TIDMIMMO
RNS Number : 2861J
Immotion Group PLC
26 April 2022
Immotion Group plc
("Immotion", the "Company" or the "Group")
2021 audited full year results and Company update
Immotion Group (AIM:IMMO.L), the UK-based immersive
entertainment group, is pleased to announce its audited results for
the year ended 31 December 2021 and to provide a Group update.
Highlights
-- Group revenue increased 230% to GBP9.4m (2020: GBP2.8m)
-- Group positive adjusted EBITDA of GBP0.9m (2020: GBP1.7m negative)
-- Strong recovery from the Location Based Entertainment (" LBE ") business
-- LBE revenue increased by 204% to GBP6.3m (2020: GBP2.1m) with
H2 revenue of GBP4.0m (2020: GBP1.3m)
-- Unaudited Q1 2022 LBE revenue increased threefold versus Q1
2021 (GBP1.8m v GBP0.6m) with April revenue expected to exceed
GBP800k following buoyant Easter
-- First large-scale zoo installation contract for a large 24
seat theatre style installation agreed and contract expected to be
signed this week; plus one further USA zoo agreement for large
installation at final contract stage and signature expected to
follow shortly thereafter; strong pipeline of discussions and
opportunities
-- Strategic decision to focus on LBE and spin out both the Home
Based Entertainment ("HBE") and Uvisan divisions
Chairman's Statement
Little more than a year ago the Company, along with many others,
was suffering from declining or zero revenue as Covid-19, having
caused the lockdown of many of the partner sites through which our
core LBE business functioned, continued its seemingly unstoppable
advance. The name of the game became survival via cost cutting,
seeking all available government support and a decision to go
direct to our audience with the Let's Explore product and the
related formation of our HBE division.
As the Chief Executive describes in his review below, the second
half of 2021 turned out to be one of recovery and progress,
particularly for LBE, at a much faster rate than we anticipated, as
sites reopened and confidence returned, providing further
opportunities to launch new sites at aquariums and now zoos. This,
particularly in the United States, boosted our confidence in the
potential of this part of our business as illustrated by very
strong revenue and contribution growth to match.
It has also made us reconsider our strategy relating to our
other two businesses, HBE and Uvisan, and we have come to the
conclusion that we need to focus all our resources on LBE which has
a strong pipeline.
We therefore intend to spin out HBE and Uvisan in the short term
to enable us to be fully focused on LBE as we are confident that
this compelling business model is highly scalable and can drive
superior shareholder returns.
Chief Executive's Review
Overview
2021 was a year of recovery and progress. The Group's core LBE
business recovered well despite conditions remaining challenging in
the first half, particularly in Q1, as Covid-19 related closures
and disruption continued.
H2 2021 saw a return to more normal trading conditions, as the
majority of our LBE sites were reopened, restrictions at partner
sites were eased, and attendances recovered towards pre-Covid
levels. Overall, we were extremely pleased to be back in business
with solid revenue performance, although we remained cautious when
it came to expanding our core LBE estate as we sought to
consolidate our finances and develop greater confidence in the
market recovery.
As we ended the year, it was clear the LBE business had not only
recovered, but was flourishing. This recovery, combined with
increased demand from potential partner locations, has forced us to
review our operations, allocation of resources and how we can best
deliver maximum shareholder value.
Whilst we rightly took the decision in the middle of the Covid
pandemic to launch two new businesses, HBE and Uvisan, as a way of
hedging our position, we have decided it is in the best interest of
our shareholders that we allocate all our resources to the LBE
business. We believe this will maximise returns, and therefore we
will be looking to spin out HBE and Uvisan, seeking external
investment for both.
Outcome
The landscape continued to be challenging in 2021, although
significantly less so than the previous year, and I am pleased to
report overall Group revenue was GBP9.4m (2020: GBP2.8m), with
adjusted positive EBITDA of GBP0.9m, a significant improvement on
2020, where we were in the throes of the pandemic and suffered a
negative adjusted EBITDA of GBP1.7m. The split of revenue and
EBITDA for 2021 was as follows:
LBE HBE Uvisan Head Office Total
GBPm GBPm GBPm GBPm GBPm
----- ------ ------- ------------ ------
Revenue 6.3 2.5 0.5 0.1 9.4
----- ------ ------- ------------ ------
Adjusted EBITDA
([1]) 2.3 (0.4) 0.1 (1.0) 0.9
----- ------ ------- ------------ ------
Further details of divisional performance are discussed in the
Review of Operations below.
Outlook
The Board's focus is now about driving growth of Group revenue
and profit based on the following pillars of growth:
-- Focus on core LBE business: Given renewed confidence and growth prospects.
-- Uninterrupted trading position: Trading in 2021 was impacted
by lockdowns and capacity restrictions affecting certain locations.
We do not anticipate any further disruption in our key markets and
we expect 2022 to be our first full year of trading without
capacity restrictions at our Mandalay Bay site.
-- Expansion of key locations: We have expanded capacity at our
some of our best performing locations:
o Shark Reef at Mandalay Bay, Las Vegas, USA
o Sea Life London, UK
o Odysea Aquarium, Arizona, USA
-- Additional new sites: We have a strong pipeline of new sites.
-- Operational gearing: With a fixed cost base that we do not
believe will increase proportionately with revenue, every new
site's contribution flows straight to the bottom line.
As our refocused business builds a track record of profitability
and operating cash flow generation we can fund our plans by
reinvesting the cash generated in order to further expand the
business.
2022 has begun in a very promising fashion with Q1 Group revenue
of GBP2.1m (2020: GBP0.8m). LBE revenue has tripled to GBP1.8m
versus GBP0.6m in the same period in 2020. The growth in LBE
revenues is continuing and, with a buoyant Easter period, we expect
April LBE revenues to exceed GBP800k.
We are at a very advanced stage for the signing of our first
major zoo installation which we expect to be this week, with an
agreement for another large zoo installation in the USA also
imminent.
We are also developing a new 'plug and play' solution for zoos;
a containerised solution that can be delivered to site with minimum
setup required. This will be particularly useful for many zoo sites
that do not have available indoor space. We will look for a trial
later in the year with a view to finessing and being ready to scale
this additional model in 2023.
The combination of large purpose-built theatre solutions,
including pre-show experiences, along with a modular solution and
our existing mini theatre offering will allow us to address all
potential partner opportunities and choose the appropriate model
for each partner site.
Since the period end, we have added significantly to the
portfolio in the first quarter including the expansion of some of
our best performing sites: taking our installation at Shark Reef
Aquarium at Mandalay Bay from 36 headsets to 48 headsets (along
with a contract extension to 31 January 2024); and doubling our
capacity at both Sea Life London (under a new three year contract)
and Odysea Aquarium. These sites are illustrative of our future
direction - larger installations which represent significant new
key attractions for our partners, in high traffic, established
destinations, driving significant revenue for both parties.
We believe that there remains significant potential in the
aquarium sector, as we have seen by the scaling up of a number of
our existing sites, as well as the active pipeline of new sites
with new partners.
The combination of 'on message' proprietary content, immersive
motion platform technology, and locations that deliver large and
predictable footfall underpins our belief that we can achieve very
significant enhancement in shareholder value moving forwards.
