ENVISION
INNOVATE
DELIVER
ANNUAL
REPORT
& ACCOU NTS
2021
COMMON AC RON YMS
BYOD - Bring Your Own Device
CA - Conditional Access
DTH - Direct-to-Home / Satellite transmission
IPTV - Internet Protocol Television
D2C - Direct to Consumer
IPTV - Internet Protocol Television
OS - Operating System
OTT - Over-the-top
R&D - Research and Development
SaaS - Software as a Service
SDP - Service Delivery Platform
STB - Set-top box
SVoD - Subscription Video on Demand
UI - User Interface
UX - User Experience
ANNUAL REPORT 2021
ABOUT US
ABOUT
MIRADA
OUR STO RY
OUR S OLUT IONS
Ever since Mirada was founded in 2000 by our
At Mirada, we design, develop and deliver
CEO José Luis Vázquez, we have positioned
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ourselves as a strategic partner for TV and
video entertainment that empower our
video providers worldwide, equipping them
customers to launch their own D2C digital
with the cutting edge solutions they need to
video services.
answer the growing demand
for video
entertainment.
OUR PEOPL E
In essence, through our technology the end
user can access all of their favourite channels,
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devices, with the best user experience both at
Spread across three continents, 82% of our
home and on the go. Our solutions are at the
170 Miradians are engineers working on
forefront of the growing movement in the
product management, software develop-
industry to harness data to tailor content and
ment, customer support and IT operations.
create unique viewing experiences for indivi-
Our experts include a sales force composed
of local sales representatives who specialise
in targeting our key markets, and a growing
duals based on their preferences.
OUR MI SS I ON
strategic network of specialised external
Our mission is to enable our customers to
resellers, thanks to whom we have greatly
excel in connecting millions of people to
expanded our reach worldwide.
digital video services, keeping up with
viewers’ evolving demands, habits and prefe-
rences to deliver the TV of tomorrow, today.
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OFFICES UK | SPAIN | MEXICO
REP RE SE NTATIVE S SPAIN | CHILE | PHILIPPINES
PAGE 2
© 2021 Mirada
A BOU T U S
ANNUAL REPORT 2021
OUR CUSTOMERS
Through our multipurpose products and services, we can tackle the technological needs of telco com-
panies, pay TV operators and broadcasters, as well as the new video streaming services.
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giants such as izzi Telecom in Mexico, alongside smaller tier companies such as OneComm in Bermu-
da or Viya in the US Virgin Islands.
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and software solutions. Such high stakes make our bidding process to last usually between six and
twelve months, depending on the region and the size of the prospect.
Our biggest client and most valued reference to date is izzi Telecom, part of Televisa Group (the
biggest media company in the Spanish-speaking world). Since the beginning of our collaboration in
2014, izzi has continued to entrust us with new developments and product updates for their market
leading pay TV service. This project has also served us as an important reference when approaching
new clients.
and more
OUR PARTNER S
Mirada’s technology is successfully integrated with the key players in the video industry, including tech
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Amazon Prime Video. In this context, the integration means that their applications, technology or
content are seamlessly included within the solution we offer.
Our ever-growing partnership strategy enables us to offer the latest components, features, and
third-party services that our customers need to retain their competitive advantage.
Content providers
Tec hnology
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© 2021 Mirada
PAGE 3
and more
ANNUAL REPORT 2021
ABOUT US
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OUR EDGE
OUR FUTU RE
Innovation is at the core of everything we do.
The TV and video entertainment industry is
We consistently exceed the needs of our
evolving quickly. Traditional pay TV operators
customers, working hand-in-hand with our
are re-positioning themselves as super-
strategic technological partners to provide
aggregators of content providers, content
the best possible service. Today, we are one of
providers are exploring ways to bring their
the few providers able to offer our customers
own direct-to-consumer offerings to market,
the very sought-after integration with all
and viewers are becoming more and more
major premium content providers, including
demanding of the functionality, simplicity
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and convenience of the interfaces that they
HBO.
use. Our teams understand the market better
than anyone and with our vast experience,
We continue adapting our solutions to
scalable business model and a growing repu-
viewers worldwide, who access them to enjoy
tation for quality and innovation, we are
content on every device from their sofa or on
ideally positioned to capitalise on the emer-
the go, not only on set-top boxes, smartpho-
ging opportunities.
nes and tablets, but also on smart TVs, game
consoles and more.
Our commitment to innovation has gained
us the trust of industry leaders like izzi
Telecom and ATN international, and we are
continually working to establish long-term
collaborations with both traditional players
and newcomers to the TV & video sector.
Ou r vi si on, t he sca labi lit y of our b us i nes s m od el , unp a ra l l el ed
expert i se and firm co mmi tment to i nnovat i on s et us on th e p a t h
of con ti nu i ng to r e ap a ll th e op po rt uni ti es t he f uture br ings .
PAGE 4
© 2021 Mirada
OUR R EFERENCES
A BOU T U S
ANNUAL REPORT 2021
The technology that powers
izzi’s multiscreen platform is
the most advanced in the
entire region.
The most beautiful,
smooth and user-friendly
TV interface I have ever
interacted with.
Guillermo Salcedo
DIRECTOR OF MKT
Carlos Soares
PROJECT MANAGER
With Mirada, our subscribers are able to enjoy the best television
experience available on the market, making the most of the TV
content with advanced features, content of the most important
streaming platforms and customer preferences, in one recommen-
dation system. We are sure that Mirada’s solution is the key factor
to become the fourth TV platform in Spain, unifying the historic
cable industry under the same brand.
Amelia Carrillo
CEO
Ever since we began our collaboration, results have greatly excee-
ded our expectations, helping boost our content consumption in
more than 50%. The best outcome for us, apart from results, has
been Mirada’s partner approach towards us, their understanding
of our needs and taking care of our service as their own.
Josep M. Rabés
TELEVISION SERVICES DIRECTOR
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ANNUAL REPORT 2021
EXE CUTIVE T EAM
EXECUTIVE
TEAM
JOSÉ L. VÁZQUEZ
CEO
JOSÉ GOZALBO
CTO
GONZALO BABÍO
CFO
ANTONIO RODRÍGUEZ
VP BUSINESS DEV.
Founder and Chief Executive
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Chairman of Spanish Associa-
tion of Interactive Technology
Companies (AEDETI).
He holds a degree in Advan-
ced Telecommunications
Engineering and an MBA
from IESE Business School.
José has been Chief Techno-
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its creation.
He holds a degree in Compu-
ter Science and he has in
depth experience in Software
Development and Digital TV
markets.
NURIA LAHUERTA
VP HR
Nuria joined Mirada in 2011 as
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ROSZANA DALATI
VP MARKETING
JAVIER PEÑÍN
VP SALES
becoming VP Human
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female to join Executive
Management.
She studied History of Art at
Zaragoza University and a
Masters in Innovative HR
Management.
His previous experience
includes working at AUNA
during the launch of Spain’s
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He also worked as Senior
Sales Manager in Telefonica
and as Global Sales Manager
at ADB. He holds a BSc in
Telecoms Engineering and
BMD from IESE.
SANTIAGO RODRÍGUEZ
PRODUCT DIR.
Prior to joining Mirada in 2015
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worked as Finance Director
for both The Walt Disney Co.
(10 years) and Electronic Arts
(10 years).
He holds an EMBA from IESE
Business School, among
other titles.
He joined Mirada from Jazztel
PLC, where he held the roles
of Network Engineering
Manager and Telco Platforms
and OSS Manager.
He holds a BSc in Telecom-
munications Engineering and
an MBA from IE Business
School.
Roszana joined Mirada as
Marketing Manager before
forming part of Executive
Management in 2017.
She holds a degree in
International Relations and a
Masters in Strategic Manage-
ment of Sales & Marketing
from IE Business School.
Graduated in Telco Enginee-
ring from the Polytechnic
University of Madrid, Santiago
joined Mirada back in 2000.
He has broad R&D experience
within the audiovisual
industry and he is responsible
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vision and products.
PAGE 6
© 2021 Mirada
ENVI SI O N
T EC HNOLOGY
I NNOVAT E
E XP ERI ENC E
DEL IVER
T HE F UT URE
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ANNUAL REPORT 2021 WH Y INVEST
WHY
INVEST
LEADING SO F TWA R E
PROVIDER FOR T V A ND
VIDEO SE RVI CES
Leading provider of software technology
telcos,
for global digital TV operators,
broadcasters and video streaming services.
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innovative solutions, with established
industry
in
relationships with all
stakeholders.
relevant
Iris delivers a high-quality multiscreen
user experience which helps our clients
attract, engage, retain and grow subscribers
and maximise revenues.
Company is highly reputed for its solid
delivery and reliability, both main assets for
new and existing customers.
R&D and client focus - Over 80% of the
in
IT and
company’s workforce are engineers
product, software development,
customer support.
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S CALAB LE SAAS
BUS INES S M ODEL
Cloud-based delivery of our software with
a subscription revenue model.
Flexible implementation model with a
choice of CAPEX and one-off licences (higher
client set-up fees) or SaaS (recurring revenues
per device).
Today we have ~4m daily active devices
contributing to a growing share of recurring
annual revenues.
After set-up costs SaaS contracts are
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(cid:1477)(cid:1577)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:472)(cid:478)(cid:464)(cid:472)(cid:502)(cid:623)(cid:3)(cid:559)(cid:562)(cid:524)(cid:731)(cid:584)(cid:394)(cid:422)(cid:502)(cid:437)(cid:3)(cid:584)(cid:472)(cid:437)(cid:562)(cid:437)(cid:394)(cid:463)(cid:584)(cid:437)(cid:562)(cid:1582)
SaaS contracts usually require some
up-front investment from the company, with
(cid:559)(cid:562)(cid:524)(cid:731)(cid:584)(cid:394)(cid:422)(cid:478)(cid:502)(cid:478)(cid:584)(cid:623)(cid:3)(cid:437)(cid:622)(cid:559)(cid:437)(cid:423)(cid:584)(cid:437)(cid:430)(cid:3)(cid:524)(cid:616)(cid:437)(cid:562)(cid:3)(cid:394)(cid:3)(cid:502)(cid:478)(cid:463)(cid:437)(cid:584)(cid:478)(cid:511)(cid:437)(cid:3)(cid:616)(cid:394)(cid:502)(cid:592)(cid:437)(cid:3)(cid:524)(cid:463)(cid:3)
(cid:1475)(cid:3)(cid:584)(cid:524)(cid:3)(cid:1477)(cid:3)(cid:623)(cid:437)(cid:394)(cid:562)(cid:570)(cid:1577)(cid:3)(cid:617)(cid:478)(cid:584)(cid:472)(cid:3)(cid:394)(cid:616)(cid:437)(cid:562)(cid:394)(cid:464)(cid:437)(cid:3)(cid:423)(cid:592)(cid:570)(cid:584)(cid:524)(cid:511)(cid:437)(cid:562)(cid:3)(cid:570)(cid:584)(cid:478)(cid:423)(cid:498)(cid:478)(cid:513)(cid:437)(cid:570)(cid:570)(cid:3)
of much longer period.
Highly scalable software, infrastructure,
implementation teams and revenue model.
50 clients served on 4 continents.
Continued support from shareholders.
PAGE 8
© 2021 Mirada
WHY I NV EST
ANNUAL REPORT 2021
EXPAND ING M AR K ET
OPPO RT UNIT Y
POS IT IONED FOR PR OFI T
GROWT H
The global pay TV market is growing and
expected to reach over 1bn users by 2025 with
revenues of over $120bn.
Pre-pandemic track record of steady
revenue growth, with increasing turnover
recurrency.
Lockdowns have accelerated video and
entertainment consumption.
The cable and satellite TV industry is
transitioning to
IP/OTT TV built around
Android TV helped by the rapid deployment
of broadband and 5G networks.
The TV market is being disrupted by stream-
ing(cid:3)(cid:616)(cid:478)(cid:430)(cid:437)(cid:524)(cid:3)(cid:570)(cid:437)(cid:562)(cid:616)(cid:478)(cid:423)(cid:437)(cid:570)(cid:3)(cid:570)(cid:592)(cid:423)(cid:472)(cid:3)(cid:394)(cid:570)(cid:3)(cid:121)(cid:437)(cid:584)(cid:732)(cid:478)(cid:622)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:4)(cid:511)(cid:394)(cid:633)(cid:524)(cid:513)(cid:3)
Prime Video who have transformed the user
experience.
This has impacted our traditional target
market - incumbent telecoms operators and
broadcasters in a number of ways.
More viewers are choosing to opt-out
from traditional pay TV services (cord-cut-
ters), costing $billions a year in lost subscrip-
(cid:584)(cid:478)(cid:524)(cid:513)(cid:3)(cid:423)(cid:394)(cid:570)(cid:472)(cid:3)(cid:732)(cid:524)(cid:617)(cid:570)
Market disruptions have accelerated their
need for digital transformation and to invest
in fast-to-implement, cost-effective anywhere,
anytime, any device TV solutions.
(cid:192)(cid:472)(cid:437)(cid:562)(cid:437)(cid:463)(cid:524)(cid:562)(cid:437)(cid:1577)(cid:3) (cid:524)(cid:592)(cid:562)(cid:3) (cid:584)(cid:394)(cid:562)(cid:464)(cid:437)(cid:584)(cid:3) (cid:511)(cid:394)(cid:562)(cid:498)(cid:437)(cid:584)(cid:3) (cid:478)(cid:570)(cid:3) (cid:1475)(cid:1477)(cid:1472)(cid:1612)(cid:1476)(cid:1472)(cid:1472)(cid:3)
potential clients globally, typically with c.0.5m
subscribers each.
Post lockdowns operators and broadcas-
ters need to accelerate their investments in
TV and video streaming technology.
We win based on quality, service and the
ROI we deliver to our clients.
Track-record of winning Tier 1 clients, but
(cid:524)(cid:559)(cid:559)(cid:524)(cid:562)(cid:584)(cid:592)(cid:513)(cid:478)(cid:584)(cid:623)(cid:3) (cid:584)(cid:524)(cid:3) (cid:394)(cid:502)(cid:570)(cid:524)(cid:3) (cid:584)(cid:394)(cid:562)(cid:464)(cid:437)(cid:584)(cid:3) (cid:192)(cid:478)(cid:437)(cid:562)(cid:3) (cid:1474)(cid:3) (cid:394)(cid:513)(cid:430)(cid:3) (cid:192)(cid:478)(cid:437)(cid:562)(cid:3) (cid:1475)(cid:3)
customers with SaaS.
Targeting new geographies with high pay
TV penetration rates, increasing popularity of
multiscreen viewing and high growth in
consumer spending.
Achieved one of the largest deployments
of the Android TV technology, providing exce-
llent reference for future opportunities for
this highly sought-after tech by Google.
Major new opportunities with content
(cid:559)(cid:562)(cid:524)(cid:616)(cid:478)(cid:430)(cid:437)(cid:562)(cid:570)(cid:3)(cid:570)(cid:592)(cid:423)(cid:472)(cid:3)(cid:394)(cid:570)(cid:3)(cid:121)(cid:437)(cid:584)(cid:732)(cid:478)(cid:622)(cid:1577)(cid:3)(cid:82)(cid:32)(cid:132)(cid:1577)(cid:3)(cid:40)(cid:478)(cid:570)(cid:513)(cid:437)(cid:623)(cid:1685)(cid:3)(cid:437)(cid:584)(cid:423)(cid:1582)(cid:3)(cid:584)(cid:524)(cid:3)
support direct-to-consumer TV services.
Business model highly operationally
geared to growth in subscriber based SaaS
revenues.
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ANNUAL REPORT 2021
PR ODUCTS & SE RVICE S
(cid:132)(cid:199) (cid:170) (cid:3)(cid:48)(cid:223)(cid:48)(cid:170) (cid:1617)(cid:48)(cid:223)(cid:132)(cid:109)(cid:223)(cid:88)(cid:121)(cid:74)(cid:3)(cid:73)(cid:109) (cid:4)(cid:74)(cid:178)(cid:82)(cid:88)(cid:167) (cid:3)(cid:178)(cid:132) (cid:109)(cid:199)(cid:192) (cid:88)(cid:132) (cid:121)
DELIVERING THE T V OF TOMORR OW, TODAY
Our Iris multiscreen solution provides a next-generation video platform to deliver on-demand, catch
up and live content to audiences when, where and how they want it. Iris empowers Mirada’s clients
with a personalised and intuitive user experience to attract, engage and retain audiences and
maximise consumption-based revenues.
Friendly & engaging
User Experience
All devices, same
personalised interface
Integration with top
content providers
Easy to use admin apps
& powerful analytics
PAGE 10
PROD UCTS & SE RV I CE S
ANNUAL REPORT 2021
P ER F ECT BALAN CE BETWEEN
DES IGN & PER FORMANCE
THE CONTENT
VIEWERS C RAVE
TH E SCREENS
VIEWERS CHOOS E
THE E XP ER IE NCE
VIEWERS DESERVE
Why choose when we can have it
all? Linear TV, on demand and all
(cid:584)(cid:524)(cid:559)(cid:3)(cid:423)(cid:524)(cid:513)(cid:584)(cid:437)(cid:513)(cid:584)(cid:3)(cid:559)(cid:562)(cid:524)(cid:616)(cid:478)(cid:430)(cid:437)(cid:562)(cid:570)(cid:3)(cid:502)(cid:478)(cid:498)(cid:437)(cid:3)(cid:121)(cid:437)(cid:584)(cid:732)(cid:478)(cid:622)(cid:3)
(cid:394)(cid:513)(cid:430)(cid:3)(cid:40)(cid:478)(cid:570)(cid:513)(cid:437)(cid:623)(cid:1685)(cid:3)(cid:478)(cid:513)(cid:3)(cid:524)(cid:513)(cid:437)(cid:3)(cid:559)(cid:502)(cid:394)(cid:423)(cid:437)(cid:1582)
Consumer habits change, but
viewers’ appetite for video
remains, so we adapt our
solution to all devices.
Catch up, start-over, automated
and personalised recommenda-
tions, recordings available from
any device and more.
THE DATA
CLIE NTS TREASURE
TH E TOOLS
CLIENTS NE ED
THE R EVENU ES
CLIENTS DESIRE
Knowledge is power! We offer our
clients valuable insights making
the most of big data and
machine learning.
We make our clients’ lives easier
with our ecosystem of intuitive
and powerful tools to enhance
their platforms.
With our solutions, digital TV
(cid:570)(cid:437)(cid:562)(cid:616)(cid:478)(cid:423)(cid:437)(cid:570)(cid:3)(cid:422)(cid:437)(cid:513)(cid:437)(cid:731)(cid:584)(cid:3)(cid:463)(cid:562)(cid:524)(cid:511)(cid:3)(cid:394)(cid:430)(cid:616)(cid:394)(cid:513)(cid:423)(cid:437)(cid:430)(cid:3)
new ways to monetise their
platforms and content.
THE IRIS EXPERIENCE
ON ALL PLATFORMS
OPERATOR TIER
INCLUDED!
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PR ODUCTS & SE RVICE S
UX EVOLVER
T O P
I N N O V A T I O N
(cid:4)(cid:3) (cid:472)(cid:478)(cid:464)(cid:472)(cid:502)(cid:623)(cid:3) (cid:732)(cid:437)(cid:622)(cid:478)(cid:422)(cid:502)(cid:437)(cid:3) (cid:394)(cid:513)(cid:430)(cid:3) (cid:437)(cid:394)(cid:570)(cid:623)(cid:3) (cid:584)(cid:524)(cid:3) (cid:592)(cid:570)(cid:437)(cid:3) (cid:584)(cid:524)(cid:524)(cid:502)(cid:3) (cid:3) (cid:584)(cid:472)(cid:394)(cid:584)(cid:3) (cid:464)(cid:478)(cid:616)(cid:437)(cid:570)(cid:3) (cid:3) (cid:524)(cid:592)(cid:562)(cid:3)
clients the ability to stay on top of changing consump-
tion habits by adapting, testing and evolving elements
of their viewers’ user experience.
A uni q ue viewin g expe rien ce fo r
each us er in ju st a few clicks .
MORE TOOLS
TO ACHIEVE
PERFECTION
Our ecosystem of intuitive and
powerful tools covers all our
clients’ needs and takes their
platforms to the next level.
Data intelligence platform
Task manager for editors
(cid:4)(cid:570)(cid:570)(cid:437)(cid:584)(cid:570)(cid:1586)(cid:3)(cid:617)(cid:524)(cid:562)(cid:498)(cid:732)(cid:524)(cid:617)(cid:3)(cid:511)(cid:394)(cid:513)(cid:394)(cid:464)(cid:437)(cid:562)
EDI TORIAL S ERVICES
We empower our clients with the ally they need to
boost their content: a team of editorial experts bridging
catalogues with the socioeconomic, cultural and politi-
cal events happening in the subscribers’ region.
The key to tra ns fo rm
catalog ue s into o pp or tun i ti es .
PAGE 12
© 2021 Mirada
CA SE STU DI ES
ANNUAL REPORT 2021
CASE
STUDIES
Mirada’s soluti ons em powe r
50 + Digi tal T V se rvi ces
across 4 c ontinents.
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CASE STUDIES
Mirada has been izzi’s long-term
strategic partner and tech provider
in Mexico since 2014.
Part of Televisa Group, the largest
Spanish-speaking media company
in the world, izzi’s network reaches
about 15 million households and is
the second most important player
in Mexican
telecommunications
services.
Commerci alis ed as izzi tv
MEXICO
FIR ST LAUNC H
201 4
THE CHAL LENGE
In 2014, Televisa Group made a strategic
than other solutions, but also delivered
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stability and reliability, ensuring izzi can conti-
ces it owned in Mexico: to create a new
nue offering the best quality service to their
telecommunications company, izzi Telecom,
subscribers.
to bring them all together and offer a new and
(cid:592)(cid:513)(cid:478)(cid:731)(cid:437)(cid:430)(cid:3) (cid:423)(cid:592)(cid:584)(cid:584)(cid:478)(cid:513)(cid:464)(cid:3) (cid:437)(cid:430)(cid:464)(cid:437)(cid:3) (cid:559)(cid:394)(cid:623)(cid:3) (cid:192)(cid:223)(cid:3) (cid:570)(cid:437)(cid:562)(cid:616)(cid:478)(cid:423)(cid:437)(cid:3) (cid:478)(cid:513)(cid:3) (cid:584)(cid:472)(cid:437)(cid:3)
After the success of the initial project,
country. This highly complex project called for
Mirada continues to work with izzi as their
an advanced video platform that could
go-to tech partner for their TV service.
(cid:394)(cid:423)(cid:423)(cid:524)(cid:511)(cid:511)(cid:524)(cid:430)(cid:394)(cid:584)(cid:437)(cid:3) (cid:478)(cid:633)(cid:633)(cid:478)(cid:1626)(cid:570)(cid:3) (cid:731)(cid:616)(cid:437)(cid:3) (cid:437)(cid:622)(cid:478)(cid:570)(cid:584)(cid:478)(cid:513)(cid:464)(cid:3) (cid:524)(cid:559)(cid:437)(cid:562)(cid:394)(cid:584)(cid:524)(cid:562)(cid:570)(cid:1577)(cid:3)
each of them with their own network and
Over the past number of years, we have
infrastructure.
THE SO LU TION
izzi has put its trust into Mirada and relied
on our Iris platform, which has demonstrated
to be not only technologically more advanced
continued to equip izzi’s platform with upda-
ted and new tools, features and integrations
with premium content providers such as
(cid:121)(cid:437)(cid:584)(cid:732)(cid:478)(cid:622)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:82)(cid:32)(cid:132)(cid:1577)(cid:3)(cid:472)(cid:437)(cid:502)(cid:559)(cid:478)(cid:513)(cid:464)(cid:3)(cid:584)(cid:472)(cid:437)(cid:511)(cid:3)(cid:570)(cid:584)(cid:394)(cid:623)(cid:3)(cid:524)(cid:513)(cid:3)(cid:584)(cid:524)(cid:559)(cid:3)(cid:524)(cid:463)(cid:3)
all new trends (see page 20) and hold their
position as the top pay TV service in Mexico.
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© 2021 Mirada
CA SE STU DI ES
ANNUAL REPORT 2021
HIGHLIGHTS OF THE Y EAR
In Q4 2020, we began the rollout of Android TV-powered set-top boxes,
enabling izzi to take full advantage of Android TV’s disruption in the
market. This was the biggest Android TV launch in Latin America, with circa
(cid:1473)(cid:1472)(cid:1472)(cid:498)(cid:3)(cid:513)(cid:437)(cid:617)(cid:3)(cid:4)(cid:513)(cid:430)(cid:562)(cid:524)(cid:478)(cid:430)(cid:3)(cid:192)(cid:223)(cid:3)(cid:430)(cid:437)(cid:616)(cid:478)(cid:423)(cid:437)(cid:570)(cid:3)(cid:559)(cid:437)(cid:562)(cid:3)(cid:511)(cid:524)(cid:513)(cid:584)(cid:472)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:1685)(cid:1480)(cid:1472)(cid:1472)(cid:498)(cid:3)(cid:430)(cid:437)(cid:616)(cid:478)(cid:423)(cid:437)(cid:570)(cid:3)(cid:422)(cid:623)(cid:3)(cid:4)(cid:592)(cid:464)(cid:592)(cid:570)(cid:584)(cid:3)(cid:1474)(cid:1472)(cid:1474)(cid:1473)(cid:1582)
(cid:119)(cid:478)(cid:562)(cid:394)(cid:430)(cid:394)(cid:1626)(cid:570)(cid:3)(cid:478)(cid:513)(cid:584)(cid:437)(cid:464)(cid:562)(cid:394)(cid:584)(cid:478)(cid:524)(cid:513)(cid:3)(cid:422)(cid:562)(cid:524)(cid:592)(cid:464)(cid:472)(cid:584)(cid:3)(cid:40)(cid:478)(cid:570)(cid:513)(cid:437)(cid:623)(cid:1685)(cid:3)(cid:584)(cid:524)(cid:3)(cid:119)(cid:437)(cid:622)(cid:478)(cid:423)(cid:524)(cid:1577)(cid:3)(cid:562)(cid:437)(cid:394)(cid:423)(cid:472)(cid:478)(cid:513)(cid:464)(cid:3)(cid:1475)(cid:1582)(cid:1473)(cid:3)(cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:3)(cid:478)(cid:633)(cid:633)(cid:478)(cid:3)
households. Other video streaming services Mirada integrated for izzi inclu-
(cid:430)(cid:437)(cid:3)(cid:121)(cid:437)(cid:584)(cid:732)(cid:478)(cid:622)(cid:1577)(cid:3)(cid:82)(cid:32)(cid:132)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:4)(cid:511)(cid:394)(cid:633)(cid:524)(cid:513)(cid:3)(cid:167)(cid:562)(cid:478)(cid:511)(cid:437)(cid:3)(cid:223)(cid:478)(cid:430)(cid:437)(cid:524)(cid:1582)(cid:3)
izzi is Mirad a’s key Tier I s ta ke ho ld er refe re n ce.
They continue to tru s t us to p rov id e t he ir f la g sh i p
v i deo platform with th e m os t a d vanc ed fea tu re s
to remain at the forefr ont of th ei r s pac e.
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PAGE 15
ANNUAL REPORT 2021
CASE STUDIES
One of the main Bolivian pay TV servi-
ces, Digital TV Cable, was initially focu-
sed on OTT service. It serves as a strong
reference for our commercial activities
in neighbouring countries.
BOLIVIA
FIR ST L AU NCH
201 9
We are carrying out a prestigious
project
in Bermuda for OneComm,
owned by our customer ATN internatio-
nal, a NASDAQ-listed company with
telco operations worldwide.
several
Their FibreWire TV service focuses on
delivering the best content to a very
demanding Tier 1 customer base.
BERMUDA
FIR ST L AU NCH
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(our
This is currently our key reference in
Asia. Skytel’s SkyGo app
Iris
product) ranked #1 as the most popular
app on Mongolian Google Play Store
and Apple’s AppStore. Excellent referen-
ce which showcases our capacity to
deliver a premium product to lower tier
customers.
MONG OLI A
FIR ST L AU NCH
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PAGE 16
© 2021 Mirada
CA SE STU DI ES
ANNUAL REPORT 2021
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(cid:119)(cid:478)(cid:562)(cid:394)(cid:430)(cid:394)(cid:3)(cid:570)(cid:592)(cid:423)(cid:423)(cid:437)(cid:570)(cid:570)(cid:463)(cid:592)(cid:502)(cid:502)(cid:623)(cid:3)(cid:502)(cid:394)(cid:592)(cid:513)(cid:423)(cid:472)(cid:437)(cid:430)(cid:3)(cid:223)(cid:478)(cid:623)(cid:394)(cid:3)(cid:192)(cid:223)(cid:1685)(cid:3)(cid:478)(cid:513)(cid:3)
the US Virgin Islands in the middle of
the pandemic. It was the second launch
international, which helped
for ATN
strengthen our relationship with this
high priority customer.
US VIRGIN
ISLANDS
FIR ST L AU NCH
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Deployed Zapi TV for a conglomerate of
regional Spanish operators as a shared OTT
platform with the goal of reaching 600,000
launch attracted the
subscribers. The
attention of several regional pay TV provi-
ders around the world with ambitions to
unite their efforts under a solution similar
to Zapi’s and challenge the Tier 1 providers.
