TIDMSEEN
RNS Number : 0849O
SEEEN PLC
29 September 2023
SEEEN plc
("SEEEN", "Group", or the "Company")
Interim Results for the six months ended 30 June 2023
SEEEN plc (AIM: SEEN), the global media and technology platform
that delivers Key Video Moments and Video Commerce to transform its
clients' video profitability, is pleased to release its Interim
Results for the six months ended 30 June 2023 ("1H23") and the
outlook for the remainder of financial year 2023 ("FY23").
Further to our Technology Demo Day held on 14 September 2023,
readers are encouraged to visit seeen.com/techday/videos to learn
more about the Group's technology products and case studies across
different verticals showing how CreatorSuite 2.0 and the Group's
other technology products and solutions transform the profitability
of our customers' investments in video.
1H23 Operating Highlights
-- Continued progress against the Group's core technology KPIs,
reflecting investment in new sales hires:
o 22 vertical market customers in the financial publishing,
sports and retail & services markets
o 4 strategic customers in the publishing industry
o 8 e-commerce led customers
o Development of CreatorSuite 2.0, which was completed after
period end
o Development of a beta version of ShortsCut, a new AI-based
vertical clipping tool to create short form video from long form
content
-- Creator Service Partner business (CSP, formerly called MCN) increasingly profitable
o Increased focus on targeting publishers with large video back
catalogues to optimise historic and new video content through "Key
Video Moments"
1H23 New Customer Wins
-- First FAST (Free Advertising Supported Television) channel
client, as part of our YouTube CSP, expected to be worth
approximately $1m in revenues per year, for whom SEEEN is driving
growth by accessing its back catalogue to create Shorts and
re-mixed content with potential for further upsells of CreatorSuite
2.0. Since the period end, we have successfully sold these services
to another FAST channel
-- Major financial publisher in the US to leverage events videos
with Key Video Moments to drive sign-ups for ongoing events
(physical and online), as well as magazine subscriptions with
cross-selling opportunities given the launch of CreatorSuite 2.0
with advertising as a key feature
-- Sign up of several sports clubs, across multiple sports for
CreatorSuite 2.0 to drive increased fan engagement and sales direct
from existing video collections
1H23 Financial Highlights
Profitability
-- Gross profit of $0.3 million, higher than 1H22 driven by
improved gross margin of 24.6% (1H22: 14.4%), reflecting increasing
mix of technology sales, as well as ongoing improved margins at the
Group's CSP business
-- Adjusted Group EBITDA(*) loss of $0.3m (1H22: loss of $0.4m),
reflecting increased investment in sales team, offset by increased
profitability from technology business
Revenues
-- Changing mix of revenue reflecting proprietary technology commercialisation
-- Revenues from customers using CreatorSuite, the Group's
primary technology product, of approximately $450K, representing
approximately 40% of the Group's revenue (1H22: 33%)
o Recurring technology revenues of approximately $85,000 (1H22:
$35,000)
-- Total Group revenues of $1.1m (1H22: $1.9m). Reduction
reflects: (i) elimination of unprofitable revenue from CSP channel
partners with no technology upselling potential; (ii) loss of all
CSP advertising revenue in Russia since the start of the Ukrainian
conflict; but also (iii) an increasing proportion of technology
sales within the revenue mix
Balance Sheet
-- Cash as at 30 June 2023 of $2.1m; Group has sufficient
resources to reach profitability by executing on its sales strategy
to drive both technology and CSP sales
Post Period End Highlights
-- Release of CreatorSuite 2.0 with new proprietary features
focused on delivering customisable, AI-driven Shoppable Video
Prompts ("SVPs") and additional functionality, such as advertising,
to better service strategic markets
-- Successful Technology Day, which outlined the key benefits of CreatorSuite 2.0 for customers
o Click through rates on video of up to 25%
o Cost per customer reduced by as much as 50% in Pay Per Click
campaigns
o Significant increases in SEO (Search Engine Optimisation)
traffic for pages with Key Video Moments
-- Initial beta release of ShortsCut tool
-- Continued to win new customers across target markets:
o Second FAST channel secured, initially for YouTube CSP and
Shorts Creation services
o Additional sports clubs signed up across multiple different