Naturally, uncertainties remain, not least the appalling
situation in Ukraine, but it now feels like a wholly different
trading picture compared to the same period last year.
Review of Group Operations
Location Based Entertainment
Our LBE division recovered strongly in H2 of 2021 but the first
half, and in particular Q1 2021, was heavily impacted by the
Covid-19 pandemic. H1 revenue was GBP2.3m, an increase of 186%
versus 2020 (GBP0.8m) and H1 divisional adjusted EBITDA was GBP0.9m
(2020: GBP0.5m negative). The second half saw much more normalised
trading conditions, as can be seen from the table below:
H1 2021 H2 2021 FY 2021 H1 2020 H2 2020 FY 2020
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------- -------- -------- -------- -------- --------
Revenue 2,302 4,001 6,303 806 1,269 2,075
-------- -------- -------- -------- -------- --------
Gross profit 1,000 1,769 2,769 70 259 329
-------- -------- -------- -------- -------- --------
Overhead (439) (473) (912) (617) (681) (1,298)
-------- -------- -------- -------- -------- --------
Other income 313 135 448 - 484 484
-------- -------- -------- -------- -------- --------
EBITDA ([2]) 874 1,431 2,305 (547) 62 (485)
-------- -------- -------- -------- -------- --------
Notes: LBE revenue is the total charged to consumers (excluding
VAT and sales taxes). Gross profit is revenue charged to consumers
(net of VAT or sales taxes), less partners' shares of revenue and
other direct costs of delivering revenue.
Overhead includes direct and apportioned overhead and excludes
Head Office (unallocated) overheads.
We installed 62 headsets across seven new sites in 2021, and 43
headsets were removed from predominantly underperforming sites for
redeployment elsewhere, giving us a net increase of 19 headsets
during the period and taking us to 364 installed headsets by the
period end (302 in our partner estate and 62 in our ImmotionVR
sites). These numbers reflect our cautious view of capital
expenditure and also the initial focus of prospective partners on
their own re-openings and recovery.
We currently have 402 headsets in operation (338 partner and 64
ImmotionVR) across 49 sites as shown in the table below:
USA UK ROW Total
As at 1 January 2021
Headsets 163 121 61 345
Sites 24 14 10 48
Net changes in 2021
Headsets 41 (16) (6) 19
Sites 2 (1) (1) 0
As at 31 December
2021
Headsets 204 105 55 364
Sites 26 13 9 48
Net changes 2022
Headsets 28 10 0 38
Sites 1 0 0 1
As at 26 April 2022
Headsets 232 115 55 402
Sites 27 13 9 49
The partner portfolio performed well with overall weekly average
revenue per headset of GBP441 ([3]) compared to GBP329 ([4]) in
2020.
Average revenue per headset per week at our ImmotionVR sites was
GBP284 in 2021 compared to GBP175 in 2020.
Home Based Entertainment
During the year progress was made in the HBE business. A
distribution partnership was established in Australia, as well as
direct to Amazon relationships in both the USA and Canada, to add
to the already existing UK setup. Third party distribution centres
were opened in the USA and Hong Kong allowing us to supply goods
directly to North American and Asia Pacific customers.
Whilst sales increased to GBP2.5m the business was severely
impacted by the global logistical problems resulting on occasion in
much of the stock either being stuck at port or having to be air
freighted at a significant cost to the business. We took the
decision that we needed to turn bought stock into cash, but we also
recognised there was a significant impact on the margin in doing
so.
With the vast majority of stock sold during the period the team
turned their attention to future years and how to grow the market.
The idea of Vodiac arose following feedback from Let's Explore
customers. In the main they wanted to see more content, and a more
user-friendly menu system.
Vodiac was 'beta' launched earlier this year. Initial feedback
showed the need for an even greater library of content, as well as
the need for the VR menu system to be fully operational whilst
wearing the VR headset.
The concept of delivering a VR video streaming solution,
combined with an affordable VR headset is a "big idea" and as such
we accept if this business is to fulfil its ambitions it may be
loss making for some time and is likely to consume significant
capital. We have therefore taken the view that it is not
appropriate to embark on this using Immotion's balance sheet.
Uvisan
Uvisan made good progress in its first full year of trading.
Revenue increased by 669 per cent to GBP477,000
(2020: GBP62,000). A small divisional profit of GBP67,000 was reported (2020: loss of GBP6,000).
In 2021, the business was focused on the sale of UVC sanitising
cabinets (three size options) through our growing network of
resellers and distributors, as well as direct. Notably, we signed
our first distributor in the USA and one that covers both Australia
and New Zealand.
We delayed the launch of Cleanroom, our room and surface
sanitising system, whilst we put the finishing touches to our
proprietary control system and app. We believe it has application
in settings (both new build and retrofit) where hygiene is key -
such as hospitals, laboratories and cleanroom
manufacturing/engineering. We are also looking at its potential
application for pathogen control in indoor farming facilities.
Whilst Uvisan made a promising start in 2022 having completed
its first major customer delivery in the USA it will also require
capital for growth, as such this too should not be done using
Immotion's balance sheet.
Financial review
Revenue for the year increased 230% to GBP9,391,000 (2020:
GBP2,848,000). The Group's H1 revenue was suppressed by Covid-19,
with no revenue coming from its UK operations until leisure
businesses were able to reopen on 17 May 2021. The table below
shows the split of revenue between H1 and H2, and by segment:
H1 2021 H2 2021 FY 2021
GBP000 GBP000 GBP000
-------- -------- --------
LBE 2,302 4,001 6,303
-------- -------- --------
HBE 337 2,189 2,526
-------- -------- --------
Uvisan 88 389 477
-------- -------- --------
Other (inc licensing) 33 52 85
-------- -------- --------
Total 2,760 6,631 9,391
-------- -------- --------
The Group made gross profit in the period of GBP3,196,000 (2020:
GBP466,000), a gross profit margin of 34.0% (2020: 16.4%).
The Group benefited from other income of GBP532,000 in the
period (2020: GBP575,000), GBP503,000 of which came from Covid-19
government support packages (2020: GBP479,000) and GBP29,000 being
sublease rents (2020: GBP96,000). Government support in the period
included GBP235,000 relating to the forgiveness of both the 2020
and 2021 Paycheck Protection Program loans in the USA and
GBP206,000 received under the UK government's Coronavirus Job
Retention Scheme.
Despite the significant growth in revenue, administrative
expenses (excluding depreciation, amortisation, impairment, share
based payments and one-off items) remained relatively flat at
GBP2,820,000 (2020: GBP2,731,000).
The Group achieved a full year positive adjusted EBITDA[5]
result for the first time since its inception of GBP908,000 (2020:
GBP1,690,000 negative).
The Group's loss after tax reduced to GBP1,999,000 (2020:
GBP4,732,000). The adjusted loss ([6]) per share was 0.28p (2020:
1.17p).
