Property, plant and equipment Intangible assets 2, ,497 2, ,546 Non-current liabilities Deferred revenue Total net assets 5,004 1,060 6,802 Equity Share capital 4 11,055 4,375 11,055 Share based payment reserve Retained earnings (deficit) (6,726) (3,478) (4,764) Foreign currency translation reserve (19) - - Total equity 5,004 1,060 6,802 6

7 Condensed Interim Statement Of Cash Flows For the 6 Months ended 30 September 2014 Operating activities Notes Cash was provided from (applied to): Receipts from customers and grants Interest received Payments to suppliers and employees (2,015) (642) (1,591) Net cash flows from operating activities 5 (1,595) (393) (1,110) Investing activities Cash was provided from (applied to): Capitalised development costs (1,063) (463) (1,208) Purchase of property, plant and equipment (38) (6) (38) Net cash flows from investing activities (1,101) (469) (1,246) Financing activities Cash was provided from (applied to): Issue of ordinary shares - 1,455 8,076 Repayment of borrowings - (258) (258) Net cash flows from financing activities - 1,197 7,818 Net increase (decrease) in cash held (2,696) 335 5,463 Cash at bank at the beginning of the period 5, Cash at bank at the end of period 2, ,632 Comprised of: Cash and short term deposits 2, ,632 7

8 Notes To The Condensed Interim Financial Statements For the 6 Months ended 30 September Summary Of Accounting Policies Statement of Compliance The unaudited consolidated condensed interim financial statements presented are those of VMob Group Limited ( VMG or Company ) and its subsidiaries ( the Group ). The principal activity of the Company and Group is the development and deployment of cloud based campaign management technologies. The Company and Group is a profit oriented entity, registered in New Zealand under the Companies Act 1993 and is listed on the New Zealand Stock Exchange Alternative Board. The Company is an issuer for the purposes of the Financial Reporting Act 1993 and its annual financial statements comply with that Act. The unaudited consolidated condensed interim financial statements are prepared in accordance with Generally Accepted Accounting Practice (NZ GAAP) and comply with the New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS), as appropriate for interim financial statements (NZ IAS 34). These interim financial statements were approved by the Board of Directors on 28 November Basis of Preparation The financial statements have been prepared on the basis of historical cost. Cost is based on the fair values of the consideration given in exchange for assets. Accounting policies are selected and applied in a manner that ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. The financial statements are presented in New Zealand dollars. The same accounting policies and methods of computation are followed in these interim financial statements as were applied in the preparation of the Company s financial statements for the year ended 31 March Basis of Consolidation In August 2012, the parent entity, which was a shell company listed on the New Zealand Stock Exchange Alternative Board, acquired all of the shares of VMob Limited in consideration for an issue of its own shares and providing $100,000 of cash. This transaction was not treated as a reverse acquisition under NZ IFRS 3 Business Combinations because the parent entity was a listed shell and did not have any on-going business activities. Accordingly, the transaction was treated as a share based payment whereby the legal subsidiary, VMob Limited, issued shares in return for a listing status. The listing status, and the shares issued were determined with reference to the fair value of VMob Limited at the date of the acquisition. The listing status was expensed in profit and loss. The consolidated financial statements prepared are issued in the name of the legal entity and parent, VMob Group Limited, but represent a continuation of the financial statements of the legal subsidiary, VMob Limited (the accounting acquirer) following the acquisition by VMob Group Limited (the accounting acquiree) on 27 August Trade and Other Receivables Trade receivables Prepayments Resident withholding tax paid Interest receivable ,

9 Notes To The Condensed Interim Financial Statements For the 6 Months ended 30 September Trade and Other Payables Trade payables Accrued expenses Share Capital Movement in ordinary shares on issue Balance at 1 April 11,055 2,920 2,920 Issue of shares private placements - 1,455 5,166 Issue of shares exercise of share options Issue of shares share purchase plan - - 2,189 Ordinary shares on issue at the end of the period 11,055 4,375 11, Reconciliation of Operating Cash Flows Reconciliation from the net loss after tax to the net cash from operating activities Net loss after tax (1,980) (738) (2,024) Adjustments for non-cash items: Depreciation Amortisation Share based payment expense Movements in working capital (Increase) in trade & other receivables (717) (14) (182) Increase in trade payables and accruals Increase in deferred revenue (83) Net cash from operating activities (1,595) (393) (1,110) 9

10 Notes To The Condensed Interim Financial Statements For the 6 Months ended 30 September Segmental Reporting The Group operates predominantly in one segment, its primary business being the development and deployment of cloud based campaign management technologies. Geographical An analysis of trading revenue by geographical region of original sale is provided as follows: New Zealand United Kingdom & Europe Asia Operating revenue Commitments & Contingencies There were no capital commitments or contingent liabilities as at 30 September 2014 (2013: $Nil). 8. SUBSEQUENT EVENTS There were no significant events after balance date. 9. AUDIT These financial statements are not required to be audited. 10