SPAIN
FIR ST L AU NCH
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© 2021 Mirada
PAGE 17
T V & V I DE O TE CH T RENDS
ANNUAL REPORT 2021
TV & VIDEO TECH
TRENDS
Some may think T V is dyin g,
that it belongs in the pas t.
But t he truth i s that T V. ..
is jus t cha nging.
The COVID-19 pandemic has surprised opera-
and explore a wide variety of new services
tors with an unprecedented rise in the use of
and content.
their platforms. Across the globe, consumers
have increasingly relied on TV and streaming
Moreover, consumers not only demand quali-
services to keep up to date with the latest
ty and affordable content, but they also want
news, enjoy their favourite movies or series,
it whenever and wherever they choose.
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PAGE 19
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ANNUAL REPORT 2021
T V & VIDE O TECH T RENDS
BR ING YOU R OWN DEVI CE
The trend
Although the TV set remains the main device used to watch video content, new consumption
habits across smartphones and tablets, both at home and on the go, have emerged. That’s what
(cid:584)(cid:472)(cid:437)(cid:3)(cid:478)(cid:513)(cid:430)(cid:592)(cid:570)(cid:584)(cid:562)(cid:623)(cid:3)(cid:472)(cid:394)(cid:570)(cid:3)(cid:423)(cid:394)(cid:502)(cid:502)(cid:437)(cid:430)(cid:3)(cid:584)(cid:472)(cid:437)(cid:3)(cid:1625)(cid:32)(cid:562)(cid:478)(cid:513)(cid:464)(cid:3)(cid:230)(cid:524)(cid:592)(cid:562)(cid:3)(cid:132)(cid:617)(cid:513)(cid:3)(cid:40)(cid:437)(cid:616)(cid:478)(cid:423)(cid:437)(cid:3)(cid:1600)(cid:32)(cid:230)(cid:132)(cid:40)(cid:1601)(cid:1626)(cid:3)(cid:559)(cid:472)(cid:437)(cid:513)(cid:524)(cid:511)(cid:437)(cid:513)(cid:524)(cid:513)(cid:1582)
The opportunity
Mirada’s strategy
Pay TV operators and telcos are adap-
Mirada’s solution allows operators to offer
ting by investing in multiscreen solutions.
their content to the end-user on almost
When the consumer uses their own
TVs, STBs, tablets, mobile phones, compu-
device, the operator can reduce their total
ters and game consoles, amongst others.
spend on hardware and can reinvest in
This places Mirada in a unique position in
content and technology.
the market.
any device available on the market: smart
SMART T V
SET-TOP BOXES
STREAMING DEVICES
VOI CE ASSISTANT
TABLETS & MOBILES
WEB CLIENT S
AirPlay
SVOD BOOM
The trend
The opportunity
(cid:121)(cid:437)(cid:584)(cid:732)(cid:478)(cid:622)(cid:1577)(cid:3)(cid:40)(cid:478)(cid:570)(cid:513)(cid:437)(cid:623)(cid:1685)(cid:1577)(cid:3)(cid:4)(cid:559)(cid:559)(cid:502)(cid:437)(cid:3)(cid:192)(cid:223)(cid:1685)(cid:1577)(cid:3)(cid:4)(cid:511)(cid:394)(cid:633)(cid:524)(cid:513)(cid:3)(cid:167)(cid:562)(cid:478)(cid:511)(cid:437)(cid:3)
SVOD Revenue is expected to show an
Video… The number of Subscription Video
annual growth rate (CAGR 2021-2025) of
on Demand (SVoD) services per person
(cid:1473)(cid:1473)(cid:1582)(cid:1472)(cid:1475)(cid:1709)(cid:1577)(cid:3) (cid:562)(cid:437)(cid:570)(cid:592)(cid:502)(cid:584)(cid:478)(cid:513)(cid:464)(cid:3) (cid:478)(cid:513)(cid:3) (cid:394)(cid:3) (cid:559)(cid:562)(cid:524)(cid:495)(cid:437)(cid:423)(cid:584)(cid:437)(cid:430)(cid:3) (cid:511)(cid:394)(cid:562)(cid:498)(cid:437)(cid:584)(cid:3)
(cid:472)(cid:394)(cid:570)(cid:3) (cid:562)(cid:437)(cid:394)(cid:423)(cid:472)(cid:437)(cid:430)(cid:3) (cid:1475)(cid:1577)(cid:1477)(cid:3) (cid:478)(cid:513)(cid:3) (cid:584)(cid:472)(cid:437)(cid:3) (cid:199)(cid:178)(cid:3) (cid:394)(cid:584)(cid:3) (cid:584)(cid:472)(cid:437)(cid:3) (cid:437)(cid:513)(cid:430)(cid:3) (cid:524)(cid:463)(cid:3)
volume of US$108,660m by 2025 (Statista,
2020 (Kantar, Entertainment On Demand
Digital Media Report Statista Digital
Panel, 2021) compared to 2,4 in 2019
Market Outlook, 2021).
(Horowitz Research, FOCUS OTT & SVOD,
2019).
Historical content producers such as
Disney, Paramount and Discovery are
With an increasing number of new com-
deciding
to distribute
their content
petitors, the pay TV and OTT streaming
through their own platform resulting in
markets are dynamic yet fragmented,
more demand for technological partners.
while customer frustrations are rising.
Customer frustration has created the
urgent need for consolidated content
management.
PAGE 20
© 2021 Mirada
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T V & V I DE O TE CH T RENDS
ANNUAL REPORT 2021
Mirada’s strategy
Mirada has adopted a super-aggregation
(cid:394)(cid:422)(cid:502)(cid:437)(cid:3) (cid:584)(cid:524)(cid:3) (cid:524)(cid:463)(cid:463)(cid:437)(cid:562)(cid:3) (cid:524)(cid:559)(cid:437)(cid:562)(cid:394)(cid:584)(cid:524)(cid:562)(cid:570)(cid:3) (cid:394)(cid:3) (cid:423)(cid:524)(cid:511)(cid:559)(cid:502)(cid:437)(cid:584)(cid:437)(cid:502)(cid:623)(cid:3) (cid:592)(cid:513)(cid:478)(cid:731)(cid:437)(cid:430)(cid:3)
strategy that enables companies providing
service experience, and the ability to charge
Pay TV services to become an entertainment
end viewers for different content providers
hub, facilitating access to multiple content
under a single bill.
providers from a single entry point.
(cid:32)(cid:623)(cid:3)
(cid:478)(cid:513)(cid:584)(cid:437)(cid:464)(cid:562)(cid:394)(cid:584)(cid:478)(cid:513)(cid:464)(cid:3) (cid:121)(cid:437)(cid:584)(cid:732)(cid:478)(cid:622)(cid:1577)(cid:3) (cid:40)(cid:478)(cid:570)(cid:513)(cid:437)(cid:623)(cid:1685)(cid:1577)(cid:3) (cid:4)(cid:511)(cid:394)(cid:633)(cid:524)(cid:513)(cid:3)
integration sets in the industry, giving us a
(cid:167)(cid:562)(cid:478)(cid:511)(cid:437)(cid:3)(cid:223)(cid:478)(cid:430)(cid:437)(cid:524)(cid:1577)(cid:3)(cid:82)(cid:32)(cid:132)(cid:3)(cid:119)(cid:394)(cid:622)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:1475)(cid:1472)(cid:1685)(cid:3)(cid:524)(cid:584)(cid:472)(cid:437)(cid:562)(cid:3)(cid:423)(cid:524)(cid:513)(cid:584)(cid:437)(cid:513)(cid:584)(cid:3)
competitive advantage and placing us in a
(cid:559)(cid:562)(cid:524)(cid:616)(cid:478)(cid:430)(cid:437)(cid:562)(cid:570)(cid:3)(cid:478)(cid:513)(cid:584)(cid:524)(cid:3)(cid:524)(cid:592)(cid:562)(cid:3)(cid:732)(cid:394)(cid:464)(cid:570)(cid:472)(cid:478)(cid:559)(cid:3)(cid:88)(cid:562)(cid:478)(cid:570)(cid:3)(cid:559)(cid:562)(cid:524)(cid:430)(cid:592)(cid:423)(cid:584)(cid:1577)(cid:3)(cid:617)(cid:437)(cid:3)(cid:394)(cid:562)(cid:437)(cid:3)
leading position in the market right now.
We have one of
the
richest content
ANDR OID T V
The trend
The opportunity
Google’s Android TV is fast becoming the
Users actively demand the functiona-
gold standard operating system for digital
lity associated with Android TV STBs, so
video platforms, so many operators around
operators are having to take action.
the world are reviewing their existing models
and considering how a transition to Android
Android TV allows operators to give
TV could take their service offering to the
access to a wide range of Android applica-
next level.
tions while maintaining their brand iden-
tity during the whole user experience.
In 2024, Android TV is expected to have 11.4%
of global pay TV STB shipments outside
Russia and China, up from 2.2% in 2019
(Omdia, Android TV: Pay-TV Operator Outlook
Update, 2020).
Mirada’s strategy
Mirada has already deployed Android TV with
the vast majority of its clients all around the
world, establishing strong references. Our
main differentiator is our ability to combine
the Android TV solution with a super aggre-
gation strategy, facilitating access to multiple
content providers from a single entry point.
© 2021 Mirada
PAGE 21
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ANNUAL REPORT 2021
TARGET MARKETS
TARGET
MARKETS
LATI N AM ER ICA
E UROPE
Opportunities
Opportunities
Growing middle-class population
(cid:40)(cid:478)(cid:616)(cid:437)(cid:562)(cid:570)(cid:478)(cid:731)(cid:423)(cid:394)(cid:584)(cid:478)(cid:524)(cid:513)(cid:3) (cid:524)(cid:463)(cid:3) (cid:119)(cid:478)(cid:562)(cid:394)(cid:430)(cid:394)(cid:1626)(cid:570)(cid:3) (cid:559)(cid:524)(cid:562)(cid:584)(cid:463)(cid:524)(cid:502)(cid:478)(cid:524)(cid:3)
leading to Pay TV organic growth.
such as offering Editorial services (see
page 12), allows us to attract new clients
Important market
for US-based
(cid:559)(cid:562)(cid:524)(cid:731)(cid:502)(cid:437)(cid:3)(cid:617)(cid:478)(cid:584)(cid:472)(cid:3)(cid:511)(cid:524)(cid:562)(cid:437)(cid:3)(cid:584)(cid:394)(cid:562)(cid:464)(cid:437)(cid:584)(cid:437)(cid:430)(cid:3)(cid:513)(cid:437)(cid:437)(cid:430)(cid:570)(cid:1582)
content providers.
Challenges
Political instability.
ASIA & PACIFIC
Opportunities
Rapid growth and urbanisation of the
population offer plenty of room for orga-
nic growth.
Huge appeal amongst consumers of a
TV anywhere concept means it is crucial
(cid:463)(cid:524)(cid:562)(cid:3)(cid:524)(cid:559)(cid:437)(cid:562)(cid:394)(cid:584)(cid:524)(cid:562)(cid:570)(cid:3)(cid:584)(cid:524)(cid:3)(cid:559)(cid:562)(cid:524)(cid:616)(cid:478)(cid:430)(cid:437)(cid:3)(cid:394)(cid:3)(cid:592)(cid:513)(cid:478)(cid:731)(cid:437)(cid:430)(cid:3)(cid:511)(cid:592)(cid:502)(cid:584)(cid:478)(cid:570)-
creen experience.
Challenges
Piracy is still common practice in some
countries.
(cid:40)(cid:478)(cid:463)(cid:731)(cid:423)(cid:592)(cid:502)(cid:584)(cid:3)(cid:584)(cid:524)(cid:3)(cid:423)(cid:524)(cid:511)(cid:559)(cid:437)(cid:584)(cid:437)(cid:3)(cid:524)(cid:513)(cid:3)(cid:559)(cid:562)(cid:478)(cid:423)(cid:437)(cid:3)(cid:617)(cid:478)(cid:584)(cid:472)(cid:3)(cid:502)(cid:524)(cid:423)(cid:394)(cid:502)(cid:3)
developers if money is the leading factor
in the bidding process.
Challenges
Mature market withseveral multina-
tional telcos with in-house technology
capability.
Strong competitive landscape with
many new and consolidated TV and video
service providers on the already saturated
market.
MI DD L E E AST
Opportunities
Growing demand for on-demand video
services from consumers in the region.
Demand for premium solutions in high
GDP/capita countries.
Challenges
Political instability in several countries.
Chinese manufacturers offer hardware
Legal requirement to have a registe-
(cid:562)(cid:437)(cid:430)(cid:3) (cid:524)(cid:463)(cid:731)(cid:423)(cid:437)(cid:3) (cid:524)(cid:562)(cid:3) (cid:502)(cid:524)(cid:423)(cid:394)(cid:502)(cid:3) (cid:559)(cid:562)(cid:524)(cid:616)(cid:478)(cid:430)(cid:437)(cid:562)(cid:3) (cid:478)(cid:513)(cid:3) (cid:511)(cid:394)(cid:513)(cid:623)(cid:3) (cid:74)(cid:592)(cid:502)(cid:463)(cid:3)
with pre-integrated basic software.
countries.
PAGE 22
© 2021 Mirada
We help viewers
enjoy the T V of
to mo rrow, toda y.
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ANNUAL REPORT 2021
SNAPSHOT OF TH E YE AR
SNAPSHOT
OF THE YEAR
Fit for the future.
RE FI NING AN D OPTIMISING
OUR APPROACH
Used the pandemic as an opportunity to accelerate opera-
tional investments and initiatives to position Mirada for
sustainable, long-term growth.
Unparalleled dedication to product improvement and inno-
vation, with 30% of revenues reinvested into R&D&i.
Transitioned to a new reseller sales strategy with marked
increase in new commercial opportunities.
Added partnerships with Disney+ and Amazon Prime Video to
sit alongside the likes of Netflix and HBO, completing the
integration with all major providers and giving Mirada one of
the richest offerings in the industry.
Built strongest pipeline to date on the back of progressive
improvement in trading conditions seen in the second half.
PAGE 24
© 2021 Mirada
SNA PSHOT OF TH E YE AR
ANNUAL REPORT 2021
HEL PING OUR CUSTOMER S
AC HIEVE THEIR BUSINESS OBJ ECT IVE S
Began the biggest rollout of Android TV-powered set-top
boxes in Latin America with the extension of izzi’s pay TV
service in the fourth quarter.
Powered the launch of ATN international-owned Viya offering
‘Viya TV+ ’ in the US Virgin Islands.
Powered the launch of ‘Zapi’, a new OTT based pay TV plat-
form developed for PMO in Spain.
A CREDITAB LE FINANCIAL
P ERFORMANCE
Resilient revenues underpinned by growing proportion of
recurring licence fees.
$11.13 million (2020: $13.16 million), in line with market expectations.
Solid adjusted EBITDA delivery supported by successful
management of finances through pandemic.
$1.75 million (2020: $2.50 million), ahead of market expectations.
Maintained efficient debt structure and supportive
shareholders.
Extended Leasa Spain, S.L.U. credit facility to a total of €3.0
million, expiring November 2022.
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COVID-19 RESPON SE
COVID-19
RESPONSE
(cid:224)(cid:472)(cid:478)(cid:502)(cid:437)(cid:3)(cid:617)(cid:437)(cid:3)(cid:731)(cid:513)(cid:394)(cid:502)(cid:502)(cid:623)(cid:3)(cid:422)(cid:437)(cid:464)(cid:478)(cid:513)(cid:3)(cid:584)(cid:524)(cid:3)(cid:570)(cid:437)(cid:437)(cid:3)(cid:584)(cid:472)(cid:437)(cid:3)(cid:437)(cid:513)(cid:430)(cid:3)(cid:524)(cid:463)(cid:3)(cid:584)(cid:472)(cid:437)(cid:3)
Below, we have outlined how the market has
COVID-19 pandemic, or at least a way to live
changed over the course of the past year, and
with it thanks to vaccination efforts, experts
how we are continually assessing the situa-
agree that its effects will continue to be felt
tion and adapting how we work to enable us
for some time to come.
to continue offering the best services to our
clients worldwide.
THE DIGITA L T V MA R KET
ON HOLD
DELI VERIN G T HE BES T
I N A CHANGING WOR LD
Demand for video entertainment has
skyrocketed as a result of the lockdowns in
2020 and this trend is showing no signs of
slowing down in the near future.
Despite increased demand, the economic
uncertainty brought on by the pandemic has
put new investments into technology on hold.
We quickly had to adapt to new ways of
working and collaborating, ensuring that we
were able to maintain our strong relation-
ships with customers and partners despite
the reduced face-to-face interaction.
Achieved a smooth transition to remote
work with no operational impact to our activity.
Cautious stakeholders have moved their
projects to the second half of 2021, doubling
the opportunities and potential contract wins
to take advantage of.
Successful remote deployments for izzi,
Zapi and Viya during the pandemic which
were achieved through the use of cloud-
based technology.
BECOMI NG M ORE PEOPL E-
ORIENTED & COMPET ITI VE
Our sector requires experienced and
highly technical staff, which have traditionally
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We have reinforced our work culture,
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(cid:562)(cid:437)(cid:511)(cid:524)(cid:584)(cid:437)(cid:1612)(cid:731)(cid:562)(cid:570)(cid:584)(cid:3)
working to all employees as a company perk,
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those who choose to utilise it.
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This change aims to promote a more
positive work-life balance amongst our
employees, which will increase engagement
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expenses.
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C EO RE VI EW
ANNUAL REPORT 2021
CEO
REVIEW
PROGRESS IN A C HA LLEN G I N G YEA R A N D
PRIMED TO TAKE ADVAN TAG E O F T H E R EC OVERY
While we, like many in our space, were not
immune to the effects of the COVID-19
pandemic over the past year, I am proud of
how our teams have responded and what we
have been able to achieve as a result.
Post-period, as we progress through the new
(cid:731)(cid:513)(cid:394)(cid:513)(cid:423)(cid:478)(cid:394)(cid:502)(cid:3) (cid:623)(cid:437)(cid:394)(cid:562)(cid:1577)(cid:3) (cid:617)(cid:437)(cid:3) (cid:430)(cid:524)(cid:3) (cid:570)(cid:524)(cid:3) (cid:617)(cid:478)(cid:584)(cid:472)(cid:3) (cid:524)(cid:592)(cid:562)(cid:3) (cid:570)(cid:584)(cid:562)(cid:524)(cid:513)(cid:464)(cid:437)(cid:570)(cid:584)(cid:3)
(cid:224)(cid:437)(cid:3)(cid:437)(cid:513)(cid:584)(cid:437)(cid:562)(cid:3)(cid:584)(cid:472) (cid:437)(cid:3)(cid:513) (cid:437)(cid:617)(cid:3)(cid:760)(cid:513) (cid:394)(cid:513) (cid:423) (cid:478)(cid:394)(cid:502)(cid:3)
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outlook to date and a genuine sense of
and prospective customers,
increasingly
excitement and optimism as to what can be
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achieved through strong references, the
improved product offering and commercial
return of investment appetite among existing
strategy.
© 2021 Mirada
PAGE 27
ANNUAL REPORT 2021
CEO REVIEW
FAVOURABLE MA RKET TREN D S
THAT SUPPOR T OUR AMBI T I O N S
The rise of
super-aggregatio n
In recent years, the TV market has been
Consumers increasingly value simplicity, so
disrupted by over-the-top (OTT) operators
there is a need for platforms to deliver a fast,
(cid:570)(cid:592)(cid:423)(cid:472)(cid:3)(cid:394)(cid:570)(cid:3)(cid:121)(cid:437)(cid:584)(cid:732)(cid:478)(cid:622)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:4)(cid:511)(cid:394)(cid:633)(cid:524)(cid:513)(cid:3)(cid:167)(cid:562)(cid:478)(cid:511)(cid:437)(cid:3)(cid:223)(cid:478)(cid:430)(cid:437)(cid:524)(cid:3)(cid:617)(cid:472)(cid:524)(cid:3)
straightforward and highquality user expe-
have transformed the user experience, initially
rience making content from various online
impacting the business models of traditional
video services available and searchable in
pay TV operators with a wave of “cord-cutters”,
one place and presenting the user with all
costing billions a year in lost subscription cash
their subscriptions under one bill. Important-
(cid:732)(cid:524)(cid:617)(cid:570)(cid:1582)(cid:3) (cid:82)(cid:524)(cid:617)(cid:437)(cid:616)(cid:437)(cid:562)(cid:1577)(cid:3) (cid:584)(cid:472)(cid:524)(cid:570)(cid:437)(cid:3) (cid:559)(cid:394)(cid:623)(cid:3) (cid:192)(cid:223)(cid:3) (cid:524)(cid:559)(cid:437)(cid:562)(cid:394)(cid:584)(cid:524)(cid:562)(cid:570)(cid:3) (cid:472)(cid:394)(cid:616)(cid:437)(cid:3)
ly, to deliver these complex services, pay TV
not only invested in cloud TV to deliver
operators need to work with
innovative
anywhere, anytime, any device services but
software partners
like Mirada that have
have responded to the increasingly fragmen-
proven capability
in delivering cloud
ted and complex landscape by positioning
solutions.
themselves as “super-aggregators” – a model
that has accelerated in the pandemic and as
more
content owners have
launched
direct-to-consumer (D2C) services.
(cid:192)(cid:472) (cid:437)(cid:562)(cid:437)(cid:3)(cid:478)(cid:570)(cid:3)(cid:394) (cid:3)(cid:513) (cid:437)(cid:437) (cid:430)(cid:3)(cid:463)(cid:524)(cid:562)(cid:3)
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An d ro id T V a s the n ew g ol d
s tan da rd op erating sys tem
Today, Android TV has emerged as the opera-
ting system (OS) roadmap of choice for most
operators. Google TV launched in 2010 and
ran on several high-end, early generation
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C EO RE VI EW
ANNUAL REPORT 2021
Smart TVs and streaming devices. However, it
capable of quickly delivering the premium
ultimately proved unpopular, largely because
content and multiscreen proposition that
operators were concerned that Google was
can reduce churn and increase premium
attempting to ‘own’ the subscriber. Google
subscriptions. Mirada’s success and un-
discontinued the software and replaced it
common track-record in large scale Android
with Android TV in 2014. Android TV is a far
TV deployments positions us to be a major
more open OS, enabling developers to build
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apps, viewers to access the Google Play Store
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most importantly – allowing operators to
layer on their own user interfaces and brand-
ing. The relative ease of implementation
(globally supported,
large-scale platform
with access to wide content) means the
Android TV OS is increasingly being viewed
by service providers as the OS of choice for
their TV and video set-top-box software,
(cid:119) (cid:478)(cid:562)(cid:394)(cid:430)(cid:394)(cid:1653)(cid:570)(cid:3)(cid:584)(cid:562)(cid:394)(cid:423)(cid:498)(cid:1639) (cid:562)(cid:437)(cid:423)(cid:524)(cid:562)(cid:430)(cid:3)(cid:478)(cid:513)(cid:3)
(cid:502)(cid:394)(cid:562)(cid:464)(cid:437) (cid:3)(cid:570)(cid:423)(cid:394)(cid:502)(cid:437)(cid:3)(cid:4)(cid:513) (cid:430) (cid:562)(cid:524)(cid:478)(cid:430)(cid:3) (cid:192)(cid:223)(cid:3)
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Content provid ers moving in to D2 C T V se rv ic es
One of the most exciting, emerging trends in our space is with content providers (companies like
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offering new direct-to-consumer TV services. Our domain knowledge and software expertise mean
we are just as well-positioned to support these content providers, as they look to build their apps, as
we are in helping traditional operators roll-out aggregated anywhere, anytime, any device TV servi-
(cid:423)(cid:437)(cid:570)(cid:1582)(cid:3)(cid:4)(cid:502)(cid:584)(cid:472)(cid:524)(cid:592)(cid:464)(cid:472)(cid:3)(cid:502)(cid:437)(cid:394)(cid:430)(cid:3)(cid:584)(cid:478)(cid:511)(cid:437)(cid:570)(cid:3)(cid:394)(cid:562)(cid:437)(cid:3)(cid:502)(cid:437)(cid:513)(cid:464)(cid:584)(cid:472)(cid:623)(cid:1577)(cid:3)(cid:617)(cid:437)(cid:3)(cid:394)(cid:562)(cid:437)(cid:3)(cid:422)(cid:437)(cid:464)(cid:478)(cid:513)(cid:513)(cid:478)(cid:513)(cid:464)(cid:3)(cid:584)(cid:524)(cid:3)(cid:570)(cid:437)(cid:437)(cid:3)(cid:524)(cid:559)(cid:559)(cid:524)(cid:562)(cid:584)(cid:592)(cid:513)(cid:478)(cid:584)(cid:478)(cid:437)(cid:570)(cid:3)(cid:437)(cid:511)(cid:437)(cid:562)(cid:464)(cid:437)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:394)(cid:562)(cid:437)(cid:3)(cid:423)(cid:524)(cid:513)(cid:731)-
dent we have the technology and resources to meet the requirements of these players.
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ANNUAL REPORT 2021
CEO REVIEW
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SIGNIFICANT CUS TOMER R O L LO UT S
AND GROW ING REFEREN C ES
One of the key achievements in the period
this is a potentially game-changing reference
was the fourth quarter deployment of our
and leaves us well-placed to win further
Android TV Operator Tier offering with izzi
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Telecom, in close collaboration with Google,
to help the Mexican telecommunications
In September 2020, we completed our largest
company deliver its ambitious super-aggre-
European launch of our Iris solution with
gation strategy. The Android TV Operator Tier,
‘Zapi’, a new OTT-based pay TV platform deve-
so called because it allows operators to custo-
loped by Plataforma Multimedia de Operado-
mise the look, feel and functionality of the
res (PMO), a conglomerate of local Spanish
platform, is emerging as the OS of choice for
telecommunications services
looking
to
many companies who value the control it
establish Zapi as one of the leading pay TV
grants them over the user experience.
platforms in the country. Zapi allows subscri-
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(cid:40)(cid:478)(cid:570) (cid:513) (cid:437)(cid:623)(cid:1712)(cid:1604)(cid:3)(cid:167)(cid:562)(cid:478)(cid:511) (cid:437)(cid:3)(cid:223)(cid:478)(cid:430) (cid:437)(cid:524)(cid:1604)(cid:3)
(cid:121)(cid:437)(cid:584)(cid:761)(cid:478)(cid:622)(cid:1604) (cid:3)(cid:82)(cid:32)(cid:132)(cid:3)(cid:394)(cid:513) (cid:430) (cid:3)(cid:524)(cid:584) (cid:472) (cid:437)(cid:562)(cid:570)(cid:1604)
(cid:478)(cid:584)(cid:1613)(cid:570)(cid:3)(cid:464)(cid:394)(cid:511) (cid:437) (cid:1639) (cid:423)(cid:472) (cid:394) (cid:513) (cid:464) (cid:478) (cid:513) (cid:464)(cid:1609)
bers to watch content across devices inclu-
ding Android TV-powered set-top boxes. Over
time, the service is expected to grow beyond
600,000 subscribers.
Elsewhere, we have continued to make
encouraging progress. In August 2020, our
Iris technology powered the launch of ATN
(cid:478)(cid:513)(cid:584)(cid:437)(cid:562)(cid:513)(cid:394)(cid:584)(cid:478)(cid:524)(cid:513)(cid:394)(cid:502)(cid:1612)(cid:524)(cid:617)(cid:513)(cid:437)(cid:430)(cid:3)(cid:1625)(cid:223)(cid:478)(cid:623)(cid:394)(cid:3)(cid:192)(cid:223)(cid:1685)(cid:1626)(cid:3)(cid:524)(cid:463)(cid:463)(cid:437)(cid:562)(cid:478)(cid:513)(cid:464)(cid:3)(cid:478)(cid:513)(cid:3)(cid:584)(cid:472)(cid:437)(cid:3)
US Virgin Islands. Customer satisfaction in
(cid:584)(cid:472)(cid:437)(cid:3)(cid:731)(cid:562)(cid:570)(cid:584)(cid:3)(cid:511)(cid:524)(cid:513)(cid:584)(cid:472)(cid:570)(cid:3)(cid:570)(cid:478)(cid:513)(cid:423)(cid:437)(cid:3)(cid:464)(cid:524)(cid:478)(cid:513)(cid:464)(cid:3)(cid:502)(cid:478)(cid:616)(cid:437)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:584)(cid:472)(cid:437)(cid:3)(cid:562)(cid:394)(cid:584)(cid:437)(cid:3)
Since the deployment began in October
of uptake by consumers has been high. Viya
2020,
izzi’s new set-top-boxes using our
is the second reference in the Caribbean,
technology have been rolled out at a rate of
after OneComm in Bermuda which launched
(cid:394)(cid:502)(cid:511)(cid:524)(cid:570)(cid:584)(cid:3) (cid:1473)(cid:1472)(cid:1472)(cid:1577)(cid:1472)(cid:1472)(cid:1472)(cid:3) (cid:559)(cid:437)(cid:562)(cid:3) (cid:511)(cid:524)(cid:513)(cid:584)(cid:472)(cid:1582)(cid:3) (cid:4)(cid:570)(cid:3) (cid:524)(cid:463)(cid:3) (cid:1475)(cid:1473)(cid:3) (cid:119)(cid:394)(cid:562)(cid:423)(cid:472)(cid:3)
in 2019.