The overall cash outflow in the period was GBP565,000 (2020:
inflow of GBP1,190,000). The distinction between H1 and H2 trading
illustrated above can also been seen in the cash flows for the
respective periods with strong cash generated from operations in
the second half, as shown in the table below:
H1 2021 H2 2021 FY 2021
GBP000 GBP000 GBP000
-------- -------- --------
Opening cash 1,664 629 1,664
-------- -------- --------
Operating activities (847) 1,139 292
-------- -------- --------
Investing activities (278) (539) (817)
-------- -------- --------
Financing activities 90 (130) (40)
-------- -------- --------
Closing cash 629 1,099 1,099
-------- -------- --------
The operating cash inflow of GBP292,000 (2020: GBP2,012,000
outflow) was net of a working capital outflow of GBP725,000 (2020:
GBP192,000 outflow). This was primarily driven by a GBP989,000
increase in trade and other receivables (including prepayments and
accrued income), which itself resulted from the low levels of
trading activity at year end 2020. This was partially offset by
inflows of GBP49,000 and GBP215,000 in respect of inventories and
trade and other payables (including deferred income)
respectively.
Investing cash outflows reduced to GBP817,000 (2020:
GBP1,393,000 outflow), largely a result of a cautious approach to
capital expenditure in the period and the deployment of hardware
which had been acquired prior to Covid-19.
The Group had a net financing cash outflow of GBP40,000 (2020:
GBP4,595,000 inflow). During the year, the Group received net
equity proceeds from an existing investor of GBP285,000 and
received a Second Draw Paycheck Protection Program loan of
GBP119,000. Loan and lease repayments (including rents payable
under IFRS 16 leases) were GBP405,000.
Net assets at the balance sheet date were GBP5,720,000 (2020:
GBP6,714,000).
Conclusion
Overall, we are satisfied with the progress we've made. The
second half of 2021 underpinned our belief in the core LBE
business, with 2022 to date providing further support for our
decision to focus solely on this business as we move forward. We
are seeing high levels of engagement from prospective partners, and
with the new 'plug and play' solution in the wings we are confident
we will have the tools at our disposal to continue a significant
and rapid roll out of partner solutions.
2022 has got off to a great start with very strong Easter
trading. This combined with a strong pipeline of new partner sites
and the summer season ahead of us gives the Board considerable
confidence in the business and its future.
Enquiries:
For further information please visit www.immotion.co.uk, or
contact:
Immotion Group plc Martin Higginson investors@immotion.co.uk
David Marks
WH Ireland Limited Jessica Cave Tel + 44 (0) 207 220 1666
(Nomad and Joint Broker) Darshan Patel
Ben Good
Alvarium Capital Partners Alex Davies Tel: +44 (0) 207 195 1458
(Joint Broker)
Shard Capital Partners Damon Heath Tel: +44 (0) 20 7186
LLP Erik Woolgar 9900
(Co-Broker)
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
IMMOTION GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
AS AT 31 DECEMBER 2021
Year ended Year ended
31 December 31 December
2021 2020
Note GBP'000 GBP'000
Revenue 9,391 2,848
Cost of sales (6,195) (2,382)
------------ ------------
Gross profit 3,196 466
Administrative expenses (5,722) (5,779)
Other operating income 532 575
-------------- --------------
Loss from operations (1,994) (4,738)
Memorandum:
Adjusted EBITDA 908 (1,690)
Depreciation (1,470) (1,751)
Amortisation (641) (719)
Impairment of tangible and intangible
assets (82) (253)
Share based payments (676) (194)
Profit / (loss) on disposal of fixed
assets 18 (35)
One-off costs & income (51) (96)
-------------- --------------
Loss from operations (1,994) (4,738)
--------------------------------------- ----- --------------- ---------------
Finance costs (44) (82)
Finance income 1 2
------------ ------------
Loss before taxation and attributable
to equity holders of the parent (2,037) (4,818)
Taxation 38 86
------------ ------------
Loss after taxation (1,999) (4,732)
Other comprehensive expense
Profit / (loss) on translation of
subsidiary 44 (35)
Loss after taxation and attributable
to equity holders of the parent and
total comprehensive income for the ------------ ------------
period (1,955) (4,767)
====== ======
All results arose from continuing
operations.
GBP0.01 GBP0.01
Loss per share
Basic 5 (0.48) (1.33)
Diluted 5 (0.48) (1.33)
------------ ------------
IMMOTION GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2021
Foreign
exchange Retained
Share capital Share premium reserve deficit Total equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January 2020 115 15,310 (45) (9,105) 6,275
Issue of shares 49 5,352 - - 5,401
Issue costs deducted from
equity - (389) - - (389)
Loss after tax - - - (4,732) (4,732)
Equity settled share-based
payments - - - 194 194
Currency translation of
overseas subsidiary - - (35) - (35)
-------------- -------------- -------------- -------------- --------------
Balance at 31 December
2020 164 20,273 (80) (13,643) 6,714
-------------- -------------- -------------- -------------- --------------
Issue of shares 2 298 - - 300
Issue costs deducted from
equity - (15) - - (15)
Loss after tax - - - (1,999) (1,999)
Equity settled share-based
payments - - - 676 676
Currency translation of
overseas subsidiary - - 44 - 44
-------------- -------------- -------------- -------------- --------------
Balance at 31 December
2021 166 20,556 (36) (14,966) 5,720
-------------- -------------- -------------- -------------- --------------
IMMOTION GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
31 December 31 December
2021 2020
ASSETS Note GBP'000 GBP'000
Non-current assets
Property, plant and equipment 6 1,188 2,260
Intangible fixed assets 7 3,305 3,625
----------------- -----------------
Total non-current assets 4,493 5,885
Current assets
Inventories 103 152
Trade and other receivables 1,783 829
Contract assets 83 91
Cash and cash equivalents 1,099 1,664
----------------- -----------------
Total current assets 3,068 2,736
----------------- -----------------
Total assets 7,561 8,621
========= =========
LIABILITIES
Current liabilities
Trade and other payables (1,103) (1,153)
Loans and borrowings (130) (175)
Lease liabilities (171) (231)
Contract liabilities (278) (12)
----------------- -----------------
Total current liabilities (1,682) (1,571)
----------------- -----------------
Non-current liabilities
Loans (155) (160)
Lease liabilities (4) (176)
------------------ ------------------
Total non-current liabilities (159) (336)
------------------ ------------------
Total liabilities (1,841) (1,907)
------------------ ------------------
Total net assets 5,720 6,714
========= =========
Capital and reserves attributable
to owners
of the parent
Share capital 8 166 164
Share premium 20,556 20,273
Foreign exchange reserve (36) (80)
Retained deficit (14,966) (13,643)
------------------ ------------------
Total equity 5,720 6,714
========= =========
The financial statements were approved by the Board and
authorised for issue on 25 April 2022
Martin Higginson David Marks
Chief Executive Officer Group Finance Director
IMMOTION GROUP PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2021
Year ended Year ended
31 December 31 December
2021 2020
GBP'000 GBP'000
Cash flows from operating activities
Loss before tax
Adjustments for: (2,037) (4,818)
Share based payments 676 194
Depreciation on property plant and
equipment 1,470 1,751
Profit/(loss) on disposal of fixed
assets (18) 35
Amortisation of intangible assets 641 719
Impairment of tangible and intangible
assets 82 253
Finance costs 44 82
Finance income (1) (2)
Foreign exchange on retranslation
of fixed assets 35 (72)
Foreign exchange profit/(loss) 44 (35)
Foreign corporate tax payment (3) -
Corporation tax repayment received 84 73
----------------- -----------------
Cash inflows/(outflows) from operating
activities before changes in working
capital 1,017 (1,820)
Decrease/(increase) in inventories 49 (152)
Increase in trade and other receivables (989) (132)
Increase in trade & other payables
and contract liabilities 215 92
----------------- -----------------
Cash generated/(used) in operations 292 (2,012)
Investing activities
Purchase of intangible assets (404) (545)
Purchase of property,plant and equipment (425) (1,069)
Proceeds from disposals of property,
plant and equipment 41 159
Foreign exchange on retranslation
of fixed assets (29) 62
----------------- -----------------
