MOBILE STREAMS PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2017
Company registration number: 03696108
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
Company registration number:
03696108
Registered office:
14 Cleveland Grove
Newbury, Berkshire, RG14 1XF
Directors:
E Benasso
S Buckingham
T Maunder
R Parry
P Tomlinson
Chairman:
R Parry
Secretary:
Pennsec Limited
Bankers:
Auditor:
National Westminster Bank plc
30 Market Place
Newbury
RG14 5AG
http://www.bank-opening-times.co.uk/natwest/natwest-newbury.html
Grant Thornton UK LLP
Chartered Accountants and Statutory Auditor
30 Finsbury Square
London
EC2P 2YU
http://www.grantthornton.co.uk/en/office-locations/
Nominated Adviser & Broker
N + 1 Singer Advisory LLP
One Bartholomew Lane
London
EC2N 2AX
Corporate web site:
www.mobilestreams.com
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MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
Contents
PAGE
Chairman’s statement
Strategic Report
Directors’ report
Report of the independent auditor
Accounting policies
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Report of the independent auditor
Company accounting policies
Company statement of financial position
Company statement of changes in equity
Notes to the Company financial statements
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MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
Chairman’s Statement:
The Board of Mobile Streams is pleased to present its audited accounts for the financial year ended 30 June 2017.
The past twelve months has seen Mobile Streams continue with its strategy to develop a content offering direct to
consumers across a wide range of mobile devices in a number of large emerging markets. This is in addition to our
original business of providing content to mobile network operators and other business partners.
Group revenue for the year ended 30 June 2017 was £5.7m (2016: £12.8m). Trading EBITDA (calculated as profit
before tax, interest, amortisation, depreciation, share compensation expense and impairment of assets) was, as
anticipated, negative £1.5m for year (2016: negative £0.6m). Loss before tax was £1.5m (2016: £0.7m loss). Much of
the reduction in revenues is attributable to Argentina. Revenue in Argentina (which equated to 83.7% of our revenue)
on a constant currency basis decreased by 51% from AR$188m to AR$92m.
During the second half of the financial year the Company continued to invest in India to build a strong position in the
country and grow the number of our active subscribers. The second half of the financial year was particularly busy in
India, with several launches, including the three largest telecom operators covering over 700m mobile customers. In
the new financial year, the team will focus on growing the Group’s subscriber base and access to mobile customers
further, as well as exploring other strategic business alliances with key Indian mobile companies.
The Directors do not propose a payment of a dividend (2016: £Nil). In the new financial year, the majority of revenues
are once again expected to be generated in Latin America and the majority of the investment will be in India. The
Group ended the year with a net cash balance of £2.3m, with no debt, at 30 June 2017 (2016: £1.4m).
The Board believes that India remains the largest opportunity for the Company to deliver growth in shareholder returns
with established and newly developed products using its strong trading relationships in developing markets.
R Parry
Chairman
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MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
STRATEGIC REPORT
Operating review
Mobile Streams’ performance during the financial year ended 30 June 2017 was driven primarily from its Mobile
Internet sales in Latin America. The past twelve months has seen Mobile Streams continue with its strategy to develop
a content offering direct to consumers across a wide range of mobile devices in a number of large emerging markets.
This is in addition to the Company’s business of providing content to mobile network operators and other business
partners.
Group revenue for the year ended 30 June 2017 was £5.7m. The gross profit was £1.8m and decreased by 50% during
the year (year ended 30 June 2016: £3.5m). The gross profit margin increased from 27.6% to 30.8% as a result of
decreased marketing (direct to consumer) costs related to its Mobile Internet division.
Selling and marketing expenses were £0.8m, a 42.3% decrease on the year ended 30 June 2016. Revenues are generated
from two principal business activities: the sale of mobile content through mobile operators (Mobile Operator Sales);
and the sale of mobile content over the internet (Mobile Internet Sales). Additionally, the Group is engaged in the
provision of consulting and technical services (Other Service Fees).
During the period, both the Group's Mobile Internet revenues and its Mobile Operator revenues decreased. As
consumers steadily update their phones from legacy feature and flip phone models to smartphones, they have generally
used the operator content portals less. Consumers generally use independent portals, as well as the open mobile internet,
more actively.
Mobile Internet sales
The Group experienced growth and then stabilisation in 2013 to 2014 in Mobile Internet sales as consumers used their
mobile devices to purchase mobile content subscriptions. After that, the business model (based on Mobile Internet)
shifted to a model based on the operator platforms and the revenue based on internet decreased. This was mostly the
result of the devaluation of the Argentine peso during the 2014 to 2017 financial years, resulting in a fall in sales.