2021, there were more than 450,000
in
circulation with the rate of deployment
While the pandemic has impacted the pace
(cid:394)(cid:423)(cid:423)(cid:437)(cid:502)(cid:437)(cid:562)(cid:394)(cid:584)(cid:478)(cid:513)(cid:464)(cid:3) (cid:559)(cid:524)(cid:570)(cid:584)(cid:1612)(cid:559)(cid:437)(cid:562)(cid:478)(cid:524)(cid:430)(cid:3) (cid:1600)(cid:478)(cid:513)(cid:3) (cid:584)(cid:524)(cid:584)(cid:394)(cid:502)(cid:1577)(cid:3) (cid:478)(cid:633)(cid:633)(cid:478)(cid:3) (cid:472)(cid:394)(cid:570)(cid:3) (cid:1475)(cid:1582)(cid:1473)(cid:3)
of subscriptions for SkyTel in Mongolia and
million set-top-boxes with Mirada including
Digital TV in Bolivia, the slowdown is expec-
those running the legacy Linux system). With
ted to be temporary as conditions normalise.
most new prospects being Android TV and
(cid:524)(cid:592)(cid:562)(cid:3) (cid:732)(cid:394)(cid:464)(cid:570)(cid:472)(cid:478)(cid:559)(cid:3)
(cid:88)(cid:562)(cid:478)(cid:570)(cid:3) (cid:570)(cid:524)(cid:502)(cid:592)(cid:584)(cid:478)(cid:524)(cid:513)(cid:3) (cid:513)(cid:524)(cid:617)(cid:3) (cid:422)(cid:524)(cid:394)(cid:570)(cid:584)(cid:478)(cid:513)(cid:464)(cid:3)
(cid:40)(cid:478)(cid:570)(cid:513)(cid:437)(cid:623)(cid:1685)(cid:1577)(cid:3) (cid:4)(cid:511)(cid:394)(cid:633)(cid:524)(cid:513)(cid:3) (cid:167)(cid:562)(cid:478)(cid:511)(cid:437)(cid:3) (cid:223)(cid:478)(cid:430)(cid:437)(cid:524)(cid:1577)(cid:3) (cid:121)(cid:437)(cid:584)(cid:732)(cid:478)(cid:622)(cid:1577)(cid:3) (cid:82)(cid:32)(cid:132)(cid:1577)(cid:3)
Fox and Blim TV integrations among others,
PAGE 30
© 2021 Mirada
C EO RE VI EW
ANNUAL REPORT 2021
OPERATIONAL IMPR OVEM EN T S T H AT
STAND US IN GOOD ST EA D
(cid:224)(cid:437)(cid:3) (cid:570)(cid:592)(cid:423)(cid:423)(cid:437)(cid:570)(cid:570)(cid:463)(cid:592)(cid:502)(cid:502)(cid:623)(cid:3) (cid:511)(cid:394)(cid:513)(cid:394)(cid:464)(cid:437)(cid:430)(cid:3) (cid:524)(cid:592)(cid:562)(cid:3) (cid:731)(cid:513)(cid:394)(cid:513)(cid:423)(cid:437)(cid:570)(cid:3)
from a direct country-based model to
(cid:584)(cid:472)(cid:562)(cid:524)(cid:592)(cid:464)(cid:472)(cid:3)(cid:584)(cid:472)(cid:437)(cid:3)(cid:559)(cid:394)(cid:513)(cid:430)(cid:437)(cid:511)(cid:478)(cid:423)(cid:1577)(cid:3)(cid:617)(cid:478)(cid:584)(cid:472)(cid:3)(cid:394)(cid:513)(cid:3)(cid:437)(cid:463)(cid:731)(cid:423)(cid:478)(cid:437)(cid:513)(cid:584)(cid:3)(cid:430)(cid:437)(cid:422)(cid:584)(cid:3)
building a reseller channel. The early signs
structure and shareholder support, which
(cid:394)(cid:562)(cid:437)(cid:3) (cid:437)(cid:513)(cid:423)(cid:524)(cid:592)(cid:562)(cid:394)(cid:464)(cid:478)(cid:513)(cid:464)(cid:1577)(cid:3) (cid:617)(cid:478)(cid:584)(cid:472)(cid:3) (cid:394)(cid:3) (cid:570)(cid:478)(cid:464)(cid:513)(cid:478)(cid:731)(cid:423)(cid:394)(cid:513)(cid:584)(cid:3) (cid:478)(cid:513)(cid:423)(cid:562)(cid:437)(cid:394)(cid:570)(cid:437)(cid:3)
leaves us well-positioned and gives us optio-
in the size of our pipeline. We believe this
nality as we look to return to growth.
shift
in strategy will have a positive,
(cid:224)(cid:437)(cid:3)(cid:423)(cid:524)(cid:513)(cid:584)(cid:478)(cid:513)(cid:592)(cid:437)(cid:3)(cid:584)(cid:524)(cid:3)(cid:559)(cid:562)(cid:524)(cid:616)(cid:478)(cid:430) (cid:437)(cid:3)
(cid:464)(cid:562)(cid:437)(cid:394)(cid:584)(cid:437)(cid:562)(cid:3)(cid:616)(cid:478)(cid:570)(cid:478)(cid:422)(cid:478) (cid:502)(cid:478)(cid:584)(cid:623)(cid:3)(cid:524)(cid:463)(cid:3)
(cid:437)(cid:394)(cid:562)(cid:513)(cid:478)(cid:513) (cid:464)(cid:570)(cid:1609)
long-term impact on the scalability of our
business model.
The travel restrictions also demonstrated our
full capability to showcase our products and
implement and upgrade our customers’
infrastructure and their subscribers’ set-top
boxes remotely. We expect this to have a
positive, longterm impact on our delivery
model, margins and
levels of customer
At the same time, we continue to grow our
satisfaction, even as travel restrictions begin
recurring software revenues, which provide
to ease.
us with greater visibility of earnings and
enable us to continue to
invest
in the
business. We expect our SaaS revenue model
to grow in our sales mix as we adapt our com-
mercial offering and as we target smaller
operators where it is an economically attracti-
ve model.
Another major development in the period
was the restructuring of our sales function
(cid:192)(cid:472) (cid:437)(cid:3)(cid:562)(cid:437)(cid:570)(cid:584)(cid:562)(cid:592)(cid:423) (cid:584)(cid:592)(cid:562)(cid:478)(cid:513) (cid:464)(cid:3)(cid:524)(cid:463)(cid:3)(cid:524)(cid:592)(cid:562)(cid:3)(cid:570)(cid:394) (cid:502) (cid:437)(cid:570) (cid:3)
(cid:463)(cid:592)(cid:513) (cid:423) (cid:584)(cid:478) (cid:524)(cid:513)(cid:3)(cid:617)(cid:478)(cid:502)(cid:502)(cid:3)(cid:472) (cid:394)(cid:616)(cid:437)(cid:3) (cid:394)(cid:3)(cid:502)(cid:524)(cid:513) (cid:464)(cid:1639) (cid:584)(cid:437) (cid:562)(cid:511) (cid:3)
(cid:478)(cid:511) (cid:559)(cid:394)(cid:423) (cid:584)(cid:3)(cid:524)(cid:513)(cid:3)(cid:584)(cid:472) (cid:437)(cid:3)(cid:570) (cid:423)(cid:394)(cid:502)(cid:394)(cid:422)(cid:478)(cid:502)(cid:478)(cid:584)(cid:623)(cid:3)(cid:524) (cid:463) (cid:3)(cid:524)(cid:592)(cid:562)(cid:3)
(cid:422)(cid:592)(cid:570)(cid:478)(cid:513) (cid:437)(cid:570)(cid:570)(cid:3)(cid:511) (cid:524)(cid:430)(cid:437) (cid:502)(cid:1609)
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© 2021 Mirada
PAGE 31
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ANNUAL REPORT 2021
CEO REVIEW
FINANC IAL OV ERVIEW
(cid:170)(cid:437)(cid:616)(cid:437)(cid:513)(cid:592)(cid:437)(cid:3) (cid:430)(cid:437)(cid:423)(cid:562)(cid:437)(cid:394)(cid:570)(cid:437)(cid:430)(cid:3) (cid:584)(cid:524)(cid:3) (cid:1661)(cid:1473)(cid:1473)(cid:1582)(cid:1473)(cid:1475)(cid:3) (cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:3) (cid:1600)(cid:1474)(cid:1472)(cid:1474)(cid:1472)(cid:1576)(cid:3)
Net Debt increased to $7.07 million (2020:
(cid:1661)(cid:1473)(cid:1475)(cid:1582)(cid:1473)(cid:1478)(cid:3)(cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:1601)(cid:3)(cid:422)(cid:437)(cid:423)(cid:394)(cid:592)(cid:570)(cid:437)(cid:3)(cid:524)(cid:463)(cid:3)(cid:584)(cid:472)(cid:437)(cid:3)(cid:430)(cid:437)(cid:502)(cid:394)(cid:623)(cid:478)(cid:513)(cid:464)(cid:3)(cid:437)(cid:463)(cid:463)(cid:437)(cid:423)(cid:584)(cid:3)
$5.05 million). Long-term
interest-bearing
of COVID-19 on customer and prospect
loans and borrowings increased to $5.40
investment decisions. Development revenue
million (2020: $2.40 million) and short-term
decreased to $5.61 million
(2020: $7.98
borrowings and related party
loans and
million). Licence revenues remained strong at
interest decreased to $1.78 million (2020:
(cid:1661)(cid:1475)(cid:1582)(cid:1477)(cid:1479)(cid:3)(cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:3)(cid:1600)(cid:1474)(cid:1472)(cid:1474)(cid:1472)(cid:1576)(cid:3)(cid:1661)(cid:1475)(cid:1582)(cid:1479)(cid:1479)(cid:3)(cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:1601)(cid:1582)
$2.85 million) – see note 20 for further details.
Trade receivables decreased
from $1.99
(cid:74)(cid:562)(cid:524)(cid:570)(cid:570)(cid:3) (cid:559)(cid:562)(cid:524)(cid:731)(cid:584)(cid:3) (cid:430)(cid:437)(cid:423)(cid:562)(cid:437)(cid:394)(cid:570)(cid:437)(cid:430)(cid:3) (cid:584)(cid:524)(cid:3) (cid:1661)(cid:1473)(cid:1472)(cid:1582)(cid:1480)(cid:1476)(cid:3) (cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:3)
(cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:3)(cid:584)(cid:524)(cid:3)(cid:1661)(cid:1473)(cid:1582)(cid:1480)(cid:1475)(cid:3)(cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:1582)
(2020: $12.48 million) and operating losses
(cid:478)(cid:513)(cid:423)(cid:562)(cid:437)(cid:394)(cid:570)(cid:437)(cid:430)(cid:3) (cid:584)(cid:524)(cid:3) (cid:1661)(cid:1474)(cid:1582)(cid:1477)(cid:1481)(cid:3) (cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:3)
(cid:1600)(cid:1474)(cid:1472)(cid:1474)(cid:1472)(cid:1576)(cid:3) (cid:1661)(cid:1473)(cid:1582)(cid:1475)(cid:1478)(cid:3)
(cid:167)(cid:524)(cid:570)(cid:584)(cid:3) (cid:559)(cid:437)(cid:562)(cid:478)(cid:524)(cid:430)(cid:3) (cid:437)(cid:513)(cid:430)(cid:1577)(cid:3) (cid:584)(cid:472)(cid:437)(cid:3) (cid:1663)(cid:1473)(cid:1582)(cid:1475)(cid:1472)(cid:3) (cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:3) (cid:423)(cid:562)(cid:437)(cid:430)(cid:478)(cid:584)(cid:3)
million). Staff costs increased to $7.10 million
facility granted by Leasa Spain, S.L.U., owned
(2020: $6.79 million), mainly due to the
by Mr. Ernesto Luis Tinajero Flores, who also
majority of our costs being incurred in Euros
owns 87.21% of the voting rights of Mirada,
and the depreciation of the US dollar. Other
(cid:617)(cid:394)(cid:570)(cid:3) (cid:437)(cid:622)(cid:584)(cid:437)(cid:513)(cid:430)(cid:437)(cid:430)(cid:3) (cid:584)(cid:524)(cid:3) (cid:394)(cid:3) (cid:584)(cid:524)(cid:584)(cid:394)(cid:502)(cid:3) (cid:524)(cid:463)(cid:3) (cid:1663)(cid:1475)(cid:1582)(cid:1472)(cid:3) (cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:1577)(cid:3)
administrative expenses decreased to $2.05
expiring November 2022.
(cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:3)(cid:1600)(cid:1474)(cid:1472)(cid:1474)(cid:1472)(cid:1576)(cid:3)(cid:1661)(cid:1475)(cid:1582)(cid:1474)(cid:1472)(cid:3)(cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:1601)(cid:1582)
Other intangible assets have increased by
$0.68 million, mainly due to the development
of our custom launcher for Android TV.
(cid:192)(cid:472)(cid:437)(cid:3)(cid:74)(cid:562)(cid:524)(cid:592)(cid:559)(cid:3)(cid:464)(cid:437)(cid:513)(cid:437)(cid:562)(cid:394)(cid:584)(cid:437)(cid:430)(cid:3)(cid:1661)(cid:1475)(cid:1582)(cid:1473)(cid:1477)(cid:3)(cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:3)(cid:524)(cid:463)(cid:3)(cid:423)(cid:394)(cid:570)(cid:472)(cid:3)(cid:478)(cid:513)(cid:3)
operating activities in the year (2020: $1.80
million), an increase mainly driven by working
capital differences, and spent a further $4.17
(cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:3) (cid:1600)(cid:1474)(cid:1472)(cid:1474)(cid:1472)(cid:1576)(cid:3) (cid:1661)(cid:1476)(cid:1582)(cid:1475)(cid:1480)(cid:3) (cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:1601)(cid:3)
(cid:478)(cid:513)(cid:3)
(cid:478)(cid:513)(cid:616)(cid:437)(cid:570)(cid:584)(cid:478)(cid:513)(cid:464)(cid:3)
activities. The operating and investing cash
Despite the temporary revenue reduction,
(cid:732)(cid:524)(cid:617)(cid:570)(cid:3) (cid:617)(cid:437)(cid:562)(cid:437)(cid:3) (cid:463)(cid:592)(cid:513)(cid:430)(cid:437)(cid:430)(cid:3) (cid:422)(cid:623)(cid:3) (cid:584)(cid:472)(cid:437)(cid:3) (cid:511)(cid:524)(cid:616)(cid:437)(cid:511)(cid:437)(cid:513)(cid:584)(cid:3) (cid:478)(cid:513)(cid:3) (cid:513)(cid:437)(cid:584)(cid:3)
the reduction in costs helped support an
debt explained above. This resulted in a
(cid:394)(cid:430)(cid:495)(cid:592)(cid:570)(cid:584)(cid:437)(cid:430)(cid:3) (cid:48)(cid:32)(cid:88)(cid:192)(cid:40)(cid:4)(cid:3) (cid:1600)(cid:394)(cid:570)(cid:3) (cid:430)(cid:437)(cid:731)(cid:513)(cid:437)(cid:430)(cid:3) (cid:478)(cid:513)(cid:3) (cid:121)(cid:524)(cid:584)(cid:437)(cid:3) (cid:1479)(cid:1601)(cid:3) (cid:524)(cid:463)(cid:3)
decrease in cash and cash equivalents of
$1.70 million (2020: $2.50 million). A tax credit
$0.07 million.
was recognised in the period of $0.17 million
(cid:1600)(cid:1474)(cid:1472)(cid:1474)(cid:1472)(cid:1576)(cid:3) (cid:1661)(cid:1472)(cid:1582)(cid:1475)(cid:1473)(cid:3) (cid:511)(cid:478)(cid:502)(cid:502)(cid:478)(cid:524)(cid:513)(cid:1601)(cid:3) (cid:463)(cid:562)(cid:524)(cid:511)(cid:3) (cid:119)(cid:478)(cid:562)(cid:394)(cid:430)(cid:394)(cid:3) (cid:88)(cid:422)(cid:437)(cid:562)(cid:478)(cid:394)(cid:1626)(cid:570)(cid:3)
The Company has adopted the following new
research and innovation tax deductions. As a
accounting standards with effect from 1 April
result, the Company recorded a net loss for
2020:
continued activities of the year of $2.99
million (2020: loss of $1.11 million). The Board
Amendments to IAS 1 and IAS 8
expects
that
the maturity of present
contracts
through
increased subscriber-
(cid:4)(cid:511)(cid:437)(cid:513)(cid:430)(cid:511)(cid:437)(cid:513)(cid:584)(cid:570)(cid:3)(cid:584)(cid:524)(cid:3)(cid:88)(cid:73)(cid:170)(cid:178)(cid:3)(cid:1475)(cid:3)(cid:1609)(cid:3)(cid:422)(cid:592)(cid:570)(cid:478)(cid:513)(cid:437)(cid:570)(cid:570)(cid:3)
based licence fees, plus the addition of new
combinations
customers as a result of the implementation
of our sales strategy, will increase the global
(cid:178)(cid:437)(cid:437)(cid:3)(cid:121)(cid:524)(cid:584)(cid:437)(cid:3)(cid:1475)(cid:3)(cid:463)(cid:524)(cid:562)(cid:3)(cid:463)(cid:592)(cid:562)(cid:584)(cid:472)(cid:437)(cid:562)(cid:3)(cid:478)(cid:513)(cid:463)(cid:524)(cid:562)(cid:511)(cid:394)(cid:584)(cid:478)(cid:524)(cid:513)(cid:3)(cid:524)(cid:513)(cid:3)(cid:584)(cid:472)(cid:437)(cid:3)
turnover as the mix of licence revenues
new IFRS standards.
increases with a
limited corresponding
development investment, resulting in better
(cid:511)(cid:394)(cid:562)(cid:464)(cid:478)(cid:513)(cid:570)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:394)(cid:513)(cid:3)(cid:478)(cid:511)(cid:559)(cid:562)(cid:524)(cid:616)(cid:437)(cid:430)(cid:3)(cid:559)(cid:562)(cid:524)(cid:731)(cid:584)(cid:3)(cid:502)(cid:437)(cid:616)(cid:437)(cid:502)(cid:1582)
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© 2021 Mirada
C EO RE VI EW
ANNUAL REPORT 2021
OUR STRONGE ST OUT LO O K TO DAT E AS
TRADING C ONDITION S N O RMA L I SE
Mirada’s primary target market is a group of
sion to pre-pandemic levels of appetite for
(cid:394)(cid:562)(cid:524)(cid:592)(cid:513)(cid:430)(cid:3) (cid:1475)(cid:1477)(cid:1472)(cid:1612)(cid:1476)(cid:1472)(cid:1472)(cid:3) (cid:584)(cid:437)(cid:502)(cid:437)(cid:423)(cid:524)(cid:511)(cid:511)(cid:592)(cid:513)(cid:478)(cid:423)(cid:394)(cid:584)(cid:478)(cid:524)(cid:513)(cid:570)(cid:3) (cid:394)(cid:513)(cid:430)(cid:3)
investment from both existing and prospecti-
broadcast operators globally. Each year, we
ve customers.
typically see around one in ten reach a point
in their cycle where they choose to review
With the widespread deferral we saw during
their integrated software provider. For most
(cid:584)(cid:472)(cid:437)(cid:3) (cid:623)(cid:437)(cid:394)(cid:562)(cid:1577)(cid:3) (cid:617)(cid:437)(cid:3) (cid:394)(cid:562)(cid:437)(cid:3) (cid:437)(cid:622)(cid:559)(cid:437)(cid:423)(cid:584)(cid:478)(cid:513)(cid:464)(cid:3) (cid:584)(cid:524)(cid:3) (cid:570)(cid:437)(cid:437)(cid:3) (cid:570)(cid:478)(cid:464)(cid:513)(cid:478)(cid:731)(cid:423)(cid:394)(cid:513)(cid:584)(cid:3)
of the year, however, this fell to almost zero as
pent-up demand and considerably more new
those operators chose to postpone their
business opportunities emerge in the coming
decision-making processes until there was
months alongside a growing pipeline of
greater clarity around the future of the
opportunities with existing customers as they
pandemic. New business activity across the
look to enhance their user experiences. Lead
(cid:478)(cid:513)(cid:430)(cid:592)(cid:570)(cid:584)(cid:562)(cid:623)(cid:3)(cid:1609)(cid:3)(cid:559)(cid:394)(cid:562)(cid:584)(cid:478)(cid:423)(cid:592)(cid:502)(cid:394)(cid:562)(cid:502)(cid:623)(cid:3)(cid:478)(cid:513)(cid:3)(cid:584)(cid:472)(cid:437)(cid:3)(cid:731)(cid:562)(cid:570)(cid:584)(cid:3)(cid:472)(cid:394)(cid:502)(cid:463)(cid:3)(cid:1609)(cid:3)(cid:437)(cid:463)(cid:463)(cid:437)(cid:423)-
times in our industry can be lengthy so it is
tively ground to a halt.
(cid:178) (cid:437)(cid:437) (cid:3)(cid:464) (cid:562)(cid:524)(cid:617)(cid:478)(cid:513) (cid:464)(cid:3) (cid:478)(cid:513) (cid:430)(cid:478)(cid:423)(cid:394)(cid:584) (cid:478)(cid:524)(cid:513)(cid:570)(cid:3) (cid:524)(cid:463)(cid:3)
(cid:394)(cid:559)(cid:559)(cid:437)(cid:584) (cid:478)(cid:584)(cid:437)(cid:3)(cid:463)(cid:524)(cid:562)(cid:3) (cid:478)(cid:513)(cid:616)(cid:437)(cid:570)(cid:584)(cid:511) (cid:437)(cid:513)(cid:584) (cid:3)(cid:463) (cid:562)(cid:524)(cid:511) (cid:3)
(cid:422)(cid:524)(cid:584) (cid:472)(cid:3) (cid:437)(cid:622)(cid:478)(cid:570)(cid:584) (cid:478)(cid:513) (cid:464)(cid:3)(cid:394)(cid:513) (cid:430)(cid:3) (cid:559)(cid:562)(cid:524)(cid:570)(cid:559) (cid:437)(cid:423) (cid:584) (cid:478)(cid:616)(cid:437)(cid:3)
(cid:423)(cid:592) (cid:570)(cid:584)(cid:524)(cid:511) (cid:437)(cid:562)(cid:570)(cid:1609)
(cid:430)(cid:478)(cid:463)(cid:731)(cid:423)(cid:592)(cid:502)(cid:584)(cid:3) (cid:584)(cid:524)(cid:3) (cid:463)(cid:524)(cid:562)(cid:437)(cid:423)(cid:394)(cid:570)(cid:584)(cid:3) (cid:437)(cid:622)(cid:394)(cid:423)(cid:584)(cid:502)(cid:623)(cid:3) (cid:617)(cid:472)(cid:437)(cid:513)(cid:3) (cid:513)(cid:437)(cid:617)(cid:3) (cid:430)(cid:437)(cid:394)(cid:502)(cid:570)(cid:3)
will materialise, but the outlook is positive –
particularly in Asia – and with our new reseller
(cid:511)(cid:524)(cid:430)(cid:437)(cid:502)(cid:3) (cid:513)(cid:524)(cid:617)(cid:3) (cid:478)(cid:513)(cid:3) (cid:559)(cid:502)(cid:394)(cid:423)(cid:437)(cid:3) (cid:617)(cid:437)(cid:3) (cid:394)(cid:562)(cid:437)(cid:3) (cid:423)(cid:524)(cid:513)(cid:731)(cid:430)(cid:437)(cid:513)(cid:584)(cid:3) (cid:524)(cid:463)(cid:3) (cid:394)(cid:3)
return to the commercial momentum that
was building before the pandemic took hold.
The past year has been challenging in many
ways, but we emerge from it a stronger
business with a powerful product offering
that puts us at the forefront of the latest
market trends; impressive references; a leaner,
(cid:511)(cid:524)(cid:562)(cid:437)(cid:3) (cid:437)(cid:463)(cid:731)(cid:423)(cid:478)(cid:437)(cid:513)(cid:584)(cid:3) (cid:570)(cid:394)(cid:502)(cid:437)(cid:570)(cid:3) (cid:570)(cid:584)(cid:562)(cid:394)(cid:584)(cid:437)(cid:464)(cid:623)(cid:1587)(cid:3) (cid:394)(cid:513)(cid:430)(cid:3) (cid:394)(cid:3) (cid:464)(cid:562)(cid:524)(cid:617)(cid:478)(cid:513)(cid:464)(cid:3)
proportion of recurring revenues. We have
Similarly, we saw a temporary slowdown in
ambitious plans to drive the business forward
professional services
revenue
from our
in the coming months and I look forward to
existing customers as their immediate priori-
keeping shareholders updated.
ties shifted away from areas like optional
functionality upgrades.
Encouragingly, as we moved through the
(cid:570)(cid:437)(cid:423)(cid:524)(cid:513)(cid:430)(cid:3)(cid:472)(cid:394)(cid:502)(cid:463)(cid:3)(cid:524)(cid:463)(cid:3)(cid:584)(cid:472)(cid:437)(cid:3)(cid:731)(cid:513)(cid:394)(cid:513)(cid:423)(cid:478)(cid:394)(cid:502)(cid:3)(cid:623)(cid:437)(cid:394)(cid:562)(cid:1577)(cid:3)(cid:617)(cid:478)(cid:584)(cid:472)(cid:3)(cid:616)(cid:478)(cid:437)(cid:617)(cid:478)(cid:513)(cid:464)(cid:3)
trends being relatively predictable, we began
to see growing indications of a gradual rever-
Jos é- Lu is Vázq uez
Ch ief Exe cu tive O fficer
2 8 t h S epte mbe r 2 021
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(cid:524)(cid:559) (cid:559)(cid:524) (cid:562) (cid:584) (cid:592)(cid:513)(cid:478)(cid:584)(cid:478)(cid:437)(cid:570) (cid:3)(cid:437)(cid:511) (cid:437)(cid:562)(cid:464)(cid:437)(cid:3)(cid:478)(cid:513)(cid:3)(cid:584)(cid:472) (cid:437)(cid:3)(cid:423)(cid:524)(cid:511) (cid:478) (cid:513) (cid:464)(cid:3)(cid:511) (cid:524)(cid:513)(cid:584)(cid:472)(cid:570)
© 2021 Mirada
PAGE 33
ANNUAL REPORT 2021
STRAT EGIC RE PORT
STRATEGIC
REPORT
BUSINESS MODEL
The Company’s main activity is the provision
the customers’ systems (billing and provisio-
of software for the Digital TV market. Our
ning systems).
major customers are Pay TV platforms and
(cid:32)(cid:562)(cid:524)(cid:394)(cid:430)(cid:423)(cid:394)(cid:570)(cid:584)(cid:437)(cid:562)(cid:570)(cid:3) (cid:617)(cid:478)(cid:502)(cid:502)(cid:478)(cid:513)(cid:464)(cid:3) (cid:584)(cid:524)(cid:3) (cid:394)(cid:430)(cid:430)(cid:562)(cid:437)(cid:570)(cid:570)(cid:3) (cid:731)(cid:513)(cid:394)(cid:502)(cid:3) (cid:423)(cid:592)(cid:570)(cid:584)(cid:524)-
The Group tends to interact with the custo-
mers through a streaming platform. We
mer in the early stages of their decision-ma-
provide the technology needed to facilitate
king process and help in the selection of the
(cid:584)(cid:472)(cid:437)(cid:3) (cid:731)(cid:513)(cid:394)(cid:502)(cid:3) (cid:592)(cid:570)(cid:437)(cid:562)(cid:1626)(cid:570)(cid:3)
(cid:478)(cid:513)(cid:584)(cid:437)(cid:562)(cid:394)(cid:423)(cid:584)(cid:478)(cid:524)(cid:513)(cid:3) (cid:394)(cid:423)(cid:562)(cid:524)(cid:570)(cid:570)(cid:3) (cid:511)(cid:394)(cid:513)(cid:623)(cid:3)
proper ecosystem for their video solution.
devices, including digital TV decoders (settop
Our expertise and experience are widely
boxes), tablets, smartphones, computers,
recognised in the industry, and we provide a
(cid:464)(cid:394)(cid:511)(cid:437)(cid:3) (cid:423)(cid:524)(cid:513)(cid:570)(cid:524)(cid:502)(cid:437)(cid:570)(cid:3) (cid:394)(cid:513)(cid:430)(cid:3) (cid:570)(cid:511)(cid:394)(cid:562)(cid:584)(cid:3) (cid:192)(cid:223)(cid:570)(cid:1582)(cid:3) (cid:132)(cid:592)(cid:562)(cid:3) (cid:732)(cid:394)(cid:464)(cid:570)(cid:472)(cid:478)(cid:559)(cid:3)
value that goes beyond our actual UI proposi-
product is our navigational software proposi-
tion. Aside from the professional services
tion, Iris, including our Inspire user interface.
related to deployment, support and mainte-
nance, our licencing model varies depending
Our customers need the services of a user
on the size of the customer, from one-off fees
interface (“UI”) provider such as Mirada when
per household for the product as it is, to recu-
creating a new video service or replacing/up-
rrent revenues for a Software as a Service
grading an existing one. The UI provider
(“SaaS”) model. Support & Maintenance servi-
interacts with i) the device vendor (in the
ces such as quality assurance on functionali-
case of set-top boxes); ii) the encryption tech-
ty add-ons to platforms are also provided to
nology vendor (Conditional Access (“CA”)
customers.
vendor) for the protection of content; and iii)
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PAGE 34
© 2021 Mirada
ST RATE G IC REPORT
ANNUAL REPORT 2021
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STRATEGY
The Group’s strategy is to extend its presence
(cid:559)(cid:562)(cid:524)(cid:731)(cid:584)(cid:394)(cid:422)(cid:478)(cid:502)(cid:478)(cid:584)(cid:623)(cid:1582)(cid:3) (cid:192)(cid:472)(cid:437)(cid:570)(cid:437)(cid:3) (cid:478)(cid:513)(cid:423)(cid:502)(cid:592)(cid:430)(cid:437)(cid:3) (cid:423)(cid:524)(cid:570)(cid:584)(cid:570)(cid:3) (cid:478)(cid:513)(cid:423)(cid:592)(cid:562)(cid:562)(cid:437)(cid:430)(cid:3)
in
the media and
telecommunication
towards developing new functionality such
markets, focusing on those markets with
as an
increased presence
in the Cloud,
higher potential growth rates, for example
enhanced search,
recommendation and
the Latin America, Eastern Europe and South
personalisation functionalities, and integra-
East Asia markets. The aim is to increase the
tion with more content providers, chipsets
number of customers being charged subscri-
and device manufacturers. Our continued
ber-based licence fees, as these revenues
investment in Iris is essential in ensuring a
command higher margins and, so long as the
proper implementation of this strategy.
customer’s subscriber base keeps growing,
Mirada will continue to earn licence fees even
Development, performance and position
from projects which were completed several
of business
years previously.