Net cash used in investing activities (817) (1,393)
Financing activities
Finance costs (44) (82)
Finance income 1 2
New loans and finance leases 119 302
Loan and finance lease repayments (405) (615)
Foreign exchange on retranslation
of financing 4 (24)
Issue of new share capital 300 5,401
Costs on issue of shares (15) (389)
----------------- -----------------
Net cash from financing activities (40) 4,595
----------------- -----------------
Net (decrease)/increase in cash and
cash equivalents (565) 1,190
Cash and cash equivalents at beginning
of the period 1,664 474
------------------ ------------------
Cash and cash equivalents at end
of the period 1,099 1,664
========= =========
Reconciliation of net cashflow to movement
in net debt: Year ended Year ended
31 December 31 December
2021 2020
GBP000 GBP000
Net (decrease)/increase in cash and cash
equivalents (565) 1,190
New loans and finance leases (119) (328)
Repayment of loans and finance leases 405 615
Foreign exchange on retranslation of financing (4) 24
----------------- -----------------
Movement in net funds in the year (283) 1,501
Net funds/(debt) at 1 January 922 (579)
----------------- -----------------
Net funds at 31 December 639 922
========= =========
Breakdown of net funds/(debts)
Cash and cash equivalents 1,099 1,664
Loans and borrowings (285) (335)
Lease liabilities (175) (407)
----------------- -----------------
Net funds at 31 December 639 922
========= =========
IMMOTION GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARED 31 DECEMBER 2021
1 GENERAL INFORMATION
Immotion Group plc is a public limited company incorporated and
domiciled in the United Kingdom. The address of the registered
office is Cumberland Court, 80 Mount Street, Nottingham, England,
NG1 6HH. The Group is listed on AIM.
The principal activities of the Group during the year were the
provision of virtual reality (VR) experiences to partner sites and
via its own ImmotionVR sites; the sale of the Let's Explore virtual
and augmented reality consumer product; and the sale of UV
sanitisation equipment.
These financial statements are presented in pounds sterling
because that is the currency of the primary economic environment in
which the Group operates.
2 ACCOUNTING POLICIES
Principal accounting policies
The Company is a public company incorporated and domiciled in
the United Kingdom. The principal accounting policies applied in
the preparation of these consolidated financial statements are set
out below. These policies have been consistently applied to all the
periods presented, unless otherwise stated.
Basis of preparation
The financial statements have been prepared in accordance with
International Financial Reporting Standards, International
Accounting Standards and Interpretations (collectively IFRS) issued
by the International Accounting Standards Board (IASB) as adopted
by the United Kingdom ("adopted IFRSs") and those parts of the
Companies Act 2006 which apply to companies preparing their
financial statements under IFRSs. The financial statements are
presented to the nearest round thousand (GBP'000) except when
otherwise indicated.
Basis of Consolidation
The Group comprises a holding company and a number of individual
subsidiaries and all of
these have been included in the consolidated financial
statements in accordance with the principles of acquisition
accounting as laid out by IFRS 3 Business Combinations.
Going concern
At the time of approving the financial statements, the Directors
have a reasonable expectation that the Company and the Group have
adequate resources to continue in operational existence for the
foreseeable future. The going concern basis of accounting has
therefore been adopted in preparing the financial statements.
In reaching this conclusion, the Directors have considered the
financial position of the Group, together with its forecasts and
projections for the next 12 months, taking into account reasonably
possible changes in trading performance and capital expenditure
requirements. The Group's forecasts assumed no further significant
disruption resulting from COVID-19. The Directors consider that
while such disruption remains a risk, it is not longer considered
to be sufficiently likely to an extent that creates a material
uncertainty around the Group's ability to continue as a going
concern.
The financial statements do not include any adjustments that
would result from the going concern basis of preparation being
inappropriate.
Business combinations and goodwill
Acquisitions of subsidiaries and business are accounted for
using the acquisition method. The assets and liabilities and
contingent liabilities of the subsidiaries are measured at their
fair value at the date of acquisition. Any excess of acquisition
over fair values of the identifiable net assets acquired is
recognised as goodwill. Goodwill arising on consolidation is
recognised as an asset and reviewed for impairment twice annually.
Any impairment is recognised immediately in profit or loss accounts
and is not subsequently reversed. Acquisition related costs are
recognised in the income statement as incurred.
R evenue recognition
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Group and the revenue can be
reliably measured. Revenue is measured as the fair value of the
consideration received or receivable, excluding discounts, rebates,
value added tax and other sales taxes. The following criteria must
also be met before revenue is recognised:
Location Based Entertainment
Partner revenue is recognised on the date which the sale to the
customer takes place. The Group acts as the principal in the
transaction and therefore recognises the revenue charged to the end
user in full with the concession partners' shares deducted as a
cost of sale.
Home Based Entertainment
Revenue is recognised on sales of the Let's Explore products in
the period in which the corresponding order is placed and paid
for.
Uvisan and other hardware sales
Revenue from the sale of goods is recognised when all of the
following conditions are satisfied:
-- the Group has transferred the significant risks and rewards of ownership to the buyer;
-- the Group retains neither continuing managerial involvement
to the degree usually associated with ownership nor effective
control over the goods sold;
-- the amount of revenue can be reliably measured;
-- it is probable that the Group will receive the consideration due under the transaction; and
-- the costs incurred or to be incurred in respect of the transaction can be reliably measured.
Content
Revenue from a contract to provide services is recognised in the
period in which the services are provided in accordance with the
stage of completion of the contract when all of the following
conditions are satisfied:
-- the amount of revenue can be measured reliably;
-- it is probable that the Group will receive the consideration due under the contract;
-- the performance obligations of the contract at the end of the
reporting period can be measured reliably;
-- and the costs incurred and the costs to complete the contract can be measured reliably.
Content licensing revenue is recognised on the date on which the
related sale of that content by the licensee takes place where
agreements do not provide for new or updated content to be
supplied. Where Immotion Group is committed under licensing
agreements to producing new content, or material updates, revenue
is recognised over the period of the agreement. No element of
financing is deemed present as the sales are made with standard
credit terms of 30 days which is consistent with market practice.
The Group does not expect to have any contracts where the period
between the transfer of the promised services or goods to the
customer and payment by the customer exceeds one year. As a
consequence, the Group does not adjust any of the transaction
prices for the time value of money.
Leases
The Group assesses whether a contract is or contains a lease, at
inception of a contract. The Group recognises a right-of-use asset
and a corresponding lease liability with respect to all lease
agreements in which it is the lessee, except for short-term leases
(defined as leases with a lease term of 12 months or less) and
leases of low value assets. In the latter cases, the Group
recognises the lease payments as an operating expense on a
straight-line basis over the term of the lease unless another
systematic basis is more representative of the time pattern in
which economic benefits from the leased asset are consumed.