sports for CreatorSuite 2.0
o E-commerce customers signed up to use CreatorSuite 2.0
2023 and 2024 Outlook
-- Strong customer pipeline, driven by new technology products and sales people
o Pipeline includes customers with potential for in excess of $2
million in annual revenue for CSP
-- 2023 revenues will be dependent on both YouTube advertising
market, which is typically strongest in 4Q, and continuing to
execute against customer pipeline, including some significantly
larger opportunities in order to achieve market expectations
-- In addition to ongoing sales growth, 2024 revenues will
additionally benefit from a full year of technology sales made
during 2023, as well as potential for larger contracts targeted for
signing during 4Q 2023
-- On track to broadly meet market expectations for 2023
adjusted EBITDA as the revenue mix shifts increasingly to
technology based sales
-- On track to achieve monthly cash flow breakeven from current pipeline of opportunities
Notes:
* See Note 5 to the accounts for a full reconciliation of
adjustments between reported and adjusted figures.
Adrian Hargrave, CEO of SEEEN, commented:
"In the first half of 2023, we have delivered against the
strategy outlined at the time of our fundraise. We have released
CreatorSuite 2.0, developed ShortsCut and, accelerated by our new
sales hires, made significant progress with customer sales and
growing our pipeline. We are operating in a fast growing market,
characterised by increasing shifts towards video commerce and
generative AI for video. This gives us confidence that despite
macroeconomic headwinds, we will continue to accelerate our
customer traction. We need to remain opportunistic in our approach,
but we have a strong team and product set that we expect to drive
us to breakeven. We look forward to delivering further progress and
shareholder value."
For further information please contact:
SEEEN plc
Adrian Hargrave, CEO Tel: +44 (0)7775
Carmel Warren, CFO 701 838
Website: seeen.com
Allenby Capital Limited Tel: +44 (0)20 3328
(Nominated Adviser and Joint Broker ) 5656
Alex Brearley / George Payne (Corporate
Finance)
Tony Quirke / Amrit Nahal (Sales and Corporate
Broking)
Dowgate Capital Limited (Joint Broker) Tel: +44(0)20 3903
Stephen Norcross 7721
focusIR (Investor Relations) Tel: +44(0) 07866
Paul Cornelius / Kat Perez 384 707
seeen@focusir.com
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018
("MAR").
CEO's Statement
Overview
After a successful fundraising in late 2022, we have executed
against the strategy promised to investors at that time. During
2023, the Company's position has strengthened in the marketplace,
as video commerce is becoming more important for all video asset
owners. This was clearly illustrated at our recent Technology Demo
Day. We have progressed along the key dimensions of a successful
growth plan:
-- New commercial sales in our target sectors worth more than $1 million in annual revenue:
o Strategic customer #1 - FAST channel for whom we have used our
AI to create new content, including their most watched short form
video of all time with more than 30 million views across all
platforms
o Strategic customer #2 - Technology-led sale to a major US
financial publisher to create a bespoke site leveraging video
content from their events to drive greater levels of ticket
sales
o Addition of 14 vertical and e-commerce customers across
sports, financial publishing and brands, driving increased views,
sales and engagement
-- Creation of a sales organisation
o Hiring of sales people in the UK and the US to focus on our
key markets. This team works closely with both the technology and
the CSP team to drive customer success, resulting in successful
self-serve deployments, as well as bespoke integrations, such as
automatically filling shopping carts within e-commerce
platforms
-- Expanding sales pipeline
o Growing pipeline of opportunities across all target markets,
including larger opportunities that could be worth in excess of $2
million in annual revenues
-- Focus on both technology and CSP sales with potential for
cross-selling to customers
-- Prioritising technology sales while integrating and
increasing the profitability of SEEEN's CSP
o Increasing use of our technology offering for our CSP partner
channels, driving higher margin business with channels that want to
do better with short form content and drive video commerce
-- Progress towards cash flow positive
o Improving gross margin reflects focus on technology-led sales
and a more profitable CSP business