Latin America, primarily Argentina, accounted for the majority of revenues.
Mobile Operator sales
The Group has several contracts with mobile operators that allow the distribution of content through their mobile
portals, although the revenue has been reduced by more than 55% year on year partially because of consumer
preferences.
There was a reduction in the number of consumer visitors to these portals, which has been a continuing trend for several
years. The Group’s teams share and implement the best retailing practices in order to increase the conversion of visitors
into customers to mitigate the natural decline in this revenue stream as the market changes.
Sales by Territory
Operations in Argentina were extremely challenging in the year under review as a result of general market conditions
and regulation in the local market for mobile content subscriptions. Further reduction in revenues in this region are
seen as manageable on account of the Company’s strong relationship with its carrier billing partner and their
commitment to the business. However, this also presents the Group with an opportunity as it looks to refocus its
business and continue to develop its ad-funded games service and subscription services in India. These opportunities
are potentially transformational for the Group’s business.
In India, revenues have been steadily growing quarter after quarter. The Directors are continuously looking to improve
the Group’s gross margins by reducing its subscriber acquisition costs and increasing average revenue per
subscriber. However, trading has been more challenging than anticipated because of policy changes at one of the
Group’s key partners and lower revenue from another.
In the past financial year in India, the focus has been very much on growing the active paying weekly subscriber base
on our download and online games services. The marketing team responsible for the success The Group has had in
Latin America have had to be very flexible with their investment strategy over the period as the mobile market in India
is ever evolving. The demonetisation in India in November 2016, policy changes from selected carriers and zero rate
4
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
STRATEGIC REPORT
prepaid balances have been challenging but, on a positive note, the Group has direct carrier billing agreements with
two new mobile networks and launched its online HTML5 games service.
The Indian mobile market is developing quickly, the entrance of Reliance Jio 4G network (breaking world records in
subscriber growth) into the market has improved network connections throughout the country, lowered prices for data
and had a substantial impact on the financial results of other carriers. A GSMA Intelligence consumer survey report in
October 2016 forecast that over the next 5 years India will be responsible for over a quarter of all new mobile
subscribers and that smartphone adoption increase from under 30% to nearly 50%.
During the second half of the financial year the Company continued to invest in India to build a strong position in the
country and grow the number of our active subscribers. Active subscribers had quadrupled year on year to over 200,000
members at the end of the financial year. The second half of the financial year was particularly busy in India, with
several launches, including the 3 largest telecom operators covering over 700m mobile customers. In the new financial
year, the team will focus on growing the Group’s subscriber base and access to mobile customers further, as well as
exploring other strategic business alliances with key Indian mobile companies.
The Group has several contracts with mobile operators that allow the distribution of content through their mobile
portals, although the revenue has been reduced by more than 55% year on year partially because of consumer
preferences on products of other portals and a higher competition. There was a reduction in the number of consumer
visitors to these portals, which has been a continuing trend for several years. Our teams share and implement the best
retailing practices in order to increase the conversion of visitors into customers to mitigate the natural decline in this
revenue stream as the market changes.
Financial review
Group revenue for the year ended 30 June 2017 was £5.7m, a 55.5% decrease on the previous year (2016: £12.8m).
Gross profit was £1.8m, a decrease of 50.3% during the year (2016: £3.5m). The gross profit margin increased from
27.6% to 30.8% on account of decreased marketing (Direct to Consumer) costs related to Mobile Internet.
Selling, marketing and administrative expenses were £3.4m, a 23.1% decrease on the year ended 30 June 2017 (2016:
£4.4m).
The Group recorded a loss after tax of £1.7m. for the year ended 30 June 2017 (2016 loss: £1.3m). Basic earnings per
share increased to a loss of 2.62 pence per share (2016: loss of 3.52 pence per share). Adjusted earnings per share
(excluding interest, depreciation, amortisation, impairments and share compensation expense) increased to a loss of
2.41 pence per share (2016: loss of 2.97 pence per share).
The Group had cash of £2.3m at 30 June 2017, with no debt (£1.4m of cash with no debt as at 30 June 2016). Argentina
office cash was £0.8m at 30 June 2017 (2016: £1.2m).
Headcount reduction
During the first half of the fiscal year, a significant cost savings initiative was implemented. The Global headcount
was reduced by a 53% (from 47 to 22 people). The Hong Kong office was shut down in December 2016 (5 people).