The lease liability is initially measured at the present value
of the lease payments that are not paid at the commencement date,
discounted by using the rate implicit in the lease. If this rate
cannot be readily determined, the Group uses its incremental
borrowing rate.
Lease payments included in the measurement of the lease
liability comprise fixed lease payments (including in-substance
fixed payments), less any lease incentives.
The lease liability is included in liabilities in the Statement
of Financial Position.
The lease liability is subsequently measured by increasing the
carrying amount to reflect interest on the lease liability (using
the effective interest method) and by reducing the carrying amount
to reflect the payments made.
The right-of-use assets comprise the initial measurement of the
corresponding lease liability, lease payments made at or before the
commencement day and any initial direct costs. They are
subsequently measured at cost less accumulated depreciation and
impairment losses.
Right-of-use assets are depreciated over the shorter period of
lease term and useful life of the underlying asset. If a lease
transfers ownership of the underlying asset or the cost of the
right-of-use asset reflects that the Group expects to exercise a
purchase option, the related right-of-use asset is depreciated over
the useful life of the underlying asset. The depreciation starts at
the commencement date of the lease.
The right-of-use assets are included in the tangible fixed
assets in the Statement of Financial Position.
The Group applies IAS 36 to determine whether a right-of-use
asset is impaired and accounts for any identified impairment losses
where applicable.
Foreign currency
The individual financial statements of each group company are
presented in the currency of the primary economic environment in
which it operates (its functional currency). For the purpose of the
consolidated financial statements, the results and financial
position of each group company are expressed in pound sterling,
which is the functional currency of the Group, and the
presentational currency for the consolidated financial
statements.
In preparing the financial statements of the individual
companies, transactions in currencies other than the Group
company's functional currency (foreign currencies) are recorded at
rates of exchange prevailing on the dates of the transactions. At
the reporting date, monetary assets and liabilities that are
denominated in foreign currencies are retranslated at the rates
prevailing on the reporting date. Non-monetary items carried at
fair value that are denominated in foreign currencies are
translated at the rates prevailing at the date when the fair value
was determined. Non-monetary items that are measured in terms of
historical cost in foreign currency are not retranslated. Exchange
differences arising on the settlement of monetary items, and on the
retranslation of monetary items, are included in profit or loss for
the period. Exchange differences arising on the retranslation of
non-monetary items carried at fair value are included in profit or
loss for the period except for differences arising on the
retranslation of non-monetary items in respect of which gains and
losses are recognised directly in equity. For such non-monetary
items, any exchange component of the gain or loss is also
recognised directly in equity.
For the purpose of presenting consolidated financial statements,
the assets and liabilities of the Group's foreign operations are
translated at exchange rates prevailing on the reporting date.
Income and expense items are translated at the average exchange
rates for the period, unless exchange rates fluctuate significantly
during the period, in which case the exchange rates at the date of
transactions are used. Exchange differences arising, if any, are
classified as equity and transferred to the Group's translation
reserve. Such translation differences are recognised as income and
expense in the period of the disposal of the operation. Goodwill
and fair value adjustments arising on the acquisition of a foreign
entity are treated as assets and liabilities of the foreign entity
and translated at the closing rates.
Tangible assets
Property, plant and equipment are stated at cost net of
accumulated depreciation and provision for impairment. Depreciation
is provided on all property plant and equipment, at rates
calculated to write off the cost less estimated residual value, of
each asset on a straight-line basis over its expected useful
life.
The residual value is the estimated amount that would currently
be obtained from disposal of the asset if the asset were already of
the age and in the condition expected at the end of its useful
economic life.
The method of depreciation for each class of depreciable asset
is:
Leasehold property - Over term of lease
Fixtures, fittings and equipment - 33%-50% straight line
IFRS 16 right of use assets - Over term of lease
Intangible assets
Intangible assets include goodwill arising on the acquisition of
subsidiaries and represents the difference between the fair value
of the consideration payable and the fair value of the net assets
that have been acquired. The residual element of goodwill is not
being amortised but is subject to twice-annual impairment
review.
Also included within intangible assets are various assets
separately identified in business combinations (such as customer
lists) to which the Directors have ascribed a commercial value and
a useful economic life. The ascribed value of these intangible
assets has been amortised on a straight-line basis over their
estimated useful economic lives, which is considered to be 3
years.
Internally-generated intangible assets
An internally-generated intangible asset arising from the
Group's development activities is capitalised and held as an
intangible asset in the statement of financial position when the
costs relate to a clearly defined project; the costs are separately
identifiable; the outcome of such a project has been assessed with
reasonable certainty as to its technical feasibility and its
ultimate commercial viability; the aggregate of the defined costs
plus all future expected costs in bringing the product to market is
exceeded by the future expected sales revenue; and adequate
resources are expected to exist to enable the project to be
completed. Internally generated intangible assets are amortised
over their estimated useful lives, being 3 years from completion of
development. Other development expenditure is recognised as an
expense in the income statement in the period in which it is
incurred.
Impairment of assets
Impairment tests on goodwill are undertaken twice-annually. The
recoverable value of goodwill is estimated on the basis of value in
use, defined as the present value of the cash generating units with
which the goodwill is associated. When value in use is less than
the book value, an impairment is recorded and is irreversible.
Other non-financial assets are subject to impairment tests
whenever circumstances indicate that their carrying amount may not
be recoverable. Where the carrying value of an asset exceeds its
estimated recoverable value (i.e. the higher of value in use and
fair value less costs to sell), the asset is written down
accordingly. Where it is not possible to estimate the recoverable
value of an individual asset, the impairment test is carried out on
the asset's cash-generating unit. The carrying value of property,
plant and equipment is assessed in order to determine if there is
an indication of impairment. Any impairment is charged to the
statement of comprehensive income. Impairment charges are included
under administrative expenses within the consolidated statement of
comprehensive income.
Inventories
Inventories are stated at the lower of cost and net realisable
value. Costs comprise direct materials and, where applicable,
direct labour costs and overheads that have been incurred in
bringing the inventories to their present location and condition.
Net realisable value represents the estimated selling price less
all estimated costs of completion and costs to be incurred in
marketing, selling and distribution.
Financial instruments
The Group classifies financial instruments, or their component
parts, on initial recognition as a financial asset, a financial
liability or an equity instrument.
The Group recognises lifetime expected credit losses for trade
receivables and amounts due on contracts with customers when
appropriate. The expected credit losses on these financial assets
are estimated based on the Group's historical credit loss
experience, adjusted for facts that are specific to the debtors,
general economic conditions and an assessment of both the current
as well as the forecasted conditions at the reporting date,
including time value of money where appropriate. Lifetime expected
credit losses are losses which will result from all possible
default events over the expected life of a financial
instrument.
Contract assets
Contract assets are recognised when the Group has satisfied a
performance obligation but cannot recognise a receivable until
other obligations are satisfied. Contract assets represent a right
to payment that is conditional on further performance while
receivables represent an unconditional right to payment.