o Development of product stack successfully completed to allow
execution against current sales pipeline, the Group's cost base is
now focused on delivering sales
-- Despite the focus on profitability, we have reinvested in our
technology offering to build sustainable value by delivering
proprietary offerings to attack a large and growing market
opportunity
o Release of CreatorSuite 2.0, including Shoppable Video
Prompts, Fully Customisable End Cards and advertising, building on
our previous Key Video Moment technology
o ShortsCut is already being used by some of our larger CSP
partners to find relevant short form content for publication and
re-mixing, this will be more aggressively rolled out in 4Q 23
On 14 September, we showcased our progress in a coherent way at
our Technology Demo Day, bringing together shareholders, customers
and partners. During this technology day, we outlined how our
technology benefits customers, both through an interactive panel
who described how the video landscape is changing and how SEEEN's
platform offering helps them, as well as through six case studies
across different use cases, highlighting statistics such as how
SEEEN has helped deliver up to 25% clickthrough rates on video
commerce opportunities, driven a doubling of conversion rates and
created short form videos for content owners that have delivered
over 30 million views by creating Key Video Moments from within
their existing collection. Since the event, we have received
inbound requests from potential customers who have seen the use
cases for our customers and would like to adapt SEEEN's offering to
their videos.
The whole event is available to view at seeen.com/techday/videos
, as well as Key Video Moments from the event for investors and
customers to learn more about our offering.
As we head into 4Q, we have strengthened the Company's
fundamentals and competitive value propositions and we appreciate
the support of our shareholders in helping us to achieve this.
Below I go into more detail about the market opportunity, our
products are ready to meet this opportunity and sales prospects. We
are on track to achieve monthly cash flow breakeven and create
significant shareholder value by continuing to execute our plan and
capitalising on the market opportunity available for us.
The Market Opportunity
Despite the macroeconomic headwinds, two of the key markets in
which the Group operates are expected to grow strongly, being the
video commerce market and the use of Artificial Intelligence (AI)
technology within video.
Since late 2022, there has been a strengthening of interest in
AI solutions, including Large Language Models, such as Open AI, and
generative AI technologies, such as Stability.ai and Dall-e, as
well as nascent generative video AI tools including synthesia.io.
This increase in awareness of AI is expected to lead to a near 20%
CAGR for the global generative AI video market through to 2032
(source: Market.us) and a large part of this is driven by the other
significant trend, the shift to mass online consumption especially
in video.
This shift is driven by a few core trends; the generational
shift to online consumption during Covid-19, the increasing speed
of data transfer provided by 5G, allowing reliable video viewing on
mobiles and tablets; and the rise of social media platforms.
Video is increasingly the medium by which all generations
consume information and, therefore, the video commerce market,
which is a core focus for SEEEN, is expected to grow rapidly as
well. This is evidenced by the fact that all social video platforms
have increasingly sought to integrate video commerce into their
offering, in addition to the traditional advertising route. In
fact, this market is expected to grow by 32% a year into a global
market of $2.8 trillion (source: Reportlinker). In addition, other
online video markets are also expected to grow at more than 10% a
year, regardless of the economic backdrop. Whilst everyone is aware
of the social video platforms, publishers, brands and sports clubs
all host a lot of video content on their site, which is expensive
to create and will be increasingly viewed.
In order to increase their return on investment, video owners
need tools to (i) increase their yield from existing videos and
(ii) find a way of better leveraging their back catalogue of video
to create "new" content that viewers will want to watch. As I
describe below and the case studies from our Technology Demo Day
show, we have solutions that have already directly addressed both
of these needs.