(cid:170)(cid:437)(cid:463)(cid:437)(cid:562)(cid:437)(cid:513)(cid:423)(cid:437)(cid:3) (cid:430)(cid:437)(cid:559)(cid:502)(cid:524)(cid:623)(cid:511)(cid:437)(cid:513)(cid:584)(cid:570)(cid:3)
(cid:1600)(cid:430)(cid:437)(cid:731)(cid:513)(cid:437)(cid:430)(cid:3) (cid:394)(cid:570)(cid:3) (cid:498)(cid:437)(cid:623)(cid:3)
our business have been discussed in the CEO
deployments used as a reference to attract
(cid:562)(cid:437)(cid:559)(cid:524)(cid:562)(cid:584)(cid:1577)(cid:3)(cid:617)(cid:478)(cid:584)(cid:472)(cid:3)(cid:498)(cid:437)(cid:623)(cid:3)(cid:478)(cid:584)(cid:437)(cid:511)(cid:570)(cid:3)(cid:524)(cid:513)(cid:3)(cid:559)(cid:394)(cid:464)(cid:437)(cid:570)(cid:3)(cid:1474)(cid:1480)(cid:1577)(cid:3)(cid:1474)(cid:1481)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:1475)(cid:1472)(cid:1582)
Development, performance and position of
potential customers) are very important in
this market, and winning reference contracts
Principal risks and uncertainties
has been and remains an integral part of our
strategy. The Group will need to continue
The key business risks affecting the Group
investing in research and development in
are set out below. All these risks are consis-
order to provide the required functionalities
tent and stable compared with the prior year.
in its products to satisfy the cutting-edge
demands of customers, while maintaining a
fair balance between potential growth and
DEPENDENCE ON PEO PL E
The Group recognises the value of the commitment of its key management personnel and is cons-
(cid:423)(cid:478)(cid:524)(cid:592)(cid:570)(cid:3)(cid:584)(cid:472)(cid:394)(cid:584)(cid:3)(cid:478)(cid:584)(cid:3)(cid:511)(cid:592)(cid:570)(cid:584)(cid:3)(cid:498)(cid:437)(cid:437)(cid:559)(cid:3)(cid:394)(cid:559)(cid:559)(cid:562)(cid:524)(cid:559)(cid:562)(cid:478)(cid:394)(cid:584)(cid:437)(cid:3)(cid:562)(cid:437)(cid:617)(cid:394)(cid:562)(cid:430)(cid:3)(cid:570)(cid:623)(cid:570)(cid:584)(cid:437)(cid:511)(cid:570)(cid:1577)(cid:3)(cid:422)(cid:524)(cid:584)(cid:472)(cid:3)(cid:731)(cid:513)(cid:394)(cid:513)(cid:423)(cid:478)(cid:394)(cid:502)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:511)(cid:524)(cid:584)(cid:478)(cid:616)(cid:394)(cid:584)(cid:478)(cid:524)(cid:513)(cid:394)(cid:502)(cid:1577)(cid:3)(cid:478)(cid:513)(cid:3)(cid:559)(cid:502)(cid:394)(cid:423)(cid:437)(cid:3)(cid:584)(cid:524)(cid:3)(cid:511)(cid:478)(cid:513)(cid:478)-
mise this area of risk. Rotation of key management, considered to be the main measure of risk, is very
low as there have been no changes in the key executive management team in the last six years. The
(cid:74)(cid:562)(cid:524)(cid:592)(cid:559)(cid:3)(cid:478)(cid:513)(cid:616)(cid:437)(cid:570)(cid:584)(cid:570)(cid:3)(cid:394)(cid:3)(cid:570)(cid:478)(cid:464)(cid:513)(cid:478)(cid:731)(cid:423)(cid:394)(cid:513)(cid:584)(cid:3)(cid:513)(cid:592)(cid:511)(cid:422)(cid:437)(cid:562)(cid:3)(cid:524)(cid:463)(cid:3)(cid:562)(cid:437)(cid:570)(cid:524)(cid:592)(cid:562)(cid:423)(cid:437)(cid:570)(cid:3)(cid:584)(cid:524)(cid:3)(cid:478)(cid:430)(cid:437)(cid:513)(cid:584)(cid:478)(cid:463)(cid:623)(cid:3)(cid:511)(cid:394)(cid:562)(cid:498)(cid:437)(cid:584)(cid:3)(cid:559)(cid:562)(cid:394)(cid:423)(cid:584)(cid:478)(cid:423)(cid:437)(cid:570)(cid:3)(cid:478)(cid:513)(cid:3)(cid:524)(cid:592)(cid:562)(cid:3)(cid:570)(cid:437)(cid:423)(cid:584)(cid:524)(cid:562)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:584)(cid:524)(cid:3)(cid:422)(cid:437)(cid:3)
(cid:592)(cid:559)(cid:3)(cid:584)(cid:524)(cid:3)(cid:430)(cid:394)(cid:584)(cid:437)(cid:3)(cid:524)(cid:513)(cid:3)(cid:472)(cid:592)(cid:511)(cid:394)(cid:513)(cid:3)(cid:562)(cid:437)(cid:570)(cid:524)(cid:592)(cid:562)(cid:423)(cid:437)(cid:570)(cid:3)(cid:559)(cid:524)(cid:502)(cid:478)(cid:423)(cid:478)(cid:437)(cid:570)(cid:1577)(cid:3)(cid:478)(cid:513)(cid:423)(cid:502)(cid:592)(cid:430)(cid:478)(cid:513)(cid:464)(cid:3)(cid:437)(cid:511)(cid:559)(cid:502)(cid:524)(cid:623)(cid:511)(cid:437)(cid:513)(cid:584)(cid:3)(cid:422)(cid:437)(cid:513)(cid:437)(cid:731)(cid:584)(cid:570)(cid:1577)(cid:3)(cid:562)(cid:437)(cid:511)(cid:524)(cid:584)(cid:437)(cid:3)(cid:617)(cid:524)(cid:562)(cid:498)(cid:478)(cid:513)(cid:464)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:423)(cid:524)(cid:513)(cid:584)(cid:478)-
nued internal and external training for our employees.
© 2021 Mirada
PAGE 35
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ANNUAL REPORT 2021
STRATE GIC R EPORT
DIGITAL T V AND BROA DCAST MA RK ET S
The sectors in which the Group operates may
new product and product improvements,
undergo rapid and unexpected changes. It is
research and development, totalling this year
possible, therefore, that competitors will
(cid:423)(cid:478)(cid:562)(cid:423)(cid:394)(cid:3)(cid:1475)(cid:1472)(cid:1709)(cid:3)(cid:524)(cid:463)(cid:3)(cid:524)(cid:592)(cid:562)(cid:3)(cid:562)(cid:437)(cid:616)(cid:437)(cid:513)(cid:592)(cid:437)(cid:570)(cid:1577)(cid:3)(cid:617)(cid:437)(cid:502)(cid:502)(cid:3)(cid:394)(cid:422)(cid:524)(cid:616)(cid:437)(cid:3)(cid:511)(cid:394)(cid:562)(cid:498)(cid:437)(cid:584)(cid:3)
develop products that are similar to those of
standards. As most of our market growth is
the Group, or its technology may become
related to Subscription Video on Demand
obsolete or less effective. The Group’ssuccess
(SvoD) and OTT services, we have been able
depends upon its ability to enhance its
to
improve our OTT product
line and
products and technologies and develop and
(cid:478)(cid:513)(cid:584)(cid:437)(cid:464)(cid:562)(cid:394)(cid:584)(cid:437)(cid:3) (cid:524)(cid:592)(cid:562)(cid:3) (cid:570)(cid:437)(cid:562)(cid:616)(cid:478)(cid:423)(cid:437)(cid:570)(cid:3) (cid:617)(cid:478)(cid:584)(cid:472)(cid:3) (cid:121)(cid:437)(cid:584)(cid:732)(cid:478)(cid:622)(cid:1577)(cid:3) (cid:40)(cid:478)(cid:570)(cid:513)(cid:437)(cid:623)(cid:1685)(cid:3)
introduce new products and features that
and Amazon Prime Video at our largest
meet changing customer requirements and
customer, izzi Telecom, paving the way for
incorporate technological advances on a
potential future integration in present and
timely and cost-effective basis. As a result,
future customers.
(cid:584)(cid:472)(cid:437)(cid:3)(cid:74)(cid:562)(cid:524)(cid:592)(cid:559)(cid:3)(cid:423)(cid:524)(cid:513)(cid:584)(cid:478)(cid:513)(cid:592)(cid:437)(cid:570)(cid:3)(cid:584)(cid:524)(cid:3)(cid:478)(cid:513)(cid:616)(cid:437)(cid:570)(cid:584)(cid:3)(cid:570)(cid:478)(cid:464)(cid:513)(cid:478)(cid:731)(cid:423)(cid:394)(cid:513)(cid:584)(cid:502)(cid:623)(cid:3)(cid:478)(cid:513)(cid:3)
INFORMATION TECHN OLO GY
Data security, loss or corruption of data and business continuity pose inherent risks for the Group
(cid:502)(cid:437)(cid:394)(cid:430)(cid:478)(cid:513)(cid:464)(cid:3)(cid:584)(cid:524)(cid:3)(cid:394)(cid:3)(cid:502)(cid:524)(cid:570)(cid:570)(cid:3)(cid:524)(cid:463)(cid:3)(cid:423)(cid:592)(cid:570)(cid:584)(cid:524)(cid:511)(cid:437)(cid:562)(cid:3)(cid:423)(cid:524)(cid:513)(cid:731)(cid:430)(cid:437)(cid:513)(cid:423)(cid:437)(cid:3)(cid:478)(cid:513)(cid:3)(cid:584)(cid:472)(cid:437)(cid:3)(cid:74)(cid:562)(cid:524)(cid:592)(cid:559)(cid:3)(cid:422)(cid:437)(cid:478)(cid:513)(cid:464)(cid:3)(cid:394)(cid:422)(cid:502)(cid:437)(cid:3)(cid:584)(cid:524)(cid:3)(cid:430)(cid:437)(cid:502)(cid:478)(cid:616)(cid:437)(cid:562)(cid:3)(cid:584)(cid:472)(cid:437)(cid:478)(cid:562)(cid:3)(cid:562)(cid:437)(cid:561)(cid:592)(cid:478)(cid:562)(cid:437)(cid:511)(cid:437)(cid:513)(cid:584)(cid:570)(cid:1582)(cid:3)(cid:192)(cid:524)(cid:3)
mitigate this risk, the Group invests in, and keeps under review, formal data security and business
continuity policies. The Group maintain both local and cloud-based backups and regularly review
plans on how to improve data management.
INTELLECTUAL PROPER T Y
There are certain markets in which there could be instances of disputes regarding intellectual
property involving technology companies, including the Digital TV market. So far, no disputes have
been raised and the Company does not envisage any risks to its own intellectual property. While the
Group internally generates its products and software and strongly believes that it has not infringed
any third-party intellectual property, management do recognise that due to the nature of the
technology market there will always be a risk of other corporations potentially making claims
regarding intellectual property/patent infringements.
PAGE 36
© 2021 Mirada
ST RATE G IC REPORT
ANNUAL REPORT 2021
LIQUIDIT Y RISK
Liquidity risk is managed through the assess-
(cid:463)(cid:592)(cid:513)(cid:430)(cid:478)(cid:513)(cid:464)(cid:3) (cid:478)(cid:570)(cid:3) (cid:478)(cid:430)(cid:437)(cid:513)(cid:584)(cid:478)(cid:731)(cid:437)(cid:430)(cid:1577)(cid:3) (cid:584)(cid:472)(cid:437)(cid:3) (cid:33)(cid:524)(cid:511)(cid:559)(cid:394)(cid:513)(cid:623)(cid:3) (cid:617)(cid:478)(cid:502)(cid:502)(cid:3) (cid:502)(cid:524)(cid:524)(cid:498)(cid:3)
ment of short, medium and long term cash-
to meet this shortfall through a variety of
(cid:732)(cid:524)(cid:617)(cid:3) (cid:463)(cid:524)(cid:562)(cid:437)(cid:423)(cid:394)(cid:570)(cid:584)(cid:570)(cid:3) (cid:584)(cid:524)(cid:3) (cid:437)(cid:513)(cid:570)(cid:592)(cid:562)(cid:437)(cid:3) (cid:584)(cid:472)(cid:437)(cid:3) (cid:394)(cid:430)(cid:437)(cid:561)(cid:592)(cid:394)(cid:423)(cid:623)(cid:3) (cid:524)(cid:463)(cid:3)
funding options including but not limited to
funding in order to meet the Group’s working
the issuing of new equity. The Company
(cid:423)(cid:394)(cid:559)(cid:478)(cid:584)(cid:394)(cid:502)(cid:3) (cid:562)(cid:437)(cid:561)(cid:592)(cid:478)(cid:562)(cid:437)(cid:511)(cid:437)(cid:513)(cid:584)(cid:570)(cid:1582)(cid:3) (cid:33)(cid:394)(cid:570)(cid:472)(cid:3) (cid:394)(cid:513)(cid:430)(cid:3) (cid:423)(cid:394)(cid:570)(cid:472)(cid:3) (cid:732)(cid:524)(cid:617)(cid:3)
relies on the support of its shareholders and
forecasts are regularly reviewed by the
has been able to secure new equity and loan
Executive Directors and the Group constantly
facilities during prior years from its main
monitors these to ensure, among other
shareholder. This area is considered further in
scenarios, that the Group is able to meet its
the report of the directors and the accoun-
liabilities as they fall due. Where a shortfall in
ting policies under ‘Going concern’.
CUSTOMER CONCEN TRAT I ON
Revenues from the main customer represent 71% of the total turnover. The Company has been
(cid:562)(cid:437)(cid:430)(cid:592)(cid:423)(cid:478)(cid:513)(cid:464)(cid:3)(cid:584)(cid:472)(cid:478)(cid:570)(cid:3)(cid:502)(cid:437)(cid:616)(cid:437)(cid:502)(cid:3)(cid:463)(cid:562)(cid:524)(cid:511)(cid:3)(cid:559)(cid:562)(cid:478)(cid:524)(cid:562)(cid:3)(cid:623)(cid:437)(cid:394)(cid:562)(cid:570)(cid:3)(cid:1600)(cid:73)(cid:230)(cid:1474)(cid:1472)(cid:1576)(cid:3)(cid:1479)(cid:1474)(cid:1709)(cid:1601)(cid:1577)(cid:3)(cid:394)(cid:513)(cid:430)(cid:3)(cid:478)(cid:584)(cid:3)(cid:472)(cid:394)(cid:570)(cid:3)(cid:394)(cid:3)(cid:463)(cid:524)(cid:423)(cid:592)(cid:570)(cid:3)(cid:524)(cid:513)(cid:3)(cid:464)(cid:437)(cid:513)(cid:437)(cid:562)(cid:394)(cid:584)(cid:478)(cid:513)(cid:464)(cid:3)(cid:422)(cid:592)(cid:570)(cid:478)(cid:513)(cid:437)(cid:570)(cid:570)(cid:3)(cid:617)(cid:478)(cid:584)(cid:472)(cid:3)(cid:513)(cid:437)(cid:617)(cid:3)
(cid:423)(cid:592)(cid:570)(cid:584)(cid:524)(cid:511)(cid:437)(cid:562)(cid:570)(cid:1582)(cid:3)(cid:170)(cid:437)(cid:616)(cid:437)(cid:513)(cid:592)(cid:437)(cid:3)(cid:463)(cid:562)(cid:524)(cid:511)(cid:3)(cid:423)(cid:592)(cid:570)(cid:584)(cid:524)(cid:511)(cid:437)(cid:562)(cid:570)(cid:3)(cid:524)(cid:592)(cid:584)(cid:570)(cid:478)(cid:430)(cid:437)(cid:3)(cid:584)(cid:472)(cid:437)(cid:3)(cid:511)(cid:394)(cid:478)(cid:513)(cid:3)(cid:423)(cid:502)(cid:478)(cid:437)(cid:513)(cid:584)(cid:3)(cid:430)(cid:437)(cid:423)(cid:562)(cid:437)(cid:394)(cid:570)(cid:437)(cid:430)(cid:3)(cid:422)(cid:623)(cid:3)(cid:1473)(cid:1476)(cid:1709)(cid:3)(cid:584)(cid:524)(cid:3)(cid:1661)(cid:1475)(cid:1582)(cid:1473)(cid:1477)(cid:511)(cid:3)(cid:478)(cid:513)(cid:3)(cid:73)(cid:230)(cid:1474)(cid:1473)(cid:3)(cid:463)(cid:562)(cid:524)(cid:511)(cid:3)
(cid:1661)(cid:1475)(cid:1582)(cid:1478)(cid:1478)(cid:511)(cid:3)(cid:478)(cid:513)(cid:3)(cid:73)(cid:230)(cid:1474)(cid:1472)(cid:1582)
BREXIT
The UK’s exit from the European Union (EU)
negative impact on its operational activity
created uncertainty that might impact the
and Financial Statements. In particular, the
performance of our business.
Company reduced its payroll based in the UK
through the divestment of Mirada Connect
(cid:178)(cid:559)(cid:437)(cid:423)(cid:478)(cid:731)(cid:423)(cid:3)(cid:511)(cid:478)(cid:584)(cid:478)(cid:464)(cid:394)(cid:584)(cid:478)(cid:524)(cid:513)(cid:3)(cid:559)(cid:502)(cid:394)(cid:513)(cid:570)(cid:3)(cid:617)(cid:437)(cid:562)(cid:437)(cid:3)(cid:478)(cid:511)(cid:559)(cid:502)(cid:437)(cid:511)(cid:437)(cid:513)(cid:584)(cid:437)(cid:430)(cid:3)
Ltd on 4th July 2019 and the closure of its
by Mirada in order to reduce the potential
(cid:48)(cid:622)(cid:437)(cid:584)(cid:437)(cid:562)(cid:3)(cid:524)(cid:463)(cid:731)(cid:423)(cid:437)(cid:3)(cid:524)(cid:513)(cid:3)(cid:1475)(cid:1472)(cid:584)(cid:472)(cid:3)(cid:178)(cid:437)(cid:559)(cid:584)(cid:437)(cid:511)(cid:422)(cid:437)(cid:562)(cid:3)(cid:1474)(cid:1472)(cid:1473)(cid:1481)(cid:1582)(cid:3)
COVID-19
For most of the year ended in March 2021,
Encouragingly, as we moved through the
potential customers chose to postpone their
(cid:731)(cid:513)(cid:394)(cid:513)(cid:423)(cid:478)(cid:394)(cid:502)(cid:3) (cid:623)(cid:437)(cid:394)(cid:562)(cid:3) (cid:437)(cid:513)(cid:430)(cid:478)(cid:513)(cid:464)(cid:3) (cid:478)(cid:513)(cid:3) (cid:119)(cid:394)(cid:562)(cid:423)(cid:472)(cid:3) (cid:1474)(cid:1472)(cid:1474)(cid:1474)(cid:1577)(cid:3) (cid:617)(cid:437)(cid:3)
decision-making processes until there was
began to see growing
indications of a
greater clarity around the future of the
gradual reversion to pre-pandemic levels of
pandemic. New business activity across the
appetite for investment from both existing
(cid:478)(cid:513)(cid:430)(cid:592)(cid:570)(cid:584)(cid:562)(cid:623)(cid:3) (cid:1609)(cid:3) (cid:559)(cid:394)(cid:562)(cid:584)(cid:478)(cid:423)(cid:592)(cid:502)(cid:394)(cid:562)(cid:502)(cid:623)(cid:3) (cid:478)(cid:513)(cid:3) (cid:584)(cid:472)(cid:437)(cid:3) (cid:731)(cid:562)(cid:570)(cid:584)(cid:3) (cid:472)(cid:394)(cid:502)(cid:463)(cid:3) (cid:1609)(cid:3)
and prospective customers.
effectively ground to a halt.
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© 2021 Mirada
PAGE 37
ANNUAL REPORT 2021
STRAT EGIC RE PORT
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SECTION 172 S TAT EMENT
From 1 January 2019, legislation was introdu-
the impact of the company’s operations
ced requiring companies to include a state-
on the community and the environment,
ment pursuant to section 172 of the Compa-
nies Act 2006.
the desirability
of
the
company
maintaining a reputation for high standards
The Board recognises the importance of the
of business conduct, and
Group’s wider stakeholders when performing
their duties under Section 172(1) of the Com-
the need to act fairly as between mem-
panies Act and their duties to act in the way
bers of the company
they consider, in good faith, would be most
likely to promote the success of the company
The Board considers that all their decisions
(cid:463)(cid:524)(cid:562)(cid:3) (cid:584)(cid:472)(cid:437)(cid:3) (cid:422)(cid:437)(cid:513)(cid:437)(cid:731)(cid:584)(cid:3) (cid:524)(cid:463)(cid:3) (cid:478)(cid:584)(cid:570)(cid:3) (cid:511)(cid:437)(cid:511)(cid:422)(cid:437)(cid:562)(cid:570)(cid:3) (cid:394)(cid:570)(cid:3) (cid:394)(cid:3) (cid:617)(cid:472)(cid:524)(cid:502)(cid:437)(cid:1577)(cid:3)
are taken with the
long-term
in mind,
and in doing so have regard (among other
understanding that these decisions need to
matters) to:
regard the interests of the Company’s share-
holders, employees, its relationships with
the likely consequences of any decision in
suppliers, customers, partners, the commu-
the long term,
nities, and the environment in which it opera-
tes. It is the view of the Board that these
the impact of his decisions in the value for
requirements are addressed in the Corporate
shareholders,
Governance Statement, which can be found
on the company’s website at:
the interests of the company’s employees,
www.mirada.tv/investors/corporate-governance
the need
to
foster
the company’s
business relationships with suppliers, custo-
mers and partners,
APPROVA L
This strategic report was approved on behalf
of the Board on 28th September 2021 and
signed on its behalf.
Jos é- Lu is Vázq uez
Ch ief Exe cu tive O fficer
2 8 t h S epte mbe r 2 021
PAGE 38
© 2021 Mirada
Mirada plc
Directors’ Report for the year ended 31 March 2021
Review of business, future developments and key performance indicators
Reviews of the business, its results, future direction and key performance indicators are included in the Chief
Executive Officer’s Report and Strategic Report on pages 2 to 8.
Dividends
No dividend is declared in respect of the year (2020: $nil).
Financial risk management objectives and policies
The Group's activities expose it to several financial risks including capital risk, credit risk, foreign currency
exchange risk, interest rate risk and liquidity risk. The management of financial risk is governed by the Group's
policies approved by the board of directors, which provide written principles to manage these risks. See note 22
for further details on the Group’s financial instruments.
Going concern
These financial statements have been prepared on the going concern basis. The Directors have reviewed the
Company and Group’s going concern position taking account of its current business activities, budgeted
performance and the factors likely to affect its future development, which are set out in this Annual report, and
include the Group’s objectives, policies and processes for managing its capital, its financial risk management
objectives, its exposure to credit and liquidity risks and the impact of the COVID-19 pandemic.
As at 31 March 2021, the Group had cash and cash equivalents of $0.11m (2020: $0.19m), had net current liabilities
of $0.23m (2020: net current assets of $0.29m) and net assets of $7.90m (2020: $10.55m.). In the year ended 31
March 2021, the Group generated net cash from operating activities of $3.15m (2020: $1.80m), realised a loss for
the year of $2.99m (2020: a profit of $0.59m).
Subsequent to the year end, the Directors are pleased to announce that the €1.30 million credit facility, granted by
Leasa Spain, S.L.U. (“the Lender”) on 4 June 2019, was increased up to €3.0 million and its Maturity Date was
extended until 30 November 2022. In addition, the Facility has been novated from Mirada Iberia to Mirada Plc.
All other terms of the Facility remain unchanged. The Lender is owned by Mr. Ernesto Luis Tinajero Flores, who
also owns 87.21% of the voting rights of Mirada
The Directors have prepared detailed cash flow forecasts for the period to at least 31 December 2022. The
Directors regularly review the detailed forecasts of sales, costs and cash flows. The assumptions underlying the
forecasts are challenged, varied and tested to establish the likelihood of a range of possible outcomes, including
reasonable cash flow sensitivities. The expected figures are carefully monitored against actual outcomes each
month and variances are highlighted and discussed at Board level. From a technology point of view, the Group is
also offering and developing the most advanced features in the market, providing services to a growing subscriber
base in our core markets. To this end a base case cash flow forecast has been prepared which takes into account
the following key assumptions:
• The continued availability of the Group’s invoice discounting facility throughout the foreseeable future.
• An average revenue growth of 13% in the foreseeable future, which Directors believe, comprise of revenue
that is substantially already secured undersigned contracts.
• Additional utilisations of the Facility granted by Leasa Spain, S.L.U.
• An expected receipt of US$0.3m of Research and Development tax credit in March 2022 from Spanish tax
authorities.
9
Mirada plc
Directors’ Report for the year ended 31 March 2021
The Directors have also considered several downside scenarios, including a scenario where all revenue growth
from new customers is removed, a scenario where no further funding is obtained in the period and a reverse stress
test. The purpose of the reverse stress test for the Group is to test at what point the cash facilities would be fully
utilised if the assumptions in the Director’s base case forecasts are altered. This reverse stress test includes both a
removal of all revenue growth from new customers and a reduction of contracted revenue from existing customers
for the forecast period, resulting in an overall reduction of revenue of c.20%, as well as the removal of any potential
future funding and the receipt of the US$0.3m Research and Development tax credits anticipated. In the event
that the performance of the Group is not in line with the projections, and more akin to one of our downside
scenarios, including the worst-case scenario, action will be taken by management immediately to address any
potential cash shortfall for the foreseeable future. The actions that could be taken by the Directors include both a
review and restructuring of employment related costs, including the deferral of any potential bonuses due to
employees. These measures alone could save at least $1.0m in operating costs and therefore cash flows. Further,
the Directors could also negotiate access to other sources of finances from our lenders. Given the Director’s
current relationship with lenders and their recent success in negotiations with these financial institutions, whilst
there are no binding agreements currently in place, negotiations are in very advanced stages for additional funding.
Therefore, they Directors are confident that any additional funding required would be obtained.
Overall, the sensitised cash flow forecasts demonstrate that the Group will be able to pay its debts as they fall due
for the period to at least 31 December 2022. The Directors are, therefore, satisfied that the financial statements
should be prepared on the going concern basis.
See note 4 (b) to the financial statements for further information on going concern.
Directors’ and officers’ indemnity insurance
The Group has taken out an insurance policy to indemnify the Directors and officers of the company and its
subsidiaries in respect of certain liabilities which may attach to them in their capacity as directors or officers of
the Group, so far as permitted by law. This policy remained in force throughout the year and remains in place at
the date of this report.
Research and Development activities
The Group continues its development program of software for the Pay TV market including the research and
development of new products and enhancements to existing products. The Directors consider the investment in
research and development to be fundamental to the success of the business in the future.
Corporate Governance
The Board decided to adopt the QCA Corporate Governance Code (April 2018) from 26 September 2018, and
there have not been any changes since then. Details of the Company’s corporate governance policies and
compliance are available on the Mirada website: https://www.mirada.tv/investors/corporate-governance/.
Compliance with the Quoted Companies Alliance Corporate Governance Code
The Quoted Companies Alliance has published a corporate governance code which includes a standard of
minimum best practice for AIM companies and recommendations for reporting corporate governance matters.
Chairman’s Corporate Governance Statement
As a Chairman, my role is to manage the Board in the best interests of our stakeholders, to ensure that our
shareholders’ views are communicated to the Board and to be responsible for ensuring the Board’s integrity and
effectiveness. I recognise that my role also involves my responsibility over the correct implementation of the QCA
Corporate Governance Code into Mirada’s corporate governance practices.
The Company is managed by the Board of Directors, and it is the Board’s job to ensure that the Mirada group is
managed for the long-term benefit of all shareholders, with effective and efficient decision-making. Corporate
governance is an important part of that job, reducing risk and adding value to our business.
In addition to each of the 10 principles listed further below, the following provides an overview of how the
Company applies the QCA Corporate Governance Code, in order to support the Company’s medium to long-term
success.