Contract liabilities
Contract liabilities comprise payments in advance of revenue
recognition and revenue deferred due to contract performance
obligations not being completed. They are classified as current
liabilities if the contract performance obligations are due to be
completed within one year or less (or in the normal operating cycle
of the business if longer). If not, they are presented as
non-current liabilities. Contract liabilities are recognised
initially at fair value and subsequently at amortised cost.
Trade and other receivables
Trade and other receivables are measured at initial recognition
at fair value, and subsequently measured at amortised cost using
the effective interest method. A provision is established when
there is objective evidence that the Group will not be able to
collect all amounts due. The amount of any provision is recognised
in profit or loss.
Cash and cash equivalents
Cash and cash equivalents are recognised as financial assets.
They comprise cash held by the Group and short-term bank deposits
with an original maturity date of three months or less.
Trade payables
Trade payables are initially recognised as financial liabilities
measured at fair value, and subsequent to initial recognition are
measured at amortised cost.
Bank borrowings
Interest bearing bank loans, overdrafts and other loans are
recognised as financial liabilities and recorded at fair value, net
of direct issue costs. Finance costs are accounted for on an
amortised cost basis in the income statement using the effective
interest rate.
Equity instruments
An equity instrument is any contract that evidences a residual
interest in the assets of an entity after deduction of all its
liabilities. Equity instruments issued by the Company are recorded
at the proceeds received net of direct issue costs.
Share based payments
Where share options are awarded to employees, the fair value of
the options at the date of grant is charged to the statement of
comprehensive income on a straight-line basis over the vesting
period. Non-market vesting conditions are taken into account by
adjusting the number of options expected to vest at each statement
of financial position date so that, ultimately, the cumulative
amount recognised over the vesting period is based on the number of
options that eventually vest. Market vesting conditions are
factored into the fair value of the options granted. The cumulative
expense is not adjusted for failure to achieve a market vesting
condition.
Where share options are cancelled due to employees leaving the
Group's employment before they have vested, cumulative share based
payment expenses recognised in respect of those employees are
reversed through the statement of comprehensive income.
Where share options are replaced the fair value of the replaced
options at the date of grant continues to be recognised through the
statement of comprehensive income in addition to a charge equating
to the incremental value of the new options granted.
Pensions
The pension schemes operated by the Group are defined
contribution schemes. The pension cost charge represents the
contributions payable by the Group.
Taxation and deferred taxation
Corporation tax payable is provided on taxable profits at
prevailing rates.
Deferred tax assets and liabilities are recognised where the
carrying amount of an asset or liability in the balance sheet
differs from its tax base, except for differences arising on:
-- the initial recognition of goodwill; and
-- the initial recognition of an asset or liability in a
transaction which is not a business combination and at the time of
the transaction affects neither accounting nor taxable profit.
Recognition of deferred tax assets is restricted to those
instances where it is probable that future taxable profit will be
available against which the asset can be utilised. The amount of
the asset or liability is determined using tax rates that have been
enacted or substantively enacted by the balance sheet date and are
expected to apply when the deferred tax liabilities/(assets) are
settled/(recovered).
Deferred tax assets and liabilities are offset when the Group
has a legally enforceable right to offset current tax assets and
liabilities and the deferred tax assets and liabilities relate to
taxes levied by the same tax authority on either:
-- the same taxable Group company; or
-- different Group entities which intend either to settle
current tax assets and liabilities on a net basis, or to realise
the assets and settle the liabilities simultaneously, in each
future period in which significant amounts of deferred tax assets
or liabilities are expected to be settled or recovered.
Government grants
The Group recognises government grants when it has reasonable
assurance that it will comply with the relevant conditions and the
grant will be received.
Grants related to income are recognised in the profit and loss
account in line with the recognition of the expenses that the
grants are intended to compensate. Such grants are presented as
income and are not deducted from the related expenditure.
Segmental reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the Executive Directors, who are
responsible for allocating resources and assessing performance of
the operating segments.
A business segment is a group of assets and operations, engaged
in providing products or services that are subject to risks and
returns that are different from those of other operating
segments.
A geographical segment is engaged in providing products or
services within a particular economic environment that are subject
to risks and returns that are different from those of segments
operating in other economic environments. The Executive Directors
assess the performance of the operating segments based on the
measures of revenue, profit before taxation (PBT) and profit after
taxation (PAT). Central overheads are not allocated to business
segments.
3 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
In the application of the Group's accounting policies, which are
described in note 2, the Directors are required to make judgments,
estimates and assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources. The
estimates and associated assumptions are based on experience and
other factors considered to be relevant. Actual results may differ
from these estimates. The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the
revision affects only that period, or in the period of the revision
and future periods if the revision affects both current and future
periods.
The following are the critical judgments and estimations that
the Directors have made in the process of applying the Group's
accounting policies and that have the most significant effect on
the amounts recognised in the financial statements.
Critical accounting judgments
Revenue recognition
Location Based Entertainment revenue is accounted for on the
basis that the Group acts as the principal in the transactions
between partners and customers. Gross sales of services by partners
to end customers are reported to the Group regularly and are
included within the Group's turnover without any deductions.
Revenue from the sale of Let's Explore packages is recognised on
receipt of payment, which is a condition for an order to be
accepted. At each accounting date provision is made for refunds to
be made for orders received and paid for, prior to the accounting
date. This provision is based on past experience of the level of
refund applications received.
The revenue for the sale of Uvisan products and other hardware
is recognised once the benefits and control of these items are no
longer with the Group and are instead with the customer. Management
exercise judgment to consider when the risks have been transferred
to the customer.
Recoverability criteria for capitalisation of development
expenditure
The Group recognises costs incurred on development projects as
an intangible asset which satisfies the requirements of IAS 38. The
calculation of the costs incurred includes the percentage of time
spent by certain employees on the development project. The decision
whether to capitalise and how to determine the period of economic
benefit of a development project requires an assessment of the
commercial viability of the project and the prospect of selling the
project to new or existing customers. An assessment is made as to
the future economic benefits of the project and whether an
impairment is needed.
Impairment of goodwill
Impairment of the valuation of the goodwill relating to the
acquisition of subsidiaries is considered twice annually for
indicators of impairment to ensure that the asset is not overstated
within the financial statements. The twice annual impairment
assessment in respect of goodwill requires estimates of the value
in use (or fair value less costs to sell) of subsidiaries to which
goodwill has been allocated. As a result, estimates of future cash
flows are required, together with an appropriate discount factor
for the purpose of determining the present value of those cash
flows.
R&D tax credits
Uncertainties exist in relation to the interpretation of complex
tax legislation, changes in tax laws and the amount and timing of
future taxable income. This could necessitate future adjustments to
taxable income and expenses already recorded.
At the year-end date, tax liabilities and assets reflect
management's judgments in respect of the application of the tax
regulations, in particular the R&D tax regulations and
management's estimate of the future amounts that will be
settled.
In assessing the year-end tax balance, the Group has made a
provisional assessment as to the likely amount of development
expenditure that will be eligible under HMRC's R&D tax credit
schemes.
Critical accounting estimates
Amortisation of intangible assets
The periods of amortisation adopted to write down capitalised
intangible assets and capitalised staff costs requires judgments to
be made in respect of estimating the useful lives of the intangible
assets to determine an appropriate amortisation rate. Capitalised
development costs are being amortised on a straight-line basis over
the period when economic benefits are expected to be received,
which has been estimated at 3 years.