SEEEN's Solutions
SEEEN provides the solutions to meet the market opportunity to
monetise video more efficiently. Our Shoppable Video Prompts
("SVPs") are unique in the market for the following reasons:
-- They are combined with Key Video Moments to capitalise on
short viewer attention spans and serve up a contextual offer
-- They enable fully bespoke and clickable prompts with direct integration into shopping carts
-- They can be provided as both in-video SVPs, as well as end
cards at the end of a Key Video Moment, maximising conversion
rates
-- We allow video owners to run adverts, as well as include
SVPs, therefore allowing them to "double dip" on revenue
opportunities
The success of our Shoppable Video Prompts is seen in the
clickthrough rates (CTRs) that clients achieve using our
technology. Our highest CTR rates for individual videos are above
25%, but across the board we have achieved 10%+ CTRs, which
compares with typical average rates of 3-5%. In addition, product
pages including our SVPs within a video have resulted in double the
rate of customer conversion versus product pages without video.
Our offering allows customers to use video to increase
engagement and revenues both from sales of their own products and
subscriptions, as well as third party affiliate sales, which is
especially important to publishers, but can also apply to any video
owner who wants to integrate their offering with other
businesses.
In addition to CreatorSuite 2.0, we have also developed
ShortsCut, which can search a video collection for any topic by
word, phrase, image or activity. It has been tested with some of
our CSP channels and has already generated content that has
received more than 30 million views, bringing revenue and much
increased awareness to our customers. We are continuing to add new
features in-house to this product, which we will roll out more
aggressively during 4Q 23 and 2024.
Finally, all of our AI is driven by JetStream, our AI backbone,
which can run multiple analysis models in parallel, speeding up the
results generated for a customer. We have continued to strengthen
our in-house models, but increasingly we are capable of creating
bespoke model sets for customers who want to search for specific
objects, people and activities.
Outlook
Our solutions meet a growing market need, by delivering both
increased yield from videos and the ability to generate "new"
content from existing video libraries. We have products that are
selling and a growing pipeline with contract sizes ranging to in
excess of $2 million in revenues per year annually. We will
continue to look to accelerate the pace of sales and adoption
throughout the remainder of 2023 and 2024 in order to drive us to
monthly cash flow breakeven. In a fast-moving sector, we
continuously monitor market trends and are looking to find
opportunities to accelerate our growth, either through partnerships
or acquisitions, as well as listening to customer demand for new
features and products that might need to be developed. We look
forward to continuing to execute against our strategy and
delivering a highly valuable company in a fast-growing sector for
our shareholders.
Adrian Hargrave
CEO
September 29, 2023
Interim Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2023
Six months Six months Year ended
ended ended 31 December
30 June 2023 30 June 2022
2022
------------------------------------ -------------- -------------- --------------
$ $ $
------------------------------------ -------------- -------------- --------------
Unaudited Unaudited Audited
Revenue 1,129,508 1,883,666 3,253,055
Cost of sales (851,376) (1,611,826) (2,749,415)
------------------------------------ -------------- -------------- --------------
Gross profit 278,132 271,840 503,640
Administrative expenses
* Share-based payments (55,007) (56,732) (108,825)
* Amortisation of intangibles (1,073,459) (987,677) (2,061,137)
* Impairment of goodwill - - (7,672,026)
* Other administrative costs (684,087) (793,654) (1,356,636)
------------------------------------ -------------- -------------- --------------
Total administrative
expenses (1,812,553) (1,838,064) (11,198,624)
------------------------------------ -------------- -------------- --------------
Operating loss (1,534,421) (1,566,224) (10,694,984)
Other income - - -
Finance (expense) - - -
/ income
------------------------------------ -------------- -------------- --------------