10
Mirada plc
Directors’ Report for the year ended 31 March 2021
The Board comprises three Executive and two independent non-Executive Directors. The Board considers, after
careful review, that the non-Executive Directors bring an independent judgement to bear notwithstanding their
length of service and are therefore both considered independent. The Board has decided to adopt voluntarily the
practice that one third of the Directors stand for re-election on an annual basis.
I, Francis Coles, the non-Executive Chairman, am responsible for the running of the Board and corporate
governance. José-Luis Vázquez, the Chief Executive, has executive responsibility for running the Group’s business
and implementing Group strategy. The Board meets at least four times per year and has a formal schedule of
matters reserved to it. It is responsible for overall Group strategy, approval of major capital expenditure projects,
approval of the annual and interim results, annual budgets and Board structure. It monitors the exposure to key
business risks and reviews the strategic direction of all trading subsidiaries, their annual budgets, their performance
in relation to those budgets and their capital expenditure. The Board delegates day-to-day responsibility for
managing the business to the Executive Directors and the senior management team.
The Board believes that, given its size, there is sufficient opportunity for shareholders to raise any concerns they
may have with the non-Executive Chairman, the Chief Executive, the Group Finance Director and the other
Directors.
Our values are based on two cornerstones: our customers and our employees. The Board believes this is vital for
creating a sustainable, growing business and is a key responsibility of the Group. This culture supports the
Company’s objectives to grow the business through acquiring and retaining customers by attending to their needs
from the very beginning of the sales process until successful delivery and during ongoing services provision and
support. The Company recognises its employees as a key driver of success and considers it crucial to recruit and
retain the right people with the appropriate set of skills and values. Corporate governance is an important part of
that job, reducing risk and adding value to our business.
Francis Coles, Chairman
11
Mirada plc
Directors’ Report for the year ended 31 March 2021
The QCA Corporate Governance Code sets out ten principles which should be applied. These are listed below
together with a short explanation of how the Group applies each of the principles:
1. Establish a strategy and business model which promote long-term value for shareholders:
The Mirada Group strategy is focused around four key areas: market, product, sales, and business model, as
explained fully within the Strategic Report section of our Report and Annual Accounts.
The Group’s strategy is to extend its presence in the Digital TV markets, focusing on those with high potential
growth rates, for example the Latin American, Eastern Europe and South East Asian markets. The aim is to
increase the number of customers being charged subscriber-based licence fees, as these revenues command
higher margins and, as long as the customer’s subscriber base is growing, Mirada will continue to earn licence
fees even from projects completed several years previously.
The key challenges to the business and how these are mitigated are detailed in the Strategic Report.
2.
Seek to understand and meet shareholder needs and expectations:
The Mirada Group encourages two-way communication with both its institutional and private investors and
responds quickly to all queries received. The CEO talks regularly with the Group’s major shareholders and
ensures that their views are communicated fully to the Board.
The Board recognises the AGM and the GMs as important opportunities to meet private shareholders. The
Directors are available to listen to the views of shareholders informally immediately following these
meetings. The Group has set up a dedicated email address for all investor queries. The Board has also utilised
digital technology to present virtually to current and prospective investors.
Where voting decisions are not in line with the Company’s expectations, the Board will engage with those
shareholders to understand and address any issues.
3.
Take into account wider stakeholder and social responsibilities and their implications for long-term success:
The Mirada Group has identified the following key stakeholders and decided on implementing the following
actions to cover their needs, interests and expectations:
Employees - company meetings, CEO letters, work council
Customers - corporate website, social media, international trade fairs, personal meetings, high- and low-
level bilateral meetings
Sales Partners - internal blog, weekly industry press reviews, weekly follow-up conferences, marketing
material
Shareholders - see above
Technological Partners - corporate website, social media, international trade fairs, personal meetings,
high- and low-level bilateral meetings
Compliance advisors - periodic conference calls, advice request when applicable
Banks - periodic meetings
o
o
o
o
o
o
o
Mirada identifies its employees as its key asset and puts a considerable amount of effort into ensuring
employee satisfaction by such measures as improving work-life balance, providing fringe benefits, team
building activities and many more.
4.
Embed effective risk management, considering both opportunities and threats, throughout the organisation:
The Board considers risk to the business at every Board meeting (at least one meeting is held per quarter)
and the risk register is updated at each meeting. The Company formally reviews and documents the principal
risks to the business at least annually.
Both the Board and senior managers are responsible for reviewing and evaluating risk and the Executive
Directors meet at least monthly to review ongoing trading performance, discuss budgets and forecasts and
new risks associated with ongoing trading. This process allows the Board to gain assurance that the risk
management and related control systems in place are effective.
12
Mirada plc
Directors’ Report for the year ended 31 March 2021
5.
Maintain the board as a well-functioning, balanced team led by the chair:
The Company is controlled by the Board of Directors. Francis Coles, the Non-executive Chairman, is
responsible for the running of the Board and José Luis Vázquez, the Chief Executive, has executive
responsibility for running the Group’s business and implementing Group strategy. Directors attend one
Board Meeting per quarter.
A summary of Board meetings attended by current Directors in the twelve months to 31 March 2021 is set
out below:
Francis
Coles
Jose Luis
Vazquez
Matthew
Peter Earl
Jose Francisco
Gozalbo
Gonzalo
Babío
04 Jun 2020
16 Sep 2020
28 Oct 2020
12 Dec 2020
24 Feb 2021
All Directors receive regular and timely information about the Group’s operational and financial
performance. Relevant information is circulated to the Directors in advance of meetings. In addition,
minutes of the meetings of the Directors are circulated to the Group Board of Directors. All Directors are
able to take independent professional advice in the furtherance of their duties, if necessary, at the
Company’s expense.
The Board comprises three Executive Directors and two Non-Executive Directors. All Executives Directors
work on a full-time basis and the Non-Executive Director’s service agreements set out expected time
commitments. All Directors recognise that a certain time of increased activity, the preparation and
attendance at meetings will increase. The Board considers that all Non- executive Directors bring an
independent judgement to bear notwithstanding the varying lengths of service.
The Directors of Mirada (the "Directors”) have the following experience and skills:
Francis Coles
Non-Executive Chairman
Francis Coles has nearly 40 years of experience in corporate finance. He was a founder director of corporate
finance advisory boutique New Boathouse Capital and later served as a director of AIM listed merchant
bank Quayle Munro following its acquisition of New Boathouse Capital in 2007. Prior to that, Francis was
a director of Baring Brothers and subsequently Santander Investment where his responsibilities included
debt and equity fundraisings and merger and acquisition activities in the European and Latin American
markets.
José Luis Vázquez
Chief Executive Officer
José L. Vázquez is CEO and Co-Founder of Fresh, a leading interactive TV player in the Spanish market.
He holds a degree in Advanced Telecommunication Engineering (UPM) and an MBA (IESE). He has more
than 15 years of experience in Telecommunication and Interactivity markets, where he is a skilled
professional. He founded Fresh in year 2000 being the CTO and became the CEO of the company in 2004.
José is one of the leading figures in the Hispanic Digital TV platforms markets.
13
Mirada plc
Directors’ Report for the year ended 31 March 2021
Gonzalo Babío
Chief Financial Officer
Gonzalo Babío has a broad experience in media and technology sectors. His professional career includes
three years working at Arthur Andersen as an auditor, ten years at Electronic Arts as Finance Director
working in Madrid, Lisbon, Sao Paulo, Lyon and London, and ten years as Finance Director for The Walt
Disney Company Iberia in Madrid. He has a degree in Business Administration from the Universidad de
Deusto in Bilbao, an EMBA from IESE Business School in Madrid and a PED from IMD in Lausanne.
José Francisco Gozalbo Sidro
Chief Technology Officer
José joined Mirada as Chief Technology Officer in March 2008, bringing over 18 years of experience in
software development companies. In this role he has been responsible for software development, quality
assurance, R&D and presales departments. He has a special focus on the Latin America region and has
helped to build relationships with big telecoms partners that have led to multiple deployments of Mirada’s
products. Prior to joining Mirada, José was Chief Technology Officer at Fresh Interactive Technologies
where he managed the deployment of products and services worldwide, working with some of the key
partners in the Pay TV market.
Matthew Peter Earl
Non-Executive Director
Matthew has spent over 12 years working in the financial services sector primarily in Equity Capital
Markets. Matthew started his career with Royal Bank of Scotland plc as an economist before working at
Investec plc. Matthew then joined Charles Stanley Securities as an equity analyst in the support services
sector, until he moved to head up the business services research team at Matrix Group Limited in 2010.
More recently he has become an active investor in small and medium sized businesses.
The Audit Committee and the Remuneration and Nomination Committee meet formally at least twice a
year. In the year ended 31 March 2021, Francis Coles and Mathew Earl attended all meetings of the Audit,
Remuneration and Nomination Committees.
6.
Ensure that between them the directors have the necessary up-to-date experience, skills and capabilities:
The Nomination Committee of the Board oversees the hiring process and makes recommendations to the
Board on all new Board appointments. Where new Board appointments are considered the search for
candidates is conducted, and appointments are made, on merit, against objective criteria. Whilst there is not
currently a balance of genders on the Board, the Company’s Directors look to appoint individuals with
complementary skills and experience to fulfil the Company’s strategy, regardless of gender. The
Nomination Committee also considers succession planning.
The skills and experience of the Board are set out in their biographical details against principle 5 above.
The Directors bring a mixture of relevant sector, public company and financial experience to the Board
such that it has the capabilities to deliver the Company’s strategy.
The directors keep their skillsets up to date by attending industry and qualification relevant seminars and
training sessions.
The directors seek advice from their corporate advisers (including the Company’s nominated adviser,
lawyers and accountants) as necessary.
14
Mirada plc
Directors’ Report for the year ended 31 March 2021
7.
Evaluate board performance based on clear and relevant objectives, seeking continuous improvement:
The Board carries out an evaluation of its performance annually, taking into account the Financial reporting
Council’s Guidance on Board Effectiveness. The company has performed regular reviews of its Board
composition, considering whether each Director has the appropriate skills for the proper performance of
their duties. The Board is satisfied that each individual has the right balance of financial and market
knowledge to understand the performance and prospects of the business for the proper development of the
Group.
All Directors undergo a performance evaluation before being proposed for re-election to ensure that their
performance is and continues to be effective, that where appropriate they maintain their independence and
that they are demonstrating continued commitment to the role.
Appraisals are carried out each year with all Executive Directors.
All continuing Directors stand for re-election every three years.
8.
Promote a corporate culture that is based on ethical values and behaviours:
Ethical values and behaviours are one of the key elements of Board members' appraisals. It also forms an
important part of every employee’s appraisal process, with a special focus on employees with direct contact
with customers and vendors. Company values are also included in the welcome package that every new
employee receives upon joining the Company, which is also available for everyone on the Intranet.
9.
Maintain governance structures and processes that are fit for purpose and support good decision-making
by the board:
Our corporate governance statement on structure and processes is available on our corporate website, AIM
Rule 26, Corporate Governance section. Direct link available here: https://www.mirada.tv/investors/aim-
rule-26/
10.
Communicate how the Company is governed and is performing by maintaining a dialogue with
shareholders and other relevant stakeholders:
The Company encourages two-way communication with both its institutional and private investors and
responds quickly to all queries received. The CEO talks regularly with the Group’s major shareholders and
ensures that their views are communicated fully to the Board.
The Board recognizes the AGM and other General Meetings as important opportunities to meet private
shareholders. The Directors are available to listen to the views of shareholders informally, immediately
following any General Meeting.
Directors
The directors who held office during the year are given below:
Executive directors
Mr José-Luis Vázquez
Mr Jose Gozalbo
Mr Gonzalo Babío
Non-executive directors
Mr Francis Coles
Mr Matthew Earl
Chief Executive Officer
Non- Executive Chairman
15
Mirada plc
Audit Committee Report for the year ended 31 March 2021
I am pleased to present the report on behalf of the Audit Committee.
The Committee is responsible for challenging the quality of internal and external control and for ensuring that the
financial performance of the Group is properly reported and reviewed. The Board considers that the Company is
not currently of a size to warrant the need for an internal audit function although the Board has put in place internal
financial procedures to ensure close internal controls.
Committee Composition
The members of the Audit Committee are myself, Francis Coles, as Chair, and Matthew P. Earl both independent
non-executive directors. The Board is of the view that we have recent and relevant experience. Meetings are held
on average twice a year. José Luis Vázquez (CEO), and Gonzalo Babío (Finance Director), attend by invitation. I
report to the Board following an Audit Committee meeting and minutes are available to the Board.
Committee Duties
The main duties of the Committee are set out below:
•
•
•
Reviewing and recommending to the Board in relation to the appointment and removal of the
external auditor.
Recommending the external auditor’s remuneration and terms of engagement.
Reviewing the independence of the external auditors, the objectivity and the effectiveness of the audit
process, taking into account relevant professional and regulatory requirements.
Reviewing and monitoring the extent of the non-audit work undertaken by the Group’s external auditor.
Reviewing a wide range of financial matters including the annual and half year results.
•
•
• Monitoring the controls which ensure the integrity of the financial information reported to the shareholders.
In the financial year commencing on 1 April 2020, the Group applied the following new accounting standards:
-
-
Amendments to IAS 1 and IAS 8
Amendments to IFRS 3 - Business combinations
External auditor
BDO LLP resigned as auditors and PKF Littlejohn LLP were appointed in their place. PKF Littlejohn LLP have
expressed their willingness to continue in office as auditors and a resolution to reappoint them will be proposed
at the forthcoming Annual General Meeting.
Francis Coles
Chair of the Audit Committee
17
Mirada plc
Nominations and Remuneration Committee Report for the year ended 31
March 2021
I am pleased to present the report on behalf of the Remuneration Committee.
The Committee decides the remuneration policy that applies to executive directors and senior management. The
Remuneration Committee meets as necessary in order to consider and set the annual remuneration for executive
directors and senior managers, having regard to personal performance and industry remuneration rates. In determining
that policy, it considers a number of factors including:
the basic salaries and benefits available to executive directors and senior management of comparable
companies;
the need to attract and retain directors and others of an appropriate calibre; and
the need to ensure all executives’ commitment to the success of the Group.
The members of the Nominations and Remuneration Committees are myself, Francis Coles, as Chair, and Matthew
P. Earl both independent non-executive directors. The Board is of the view that we have recent and relevant
experience. Meetings are held on average twice a year. José Luis Vázquez (CEO), and Gonzalo Babío (Finance
Director), attend by invitation. I report to the Board following a Nomination and Remuneration Committee meeting
and minutes are available to the Board.
Non-executive directors are appointed on contracts with a three-month notice period and may be awarded fees as
determined by the Board.
Executive directors are appointed on contracts with a 12-month notice period.
Directors’ Remuneration
The following table summarises the remuneration receivable by the directors for the year ended 31 March 2021.
Executive
José-Luis Vázquez
Jose Gozalbo Sidro
Gonzalo Babío
Non-executive
Mathew Earl
Francis Coles
Salary & fees
Benefits
$000
$000
255
215
176
41
62
749
3
12
10
-
-
25
2021
Total
$000
258
227
186
41
62
774
2020
Total
$000
291
319
210
37
56
913
The directors’ participation in the company’s share option plan is detailed in Note 25 and, as confirmed in Note
9, there were no contributions paid into a pension scheme for any director.
Francis Coles
Chair of the Nominations and Remuneration Committee
18
Mirada plc
Statement of directors’ responsibilities
Directors’ responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with
applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the
directors have elected to prepare the group financial statements in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the European Union. The Directors have elected to prepare the
Company financial statements in accordance with applicable law and United Kingdom Generally Accepted
Accounting Standards (United Kingdom Generally Accepted Accounting Practice including FRS 101 Reduced
Disclosure Framework). Under company law the directors must not approve the financial statements unless they
are satisfied that they give a true and fair view of the state of affairs of the group and company and of the profit or
loss of the Group for that year. The directors are also required to prepare financial statements in accordance with
the rules of the London Stock Exchange for companies trading securities on AIM.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
for the Group financial statements, state whether applicable IFRSs have been followed, subject to any
material departures disclosed and explained in the financial statements;
for the Company financial statements, state whether applicable UK accounting standards have been
followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
company’s transactions and disclose with reasonable accuracy at any time the financial position of the company
and enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006.
They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
Website publication
The directors are responsible for ensuring the annual report and the financial statements are made available on the
Company’s website. Financial statements are published on the company's website in accordance with legislation
in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from
legislation in other jurisdictions. The maintenance and integrity of the Company's website is the responsibility of
the directors. The directors' responsibility also extends to the ongoing integrity of the financial statements
contained therein.
19
Mirada plc
Independent Auditor’s report to the Members of Mirada plc
Opinion
We have audited the financial statements of Mirada Plc (the ‘company’) and its subsidiaries (the ‘group) for the
year ended 31 March 2021 which comprise: the Consolidated Statement of Comprehensive Income, the
Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated,
Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of
Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting
framework that has been applied in their preparation is applicable law and International financial Reporting
Standards (IFRSs) as adopted by European Union. The Financial reporting framework that has been applied in the
preparation of the parent company financial statements is applicable law and United Kingdom Accounting
Standards, including FRS 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting
Practice).
In our opinion:
the financial statements give a true and fair view of the state of the group’s and of the parent company’s
affairs as at 31 March 2021 and of the group’s and parent company’s loss for the year then ended;
the group financial statements have been properly prepared in accordance with international accounting
standards in conformity with the requirements of the Companies Act 2006;
the parent company financial statements have been properly prepared in accordance with United Kingdom
generally accepted accounting practice in conformity with the requirements of the Companies Act 2006
and as applied in accordance with the provisions of the Companies Act 2006; and
the financial statements have been prepared in accordance with the requirements of the Companies Act
2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit
of the financial statements section of our report. We are independent of the group and the company in accordance
with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the
FRC’s Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of
accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment
of the group’s and the company’s ability to continue to adopt the going concern basis of accounting included:
Reviewing the five-year plan prepared by management for the period up to 2026, providing challenge to
key assumptions and reviewing for reasonableness.
A comparison of actual results for the year to past budgets to assess the forecasting ability/accuracy of
management.
Reviewing post-year end RNS announcements.
Assessing the adequacy of going concern disclosures within the Annual Report and Accounts.
Based on the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the group’s or the company's ability to
20
Mirada plc
Independent Auditor’s report to the Members of Mirada plc
continue as a going concern for a period of at least twelve months from when the financial statements are authorised
for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the
relevant sections of this report.
Our application of materiality
The quantitative and qualitative thresholds for materiality determine the scope of our audit and the nature, timing
and extent of our audit procedures. The materiality applied to the group financial statements was $193,053 (2020:
$197,000) based on 1.75% (2020: 1.5%) of revenue. We based the materiality on revenue because we consider
this to be the most relevant performance indicator of the Group and is a significant driver of profit or loss for the
year.
The performance materiality was $125,485 (2020: $148,000). We set performance materiality at 65% of overall
financial statement materiality to reflect the risk associated with the judgemental and key areas of management
estimation within the financial statements
The materiality applied to the parent company financial statements was $99,500 (2020: $88,000) based on 0.833%
(2020: 1%) of the gross assets as it is a holding company. The performance materiality was $77,688 (2020:
$66,000). For each component in the scope of our group audit, we allocated a materiality that was less than our
overall group materiality. As a group whose trade is in the process of expanding through product development and
existing product revenue streams, loss before tax was considered the most appropriate benchmark to shareholders.
We agreed with those charged with governance that we would report all differences identified during the course
of our audit in excess of $9,500 (2020: $10,000).
No significant changes have come to light through the audit fieldwork which has caused us to revise our materiality
figure.
Our approach to the audit
In designing our audit, we determined materiality and assessed the risks of material misstatement in the financial
statements. In particular we looked at areas involving significant accounting estimates and judgements by the
Directors and considered future events that are inherently uncertain. As in all of our audits, we also addressed the
risk of management override of internal controls, including among other matters consideration of whether there
was evidence of bias that represented a risk of material misstatement due to fraud. Of the 5 components of the
group, a full scope audit was performed on the complete financial information of 2 components, and for the
components not considered significant, we performed a limited scope review which analytical review together
with substantive testing as appropriate on group audit risk areas applicable to those components based on their
relative size, risks in the business and our knowledge of the entity appropriate to respond to the risk of material
misstatement.
Of the 5 reporting components of the group, 1 is located in Spain and audited by PKF network firm operating
under our instruction and the audit of the remaining components were performed in London, conducted by PKF
Littlejohn LLP using a team with specific experience of auditing technology companies and publicly listed entities.
The Senior Statutory Auditor interacted regularly with the component audit teams during all stages of the audit
and was responsible for the scope and direction of the audit process. This, in conjunction with additional
procedures performed, gave us appropriate evidence for our opinion on the group and parent company financial
statements.
21
Mirada plc
Independent Auditor’s report to the Members of Mirada plc
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current year and include the most significant assessed risks of material misstatement
(whether or not due to fraud) we identified, including those which had the greatest effect on the overall audit
strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters
were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our scope addressed this matter
Revenue recognition (Refer note 4d & 6)
The group’s revenue recognition policy can be found
in note 4d to the financial statements.
Several revenue streams exist across the group
involving different timings and recognition entailing
a degree of complexity as detailed in note 4d.
Therefore, revenue recognition related to each
deliverable requires judgement over the assessment
of the separate contract deliverables.
We assessed revenue recognition as a fraud risk as
revenue forms the basis for certain of the Group’s
key performance
in external
communications and for management incentives. As
a result, we consider a significant risk of material
misstatement to arise from the recognition of
revenue throughout the year.
indicators, both
Goodwill and intangible asset impairment.
(Refer note 4(f), 4(g), 4(h), 4(i) & 14)
The group has made a loss during the year and, as a
result, the Directors have tested goodwill and
intangibles assets, including previously capitalised
Our audit appoach included the followingf procedures
to address this matter:
-
-
-
-
-
A review of the revenue recognition policy for the
group in light of the requirements of IFRS 15.
Testing a sample of transactions from the revenue
listing by allocating transaction price to each per-
formance obligation and checked whether the re-
venue was recognised appropriately at a point in
time or over time.
Testing a sample of sales invoices raised before
and after year end to ensure that these were ac-
counted for in the correct period and accrued for,
or deferred, appropriately by agreeing to suppor-
ting evidence.
Testing completeness of deferred revenue and
existence of accrued revenue by agreeing the sa-
les invoices to cash receipts and ensuring that re-
venue was appropriately recognised during the
year.
For all samples tested our testing included inspec-
tion of the contracts, proof of payments and ensu-
ring revenue recognition as per the accounting
policy. We confirmed that the appropriate trigger
event i.e. performance obligation had satisfied in
order to ensure that the revenue recognition crite-
ria had been met.
- We also considered the adequacy of the group’s
disclosures relating to revenue recognition in note
4d and 6.
Based on procedures performed, we did not identify
any evidence of material misstatement in the revenue
recognised in the year.
Our work in this area included:
22
Mirada plc
Independent Auditor’s report to the Members of Mirada plc
development costs, for impairment. There remains a
degree of uncertainty around expected revenues and
profits to be realised and be sufficient to ensure
recoverability of the assets recognised on the
statement of financial position.
Determining if an impairment charge is required for
Goodwill and Intangible assets involves significant
judgements about the future results and cash flows
of the business, including forecast growth in future
revenues and operating profit margins, as well as
determining an appropriate discount factor and long
term growth rate. Details of these are included in
note 14.
Updating our understanding of the internal
control environment in operation for the
material income streams and undertaking a
walk-through to ensure that the key controls
within these systems have been operating in
the period under audit;
Obtaining and reviewing the impairment
test performed by management to ensure it
is in line with the requirements of IAS 36
Considering the appropriateness of the
disclosure included in the financial
statements.
Based on the work performed, we are satisfied that
the Goodwill and intangible asset impairment is
materially correct.
Our audit procedures involved:
-
-
-
-
-
-
Discussing with management their assessment of
the group’s ability to continue as a going concern.
Critically evaluating the revenue and cost projec-
tions underlying the model with reference to mar-
ket information as well as past performance of the
group.
Analysing the projected cash flow and working
capital assumptions;
Assessed the impact of COVID-19 on the cash-
flow projections as well as the assumptions and
sensitivities relating to this.
Performing analysis of changes in key assum-
ptions including a reasonable possible (but not
unrealistic) reduction in forecast revenue to un-
derstand the sensitivity in the cash flow forecasts.
A review of the directors’ statement in note 4(b)
of the financial statements as to whether it is ap-
propriate to adopt the going concern basis of ac-
counting in preparation of the financial state-
ments.
We therefore focused on these areas and the
judgements applied to future forecasts.
Going concern assessment
The group has made operating losses in the financial
year, which indicates that there is an elevated risk
associated with the group’s going concern status.
The financial statements explain in note 4(b) how the
Directors have formed a judgement that it is
appropriate to adopt the going concern basis of
preparation for the group financial statements.
That judgement is based on an evaluation of the
inherent risks to the group’s business model and how
those risks might affect the group’s financial
resources or ability to continue operations over a
period of at least a year from the date of approval of
the financial statements.
The group’s ability to continue as a going concern
has been discussed with management due to the fact
that the group had made loss during the year and the
financial impact of COVID-19 and its future
potential impact on the markets as a whole and the
group in specific. The Directors have considered the
impact of loss during the year and potential impact
of COVID-19 and have sensitised their forecasts
accordingly.
As the full economic effect of the group due to losses
and the overall economic environment due to
23
Mirada plc
Independent Auditor’s report to the Members of Mirada plc
COVID-19 are still uncertain there is a significant
level of judgement involved in anticipating results.
Due to the high level of judgement involved in these
assessments there exists a risk, that inappropriate
assumptions might be utilised in the determination of
the group’s ability to continue as a going concern.
Other information
The other information comprises the information included in the annual report, other than the financial statements
and our auditor’s report thereon. The directors are responsible for the other information contained within the annual
report. Our opinion on the group and parent company financial statements does not cover the other information
and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance
conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the course of the
audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent
material misstatements, we are required to determine whether this gives rise to a material misstatement in the
financial statements themselves. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors’ report for the financial year for which the
financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report have been prepared in accordance with applicable legal
requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained
in the course of the audit, we have not identified material misstatements in the strategic report or the directors’
report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires
us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit
have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
24
Mirada plc
Independent Auditor’s report to the Members of Mirada plc
Responsibilities of directors
As explained more fully in the responsibilities of directors statement, the directors are responsible for the
preparation of the group and parent company financial statements and for being satisfied that they give a true and
fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the group and parent company financial statements, the directors are responsible for assessing the
group’s and the parent company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the
group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities,
including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is
detailed below:
We obtained an understanding of the group and the company and the sector in which they operate to
identify laws and regulations that could reasonably be expected to have a direct effect on the financial
statements. We obtained our understanding in this regard through discussions with management, industry
research and the application of cumulative audit knowledge and experience of the sector.
We determined the principal laws and regulations relevant to the group and the company in this regard to
be those arising from
o
o
o
o
o
o
o
o
o
o
AIM rules;
Companies Act 2006;
General Data Protection Regulation;
Employment Act 2008;
UK Health and Safety Law;
Anti-Bribery Money Laundering Regulations; and
Qouted Companies Alliancecompliance
UK City Code on Takeovers and Mergers
Local laws and regulations in UK, Spain and Mexico where the Group operates; and
Local tax and employment law where each member of the Group operates
There was regular interaction with the component auditors during all stages of the audit, including
procedures designed to identify non-compliance with laws and regulations, including fraud.
We designed our audit procedures to ensure the audit team considered whether there were any indications
of non-compliance by the group or the company with those laws and regulations. These procedures
included, but were not limited to:
o
o
o
review of legal and professional fees to understand the nature of the costs and the existence
of any non-compliance with laws and regulations;
discussion with management regarding potential non-compliance; and
review of minutes of meetings of those charged with governance and RNS
25
Mirada plc
Independent Auditor’s report to the Members of Mirada plc
We also identified the risks of material misstatement of the financial statements due to fraud. We
considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management
override of controls, the potential for management bias was identified in relation to the going concern of
the group and the company and as noted above, we addressed this by challenging the assumptions and
judgements made by management when auditing that significant accounting estimate.
As in all of our audits, we addressed the risk of fraud arising from management override of controls by
performing audit procedures which included, but were not limited to: the testing of journals; reviewing
accounting estimates for evidence of bias; and evaluating the business rationale of any significant
transactions that are unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk
increases the more that compliance with a law or regulation is removed from the events and transactions reflected
in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is
also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional
concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those
matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone, other than the company and the company's
members as a body, for our audit work, for this report, or for the opinions we have formed.
Zahir Khaki (Senior Statutory Auditor)
For and on behalf of PKF Littlejohn LLP
Statutory Auditor
28 September 2021
15 Westferry Circus
Canary Wharf
London E14 4HD
PKF Littlejohn LLP is a limited liability partnership registered in England and Wales (with registered number
OC342572).