Depreciation
The useful economic lives of tangible fixed assets are based on
management's judgment and experience. When management identifies
that actual useful economic lives differ materially from the
estimates used to calculate deprecation, that charge is added
retrospectively. Due to the significance of tangible fixed assets
to the Group, variances between actual and estimated useful
economic lives could impact on the operating results both
positively and negatively.
Share based payments expense
Non-market performance and service conditions are included in
the assumptions about the number of options that are expected to
vest. At the end of each reporting period the Group revises its
estimates of the number of options that are expected to vest based
on the non-market vesting conditions. It recognises the impact of
the revision to the original estimates, if any, in the consolidated
statement of comprehensive income, with a corresponding adjustment
to equity. This requires a judgment as to how many options will
meet the future vesting criteria as well as the judgments required
in estimating the fair value of the options. Where options are
cancelled, followed by the grant of new options at or close to the
time of the cancellations, a key judgment, based on the reasons for
the cancellations and the new issues, is made as to the extent to
which the new options granted are modifications of, or replacements
for, the cancelled options, or new options.
IFRS 16 discount rates
The Group estimates an appropriate discount rate based on an
incremental rate of borrowing for the calculation of the IFRS 16
right-of-use assets. This requires judgment as to an appropriate
discount rate.
4 SEGMENTAL INFORMATION
A segmental analysis of revenue and expenditure for the year
ended 31 December 2021 is below. Immotion Group Plc changed its
internal reporting during the year ended 31 December 2021 and the
segmental analysis has been prepared on a different basis to 2020.
The 2020 comparative analysis has been amended in line with the
segments adopted in 2021.
LBE HBE UV HO Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 6,303 2,526 477 85 9,391
Cost of sales (3,534) (2,427) (199) (35) (6,195)
Administrative expenses* (912) (574) (220) (1,114) (2,820)
Other operating income 448 57 9 18 532
Operating profit/(loss) 2,305 (418) 67 (1,046) 908
Amortisation (421) (126) (8) (86) (641)
Depreciation (1,336) - (2) (131) (1,470)
Impairment (2) (8) (1) (72) (82)
Profit on disposal 18 - - - 18
One-off (costs) /
income (11) (36) (7) 3 (51)
Share based payments - - - (676) (676)
Finance costs - - - (44) (44)
Finance income - - - 1 1
Taxation - - - 38 38
------------- ------------- ------------- ------------- -------------
(Loss) / profit for
the year 553 (588) 49 (2,013) (1,999)
======= ======= ======= ======= =======
LBE = Location Based Entertainment
HBE = Home Based Entertainment
UV = Uvisan
HO = Head Office
*Administrative expenses exclude depreciation, amortisation,
impairment, profit on disposal, one-off costs and income and share
based payments.
All operations are continuing.
A segmental analysis of revenue and expenditure for the year
ended 31 December 2020 is below:
LBE HBE UV HO Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 2,075 669 62 42 2,848
Cost of sales (1,746) (573) (22) (41) (2,382)
Administrative expenses* (1,298) (134) (46) (1,253) (2,731)
Other operating income 484 - - 91 575
Operating loss (485) (38) (6) (1,161) (1,690)
Amortisation (442) (81) - (196) (719)
Depreciation (1,593) - - (158) (1,751)
Impairment (37) - - (216) (253)
Loss on disposal (35) - - - (35)
Restructuring costs (77) - - (19) (96)
Share based payments - - - (194) (194)
Finance costs (50) - - (32) (82)
Finance income - - - 2 2
Tax - - - 86 86
------------- ------------- ------------- ------------- -------------
Loss for the year (2,719) (119) (6) (1,888) (4,732)
======= ======= ======= ======= =======
LBE = Location Based Entertainment
HBE = Home Based Entertainment
UV = Uvisan
HO = Head Office
*Administrative expenses exclude depreciation, amortisation,
impairment, loss on disposal, restructuring costs and share based
payments.
The segmental analysis above reflects the parameters applied by
the Board when considering the Group's monthly management
accounts.
The table below splits revenue, assets and capital expenditure
by location:
External revenue by location
of customer
31 December 31 December
2021 2020
GBP'000 GBP'000
USA & Canada 6,377 1,176
United Kingdom 1,885 1,395
Australia 756 124
Rest of Europe 171 45
China 87 35
Middle East 77 73
Rest of Asia 29 -
Africa 9 -
------------- -------------
9,391 2,848
====== ======
Total assets by location Net tangible capital
expenditure by location
31 December 31 December 31 December 31 December
2021 2020 2021 2020
GBP'000 GBP'000 GBP'000 GBP'000
United Kingdom 5,542 6,901 75 266
USA & Canada 1,969 1,542 340 813
Middle East 27 106 - 6
Rest of Europe 10 28 7 2
Australia 10 35 3 8
China 3 9 - -
-------------- -------------- ------------- -------------
7,561 8,621 425 1,095
====== ====== ====== ======
5 EARNINGS PER SHARE
2021 2020
GBP'000 GBP'000
The earnings per share
is based on
the following:
Post tax loss attributable to
shareholders (1,999) (4,732)
========== ==========
Basic weighted average number of shares 414,140,823 356,941,188
Diluted weighted average number of
shares 414,140,823 356,941,188
========== ==========
GBP0.01 GBP0.01
Basic loss per share (0.48) (1.33)
Diluted loss per share (0.48) (1.33)
========== ==========
Adjusted loss (1,171) (4,189)
========== ==========
Basic weighted average number of shares 414,140,823 356,941,188
Diluted weighted average number of
shares 414,140,823 356,941,188
========== ==========
GBP0.01 GBP0.01
Basic adjusted loss per share (0.28) (1.17)
Diluted adjusted loss per share (0.28) (1.17)
========== ==========
Earnings/(loss) per ordinary share has been calculated using the
weighted average number of shares in issue during the relevant
financial periods. IAS 33 requires presentation of diluted EPS when
a company could be called upon to issue shares that would decrease
earnings per share or increase the loss per share. Per IAS 33 the
diluted EPS cannot show an improvement on the basic EPS. As that
would be the result in this case the potential ordinary shares have
been disregarded in the calculation of diluted EPS.
Adjusted loss is the loss after taxation, adjusted for share
based payments, impairment charges and one-off costs and income.
Adjusted loss is a non-GAAP measure.