Loss before tax (1,534,421) (1,566,224) (10,694,984)
Taxation 99,382 161,755 423,308
Loss for the period (1,435,039) (1,404,468) (10,271,676)
Other comprehensive
income
Exchange differences
arising on translation
of foreign operations (86,966) (3,445) (162,164)
Total comprehensive
loss for the period (1,522,005) (1,407,913) (10,433,840)
------------------------------------ -------------- -------------- --------------
Earnings per share Cents Cents Cents
------------------------------------ -------------- -------------- --------------
Basic (1.5) (2.8) (20.48)
------------------------------------ -------------- -------------- --------------
Diluted (1.5) (2.8) (20.48)
------------------------------------ -------------- -------------- --------------
Consolidated Statement of Financial Position as at 30 June
2023
At At At
30 June 30 June 31 December
2023 2022 2022
------------------------------ ------------- ------------- -------------
$ $ $
------------------------------ ------------- ------------- -------------
Unaudited Unaudited Audited
ASSETS
Non-current assets
Goodwill 2,090,132 9,762,158 2,090,132
Other intangible assets 3,525,917 4,614,409 3,924,317
Other receivables 1,800 1,800 1,800
------------------------------ ------------- ------------- -------------
5,617,849 14,378,367 6,016,249
------------------------------ ------------- ------------- -------------
Current assets
Trade and other receivables 1,029,951 867,295 2,905,576
Cash and cash equivalents 2,070,824 1,395,517 1,236,664
------------------------------ ------------- ------------- -------------
3,100,775 2,262,813 4,142,240
------------------------------ ------------- ------------- -------------
TOTAL ASSETS 8,718,624 16,641,180 10,158,489
------------------------------ ------------- ------------- -------------
EQUITY AND LIABILITIES
Equity attributable
to holders of the parent
Share capital 7,454,052 7,400,732 7,454,052
Share premium 10,180,736 7,677,993 10,180,736
Merger reserve 8,989,501 8,989,501 8,989,501
Share based payment
reserve 1,288,600 1,181,499 1,233,593
Foreign exchange reserve (83,275) 162,410 3,691
Retained profit (21,031,583) (10,729,337) (19,596,545)
------------------------------ ------------- ------------- -------------
Total Shareholders'
Equity 6,796,031 14,682,798 8,265,028
------------------------------ ------------- ------------- -------------
Non-current liabilities
Deferred tax liability 47,611 407,955 146,992
------------------------------ ------------- ------------- -------------
47,611 407,955 146,992
------------------------------ ------------- ------------- -------------
Current liabilities
Trade and other payables 1,874,982 1,550,427 1,746,469
1,872,982 1,550,427 1,746,469
------------------------------ ------------- ------------- -------------
TOTAL EQUITY AND LIABILITIES 8,718,624 16,641,180 10,158,489
------------------------------ ------------- ------------- -------------
Interim Consolidated Statement of Changes in Equity
For the six months ended 30 June 2023
Share Share Merger Share Foreign Retained Total
Capital Premium Reserve based Exchange Profit
payment Reserve
Reserve
$ $ $ $ $ $ $
--------------------- ---------- ----------- ---------- ---------- ---------- ------------- ------------
As at 31 December
2021 7,400,732 7,677,993 8,989,501 1,124,768 165,855 (9,324,869) 16,033,980
Share-based payment
expense - - - 56,732 - - 56,732
Loss for the period - - - - - (1,404,468) (1,404,468)
Issuance of shares - - - - - - -
Other comprehensive
income - - - - (3,445) - (3,445)
--------------------- ---------- ----------- ---------- ---------- ---------- ------------- ------------
As at 30 June 2022 7,400,732 7,677,993 8,989,501 1,181,500 162,410 (10,729,338) 14,682,798
--------------------- ---------- ----------- ---------- ---------- ---------- ------------- ------------
Share-based payment
expense - - - 52,094 - - 52,094
Loss for the period - - - - - (8,867,208) (8,867,208)
Issuance of shares 53,320 2,502,743 - - - - 2,556,064
Other comprehensive
loss - - - - (158,719) - (158,719)
As at 31 December
2022 7,454,052 10,180,736 8,989,501 1,233,593 3,691 (19,596,545) 8,265,028
--------------------- ---------- ----------- ---------- ---------- ---------- ------------- ------------
Share-based payment
expense - - - 55,007 - - 55,007
Loss for the period - - - - - (1,435,039) (1,435,039)
Issuance of shares - - - - - - -
Other comprehensive