26
Mirada plc
Consolidated Statement of Comprehensive Income for the year ended
31 March 2021
Company number 03609752
Revenue
Cost of sales
Gross profit
Depreciation
Amortisation
Staff costs
Other administrative expenses
Total administrative expenses
Operating loss
Gain on disposal of Mirada Connect
Non operating profit
Finance income
Finance expense
Foreign currency translation differences
Profit/(loss) before taxation
Taxation
Profit/(loss) for year
Note
6
15,16
14
9
8
2,7
10
11
12
2021
$000
11.134
(297)
10.837
(378)
(3.909)
(7.095)
(2.047)
(13.429)
(2.592)
-
-
70
(222)
(419)
(3.163)
171
(2.992)
2020
$000
13.157
(676)
12.481
(360)
(3.499)
(6.790)
(3.196)
(13.845)
(1.364)
1.699
1.699
65
(177)
52
275
313
588
Other comprehensive income for the period
Amounts that will or may be reclassified to the profit or loss
Forex on translation of foreign operations
Total comprehensive profit/(loss) for the period
338
(2.654)
2.888
3.476
Earning/(loss) per share
Earning/(loss) per share for the year
- basic & diluted
Year ended
31 March
Restated 31
March 2020
$
$
13
(0,336)
0,066
The notes on pages 31 to 73 form part of these financial statements
27
Mirada plc
Consolidated Statement of changes in equity
for the year ended 31 March 2021
Company number 03609752
Share capital
Share
premium
$000
$000
Foreign
exchange
reserve
$000
Merger
reserves
Accumulated
losses
$000
$000
Balance at 1 April 2020
12.015
Profit/(loss) for year
Other comprehensive income
Movement in foreign exchange
Total comprehensive income for the year
Balance at 31 March 2021
-
-
-
12.015
-
-
-
-
-
13.423
-
338
338
4.863
-
-
-
(19.749)
(2.992)
-
(2.992)
13.761
4.863
(22.741)
Company number 03609752
Share capital
Share
premium
$000
$000
Foreign
exchange
reserve
$000
Merger
reserves
Accumulated
losses
$000
$000
Balance at 1 April 2019
12.015
15.995
10.535
4.863
(33.426)
Profit/(loss) for year
Other comprehensive income
Movement in foreign exchange
Total comprehensive income for the year
Transactions with owners
Share premium cancelation
Balance at 31 March 2020
-
-
-
-
-
-
-
-
2.888
2.888
(15.995)
-
-
-
-
-
588
-
588
13.089
12.015
-
13.423
4.863
(19.749)
The notes on pages 31 to 73 form part of these financial statements
Total
$000
10.552
(2.992)
338
(2.654)
7.898
Total
$000
9.982
588
2.888
3.476
(2.906)
10.552
29
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
Company number 03609752
Cash flows from operating activities
(Loss)/profit after tax
Adjustments for:
Depreciation of property, plant and equipment
Amortisation of intangible assets
Finance income
Finance expense
Foreign currency translation differences
Taxation
Gain on disposal of Mirada Connect
Operating cash flows before movements in working capital
Note
15,16
14
Decrease/(increase) in trade and other receivables
(Decrease)/increase in trade and other payables
Interest paid
Taxation received
Net cash used in operating activities
Cash flows from investing activities
Interest and similar income received
Purchases of property, plant and equipment
Purchases of other intangible assets
Cash proceeds from sale of Mirada Connect
Net cash used in investing activities
Cash flows from financing activities
Net payment to settle derivative
Interest and similar expenses paid
Payment of principal on lease liabilities
Loans received
Related parties loans received
Repayment of loans
Repayment of related parties
Net cash from/(used in) financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Exchange losses on cash and cash equivalents
Cash and cash equivalents at the end of the year
The notes on pages 31 to 73 form part of these financial statements
10
16
14
2
11
27
27
27
27
27
27
27
2021
$000
(2.992)
378
3.909
(70)
222
419
(171)
-
1.695
1.375
(74)
(13)
162
3.145
70
(53)
(4.185)
-
(4.168)
-
(209)
(301)
3.264
-
(956)
(704)
1.094
71
185
(149)
107
2020
$000
588
360
3.499
(65)
177
(52)
(313)
(1.699)
2.495
(2.011)
1.065
(14)
265
1.800
65
(126)
(4.319)
2.605
(1.775)
-
(163)
(242)
1.958
1.210
(2.824)
-
(61)
(36)
117
104
185
30
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
1. General information
Mirada plc is a company incorporated in the United Kingdom. The address of the registered office is 3rd Floor
Chancery House, St Nicholas Way Sutton, Surrey SM1 1JB. The nature of the Group’s operations and its
principal activities are the provision and support of products and services in the Digital TV and Broadcast
markets.
2.
Change in consolidation scope
Main changes for the year ended as at 31 March 2021:
On 5 July 2019, the Group announced the sale of the wholly owned subsidiary Mirada Connect Ltd. to
PayByPhone UK Limited (subsidiary of Volkswagen Financial Services, AG), for a consideration of $2.61
million (£2.12 million). As a result, last year the Group recognised a gain of $1.70 million as shown in the
Consolidated Income Statement for the year ended 31 March 2020. As a consequence, of said disposal, the
results of Mirada Connect Ltd are included as part of the consolidation scope from 1 April 2019 to the effective
date of disposal. For the purpose of IFRS 5, this was not a discontinued operation.
3.
a.
Changes in accounting policies
Adoption of new and revised standards effective from 1 April 2020
Amendments to IAS 1 and IAS 8
Definition of materiality or with relative importance. This amendment clarifies the definition of materiality or
relative importance and how it should be applied by introduction in the definition of guides that until now have
been addressed in other parts of the IFRS Standards; improving the explanations that accompany the definition
and ensuring that the definition of materiality or with relative importance is consistent throughout all IFRS
Standards. The Group will consider the new definition of materiality and do not foresee significant impact in
the preparation of the consolidated financial statement.
Amendments to IFRS 3 – Business combinations
At the date of authorisation for issue of these consolidated financial statements, the amendments to IFRS 3 -
Business combinations have been approved by the International Accounting Standards Board (IASB).
Amendments to IFRS 3 - Business combinations. IFRS 3 is amended to limit and clarify the definition of a
business, and to enable a simplified evaluation of whether a set of activities and assets acquired is a group of
assets instead of a business.
COVID-19-Related Rent Concessions (Amendments to IFRS 16)
Effective 1 June 2020, IFRS 16 was amended to provide a practical expedient for lessees accounting for rent
concessions that arise as a direct consequence of the COVID-19 pandemic and satisfy the following criteria:
(a)
(b)
(c)
The change in lease payments results in revised consideration for the lease that is substantially the
same as, or less than, the consideration for the lease immediately preceding the change;
The reduction is lease payments affects only payments originally due on or before 30 June 2021; and
There are no substantive change to other terms and conditions of the lease.
Rent concessions that satisfy these criteria may be accounted for in accordance with the practical expedient,
which means the lessee does not assess whether the rent concession meets the definition of a lease modification.
Lessees apply other requirements in IFRS 16 in accounting for the concession.
Adoption of the above standards did not have a material impact on the consolidated financial statements
31
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
3.
b.
Changes in accounting policies
New Standards, interpretations and amendments not yet effective
There are a number of standards, amendments to standards, and interpretations which have been issued by
the IASB that are effective in future accounting periods that the group has decided not to adopt early.
The following amendments are effective for the period beginning 1 January 2022:
o Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37);
o Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16);
o Annual Improvements to IFRS Standards 2018-2020 (Amendments to IFRS 1, IFRS 9, IFRS 16 and
IAS 41); and
o References to Conceptual Framework (Amendments to IFRS 3).
In January 2020, the IASB issued amendments to IAS 1, which clarify the criteria used to determine whether
liabilities are classified as current or non-current. These amendments clarify that current or non-current
classification is based on whether an entity has a right at the end of the reporting period to defer settlement of
the liability for at least twelve months after the reporting period. The amendments also clarify that ‘settlement’
includes the transfer of cash, goods, services, or equity instruments unless the obligation to transfer equity
instruments arises from a conversion feature classified as an equity instrument separately from the liability
component of a compound financial instrument. The amendments were originally effective for annual
reporting periods beginning on or after 1 January 2022. However, in May 2020, the effective date was deferred
to annual reporting periods beginning on or after 1 January 2023.
Mirada Group is currently assessing the impact of these new accounting standards and amendments. The
Group does not believe that the amendments to IAS 1 will have a significant impact on the classification of
its liabilities, as the conversion feature in its convertible debt instruments is classified as an equity instrument
and therefore, does not affect the classification of its convertible debt as a non-current liability.
Interest Rate Benchmark Reform – IBOR ‘phase 2’ (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and
IFRS 16)
These amendments to various IFRS standards are mandatorily effective for reporting periods beginning on or
after 1 January 2021. The amendments provide relief to Group in respect of certain loans whose contractual
terms are affected by interest benchmark reform.
The Group has not early adopted any of the above standards and the directors are assessing the impact on
future financial statements. There are no other IFRS or IFRIC interpretations that are not yet effective that
would be expected to have a material impact on the Group
4.
a.
Significant accounting policies
Basis of accounting
The consolidated financial statements have been prepared in accordance with international accounting
standards in conformity with the Companies Act 2006 and international financial reporting standards adopted
pursuant to Regulation (EC) No.1606/2002 as it applies in the European Union.
The consolidated financial statements have been prepared under the historical cost convention, as modified by
the revaluation of financial assets and financial liabilities (including derivative instruments) at fair value
through profit or loss, assets held for sale measured at fair value less costs to sell; and defined benefit pension
plans for which the plan assets are measured at fair value.
All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thou-
sand currency units, unless otherwise stated.
32
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
4.
Significant accounting policies (continued)
The preparation of consolidated financial statements requires the use of certain critical accounting estimates.
It also requires management to exercise its judgement in the process of applying the group’s accounting pol-
icies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and esti-
mates are significant to the consolidated financial statements, are disclosed in Note 5.
b.
Going concern
These financial statements have been prepared on the going concern basis. The Directors have reviewed the
Company and Group’s going concern position taking account of its current business activities, budgeted
performance and the factors likely to affect its future development, which are set out in this Annual report,
and include the Group’s objectives, policies and processes for managing its capital, its financial risk
management objectives, its exposure to credit and liquidity risks and the impact of the COVID-19 pandemic.
As at 31 March 2021, the Group had cash and cash equivalents of $0.11m (2020: $0.19m), had net current
liabilities of $0.23m (2020: net current assets of $0.29m) and net assets of $7.90m (2020: $10.55m.). In the
year ended 31 March 2021, the Group generated net cash from operating activities of $3.15m (2020: $1.80m),
realised a loss for the year of $2.99m (2020: a profit of $0.59m). During the year, the Group had secured the
following funding for the business:
o €1.6m of new loans obtained between April 2020 and June 2020 from banks with 80% of these loans
guaranteed by the Spanish government under the COVID-19 relief scheme.
o An extension to the term of its €1.30 million credit facility has been granted by Leasa Spain, S.L.U.
The term of the Facility has been extended by 12 months and now expires on 30 November 2022.
The Directors have prepared detailed cash flow forecasts for the period to at least 30 September 2022 and
extended it for further 4 years. The Directors regularly review the detailed forecasts of sales, costs and cash
flows. The assumptions underlying the forecasts are challenged, varied and tested to establish the likelihood
of a range of possible outcomes, including reasonable cash flow sensitivities. The expected figures are
carefully monitored against actual outcomes each month and variances are highlighted and discussed at Board
level. However, the uncertain impact of COVID-19 has increased risks and uncertainty into this year’s review.
The Group has seen limited impact of COVID-19 on the operational capability of the business. From a
technology point of view, the Group is also offering and developing the most advanced features in the market,
providing services to a growing subscriber base in our core markets. To this end a base case cash flow forecast
has been prepared which takes into account the following key assumptions:
• The continued availability of the Group’s invoice discounting facility throughout the foreseeable future.
• An average revenue growth of 13% in the foreseeable future, which Directors believe, comprise of
revenue that is substantially already secured under-signed contracts.
• Additional net funding of US$1.4m from lenders
• An expected receipt of US$0.3m of Research and Development tax credit in March 2021 from Spanish
tax authorities.
33
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
4.
b.
Significant accounting policies (continued)
Going concern (continued)
The Directors have also considered a number of downside scenarios, including a scenario where all revenue
growth from new customers is removed, a scenario where no further funding is obtained in the period and a
reverse stress test. The purpose of the reverse stress test for the Group is to test at what point the cash facilities
would be fully utilised if the assumptions in the Director’s base case forecasts are altered. This reverse stress
test includes both a removal of all revenue growth from new customers and a reduction of contracted revenue
from existing customers for the forecast period, resulting in an overall reduction of revenue of c.20%, as well
as the removal of any potential future funding and the receipt of the US$0.3m Research and Development tax
credits anticipated. In the event that the performance of the Group is not in line with the projections, and
more akin to one of our downside scenarios, including the worst case scenario, action will be taken by
management immediately to address any potential cash shortfall for the foreseeable future. The actions that
could be taken by the Directors include both a review and restructuring of employment related costs, including
the deferral of any potential bonuses due to employees. These measures alone could save at least $1.0m in
operating costs and therefore cash flows. Further, the Directors could also negotiate access to other sources
of finances from our lenders. Given the Director’s current relationship with lenders and their recent success
in negotiations with these financial institutions, whilst there are no binding agreements currently in place,
negotiations are in very advanced stages for additional funding. Therefore, they Directors are confident that
any additional funding required would be obtained.
Whilst the cash flow forecasts prepared have been sensitised to consider a number of downside scenarios,
including the reverse stress test, the Directors are pleased to note that the post year end performance of the
Group has exceeded the original forecast for April and May 2021. Therefore demonstrating that the Group
has not suffered negatively from the impact of COVID-19 and is in a strong place to meet the base case
forecasts.
Overall, the sensitised cash flow forecasts demonstrate that the Group will be able to pay its debts as they fall
due for the period to at least 31 December 2021. The Directors are, therefore, satisfied that the financial
statements should be prepared on the going concern basis.
c.
Basis of consolidation
The consolidated financial statements comprise the financial statements of Mirada plc and its subsidiaries as
at 31 March 2021. The financial statements of the subsidiaries are prepared for the same reporting period as
the parent company, using consistent accounting policies. All intra-group balances, transactions, income and
expenses and profits and losses resulting from intragroup transactions that are recognised in assets, are
eliminated in full. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the
Group obtains control, and continue to be consolidated until the date that such control ceases. Mirada plc
owns the majority of the shareholdings and has operational control over all its subsidiaries.
The Group applies the acquisition method to account for business combinations. The consideration transferred
for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the
former owners of the acquire and the equity interests issued by the group. The consideration transferred
includes the fair value of any asset or liability resulting from a contingent consideration arrangement.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest
in the acquire on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s
proportionate share of the recognised amounts of acquiree’s identifiable net assets.
34
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
4.
c.
Significant accounting policies (continued)
Basis of consolidation (continued)
Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s
previously held equity interest in the acquiree is re-measured to fair value at the acquisition date; any gains or
losses arising from such re-measurement are recognised in profit or loss.
Contingent consideration is classified either as equity or as a financial liability. Amounts classified as a
financial liability are subsequently remeasured to fair value, with changes in fair value recognised in profit or
loss.
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity
transactions – that is, as transactions with the owners in their capacity as owners. The difference between fair
value of any consideration paid and the relevant share acquired of the carrying value of net assets of the
subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in
equity.
When the Group ceases to have control any retained interest in the entity is remeasured to its fair value at the
date when control is lost, with the change in carrying amount recognised in profit or loss. The fair value is the
initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate,
joint venture or financial asset. In addition, any previously recognised in other comprehensive income in
respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities.
This may mean that amounts previously recognised in other comprehensive income are reclassified to profit
or loss.
Mirada plc has used the exemption grated under s408 of the Companies Act 2006 that allows for the non-
disclosure of the Income Statement of the parent company. The after-tax loss attributable to Mirada plc for
the year ended 31 March 2021 was $1.220 million (2020: an after-tax profit of $1.121 million).
d.
Revenue recognition
Interactive service revenues are divided into 5 types: professional services fees, the sale of licences, SaaS, support
& maintenance services and self-billing revenues.
1) Revenues from professional services fees (which include set-up fees): these are recognised according to
management’s estimation of the stage of completion of the project. This is measured by reference to the
amount of professional services time spent on a project compared to the most up to date calculation of the
total time estimated to complete the project in full.
Since the Group has determinate the works incurred are specific to the customer and cannot be used on
alternative contracts and Mirada has right to payment for all incurred works, the revenue is recognised over
the time.
2) Sale of licence: Revenue from licences are earned from two specific and separate streams.
i) Where the revenue relates to the sale of a one-off licence, the licence element of the sale is recognised as
income when the following conditions have been satisfied:
-
-
-
The software has been provided to the customer in a form that enables the customer to utilise it;
The ongoing obligations of the Group to the customer are minimal; and
The amount payable by the customer is determinable and there is a reasonable expectation of
payment.
The performance obligation included in this type of contract is to provide initially licence and key to access.
35
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
4. Significant accounting policies (continued)
d. Revenue recognition (continued)
ii) Contract licence fees payable by customers are dependent upon the number of end user subscribers
signing up to the customer’s digital television service, purchased Set Top Boxes or active devices.
Licences cover the right of use of the software in the initial conditions without any right to modify it.
None of the contracts have an end or termination date. Typically, once you sign a contract, you keep using
the software for many years.
For this type of contract, revenues are recognised by multiplying the individual licence fee by the net
increase in the customer’s subscriber base, purchased Set Top Boxes or active devices.
The Group promises to grant a licence that provides a customer with a right to use and obtain substantially
all the benefits from the licence. As a consequence of this, the recognition of the revenue is at a point in
time at which the licence is granted.
3) SaaS: Some of the licence software are under Software as a Service model (SaaS). Under this model, lower
integration set up fees than in other agreements are offset by recurrent monthly licence fee revenues. Revenue
for SaaS arrangements are recognised over the period of the arrangement to reflect the ongoing service
provision. This is on the basis that the Group’s performance under these services does not create an asset
with an alternative use to the Group and that the Group has an enforceable right to payment for performance
completed to date.
4) Support & Maintenance services. Revenue is measured on a straight-line basis over the length of the contract
i.e. as and when the service is being provided. Length of service is pre-defined in the contract and there are
no performance obligations after the contract term is complete.
5) Transaction revenues: These are earned through a revenue-share agreement between Mirada Connect Ltd
and the customers for the cashless parking services which are presented in the Mobile segment. The Group
are informed by the customer of the amount of revenue to invoice and the revenues are recognised at a point
in time in the period these parking services happen. Mirada Connect Ltd was sold in July 2019 to PaybyPhone
Ltd, a subsidiary of the Volkswagen Group.
Where agreements involve multiple obligations, the entire fee from such arrangements is allocated to each
of the individual obligations based on each obligation's fair value. The revenue in respect of each element is
recognised in accordance with the above policies.
Certain revenues earned by the Group are invoiced in advance. As outlined in the revenue recognition
policy above, revenues are recognised in the period in which the Group provides the services to the customer,
revenues relating to services which have yet to be provided to the customer are deferred.
e. Business combinations
Acquisitions of businesses are accounted for using the purchase method. The cost of the acquisition is measured
at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and
equity instruments issued or to be issued, by the Group in exchange for control of the acquiree, plus any costs
directly attributable to the business combination. The acquiree’s identifiable assets, liabilities and contingent
liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair value at the
acquisition date.
Goodwill arising on acquisition is recognised as an asset and initially measured at cost and is accounted for
according to the policy below.
36
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
4. Significant accounting policies (continued)
f. Goodwill
Goodwill represents the excess of the cost of acquisition over the Group’s interest in the fair value of the
identifiable assets and liabilities of the acquired business at the date of acquisition. Goodwill is initially
recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses
On disposal of a subsidiary the attributable amount of goodwill is included in the determination of the profit
(cid:484)(cid:3)
or loss on disposal.
For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units
expected to benefit from the synergies of that the balance sheet date of the combination. Cash-generating units
to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an
indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the
carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill
allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each
asset in the unit.
g. Other intangible assets
Intangible assets acquired as part of a business combination are initially recognised at their fair value and
subsequently amortised on a straight-line basis over their useful economic lives. Intangible assets that meet the
recognition criteria of IAS 38, “Intangible Assets” are capitalised and carried at cost less amortisation and any
impairment losses. Intangible assets comprise of completed technology, acquired software, capitalised
development costs and goodwill.
Amortisation of other intangible assets is calculated over the following periods on a straight-line basis:
Completed technology
Deferred development costs
- over a useful life of 4 years
- over a useful life of 3 to 4 years
The amortisation is charged to administrative expenses in the consolidated income statement. Completed
technology relates to software and other technology related intangible assets acquired by the Group from a
third party. Deferred development costs are internally-generated intangible assets arising from work completed
by the Group’s product development team.
h. Internally-generated intangible assets – research and development expenditure
Any internally generated intangible asset arising from the Group’s development projects are recognised only
if all of the following conditions are met:
The intention to complete the intangible asset and use or sell it.
The technical feasibility of completing the intangible asset so that it will be available for use or sale
The ability to use or sell the intangible asset.
How the intangible asset will generate probable future economic benefits. Among other things, the
Group can demonstrate the existence of a market for the output of the intangible asset or the intangible
asset itself or, if it is to be used internally, the usefulness of the intangible asset.
The availability of adequate technical, financial and other resources to complete the development and
to use or sell the intangible asset.
Its ability to measure reliably the expenditure attributable to the intangible asset during its development.
If a development project has been abandoned, then any unamortised balance is immediately written off to the
income statement. Where no internally-generated intangible asset can be recognised, development expenditure
is recognised as an expense in the period in which it is incurred. The amortisation is charged to administrative
expenses in the consolidated statement of comprehensive income.
37
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
4.
i.
Significant accounting policies (continued)
Impairment of non-current assets excluding deferred tax assets
At each reporting date, the Group reviews the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset for which the estimates
of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount,
the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment
loss is recognised in the impairment of intangible assets line in the consolidated statement of comprehensive
income as an expense immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset (cash-generating unit) in prior periods. A reversal of an impairment loss is recognised as income
immediately.
Goodwill impairments are not reversed.
j. Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and any impairment in value.
Depreciation is provided on all property, plant and equipment, other than freehold land, at rates calculated to
write off the cost, less estimated residual value based on current prices, of each asset evenly over its expected
useful life, as follows:
- Office & computer equipment
- Short-leasehold improvements
33.3% per annum
10% per annum
The carrying values of property, plant and equipment are reviewed for impairment if events or changes in
circumstances indicate the carrying value may not be recoverable. The asset’s residual values, useful lives and
methods are reviewed, and adjusted if appropriate, at each financial period end.
k. Right-of-use assets and Lease liabilities
On 1 April 2019, the Group adopted IFRS 16, on Leases. The Group opted to use the modified retrospective
approach on transition which involves applying the standard retroactively with the cumulative effect from the
date of first application, without restating the information presented as at 31 March 2019 under the
aforementioned standards.
At the start of a contract, the Group evaluates whether it contains a lease. A contract is or contains a lease if it
grants the right to control the use of the asset identified for a period of time in exchange for a consideration.
The length of time during which the Group uses an asset includes consecutive and non-consecutive periods of
time. The Group only re-assesses the conditions when a contract is amended.
In contracts with one or more lease and non-lease components, the Group deems all components as one sole
lease component.
38
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
4.
k.
Significant accounting policies (continued)
Right-of-use assets and Lease liabilities (continued)
The Group has also chosen to not recognise in the balance sheet the lease liabilities and the right-of-use asset
corresponding to short term lease agreements (leases for one year or less) and leases for low value assets ($5
thousand or less). For this type of contracts, the Group recognises straight-line payments during the lease term.
Lessee accounting
At the commencement of the lease term, the Group recognises a right-of-use asset and lease liability. The right-
of-use asset is composed of the amount of the lease liability, any payment for the lease made on or prior to the
starting date, less any incentives received, the initial direct costs incurred and an estimate of the costs for
decommissioning or restoration to be incurred, as indicated in the accounting policy provisions.
The Group measures the lease liability as the present value of the lease payments which are outstanding at the
commencement date. The Group discounts lease payments at the appropriate incremental interest rate, unless
the implicit interest rate of the lessor may be determined reliably.
The pending lease payments are comprised of fixed payments, less any incentive to be collected, the variable
payments that depend on an index or rate, initially appraised by the index or rate applicable on the starting
date, the amounts expected to be paid for residual value guarantees, the price of exercising the purchase option
whose exercise is reasonably certain and any compensation payments for contract termination, providing the
term of the lease reflects the termination option.
The Group measures the right-of-use assets at cost, less depreciation and accrued impairment losses, adjusted
by any re-estimate of the lease liability.
If the contract transfers ownership of the asset to the Group at the end of the lease term or if the right-of-use
asset includes the price of the purchase option, the depreciation criteria indicated in Note 4.j are applied from
the lease commencement date until the end of the useful life of the asset. Otherwise, the Group depreciates the
right-of-use asset from the commencement date until the date of the useful life of the right or the end of the
lease term, whichever is the earlier.
The Group applies the criteria for impairment of non-current assets set out in Note 4.i to right-of-use assets.
The Group measures the lease liability increasing it by the interest accrued, decreasing it by the payments made
and re-assessing the carrying amount due to any amendments to the lease or to reflect any reviews of the in-
substance fixed lease payments.
The Group records any variable payments that were not included in the initial valuation of the liability in the
Consolidated Income Statement for the period in which the events resulting in payment were produced.
The Group records any re-assessments of the liability as an adjustment to the right-of-use asset, until it is
reduced to zero, and subsequently in the Consolidated Income Statement.
The Group re-assesses the lease liability discounting the lease payments at an updated rate, if any change is
made to the lease term or any change in the expectation of the purchase option is being exercised on the
underlying asset.
The Group re-assesses the lease liability if there is any change in the amounts expected to be paid for a residual
value guarantee or any change in the index or rate used for determining payments, including any change for
reflecting changes in market rents once these have been reviewed.
The Group recognises an amendment to the lease as a separate lease if it increases the scope of the lease by
adding one or more rights of use and the amount of consideration for the lease increases by an amount
consistent with the individual price for the increased scope and any adjustment to the individual price to reflect
the specific circumstances of the contract.
If the amendment does not result in a separate lease, on the amendment date the Group assigns the consideration
to the amended contract as indicated above, it re-determines the term of the lease and re-estimates the value of
the liability discounting the revised payments at the revised interest rate. The Group writes down the carrying
amount of the right-of-use asset to reflect the partial or total end of the lease in any amendments that reduce
the scope of the lease and it records the profit or loss in income. For all other amendments, the Group adjusts
the carrying amount of the right-of-use asset.
39
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
4.
Significant accounting policies (continued)
k. Financial instruments
Financial assets and financial liabilities are recognised on the Group’s statement of financial position at fair
value when the Group becomes a party to the contractual provisions of the instrument.
Financial assets
Classification
The Group classifies its financial assets in the following categories: at amortised cost including trade
receivables and other financial assets at amortised cost, at fair value through other comprehensive income and
at fair value through profit or loss, loans and receivables, and available-for-sale. The classification depends
on the purpose for which the financial assets were acquired. Management determines the classification of its
financial assets at initial recognition.
Trade receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course
of business. They are generally due for settlement within 30 days and are therefore all classified as current.
Trade receivables are recognised initially at the amount of consideration that is unconditional, unless they
contain significant financing components, in which case they are recognised at fair value. The group holds the
trade receivables with the objective of collecting the contractual cash flows, and so it measures them
subsequently at amortised cost using the effective interest method.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime
expected credit loss allowance for all trade receivables and contract assets. During this process the probability
of non-payment of a trade receivable balance is assessed and multiplied by an expected amount of credit loss
as a result of the likely credit default. The group has set up a matrix using the age a debtor is overdue and any
likely events as a criteria to determine the default probability. This uses 5 categories ranging from 0% to 90%
probability.
The Group only have assets that are categorised as amortised cost and the application of ECL has not had a
material impact to the impairment provision. As a conclusion, the impact of the IFRS 9 on the Group was
immaterial.
Impairment provisions for receivables from related parties and loans to related parties are recognised based on
a forward-looking expected credit loss model. The methodology used to determine the amount of the provision
is based on whether there has been a significant increase in credit risk since initial recognition of the financial
asset. For those where the credit risk has not increased significantly since initial recognition of the financial
asset, 12 month expected credit losses along with gross interest income are recognised. For those for which
credit risk has increased significantly, lifetime expected credit losses along with the gross interest income are
recognised. For those that are determined to be credit impaired, lifetime expected credit losses along with
interest income on a net basis are recognised.
The provision for expected credit losses against receivables from related parties were not material and no
charge is made in the current and last year.
Cash and cash equivalents
Cash and cash equivalents include cash at hand and deposits held at call with banks with original maturities of
three months or less.
40
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
4. Significant accounting policies (continued)
l. Financial instruments (continued)
Financial liabilities and equity instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual
arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets
of the Group after deducting all of its liabilities.
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the
definition of a financial liability. The Group’s ordinary shares are classified as equity. When new shares are
issued, they are recorded in share capital at their par value. The excess of the issue price over the par value is
recorded in the share premium reserve.
Incremental external costs directly attributable to the issue of new shares (other than in connection with a
business combination) are recorded in equity as a deduction, net of tax, to the share premium reserve.
Bank Borrowings
Interest-bearing bank loans are initially recorded at fair value less direct issue costs. Finance charges are
accounted for on an accruals basis in the income statement using the effective interest rate method and are added
to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.
Invoice discounting
The Group has an invoice discounting facility secured on the trade debtors as specified in Note 17. Liabilities
under this arrangement are shown in borrowings.