6 PROPERTY, PLANT AND EQUIPMENT
Fixtures, IFRS 16 Right-of-Use
Leasehold Fittings Asset
Property & Equipment Total
Cost GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2020 546 3,165 1,079 4,790
Additions 50 1,019 26 1,095
Disposals (123) (53) (284) (460)
Impairment cost (94) - - (94)
Foreign exchange 1 (39) (15) (53)
---------- ----------- -------------- ---------------
At 31 December 2020 380 4,092 806 5,278
---------- ------------ -------------- ---------------
At 1 January 2021 380 4,092 806 5,278
Additions 3 422 - 425
Disposals (4) (1,836) (169) (2,009)
Foreign exchange - 21 5 26
--------- -------------- -------------- ---------------
At 31 December 2021 379 2,699 642 3,720
--------- -------------- -------------- ---------------
Accumulated depreciation
At 1 January 2020 205 1,111 342 1,658
Depreciation on owned
assets 156 1,189 - 1,345
Depreciation on financed
assets - 66 340 406
Disposals (71) (29) (166) (266)
Impairment depreciation (64) - - (64)
Foreign exchange - (45) (16) (61)
----------- ----------- -------------- ---------------
At 31 December 2020 226 2,292 500 3,018
----------- ----------- -------------- ---------------
At 1 January 2021 226 2,292 500 3,018
Depreciation on owned
assets 92 1,202 - 1,294
Depreciation on financed
assets - - 176 176
Disposals (3) (1,817) (166) (1,986)
Foreign exchange - 24 6 30
------------- -------------- -------------- ---------------
At 31 December 2021 315 1,701 516 2,532
------------- -------------- -------------- ---------------
Net Book Value
At 31 December 2021 64 998 126 1,188
===== ===== ===== ======
At 31 December 2020 154 1,800 306 2,260
===== ===== ===== ======
At 31 December 2019 341 2,054 737 3,132
===== ===== ===== ======
The net book value of assets held under finance leases or hire
purchase contracts, included above, is GBP126k (2020: GBP306k)
relating to VR Hardware and property leases. The depreciation
charge on these assets was GBP175k (2020: GBP406k).
The net book value of owned and leased assets included in
property, plant and equipment in the Statement of Financial
Position is as follows:
2021 2020
GBP'000 GBP'000
Tangible fixed assets owned 1,062 1,954
Tangible fixed assets subject to hire purchase
and finance lease arrangements 126 306
----------- ------------
1,188 2,260
===== ======
Information about the leased assets is summarised below:
2021 2020
GBP'000 GBP'000
IFRS 16 leased property 126 306
===== ======
The depreciation charge in respect of the leased assets is as
follows:
2021 2020
GBP'000 GBP'000
Equipment - 66
IFRS 16 leased property 176 340
----------- ------------
176 406
===== ======
7 INTANGIBLE ASSETS Development Goodwill Other Total
Costs Arising on Intangible
Consolidation Assets
Cost GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2020 1,973 2,438 539 4,950
Additions 539 - 6 545
Impairment (332) - - (332)
Foreign exchange (9) - - (9)
------------- ------------- ------------ ---------------
At 31 December
2020 2,171 2,438 545 5,154
------------- ------------ ------------ ---------------
At 1 January 2021 2,171 2,438 545 5,154
Transfers (4) - 6 2
Additions 384 - 20 404
Disposals (6) - (2) (8)
Impairment (81) - (1) (82)
Foreign exchange 3 - - 3
------------- ------------- ------------ ---------------
At 31 December
2021 2,467 2,438 568 5,473
------------- ------------ ------------ ---------------
Accumulated amortisation
At 1 January 2020 508 - 422 930
Amortisation 614 - 105 719
Impairment (109) - - (109)
Foreign exchange (11) - - (11)
------------ ------------ ------------ ---------------
At 31 December
2020 1,002 - 527 1,529
------------- ------------- ------------ ---------------
At 1 January 2021 1,002 - 527 1,529
Amortisation 624 - 17 641
Transfers (2) - 3 1
Disposals (6) - (1) (7)
Impairment - - (1) (1)
Foreign exchange 5 - - 5
------------ ----------- ------------ ---------------
At 31 December
2021 1,623 - 545 2, 168
------------ ------------ ------------ ---------------
Net Book Value
At 31 December
2021 844 2,438 23 3,305
====== ====== ====== =======
At 31 December
2020 1,169 2,438 18 3,625
====== ====== ====== =======
At 31 December
2019 1,465 2,438 117 4,020
====== ====== ====== =======
Other intangible assets comprise website development and
trademark costs.
Amortisation is charged on development costs and other
intangible assets over periods ranging between 2 and 3 years.
Development costs have between two and three years' remaining
average useful lives.
Goodwill and impairment
The Group is obliged to test goodwill annually for impairment,
or more frequently if there are indications that goodwill and
indefinite life intangibles might be impaired, due to the goodwill
deemed to have an indefinite useful life. In order to perform this
test, management is required to compare the carrying value of the
relevant cash generating unit ("CGU") including the goodwill with
its recoverable amount. The recoverable amount of the CGU is
determined from a value in use calculation. It is considered that
any reasonably possible changes in the key assumptions would not
result in an impairment of the present carrying value of the
goodwill.
Immotion Studios Limited, C.2K Entertainment Inc. and Immotion
Limited were acquired and continue to operate in relation to the
Location Based Entertainment segment. The Location Based
Entertainment segment has been assessed as a single CGU when
conducting impairment reviews.
Location Based Entertainment
The recoverable amount of the Location Based Entertainment
segment has been determined from a review of the current and
anticipated performance. In preparing these projections, a discount
rate of 10% (based on the Group's weighted average cost of capital)
has been applied to forecast earnings for 2022 and 2023 and
subjected to sensitivity analysis. The discount rate was based on
the Company's cost of capital as estimated by management.
8 SHARE CAPITAL 31 December 31 December
2021 2020
GBP'000 GBP'000
Called up share capital
Allotted, called up and fully paid
415,538,083 Ordinary shares of 0.040108663
pence each 166 164
(2020: 409,538,083 ordinary shares)
====== ======
Shares issued during the year ended 31 December 2021:
Date Description No. of shares Price per Gross share Cash received
share value
GBP GBP GBP
At 31 December
2020 409,538,083 21,690,582 18,475,346
Placing on
26 March 2021 AIM 6,000,000 0.05 300,000 300,000
At 31 December
2021 415,538,083 21,990,582 18,775,346
-------------- ---------- ------------ --------------
Cash received does not include costs relating to share issues.
In the year to 31 December 2021, costs of GBP15k were incurred
relating to share issues and these costs were charged against share
premium.
9 POST BALANCE SHEET EVENTS
As outlined in the Chairman's Statement, the Board have taken
the decision to divest the Group's non-core Home Based
Entertainment and Uvisan divisions. The terms and timing of the
disposals are yet to be confirmed and as such the Board cannot be
certain that the plan won't be significantly changed or withdrawn.
This decision is considered to be a non-adjusting post balance
sheet event as it was made subsequent to 31 December 2021.
([1]) Adjusted EBITDA stated before depreciation, amortisation,
impairment, share based payments and other one-off costs and
income.
([2]) Adjusted EBITDA stated before depreciation, amortisation,
impairment, share based payments and other one-off costs and
income.
([3]) The average revenue per headset per week of GBP441 ignores
one partner site which had a large number of headsets installed
from remnant stock which would not otherwise have been used.
([4]) The average revenue per headset per week of GBP329 ignores
one partner site which had a large number of headsets installed
from remnant stock which would not otherwise have been used.
[5] Adjusted EBITDA stated before depreciation, amortisation,
impairment, share based payments and other one-off costs and
income.
([6]) Adjusted loss is the loss after taxation, adjusted for
share based payments, impairment charges and one-off costs and
income.
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 KZGZDZKZGZZZ
(END) Dow Jones Newswires
April 26, 2022 02:02 ET (06:02 GMT)
Immotion (LSE:IMMO)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Immotion (LSE:IMMO)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