income - - - - (86,966) - (86,966)
--------------------- ---------- ----------- ---------- ---------- ---------- ------------- ------------
As at 30 June 2023 7,454,052 10,180,736 8,989,501 1,288,600 (83,275) (21,031,583) 6,796,031
--------------------- ---------- ----------- ---------- ---------- ---------- ------------- ------------
Interim Consolidated Statement of Cash Flows
For the six months ended 30 June 2023
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2022
2023 2022
-------------------------------------------- ------------ ------------ -------------
$ $ $
-------------------------------------------- ------------ ------------ -------------
Unaudited Unaudited Audited
Cash flows from operating activities
Loss before tax (1,534,421) (1,566,224) (10,694,984)
Adjustments for non-cash/non-operating
items:
Amortisation of intangible assets 1,073,459 987,677 2,061,137
Impairment of goodwill - - 7,672,026
Share based payments 55,007 56,732 108,825
Interest paid / (received) - - -
Operating cash flows before movements
in working capital (405,955) (521,815) (852,996)
-------------------------------------------- ------------ ------------ -------------
(Increase) / decrease in trade and other
receivables (216,823) (115,769) (3,635)
(Decrease) / increase in trade and other
payables 126,518 297,367 435,441
Cash generated by operations (496,260) (340,216) (421,190)
-------------------------------------------- ------------ ------------ -------------
Income taxes paid - - -
-------------------------------------------- ------------ ------------ -------------
Net cash used in operating activities (496,260) (340,216) (421,190)
-------------------------------------------- ------------ ------------ -------------
Cash flows from investing activities
Purchase of intangibles (675,060) (347,068) (730,437)
Net cash used in investing activities (675,060) (347,068) (730,437)
-------------------------------------------- ------------ ------------ -------------
Cash flows from financing activities
Proceeds from issue of shares 2,092,449 - 463,314
Interest received / (paid) - - -
Net cash generated by/(used in) financing
activities 2,092,449 - 463,314
-------------------------------------------- ------------ ------------ -------------
Net (decrease)/increase in cash and cash
equivalents 921,129 (687,284) (688,013)
Effect of exchange rates on cash (86,968) (3,448) (161,572)
Cash and cash equivalents at the beginning
of period 1,236,664 2,086,249 2,086,249
Cash and cash equivalents at end of period 2,070,824 1,395,517 1,236,664
-------------------------------------------- ------------ ------------ -------------
Notes to the Interim Consolidated Financial Information
for the six months ended 30 June 2023
1 General information
The Group is a global media and technology platform that
delivers Key Video Moments and Video Commerce to transform its
clients' video profitability.
The Company is a public limited company domiciled in the United
Kingdom and incorporated under registered number 10621059 in
England and Wales. The Company's registered office is 27-28
Eastcastle Street, London W1W 8DH.
2 Significant accounting policies
Basis of preparation and changes to the Group's accounting
policies
The accounting policies adopted in the preparation of the
interim consolidated financial information are consistent with
those of the preparation of the Group's annual consolidated
financial statements for the period ended 31 December 2022. No new
IFRS standards, amendments or interpretations became effective in
the six months to 30 June 2023.
Statement of compliance
This interim consolidated financial information for the six
months ended 30 June 2023 has been prepared in accordance with UK
adopted International Accounting Standards ("Adopted IFRSs"). This
interim consolidated financial information is not the Group's
statutory financial statements and should be read in conjunction
with the annual financial statements for the period ended 31
December 2022, which have been prepared in accordance with Adopted
IFRS and have been delivered to the Registrar of Companies. The
auditors have reported on those accounts; their report was
unqualified, did not include references to any matters to which the
auditors drew attention by way of emphasis of matter without
qualifying their report and did not contain statements under
section 498(2) or (3) of the Companies Act 2006.