Trade payables
Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the
effective interest rate method.
m. Employee share incentive plans
The Group issues equity-settled share-based payments to certain employees (including directors). These
payments are measured at fair value at the date of grant by use of the Black-Scholes pricing model. This fair
value cost of equity-settled awards is recognised on a straight-line basis over the vesting period, based on the
Group’s estimate of shares that will eventually vest and adjusted for the effect of any non market-based vesting
conditions. The expected life used in the model has been adjusted, based on management’s best estimate, for
the effects of non-transferability, exercise restrictions, and behavioural considerations. A corresponding credit
is recorded in equity in the retained earnings.
n. Leases
The group leases property and equipment. Rental contacts are typically made for fixed periods but may have
extension options as described below.
Contracts may contain both lease and non-lease components. The Group allocates the consideration in the
contract to the lease and non-lease components based on their relative stand-alone prices. However, for leases of
real estate for which the group is a lessee, it has elected not to separate lease and non-lease components and
instead accounts for these as a single lease component.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
The lease agreements do not impose any covenants other than the security interests in the leased assets that are
held by the lessor. Leased assets may not be used as security for borrowing purposes.
41
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
4. Significant accounting policies (continued)
n. Leases (continued)
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include
the net present value of the following lease payments:
fixed payments (including in-substance fixed payments), less any incentives receivable;
variable lease payments that are based on an index rate, initially measured using the index or rate as at the
commencement date;
the amounts expected to be payable by the Group under residual value guarantees;
the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of
the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for leases held by the group, the lessee’s incremental borrowing rate is
used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset
of similar value to the right-of-use asset in a similar economic environment with similar terms, security and
conditions.
To determine the incremental borrowing rate, the group:
where possible, uses recent third-party financing received by the individual lessee as a starting point, adjust
to reflect changes in financing conditions since third party financing was received;
uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by
Mirada Plc, which does not have recent third-party financing; and
make adjustments specific to the lease, for example term, country, currency and security.
The Group is exposed to potential future increases in variable lease payments based on an index or rate, which
are not included in the lease liability until they take effect. When adjustments to lease payments based on an
index take effect, the lease liability is reassessed and adjusted against the right-of-use asset.
Lease payments are allocated between principle and finance cost. The finance cost is charged to profit and loss
over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the lability
for each period.
Right-of-use assets are measured at cost comprising the following:
the amount of the initial measurement of lease liability;
any lease payments made at or before the commencement date less any lease incentives received;
any initial direct costs; and
restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the least term on a
straight-line basis. If the group is reasonably certain to exercise a purchase option, the right-of-use asset is
depreciated over the underlying asset’s useful life. While the group revalues its land and buildings that are
presented within property, plant and equipment, it has chosen not to do so for the right-of-use buildings held by
the group.
Payments associated with short-term leases of equipment and all leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or
less. Low-value assets compromise IT equipment and small items of office furniture.
42
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
4. Significant accounting policies (continued)
o. Taxation
The tax expense represents the sum of the current tax and deferred tax charges.
The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as
reported in the income statement because it excludes items of income or expense that are taxable or deductible
in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current
tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date.
If the Group considers it is likely that the tax authority will accept an uncertain tax treatment, the Group will
establish the taxable gain (loss), the tax bases, unused tax losses, unused tax credits or the tax rates consistent
with the tax treatment used or intended to be used in its income tax returns.
If the Group considers it unlikely that the tax authority will accept an uncertain tax treatment, the Group will
reflect the effect of the uncertainty to establish the taxable gain (loss), the tax bases, unused tax losses or credits
or the corresponding tax rates. The Group will reflect the effect of the uncertainty for each uncertain tax
treatment by using the most likely amount or the expected value of the probability weighted amounts.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are
recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which deductible temporary differences can be utilised.
Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of
goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in
a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or
the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the
Group intends to settle its current tax assets and liabilities on a net basis.
p. Research and development tax credit
Companies within the group may be entitled to claim special tax allowances in relation to qualifying research
and development expenditure (e.g. R&D tax credits). The group accounts for such allowances as tax credits and
recognise them when it is probable that the benefit will flow to the group and that benefit can be reliably
measured. R&D tax credits reduce current tax expense and, to the extent the amounts due in respect of them are
not settled by the balance sheet date, reduce current tax payable.
q. Retirement benefit costs
The Group operates defined contribution pension schemes. The amount charged to the statement of
comprehensive income in respect of pension costs and other post-retirement benefits is the contributions
payable in the period.
43
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
4. Significant accounting policies (continued)
q. Retirement benefit costs
Differences between contributions payable in the period and contributions actually paid are shown as either
accruals or prepayments in the statement of financial position.
r. Foreign exchange
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 result and the financial position of each group company are expressed in US Dollars,
which is the presentational currency for the consolidated financial statements.
On translation of balances into the functional currency of the entity in which they are held, 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.
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 that
period, in which case the exchange rates at the date of transactions are used.
Exchange differences arising on translating the opening statement of financial position and the current year
income statements are classified as equity and transferred to the Group’s foreign exchange reserve. Such
translation differences are recognised as income or an expense in the period in which the operations is disposed
of.
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 rate. The Group has elected to treat goodwill and
fair value adjustments arising on acquisitions before the date of transition to IFRS as sterling denominated assets
and liabilities.
5. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, which are described in notes 3 and 4, the directors are
required to make judgements, 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
historical experience and other factors that are considered to be relevant. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
a. Key judgements
The following are the critical judgements that the directors have made in the process of applying the Group’s
accounting policies that has the most significant effect on the amounts recognised in the financial statements.
Presenting financial information in USD
The reporting currency is US Dollar due to the growing exposure to the US Dollar, as all major contracts and
most of the new potential deals for the Group are denominated in this currency. The board therefore believes
that USD financial reporting provides the best presentation of the group’s financial position, funding and
treasury functions, financial performance and its cash flows. Coupled with the evolution of the business, the
group’s shareholder base is now largely comprised of investors to whom financial reporting in GBP is of limited
relevance. Internally, the board also bases its performance evaluation and many investment decisions on USD
financial information.
44
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
5. Critical accounting judgements and key sources of estimation uncertainty (continued)
b. Key sources of estimation uncertainty (continued)
Capitalised development costs
Any internally generated intangible asset arising from the Group’s development projects are recognised only once
all the conditions set out in the accounting policy Internally Generated Intangible Assets (refer to Note 3.h) are
met. The amortisation period of capitalised development costs is determined by reference to the expected flow of
revenues from the product based on historical experience. Furthermore, the Group reviews, at the end of each
financial year, the capitalised development costs for each product for indications of any loss of value compared to
net book value at that time. This review is based on expected future contribution less the total expected costs.
innovative
The Group capitalises spend on development of new software and
software. Management exercises judgement in establishing both the technical feasibility of completing an
intangible asset which can be sold, and the degree of certainty that a market exists for the asset, or its output, based
on feedback from existing and potential customers, for the generation of future economic benefits. In addition,
amortisation rates are based on estimates of the useful economic lives and residual values of the assets involved.
the delivery of
Impairment of goodwill and intangibles
Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating
units to which goodwill has been allocated. The value in use calculation requires the Group to estimate the
future cash flows expected to arise from the cash-generating units and the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the cash-generating unit. This includes the directors’ best estimate
on the likelihood of current deals in negotiation not yet concluded. Consequently, the outcome of negotiations
may vary materially from management expectation. See Note 14 for more details.
45
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
6. Revenue from contracts with customers
Year to 31 March 2021
Mexico
Europe
Other Americas
Asia
Revenue recognised over a period
Revenue recognised at a point in time
Year to 31 March 2020
Mexico
Europe
Other Americas
Asia
Revenue recognised over a period
Revenue recognised at a point in time
Professional
Services
$000
4.239
827
393
147
5.606
5.243
363
5.606
Professional
Services
$000
5.642
627
1.046
668
7.983
7.923
60
7.983
Transactions Licenses
$000
-
-
-
-
-
-
-
-
$000
2.032
556
977
-
3.565
3.450
115
3.565
Transactions Licenses
$000
-
193
-
-
193
-
193
193
$000
2.945
10
569
247
3.771
-
3.771
3.771
Support &
Maintenance
$000
1.713
228
-
22
1.963
1.916
47
1.963
Support &
Maintenance
$000
1.101
109
-
-
1.210
1.210
-
1.210
Total
$000
7.984
1.611
1.370
169
11.134
10.609
525
11.134
Total
$000
9.688
939
1.615
915
13.157
9.133
4.024
13.157
Licenses revenue are including both contract licenses and SaaS revenue.
Contract balances
The following table provides information about contract assets (included as accrued income) and contract liabilities
(included as deferred income) from contracts with customers:
Contract assets (accrued income)
Contract liabilities (deferred income)
31 March 2021
$000
1.561
973
2.534
31 March 2020
$000
3.478
1.785
5.263
46
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
6. Revenue from contracts with customers (continued)
The movement in the contract assets and liabilities during the year is set out below:
Contract assets
At 1 April
Transfers in the period from contract assets to trade receivables
Excess of revenue recognised over cash (or rights to cash)
recognised during the period
31 March 2021
$'000
3.478
(3.478)
1.561
31 March 2020
$'000
1.891
(1.891)
3.478
At 31 March
1.561
3.478
At 1 April
Amounts included in contract liabilities recognised
as revenue in the period
Cash received in advance of performance and not recognised
as revenue during the period
Contract liabilities
31 March 2021
$'000
1.785
(1.785)
31 March 2020
$'000
1.019
(1.019)
973
1.785
At 31 March
973
1.785
Contract assets ('accrued income') and contract liabilities ('deferred income') are included within 'Trade and
other receivables' and 'deferred income' respectively on the face of the Statement of Financial Position. They
arise from the Group's revenue contracts, where work has been performed in advance of invoicing customers,
and where revenue is received in advance of work performed. Cumulatively, payments received from customers
at each balance sheet date do not necessarily equate to the amount of revenue recognised on the contracts.
7.
Segmental reporting
Reportable segments
The chief operating decision maker for the Group is ultimately the board of directors. For financial and
operational management, the board considers the Group to be organised into two operating divisions based upon
the varying products and services provided by the Digital TV & Broadcast. The products and services provided
by each of these divisions are described in the Strategic Report. The segment headed other relates to corporate
overheads, assets and liabilities.
47
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
7. Segmental reporting (continued)
Reportable segments (continued)
Segmental results for the year ended 31 March 2021 are as follows:
March 2021
Revenue
Segmental profit/(loss)
(Adjusted EBITDA, see note 8)
Finance income
Finance expense
Depreciation
Amortisation
Foreign currency translation differences
Profit / (Loss) before taxation
Digital TV &
Broadcast
$000
£'000
Mobile
Other
$000
$000
11.134
2.439
-
-
(378)
(3.909)
(419)
(2.267)
-
-
-
-
-
-
-
-
-
(744)
70
(222)
-
-
-
(896)
Group
$000
11.134
1.695
70
(222)
(378)
(3.909)
(419)
(3.163)
$0.744 million (2020: $0.087 million) disclosed as “Other” comprises employment, legal, accounting and other
central administrative costs incurred at a Mirada Plc level.
On July 2019 Mirada Connect Ltd, which represented the mobile segment, was sold to PaybyPhone Ltd, a
subsidiary of the Volkswagen Group.
The segmental results for the year ended 31 March 2020 are as follows:
March 2020
Revenue
Segmental profit/(loss)
(Adjusted EBITDA, see note 8)
Gain on disposal of Mirada Connect
Finance income
Finance expense
Depreciation
Amortisation
Foreign currency translation differences
Profit / (Loss) before taxation
There is no material inter-segment revenue.
Digital TV &
Broadcast
$000
Mobile
Other
$000
$000
12.963
2.392
194
16
-
-
-
(358)
(3.499)
-
1.699
-
-
(2)
-
-
(1.465)
1.713
-
87
-
65
(177)
-
-
52
27
Group
$000
13.157
2.495
1.699
65
(177)
(360)
(3.499)
52
275
The Group has a major customer in the Digital TV and Broadcast segment that generates revenues amounting to
10% or more of total revenue that account for $7.9 million of $11.03m total revenue. This is approximately 72%
of all revenue (2020: $9.5 million, out of $13.16m) of the total Group revenues.
48
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
7. Segmental reporting (continued)
Reportable segments (continued)
Segment assets and liabilities are reconciled to the Group’s assets and liabilities as follows:
Assets
2021
$000
Liabilities
2021
$000
Digital TV - Broadcast & Mobile
12.847
10.449
Other:
Goodwill
Other financial assets & liabilities
Total other
5.435
350
5.785
-
286
286
Assets 2020
$000
14.488
5.098
490
5.588
Liabilities
2020
$000
9.328
-
196
196
Total Group assets and liabilities
18.632
10.734
20.076
9.524
Assets allocated to a segment consist primarily of operating assets such as property, plant and equipment,
intangible assets, goodwill and receivables.
On July 2019 Mirada Connect Ltd, which represented the mobile segment, was sold to PaybyPhone Ltd, a
subsidiary of the Volkswagen Group.
Liabilities allocated to a segment comprise primarily trade payables and other operating liabilities.
49
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
7. Segmental reporting (continued)
Reportable segments (continued)
Geographical disclosures
External revenue by
location of customer
Total assets by
location of assets
2021
$000
7.984
1.611
1.370
169
11.134
2020
2021
2020
$000
9.688
939
1.615
915
13.157
14
18.618
34
20.042
-
-
-
-
18.632
20.076
Digital TV &
Broadcast
2021
Mobile
2021
Digital TV
&
Broadcast
2020
$000
5.606
-
3.565
1.963
11.134
-
-
-
-
-
Mobile
2020
$000
-
193
-
-
7.983
3.771
1.210
12.964
193
2021
$000
378
3.909
253
2020
$000
360
3.499
339
Mexico
Europe
Other Americas
Asia
Revenues by Products:
Professional Services
Transactions
Licenses
Support & Maintenance
8.
Expenses by nature
This has been arrived at after charging:
Depreciation of owned assets (notes 15 and 16)
Amortisation of intangible assets (note 14)
Operating lease charges
Total R&D expenditure capitalised as intangible assets amounts to $4.12m (2020: $4.35m).
The total lease expense not subject to IFRS 16 for short-term as well as low-value leases amounts to $0.253
(2020: $0.339) (refer to Note 15).
50
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
8. Expenses by nature (continued)
Analysis of auditors’ remuneration is as follows:
Fees payable to the company’s auditor for the audit of the
company's annual accounts
Audit of the account of subsidiaries
2021
$000
60
30
2020
$000
65
25
Reconciliation of operating profit for continuing operations to adjusted earnings before interest, taxation,
depreciation and amortisation:
Operating loss
Depreciation
Amortisation
Operating profit before interest, taxation, depreciation,
amortisation, impairment (EBITDA)
Share-based payment charge
2021
$000
(2.592)
378
3.909
1.695
-
2020
$000
(1.364)
360
3.499
2.495
-
Adjusted EBITDA
1.695
2.495
9.
Staff costs and employee information
Staff costs (including directors) comprise:
Wages and salaries
Social security costs
Other pension costs
Staff costs
Group
2021
$000
8.950
2.228
41
11.219
Group
2020
$000
9.037
2.066
41
11.144
Contained within staff costs are amounts capitalised as intangible assets totalling $4.124 million (2020: $4.354
million), with $7.095 million (2020: $6.790 million) charged to administrative expenses.
The Group operates a defined contribution pension scheme for certain employees. No directors are members
of this scheme in both the current year and the previous year.
51
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
9. Staff costs and employee information (continued)
The average number of persons, including executive directors, employed by the Group during the year was:
By activity
Office and management
Platform and development
Sales and marIeting
2021
2020
11
150
11
172
12
152
9
173
The average number of persons, including executive directors, employed by the Company and the Group
during the year was 9 (2020: 9) within the office and management team.
Directors and key management personnel remuneration
Key management personnel are those persons having authority and responsibility for planning, directing and
controlling the activities of the Group, including the directors of the company listed on page 19, the Director
of Business Development and the Sales Director.
Salaries and fees
Social Security costs
Defined contribution pension cost
Other benefits
Amounts paid to third parties in respect of
directors’ services
2021
$000
1.077
72
-
46
-
1.196
Directors remuneration
The emoluments received by the directors who served during the year were as follows:
Executive directors
Aggregate emoluments
Non-Executive directors
Aggregate emoluments
2021
$000
671
103
774
2020
$000
1.325
67
-
46
-
1.438
2020
$000
820
.
93
913
52
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
9. Staff costs and employee information (continued)
The directors’ remuneration is disclosed in the Nominations and Remuneration Report on page 18.
Emoluments payable to the highest paid director are as follows:
Aggregate emoluments
2021
$000
258
2020
$000
319
There were no Group contributions to the pension scheme or benefits on behalf of the highest paid director.
10. Finance income
Interest received on bank deposits
11. Finance expense
2021
$000
70
70
2020
$000
65
65
Finance expenses exclude all fees directly incurred to facilitate borrowing. These include professional fees
paid to bank arrangement fees and fees to secure required guarantees.
Bank interest payable
Interest on loans from related parties
Interests on lease liabilities
2021
$000
131
78
13
222
2020
$000
122
41
14
177
53
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
12. Taxation
Analysis of tax credit for the year
Current tax
UK tax for the current financial year
Foreign tax on income for the year
Total current tax (credit)
Deferred tax
Origination and reversal of temporary
Adjustment in respect of prior periods
Total deferred tax (credit)
2021
$'000
2020
$'000
-
(171)
(171)
(1)
(312)
(313)
-
-
-
-
-
-
Total tax (credit) for the year
(171)
(313)
The tax assessed on the loss on ordinary activities for the period differs from the standard rate of tax of 19%
(2020-19%). The differences are reconciled below:
Profit/(loss) before taxation
Loss on ordinary activities multiplied by 19% (2020:
19%)
Effect of expenses not deductible for tax purposes
Losses carried forward/(utilised)
Witholding Taxes
Total current tax
Origination and reversal of temporary differences
2021
$000
(3.163)
(601)
-
601
186
186
-
Subtotal
Tax benefit from research and development expenditure
Total tax expense
Foreign exchange
186
(466)
109
2020
$000
275
52
-
(52)
112
112
-
112
(486)
61
Total tax credit
(171)
(313)
Rate used by the Group to calculate income tax is based on UK tax latest rates.
54
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
12. Taxation (continued)
Deferred Taxation
Deferred taxation amounts not recognised are as follows:
Losses
Research & Development Tax Credits,
Useable against future profits
Balance at the end of the year
Group
2021
$000
17.429
3.027
Group
2020
$000
16.828
2.722
20.456
19.550
The gross value of tax losses carried forward at 31 March 2021 equals $79.3 million (2020: $78.6 million).
13. Earnings per share
(Earnings)/profit for year
Weighted average number of shares
Basic earnings per share
Diluted earnings per share
Year ended 31
March 2021
Total
Restated 31
March 2020
Total
$(2.992.569)
8.908.435
$(0,336)
$(0,336)
$588.607
8.908.435
$0,066
$0,066
After the cancellation of share premium approved by the General Meeting on 10 September 2019, the Company
has 41,483 (2020: 41,483) potentially dilutive ordinary shares arising from share options issued to staff. However,
in 2021 and 2020 the (loss)/profit attributable to ordinary shareholders and weighted average number of
ordinary shares for the purpose of calculating the diluted earnings per ordinary share are identical to those
used for basic earnings per ordinary share. This is because the exercise of share options would have the effect
of reducing the earning per ordinary share and is therefore anti-dilutive.
55
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
14.
Intangible assets
Cost
At 1 April 2019
Additions
Disposal
Foreign exchange
Deferred
development
costs
$000
25.037
4.314
-
(369)
Completed
Technology
$000
1.761
5
-
(69)
Total
Intangible
assets
$000
26.798
4.319
(438)
Goodwill
$000
38.849
-
(688)
(1.690)
At 31 March 2020
28.982
1.697
30.679
36.471
At 1 April 2020
Additions
Disposal
Foreign exchange
28.982
4.153
-
2.001
1.697
32
-
160
30.679
4.185
-
2.161
36.471
-
-
3.681
At 31 March 2021
35.136
1.889
37.025
40.152
Accumulated amortisation
and impairment
At 1 April 2019
Provided during the year
Foreign exchange
19.279
3.455
(328)
1.664
44
(66)
20.943
3.499
(394)
32.925
-
(1.552)
At 31 March 2020
22.406
1.642
24.048
31.373
At 1 April 2020
Provided during the year
Foreign exchange
22.406
3.892
1.600
1.642
17
154
24.048
3.909
1.754
31.373
-
3.344
At 31 March 2021
27.898
1.813
29.711
34.717
Net book value
At 31 March 2021
At 31 March 2020
At 31 March 2019
7.238
6.576
5.758
76
55
97
7.314
6.631
5.855
5.435
5.098
5.924
The key assumptions for the value in use calculations are those regarding the discount rate applied, and the
forecast sales growth in a five-year budget period approved by management. Management estimates discount
rates using pre-tax rates that reflect current market assessments of the time value of money and the risks
specific to the CGUs. The cash flow forecast has been prepared with revenue being forecast per customer
based on historical performance of the business.
56
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
14. Intangible assets (continued)
There is 1 CGUs that has been assessed for impairment, being Digital TV – Broadcast. The sales growth
forecasts are based on current contracts and management’s estimate of revenues relating to opportunities that
are currently being pursued. CGUs defined is: “Digital TV – Broadcast” which refers to the provision of
software for the Digital TV market. Major customers are Digital TV platforms, mostly Pay TV service providers
and the Group provide the technology needed to facilitate the final user’s interaction with the devices they
provide. This rate does not exceed the average long-term growth rate for the relevant markets. The rate used to
discount the forecast post-tax cash flows for the CGU is 10% (2020: 10%). A 2% increase/decrease to the
discount rate does not result in an impairment. A 10% decrease in the five years cash flow and terminal value
forecast for both CGUs does not result in an impairment. A perpetual rate of 2% (2020: 2%) has been used in
the impairment assessment. Even without perpetual rate, no impairment is required. If WACC had increased to
87%, the CGU would have impaired.
During the current and last financial periods, no impairment has been recognised. The split of goodwill by CGU
is as follows:
Digital TV - Broadcast
Group
2021
$000
5.435
5.435
Group
2020
$000
5.098
5.098
15. Right-of-use assets and lease liabilities
The breakdown of changes in right-of-use assets for the year ended as at 31 March 2021 is as follows:
Cost
Balance at 1 April 2020
Additions
Foreign exchange
Balance at 31 March 2021
Amortisation
Balance at 1 April 2020
Provided during the year
Foreign exchange
Balance at 31 March 2021
Balance at 31 March 2020
Balance at 31 March 2021
Short term leasehold
improvements
$000
731
130
47
908
(249)
(305)
(11)
(565)
482
343
Of the total amount of rights-of-use assets at 31 March 2020, $0.188 m correspond to buildings and $0.156 m
to vehicles (2020: $0.301 m and $0.181 m respectively).
57
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
15. Right-of-use assets and lease liabilities (continued)
Regarding to the lease contracts, the Group has a dispersed portfolio. The average duration of property lease
contracts is 2 years, and 3 years for vehicles.
The right-of-use has been defined according to the duration of the contract in force for each asset.
The breakdown of changes in lease liabilities for the year ending at 31 March 2021 is as follows:
Balance at 31 March 2020
Additions
Payments of lease liabilities
Finance expense (Note 11)
Foreign exchange
Balance at 31 March 2021
$000
488
130
(314)
13
32
349
The analysis of the contractual maturity date of the lease liabilities, including the current interest, is as follows:
Currency
Interest
Rate
Less than
one year
1 to 3
years
More than
3 years
Total
2021
$000
Lease liabilities
EUR
3%
204
204
99
99
46
46
349
349
Currency
Interest
Rate
Less than
one year
1 to 3
years
More than
3 years
Total
2020
$000
Lease liabilities
EUR
2,96%
229
229
216
216
43
43
488
488
58
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
15. Right-of-use assets and lease liabilities (continued)
The average incremental discount rates for the main countries affected by this standard, used for calculating
the current value of the rights of use and lease liabilities recognised at the date of first-time application of
IFRS 16 were as follows:
Spain
Average rate
Between 1 and 3 years
3%
Average rate
More than 3 years
3%
The Group has chosen to not recognise in the balance sheet the lease liabilities and the right-of-use asset
corresponding to short term lease agreements and leases for low value assets. Those exceptions have been
recorded entirely under the heading of operating leases. The total lease expense not subject to IFRS 16 for
short-term as well as low-value leases amounts to $0.253 m (2020: $0.339 m).
59
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
16. Property, plant and equipment
Office and
computer
equipment
$000
Short term
leasehold
improvements
$000
Cost
At 1 April 2019
Additions
Disposals
Foreign exchange
At 31 March 2020
At 1 April 2020
Additions
Disposals
Foreign exchange
At 31 March 2021
Depreciation
At 1 April 2019
Provided during the year
Disposals
Foreign exchange
At 31 March 2020
At 1 April 2020
Provided during the year
Disposals
Foreign exchange
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
1.187
126
(30)
(36)
1.247
1.247
53
-
56
1.356
1.013
67
(24)
(35)
1.021
1.021
73
-
41
1.135
221
226
Total
$000
1.323
126
(39)
(42)
1.368
1.368
53
-
56
1.477
1.101
111
(30)
(42)
136
-
(9)
(6)
121
121
-
-
-
121
88
44
(6)
(7)
119
1.140
119
-
-
-
119
2
2
1.140
73
-
41
1.254
223
228
60
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
17. Trade & other receivables
Trade receivables
Other receivables
R&D tax credit
Contract assets
Prepayments
Non current R&D tax credit
Group
2021
$000
1.826
919
405
1.561
145
4.856
Group
2020
$000
1.987
1.025
327
3.478
149
6.966
354
354
486
486
As of 31 March 2021, the Group has a short-term receivable with the Spanish Tax Agency amounting to
$0.405m (2020: $0.327m) regarding the FY20 deductions for technological innovation.
Furthermore, there is a long-term receivable of $0.354m (2020: $0.486m) related to the estimation of the
deduction for technological innovation generated in FY21.
Trade receivables
Trade receivables net of allowances are held in the following currencies:
Sterling
US Dollars
Euro
Total
2021
$000
66
1.489
271
2020
$000
402
1.487
98
1.826
1.987
The fair values of trade and other receivables are the same as book values as credit risk has been addressed as
part of impairment provisioning and, due to the short terms nature of the amounts receivable, they are not
subject to other ongoing fluctuations in market rates.
Before accepting any new customer, the Group uses a credit approval process to assess the potential
customer’s credit quality and defines credit limits by customer.
61
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
17. Trade & other receivables (continued)
Movement in allowance for doubtful debts:
Balance at beginning of year
Utilised in year
Balance at the end of the year
2021
$000
2020
$000
-
-
-
-
-
-
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality
of the trade receivable from the date credit was initially granted up to the reporting date.
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable set out
above.
18. Trade & other payables
The fair values of trade and other payables are the same as book values as due to the short terms nature of the
amounts payable, they are not subject to other ongoing fluctuations in market rates.
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs.
The average credit period taken for trade purchases is 41 days (2020: 46 days).
Trade payables
Other payables
Other taxation and social security taxes
Accruals
Contract liabilities
2021
$000
238
1.219
392
385
973
2020
$000
342
880
536
261
1.785
3.207
3.804
Maturity analysis of the group financial liabilities, excluding other taxation and social security and deferred
income, is as follows:
Up to 3 months
3 to 6 months
6 to 12 months
Group 2021
$000
Group 2020
$000
615
100
1.126
1.080
86
317
1.841
1.483
62
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
19. Loans and borrowings
Advances Drawn on invoice discounting facilities
Bank loans
Other Loans
Related parties loans
The borrowings are repayable as follows:
Up to 3 months
3 to 6 months
6 to 12 months
On demand or within one year
2021
$000
1.204
178
392
3
1.777
1.320
141
316
1.777
2020
$000
1.081
1.502
237
7
2.827
2.132
140
555
2.827
At 31 March 2021, the Group had $0.53 million in available credit lines not used (2020: $0.53 million) and
$1,064 million in available invoice discounting facilities not used (2020: $1.064 million), with a 3% interest
rate in average (2020: 3%).
The above bank loans are denominated in Euros and are unsecured.
Interest-bearing bank loans are initially recorded at fair value less direct issue costs.
On 4 June 2019, the Company announced that the subsidiary Mirada Iberia, S.A.U., had entered into a new
revolving credit facility for up to €1.3 million (the “Facility”). The proceeds from the Facility are to be used
alongside Mirada's existing debt financing facilities for general working capital purposes and capex of the
Company, including the implementation of customer contracts announced and in prospect.
The total amount withdrawn at 31 March 2021 was €0.5 million (2020: €1.1 million)
Further, during the year, the Group had secured the following funding for the business:
o €1.6m of new loans obtained between April 2020 and June 2020 from banks with 80% of these loans
guaranteed by the Spanish government under the COVID-19 relief scheme.
o An extension to the term of its €1.30 million credit facility has been granted by Leasa Spain, S.L.U.
The term of the Facility has been extended by 12 months and now expires on 30 November 2022.
Directors estimate the fair value of the Group's borrowing to be consistent with its carrying value. There is
no material difference between the value of the gross undiscounted cash flows and carrying amounts in the
statement of financial position.
20. Non-current liabilities
Interest bearing loans and borrowings:
Bank loans
Other loans
Related parties loans
2021
$000
3.767
1.048
586
5.401
2020
$000
228
967
1.210
2.405
63
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
20. Non-current liabilities (continued)
Other loans relate to loans received by the Group’s Spanish operation to assist in funding the continued
development of the Group’s Digital TV products.
Capital risks have been analysed in the Director’s report (page 9).