The interim consolidated financial information for the six
months ended 30 June 2023 is unaudited. In the opinion of the
Directors, the interim consolidated financial information presents
fairly the financial position, and results from operations and cash
flows for the period. Comparative numbers for the six months ended
30 June 2022 are unaudited.
This interim consolidated financial information is presented in
US Dollars ($), rounded to the nearest dollar.
Foreign currencies
Functional and presentational currency
Items included in this interim consolidated financial
information are measured using the currency of the primary economic
environment in which each entity operates which is considered by
the Directors to be Pounds Sterling (GBP) for the Parent Company
and US Dollars ($) for all the Company's subsidiaries. This interim
consolidated financial information has been presented in US Dollars
which represents the dominant economic environment in which
represents the dominant economic environment in which the Group
operates. The effective exchange rate at 30 June 2023 was GBP1 =
US$1.2714 (30 June 2022: GBP1 = US$1.2175 and 31 December 2022:
GBP1 = US$1.2098).
Critical accounting estimates and judgments
The preparation of interim consolidated financial information
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets and liabilities and the reported amounts of
income and expenses during the reporting period. Although these
estimates are based on management's best knowledge of current
events and actions, the resulting accounting estimates will, by
definition, seldom equal the related actual results.
In preparing this interim consolidated financial information,
the significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation
uncertainty were the same as those that applied to the consolidated
financial statements for the year ended 31 December 2022, together
with the recognition of development expenditure, described
below.
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 and contractors on relevant development
projects. The decision whether to capitalise and how to determine
the period of economic benefit of development projects requires an
assessment of the commercial viability of the projects and the
prospect of selling the project to new or existing customers.
During the period, the Group capitalized $459,560 of development
expenditure.
Going Concern
The directors have a reasonable expectation that the Group has
adequate resources to continue operating for the foreseeable
future, and for this reason they have adopted the going concern
basis of preparation in the consolidated interim financial
statements.
3 Trade Payable and Receivables
The majority of trade payables and receivables relate to
receivables from YouTube and payables to creator partners. In
addition, trade and other payables includes accruals for expenses
to be accrued during the year, payments to consultants who are paid
monthly in arrears and historic liabilities of the acquired
businesses that relate to payables more than two years ago and the
Group does not expect to need to pay.
4 Loss per share
The loss per share has been calculated using the loss for the
period and the weighted average number of ordinary shares
outstanding during the period, as follows:
Six months Six months Year ended
ended ended 31 December
30 June 2023 30 June 2022 2022
Unaudited Unaudited Audited
-------------------------- ---------------- ---------------- ---------------
Earnings attributable
to shareholders of
the Company ($) (1,435,039) (1,404,468) (10,271,676)
Weighted average number
of ordinary shares 93,345,815 49,957,876 50,131,428
Diluted weighted average
number of ordinary
shares 93,345,815 49,957,876 50,131,428
--------------------------- ---------------- ---------------- ---------------
Loss per share (cents) (1.5) (2.8) (20.48)
--------------------------- ---------------- ---------------- ---------------
Diluted loss per
share (cents) (1.5) (2.8) (20.48)
--------------------------- ---------------- ---------------- ---------------
5 Summary of Adjustments between Reported and Adjusted EBITDA and Operating Profit
$ in 000s 1H23 Reported Adjustment 1H23 Adjusted
---------------------------- -------------- ----------- --------------
Revenues 1,130 - 1,130
Cost of Sales (851) - (851)
Gross Profit 279 - 279
Operating expenses (1,813) - (1,813)
Share based payments - 55 55
Other adjustments - 60 60
Operating Profit (1,534) 115 (1,419)
Amortisation - Development
cost 478 - 478
Amortisation - acquired
intangibles 595 - 595
EBITDA (461) - (346)
6 Publication of announcement and the Interim Results
A copy of this announcement will be available at the Company's
registered office (27-28 Eastcastle Street, London, W1W 8DH) from
the date of this announcement and on its website - seeen.com . This
announcement is not being sent to shareholders.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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