Net Debt
Net Debt is calculated based on short term loans, long terms loans and cash and cash equivalents:
Loans and borrowings - Current
Loans and borrowings - Non Current
Cash
Net Debt
2021
$000
1.777
5.401
(107)
7.071
2020
$000
2.827
2.405
(185)
5.047
64
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
20. Non-current liabilities (continued)
Borrowings, including interest, are repayable as follows:
Credit lines
Between one and two years
Bank loans
On demand or within one year
Between one and two years
Between two and five years
More than 5 years
Other loans
On demand or within one year
Between one and two years
Between two and five years
More than 5 years
Related parties loans
On demand or within one year
Between one and two years
Advances drawn on invoice discounting
On demand or within one year
Total borrowings
On demand or within one year
Between one and two years
Between two and five years
More than 5 years
2021
$000
1.725
1.725
237
496
1.439
199
2.371
393
218
764
69
1.444
35
586
621
1.204
1.204
1.869
3.025
2.203
268
7.365
2020
$000
-
-
661
171
87
-
919
1.103
345
470
156
2.074
7
1.210
1.217
1.081
1.081
2.851
1.726
557
156
5.290
21. Retirement benefit schemes
The Group operates defined contribution pension schemes. The pension charge for the period represents
contributions payable by the Group to the schemes and amounted to $40,827 (2020: $40,769).
At 31 March 2021, contributions amounting to $9,690 (2020: $7,655) were payable and included in other
payables.
65
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
22. Financial instruments
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern
while maximising the return to stakeholders through the optimisation of the debt and equity balance. The
capital structure of the Group consists of debt, which includes the borrowings disclosed in Note 19 and 20,
and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained
earnings as disclosed in the Consolidated Statement of Changes in Equity and Note 23.
Externally imposed capital requirement
The Group is not subject to externally imposed capital requirements.
Categories of financial instruments
Financial assets
Amortised cost:
- Trade and other receivables, excluding prepayments
- Cash and cash equivalents
Financial liabilities
Amortised cost:
- Trade and other payables*
- Loans and borrowings due within one year
- Interest bearing loans and borrowings due after one year
2021
$000
4.711
107
4.818
1.841
1.777
5.401
9.019
2020
$000
6.490
185
6.675
1.483
2.827
2.405
6.715
* Excluding other taxation, social security and contract liabilities.
Financial risk management objectives
The Group monitors and manages the risks relating to the financial instruments held. These risks are discussed
in further detail below.
Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates
and interest rates. The Group does not use forward foreign exchange contracts to hedge exchange rate risk.
Foreign currency risk management
The Group has undertaken certain transactions denominated in foreign currencies. Hence, exposures to
exchange rate fluctuations arise.
The majority of cash at bank is held in Sterling and Euro accounts. There are also trade balances in these
currencies. The Group is increasingly signing more sales contracts in US dollars and is currently investigating
ways of reducing the risk on any potential future fluctuations in the US dollar exchange rate. Any foreign
exchange gains or losses on trading activities are recognised in the consolidated income statement.
66
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
22. Financial instruments (continued)
The company is aware that the UK’s decision to leave the European Union may affect the intercompany
trading between the different subsidiaries. We will adapt our internal policies accordingly if required. In the
short term, exchange rates are likely to increase the GBP denominated revenues, as the primary cash inflows
for the Group are based in US dollars. Brexit has not been considered to be as a principal risk due to the non-
EU focussed customer base.
The carrying amounts of the Group’s material foreign currency denominated monetary assets and monetary
liabilities at the reporting date are as follows:
US Dollar denominated assets and liabilities
Euro denominated assets and liabilities
Liabilities
2021
$000
-
2020
$000
-
10.090
8.813
Assets
2021
$000
1.490
4.839
2020
$000
1.487
6.649
Entities from United Kingdom have no balances denominated in Euro/USD.
Foreign currency sensitivity analysis
In fiscal years 2020 and 2021, the Company has used US Dollar as presentational currency. The following
table details the Group’s sensitivity to a 20% increase and decrease in USD against the Euro and to a 20%
increase and decrease in USD against Sterling. The sensitivity analysis includes Euro and Sterling
denominated monetary items and adjusts their translation at the period end for a 20% change in the Euro/USD
rate and for a 20% change in the Sterling/USD rate at March 31, 2020 and March 31, 2021. A positive number
below indicates an increase in profit and other equity where US Dollar strengthens against the relevant
currency. For a weakening of US Dollar against the relevant currency, there would be an equal and opposite
impact on the profit and other equity, and the balances below would be negative. The sensitivities below are
based on the exchange rates at the balance sheet used to convert the asset or liability to US Dollar.
Euro
Sterling
Interest rate risk management
Profit and loss impact
2021
$000
(1.313)
(731)
2020
$000
(541)
(314)
At 31 March 2021, the Group was exposed to interest rate risk as the interest payable on some of the Group’s
loans and borrowings are linked to Euribor. The Group’s loans and borrowings where interest payable is
linked to Euribor include bank loans and development loans totalling $51,157. The remaining bank loans
totalling $3,539,919 pay fixed rates of interest.
Neither interest rate swaps contracts nor forward interest rate contracts are used to hedge any risks arising.
If interest rates changed by 1% (100 basis points) the profit and loss impact would not be material to the
Group’s results.
67
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
22.
Financial instruments (continued)
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group faces exposure to credit risk on its trade receivables and cash equivalents. The
Group has some exposure to credit risk from credit sales. It is the Group’s policy to assess the credit risk of
new customers before entering into contracts. Historically, as Mirada’s customers are mainly broadcasters
and medium/large telecommunication companies, bad debts across the Group have been low.
The risk of financial loss arising from defaults on trade receivables is mitigated by the Group using a credit
approval process to assess the potential customers’ credit quality and also establishes credit limits by
customer. The limits and credit scores attributed to customers is reviewed bi-annually however, the sales
ledger is reviewed at least monthly to ensure all receivables are recoverable.
Please refer to Note 17 for further details on trade receivables, including analyses of bad debts, ageing and
profile by currency.
The Group believes the credit risk on liquid funds, being cash and cash equivalents, to be limited because the
counterparties are banks with high-credit ratings assigned by international credit-rating agencies. The table
below shows the balance of counterparties at the reporting date in excess of 10% of the overall balance,
together with the Standard and Poor’s credit rating symbols.
Counterparty
Santander
La Caixa
BBVA
Barclays
Bankinter
Bankia
Sabadell
Banamex
2021
% of overall
cash & cash
equivalents
2021
Carrying
amount
$000
2020
% of overall
cash & cash
equivalents
2020
Carrying
amount
$000
4,4%
0,7%
44,0%
17,9%
1,6%
0,2%
18,6%
9,8%
5
1
47
19
2
0
20
10
1,5%
0,0%
51,5%
28,9%
0,4%
6,6%
3,3%
6,4%
3
-
95
53
1
12
6
12
Liquidity risk management
Liquidity risk arises from the Group’s management of working capital and the finance charges and principal
repayments on its debt instruments. It is the risk that the Group will encounter difficulty in meeting its
financial obligations as they fall due.
The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing
facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of
financial assets and liabilities. As part of this monitoring the Group ensures that the financial liabilities due
to be paid can be met by existing cash and cash equivalents, forecasted receipts from customers and borrowing
facilities.
Tables showing the maturity profile of the Group’s financial liabilities are included in Notes 18, 19 and 20.
68
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
23.
Share capital
A breakdown of the authorised and issued share capital in place as at 31 March 2021 and 2020 is as follows:
Allotted, called up and fully paid
Ordinary shares of £0.01 each
2021
Number
2021
$000
2020
Number
2020
$000
8.908.435
12.015
8.908.435
12.015
On 28 November 2017, the Company announced it had entered into agreements for the provision to the
Company of unsecured one-year loan facilities of up to an aggregate amount of $2.4 million. The facility had
certain conditional subscription rights in respect of new ordinary shares of 1p each in the capital of the
Company. The facility was provided by Kaptungs Limited, Kronck Business S.A. and Minles Corporation
Inc. This facility was converted into share capital as announced on 29 August 2018, through the issue of
151,785,713 ordinary shares.
On 7 March 2018, the Company announced it had entered into a secured one-year loan facility for up to $4.2
million. This facility was provided by Kaptungs Limited. This facility was converted into capital as
announced on 4 October 2018 through the issue of 300 million ordinary shares.
On 5 October 2018, the Company announced it had raised £3 million before expenses, by way of a
subscription of 300 million new Ordinary Shares at 1p per share by a substantial shareholder of the Company,
Kaptungs Limited.
Kaptungs Limited is an investment company which is beneficially owned by Mr. Ernesto Luis Tinajero Flores
and has a total beneficial interest of 776,879,163 Ordinary Shares in Mirada, which represents 87.21 per cent
of the voting rights in the Company.
24. Reserves
Share premium
The amount subscribed for share capital in excess of nominal value.
On 21 January 2020, the Group announced the completion of the Share Premium account cancelation
amounting to $16 millions (£10 millions). The Share Premium reduction was performed in order to create a
new reserve against which the Group have performed credit its profit and loss account included as part of the
heading “other reserves”.
As at 31 March 2019, the amount credited to the Company's balance sheet as paid up share capital was
£8,908,435. Accordingly, the proportion of the Company's accumulated losses to the aggregate of its share
capital, share premium and other reserves was approximately 65.7%. In accordance with EU Regulation
651/2014 the Company's overseas subsidiary, Mirada Iberia SAU, would currently be restricted from
obtaining certain types of additional publicly funded research and development loans that are available in
Spain from the Centre for the Development of Industrial Technology on advantageous commercial terms,
unless the accumulated losses of the Company are less than 50% of the aggregate of its total share capital,
share premium and other reserves. Therefore, by cancelling the Company's share premium account and
crediting such amount to the Company's balance sheet Mirada Iberia SAU should then be able to improve its
position to access such publicly funded loans, should it be required, as its accumulated losses will then be
less than 50% of its share capital and other reserves.
The Share Premium Account cancellation has not affected the voting or dividend rights of shareholders and
will not affect the number of Ordinary Shares in issue or the nominal value per Ordinary Share.
69
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
24. Reserves (continued)
Other Reserves - Foreign exchange reserve
This reserve relates to exchange differences arising on the translation of the balance sheet of the Group’s
foreign operations at the closing rate and the translation of the income statement of those operations at the
average rate.
Other Reserves- Merger reserve
Under the provisions of s612 of the Companies Act 2006, the premium that arose on the shares issued as
consideration in the acquisition of Mirada Iberia S.A, formally known as Fresh Interactive Technologies S.A,
has been taken to the merger reserve.
25. Share based payments
Equity settled share option scheme
On 20 December 2013 the Company granted a total of 5,301,238 share options to certain employees and
directors through approved and unapproved share option schemes. The exercise price for these options is
£0.10. The exercise of these options is not subject to any performance criterion and they vest in three equal
instalments on 1 January 2015, 1 February 2015 and 1 March 2016. If the options remain unexercised after a
period of ten years from the date of grant the options expire. The options are forfeited if the employee leaves
before the options vest.
The directors granted options under this scheme are as follows:
José Gozalbo Sidro
José Luis Vázquez
Francis Coles
No. of share
options
938.728
631.464
185.888
In prior periods the Company has granted share options to employees and directors through approved and
unapproved share option schemes. The exercise of options for all options granted during the 12 months ended
31 March 2008 is subject to a performance criterion being satisfied. The exercise of options granted prior to
1 January 2007 is not subject to any performance criterion. If the options remain unexercised after a period of
ten years from the date of grant, the options expire. The options are forfeited if the employee leaves before
the options vest.
Equity settled share option scheme (continued)
In accordance with IFRS 2 the Group has elected not to apply IFRS 2 to options granted on or before 7
November 2002 or to options which had vested by 1 January 2006.
Details of the share options outstanding during the period for options issued since 22 June 2007 are as follows:
70
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
25. Share based payments (continued)
Counterparty
Outstanding at the beginning of period
Lapsed during period
100-1 Share consolidation
Outstanding at the end of the period
Exercisable at the end of the period
2021
2021
2020
2020
Number of
share
options
41.483
-
-
41.483
41.483
Weighted
average
exercise
price
(£)
0,10
0,10
-
0,10
0,10
Number of
share
options
4.697.166
(548.850)
41.483
41.483
41.483
Weighted
average
exercise
price
(£)
0,10
0,10
-
0,10
0,10
The General Meeting held on 10 September 2019 approved a 100 to 1 share consolidation. The total
outstanding share options at 31 March 2021 was 41,483 (41,483 at 31 March 2020). Therefore, as of 31 March
2021, the Company may issue up to 41,483 additional ordinary shares arising in connection with existing
share options granted to staff, management and directors.
The options outstanding at 31 March 2021 and at 31 March 2020 had an exercise price of £0.10.
The options outstanding at 31 March 2021 had a weighted average remaining contractual life of 0.4 years
(2020: 1.4 years).
For the year ended 31 March 2021, the Group has recognised a total expense of nil (2020: nil) related to
equity-settled share-based payment transactions.
The estimated fair values for determining this charge were calculated using the Black-Scholes option pricing
model. This produces a fair value for each grant of options made and the fair value is then charged over the
vesting period, which is three years.
26. Operating lease arrangements
On 1 April 2019, the Group adopted IFRS 16 on Leases (refer to Note 3.a). The Group has chosen to not
recognise in the balance sheet the lease liabilities and the right-of-use asset corresponding to short term lease
agreements and leases for low value assets.
The total lease expense not subject to IFRS 16 for short-term as well as low-value leases amounts to $0.253
million.
At the reporting date, the Group had outstanding commitments for future minimum lease payments under non-
cancellable operating leases, which fall due as follows:
Within one year
In second to fifth years inclusive
2021
$000
129
64
193
2020
$000
157
94
251
Operating lease payments represent rentals payable by the Group for its office properties. Leases of buildings
are subject to rent reviews at specified intervals and provide for the lessee to pay all insurance, maintenance,
and repair costs.
71
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
27. Notes supporting cash flow statement
Cash and cash equivalents comprise:
Cash available on demand
Net cash increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Cash and cash equivalents
Cash and cash equivalents are held in the following currencies:
Sterling
Mexican Peso
Euro
Total
2021
$000
107
(78)
185
107
2020
$000
185
68
117
185
2021
$000
2020
$000
19
11
77
107
53
12
120
185
Reconciliation of liabilities from financing activities:
2020 Cash
$000
outflows
Cash
inflows
Non-cash changes
1.730
1.204
1.217
1.081
(703)
(252)
(704)
2.804
409
52
(242)
(301)
(14)
(13)
-
-
Foreign
Other
non-cash
exchange
movement movement
-
-
(4)
-
-
-
114
80
80
71
-
-
2021
$000
3.944
1.440
589
1.204
(543)
(27)
4.976
(1.973)
3.265
(4)
345
6.607
Bank loans
Other loans
Related party loans
Advances drawn
on invoice discounting
Payment of principal
on lease liabilities
Interests on lease liabilities
Total liabilities from
financing activities
28. Related party transactions
At 31 March 2021, the amount owed by Mirada Iberia to Mirada Mexico equals €2,445.43. The operations
volume for FY21 has been €276,189.50 as a supplier.
At 31 March 2021, the amount owed by Mirada Plc to Mirada Iberia equals €2,145,197.80. The operations
volume for FY21 has been €201,868.91 as a supplier and €586,251.50 as a customer.
72
Mirada plc
Notes to the consolidated financial statements
at 31 March 2021
29. Events after the reporting date
On 4 June 2019 Mirada Plc’s subsidiary, Mirada Iberia, S.A.U. (“Mirada Iberia”), obtained a revolving credit
facility for up to €1.3 million from Leasa Spain, S.L.U. (the "Lender"). The Lender is owned by Mr. Ernesto
Luis Tinajero Flores, who also owns 87.21% of the voting rights of Mirada
On 27 September 2021, the Company announced the Facility was increased up to €3.0 million and its Maturity
Date was extended until 30 November 2022. In addition, the Facility has been novated from Mirada Iberia to
Mirada Plc. All other terms of the Facility remain unchanged and are set out in the announcement of 4 June
2019.
For most of the year ended in March 2021, potential customers chose to postpone their decision-making
processes until there was greater clarity around the future of the pandemic. New business activity across the
industry – particularly in the first half – effectively ground to a halt.
Encouragingly, as we moved through the financial year ending in March 2022, we began to see growing
indications of a gradual reversion to pre-pandemic levels of appetite for investment from both existing and
prospective customers.
73
Mirada plc
Company Statement of changes in equity
for the year ended 31 March 2021
Balance at 1 April 2020
Profit for the year
Other comprehensive income
Movement in foreign exchange reserve
Total comprehensive profit for the year
Balance at 31 March 2021
Balance at 1 April 2019
Profit for the year
Other comprehensive income
Movement in foreign exchange reserve
Total comprehensive profit for the year
Transactions with owners
Share premium cancelation
Balance at 31 March 2020
The notes on pages 76 to 82 form part of these financial statements
Share
capital
Share
premium
$000
$000
Foreign
exchange
reserves
$000
Accumulated
losses
Total
$000
$000
12.015
-
-
-
12.015
-
-
-
-
-
848
-
(3.687)
(1.220)
9.176
(1.220)
957
957
1.805
-
(1.220)
(4.907)
957
(263)
8.913
Share
capital
Share
premium
$000
$000
Foreign
exchange
reserves
$000
Accumulated
losses
Total
$000
$000
12.015
15.995
(1.630)
-
-
-
-
2.478
2.478
(17.897)
1.121
8.483
1.121
-
1.121
2.478
3.598
-
-
-
-
(15.995)
12.015
-
-
848
13.089
(3.687)
(2.906)
9.176
75
Mirada plc
Notes to the Company Financial Statements (continued)
for the year ended 31 March 2021
i.
General information and basis of preparation
Mirada plc is a company incorporated in the United Kingdom. The address of the registered office is 3rd Floor
Chancery House, St Nicholas Way Sutton, Surrey SM1 1JB. The nature of the Group’s operations and its
principal activities are the provision and support of products and services in the Digital TV and Broadcast
markets.
The financial statements are presented in US Dollars which is the presentational currency of the Company.
ii.
Summary of significant accounting policies
The significant accounting policies applied in the preparation of these financial statements are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated.
Going concern
As disclosed in Note 4 from the consolidated financial statement, Directors have prepared a cash flow forecast
covering a period extending beyond 12 months from the date of these financial statements. Different scenarios
have been considered including worse possible cases. The forecast contains certain assumptions about the
performance of the business. These assumptions are the directors’ best estimate of the future development of
the business, including consideration of cash reserves required to support working capital and its new growth
initiatives. Based on this cash flow forecasts, directors continue to adopt the going concern basis of accounting
in preparing the annual financial statements.
Basis of accounting
The separate financial statements of the Company have been prepared in accordance with Financial Reporting
Standard 101 Reduced Disclosure Framework. Principal accounting policies for the company are consistent
of those for the group company which are disclosed in Note 4 of the group accounts, page 33. Further polices
considered in the company financial statements are listed below.
Disclosure exemptions adopted
In preparing these financial statements the company has taken advantage of certain disclosure exemptions
conferred by FRS 101. Therefore, these financial statements do not include:
•
•
•
•
•
•
certain comparative information as otherwise required by EU endorsed IFRS;
certain disclosures regarding the company's capital;
a statement of cash flows;
the effect of future accounting standards not yet adopted;
the disclosure of the remuneration of key management personnel; and
disclosure of related party transactions with other wholly owned members of the group.
In addition, and in accordance with FRS 101 further disclosure exemptions have been adopted because
equivalent disclosures are included in the consolidated financial statements of Mirada plc. These financial
statements do not include certain disclosures in respect of:
•
•
Financial Instruments (other than certain disclosures required as a result of recording financial
instruments at fair value); and
Fair value measurement (other than certain disclosures required as a result of recording financial
instruments at fair value).
76
Mirada plc
Notes to the Company Financial Statements (continued)
for the year ended 31 March 2021
ii.
Summary of significant accounting policies (continued)
Investments in subsidiaries
Investments in subsidiaries are held at cost less accumulated impairment losses.
Right-of-use assets and Lease liabilities (policy applicable as from 1 April 2019)
At the start of a contract, the Company evaluates whether it contains a lease. A contract is or contains a lease
if it grants the right to control the use of the asset identified for a period of time in exchange for a consideration.
The length of time during which the Company uses an asset includes consecutive and non-consecutive periods
of time. The Company only re-assesses the conditions when a contract is amended.
In contracts containing one or more components which are lease-related and non-lease related, the Company
assigns the consideration set in the contract for each lease component according to the sales price of each
individual lease-related component, and the aggregate individual price of the non-lease related components.
In contracts with one or more lease and non-lease components, the Company deems all components as one
sole lease component.
The Company has also chosen to not recognise in the balance sheet the lease liabilities and the right-of-use
asset corresponding to short term lease agreements (leases for one year or less) and leases for low value assets
($5 thousand or less). For this type of contracts, the Group recognises straight-line payments during the lease
term.
Lessee accounting
At the commencement of the lease term, the Company recognises a right-of-use asset and lease liability. The
right-of-use asset is composed of the amount of the lease liability, any payment for the lease made on or prior
to the starting date, less any incentives received, the initial direct costs incurred and an estimate of the costs
for decommissioning or restoration to be incurred, as indicated in the accounting policy provisions.
The Company measures the lease liability as the present value of the lease payments which are outstanding at
the commencement date. The Company discounts lease payments at the appropriate incremental interest rate,
unless the implicit interest rate of the lessor may be determined reliably.
The pending lease payments are comprised of fixed payments, less any incentive to be collected, the variable
payments that depend on an index or rate, initially appraised by the index or rate applicable on the starting
date, the amounts expected to be paid for residual value guarantees, the price of exercising the purchase option
whose exercise is reasonably certain and any compensation payments for contract termination, providing the
term of the lease reflects the termination option.
The Company measures the right-of-use assets at cost, less depreciation and accrued impairment losses,
adjusted by any re-estimate of the lease liability.
If the contract transfers ownership of the asset to the Company at the end of the lease term or if the right-of-
use asset includes the price of the purchase option, the depreciation criteria indicated in Note 4.j are applied
from the lease commencement date until the end of the useful life of the asset. Otherwise, the Group depreciates
the right-of-use asset from the commencement date until the date of the useful life of the right or the end of the
lease term, whichever is the earlier.
The Company applies the criteria for impairment of non-current assets set out in note 4.i to right-of-use assets.
The Company measures the lease liability increasing it by the interest accrued, decreasing it by the payments
made and re-assessing the carrying amount due to any amendments to the lease or to reflect any reviews of the
in-substance fixed lease payments.
The Company records any variable payments that were not included in the initial valuation of the liability in
the Consolidated Income Statement for the period in which the events resulting in payment were produced.
The Company records any re-assessments of the liability as an adjustment to the right-of-use asset, until it is
reduced to zero, and subsequently in the Consolidated Income Statement.
77
Mirada plc
Notes to the Company Financial Statements (continued)
for the year ended 31 March 2021
ii.
Summary of significant accounting policies (continued)
Lessee accounting (continued)
The Company re-assesses the lease liability discounting the lease payments at an updated rate, if any change is
made to the lease term or any change in the expectation of the purchase option is being exercised on the
underlying asset.
The Company re-assesses the lease liability if there is any change in the amounts expected to be paid for a
residual value guarantee or any change in the index or rate used for determining payments, including any change
for reflecting changes in market rents once these have been reviewed.
The Company recognises an amendment to the lease as a separate lease if it increases the scope of the lease by
adding one or more rights of use and the amount of consideration for the lease increases by an amount consistent
with the individual price for the increased scope and any adjustment to the individual price to reflect the specific
circumstances of the contract.
If the amendment does not result in a separate lease, on the amendment date the Company assigns the
consideration to the amended contract as indicated above, it re-determines the term of the lease and re-estimates
the value of the liability discounting the revised payments at the revised interest rate. The Company writes down
the carrying amount of the right-of-use asset to reflect the partial or total end of the lease in any amendments
that reduce the scope of the lease and it records the profit or loss in income. For all other amendments, the
Company adjusts the carrying amount of the right-of-use asset.
Taxation
The tax expense represents the sum of the current tax and deferred tax charges.
The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as
reported in the income statement because it excludes items of income or expense that are taxable or deductible
in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current
tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date.
If the Group considers it is likely that the tax authority will accept an uncertain tax treatment, the Group will
establish the taxable gain (loss), the tax bases, unused tax losses, unused tax credits or the tax rates consistent
with the tax treatment used or intended to be used in its income tax returns.
If the Group considers it unlikely that the tax authority will accept an uncertain tax treatment, the Group will
reflect the effect of the uncertainty to establish the taxable gain (loss), the tax bases, unused tax losses or credits
or the corresponding tax rates. The Group will reflect the effect of the uncertainty for each uncertain tax
treatment by using the most likely amount or the expected value of the probability weighted amounts.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are
recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which deductible temporary differences can be utilised.
Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of
goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in
a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or
the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the
Group intends to settle its current tax assets and liabilities on a net basis.
78
Mirada plc
Notes to the Company Financial Statements (continued)
for the year ended 31 March 2021
iii. Key judgements and estimates
In the application of the Company’s accounting policies, the directors are required to make judgements,
estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and other
factors that are 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 where the revision affects only that period, or in the period of
the revision and future periods where the revision affects both current and future periods. The estimates and
assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets
and liabilities are outlined below.
a.
Impairment of Investments in subsidiaries
Determining whether Investments in subsidiaries are impaired requires an estimation of the value in
use of these subsidiaries. The value in use calculation requires the management to estimate the future
cashflows expected from the cash generating unit and an appropriate discount rate in order to calculate
the present value of the future cashflows. Management has evaluated the recoverable amount of those
investments based on such estimates. The carrying amounts of these investments at the end of the
reporting period are stated in Note (iv) of the Company financial statements.
79
Mirada plc
Notes to the Company Financial Statements (continued)
for the year ended 31 March 2021
iv.
Investments
Company
Cost
At 1 April 2020
Foreign exchange
At 31 March 2021
Amounts provided
At 1 April 2020
Foreign exchange
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
$000
18.230
4.517
22.747
7.800
3.345
11.145
11.602
10.430
Details of the investments in which the Company holds 20% or more of the nominal value of any class of
share capital are as follows:
Name of company
Holding
% Voting rights
incorporation address
Nature of business
Country of
Registered
Digital Interactive
Television Group
Limited
Digital Impact (UK)
Limited*
Ordinary shares
100%
Ordinary shares
100%
UK
UK
Mirada Iberia, S.A.
Ordinary shares
100%
Spain
Mirada Mexico, S.A.* Ordinary shares
100%
Mexico
* Held indirectly in Mirada Iberia S.A.
68 Lombard Street
London EC3V 9LJ
68 Lombard Street
London EC3V 9LJ
Avda. de las
Águilas 2B 28044
Madrid
Montes Urales 505-
2º 11000 México
DF
Dissolved on 27th
April 2021
Dissolved on 27th
April 2021
Interactive TV
services
Interactive TV
services
80
Mirada plc
Notes to the Company Financial Statements (continued)
for the year ended 31 March 2021
v.
Trade and other receivables
Trade receivables
Amounts owed by group undertakings
Other receivables
Prepayments
vi.
Trade and other payables
Trade payables
Amount owed to group undertakings
Other payables
Other taxation and social security taxes
Accruals
Contract liabilities
2021
$000
66
237
2
26
331
2020
$000
402
-
9
26
437
2021
$000
16
2.753
10
28
137
26
2020
$000
69
1.548
5
14
96
12
2.970
1.744
Maturity analysis of the company financial liabilities, excluding other taxation and social security and
deferred income, is as follows:
Up to 3 months
3 to 6 months
6 to 12 months
vii. Operating lease arrangements
Within one year
$000
1.281
34
1.600
$000
903
761
54
2.915
1.718
2021
$000
6
6
2020
$000
24
24
81
Mirada plc
Notes to the Company Financial Statements (continued)
for the year ended 31 March 2021
viii. Share capital
A breakdown of the authorised and issued share capital in place as at 31 March 2021 and 2020 is as follows:
Allotted, called up and fully paid
Ordinary shares of £0.01 each
2021
Number
2021
$000
2020
Number
2020
$000
8.908.435
12.015
890.843.408
12.015
On 28 November 2017, the Company announced it had entered into agreements for the provision to the
Company of unsecured one-year loan facilities of up to an aggregate amount of $2.4 million. The facility had
certain conditional subscription rights in respect of new ordinary shares of 1p each in the capital of the
Company. The facility was provided by Kaptungs Limited, Kronck Business S.A. and Minles Corporation
Inc. This facility was converted into share capital as announced on 29 August 2018, through the issue of
151,785,713 ordinary shares.
On 7 March 2018, the Company announced it had entered into a secured one-year loan facility for up to $4.2
million. This facility was provided by Kaptungs Limited. This facility was converted into capital as announced
on 4 October 2018 through the issue of 300 million ordinary shares.
On 5 October 2018, the Company announced it had raised £3 million before expenses, by way of a
subscription of 300 million new Ordinary Shares at 1p per share by a substantial shareholder of the Company,
Kaptungs Limited.
Kaptungs Limited is an investment company which is beneficially owned by Mr. Ernesto Luis Tinajero Flores
and has a total beneficial interest of 776,879,163 Ordinary Shares in Mirada, which represents 87.21 per cent
of the voting rights in the Company.
ix.
Events after the reporting date
See Note 29 of the Group financial statements.
82
HEADQUART ERS
3 rd F lo o r o f C ha n c er y H o u s e
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