22 people were dismissed in Argentina and 1 person in United Kingdom. After 30 June 2017 another 3 people were
dismissed from the Argentina office. The operations and marketing activities were re-organized in order to continue
with normal activities.
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MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
STRATEGIC REPORT
Financial performance
Key performance indicators (“KPI’s”)
Gross profit as a percentage of revenue is a measure of our profitability. Gross profit was £1.8m. for the year ended on
30 June 2017. The KPIs used by the Group are Trading EBITDA*, variance in revenue and gross profit. Management
review these on a regular basis, largely by reference to budgets and reforecasts. Trading EBITDA was a loss of £1.5m
for the year ended on June 2017, and it was a loss of £0.6m for the year ended in June 2016.
Earnings before tax, interest, amortisation, depreciation, share compensation expense and impairment of assets
(Trading EBITDA) measured exactly as stated. All tax, interest, amortisation, depreciation, share compensation
expense and impairment of assets entries in the income statement are added back to profit after tax in calculating this
measure.
Growth in revenue is a measure of how the Group is building its business. The Company’s goal is to achieve year-on-
year growth. Although revenue decreased 55% during the year, like-for-like revenue on a constant currency basis
actually decreased by 51%.
Gross profit as a percentage of revenue is a measure of our profitability. Gross profit margin was 30.8% for the year
ended in June 2017, an increase of 3.1% (2016: 27.6%).
Strategy
The Group’s business model is generating revenues though relationships with mobile operators and content aggregators
and retailing directly to the consumer. Mobile Streams has developed expertise in selling content to consumers in
developing markets.
Mobile Streams has focused on three main objectives in its recent business trading: expansion into India; stabilisation
of our Latin American business primarily in Argentina; and seeking to minimise net cash outflow. Generally, we have
sought to invest the gross profits from our Argentine operations into developing the India business whilst seeking to
6
Year to 30 June 2017Year to 30 June 2016 £000's£000'sRevenue 5.695 12.786 Gross profit 1.753 3.530 Selling and Marketing Costs (769) (1.333) Administrative Expenses* (2.461) (2.843) Trading EBITDA** (1.477) (646) Depreciation and Amortisation (19) (59) Impairments - - Share Based Compensation (118) (146) Operating loss (1.614) (851) Finance Income 98 118 Finance Expense (2) (4) Loss before tax (1.518) (737) * Administrative expenses don't include amortisation, depreciation and share compensation expense.** Calculated as profit before tax, interest, amortisation, depreciation, share compensation expense and impairment of assets.
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
STRATEGIC REPORT
maintain cash balances around the current levels. Argentina revenues in the last financial year were impacted by the
slowdown in the mobile subscription business in the local market.
In India, we formed Mobile Streams India Private Limited in October 2015 to enable Mobile Streams to sign
agreements with Indian mobile network operators (MNOs), device manufacturers (OEM) and other third parties. As
per the strategy in Latin America, the focus is very much on the recurrent revenue generating subscription service in
India, with daily and weekly packages both being trialled. Our Mobilegaming.com service was launched in February
2016 with the top three Indian mobile operators with marketing campaigns coordinated by the same team responsible
for the success we have had in the Latin America region over the past several years. Active subscribers are measured
as consumers who have made a purchase from the Company in the country in the past 60 days. For like-for-like
comparability, this is the same methodology the Group uses to measure subscribers in its other markets such as
Argentina.
Share Issue
In December 2016 the Group issued 54,479,250 shares at a par value of £0.002 per share. The Group’s source of capital
is the parent company’s equity shares. The funds obtained are dedicated to fund the expansion of the India subsidiary
through the increase of the marketing initiatives. The Group has not raised debt financing in the past and expects not
to do so in the future.
The Company only has one class of share. The total number of shares in issue as at 30 June 2017 is 91,593,533 (30
June 2016: 37,114,283) with a par value of £0.002 per share. All issued shares are fully paid.
Principal risks and uncertainties
The nature of the Group's business and strategy makes it subject to a number of risks.
The Directors have set out below the principal risks facing the business.
Contracts with Mobile Network Operators (MNOs)
While Mobile Streams maintains relationships with numerous MNOs in the various territories, a small number of
operators account for a high portion of the Group’s business.
Contracts with rights holders
The majority of content provided by Mobile Streams is licensed from rights holders. While Mobile Streams is not
dependent on any single rights holder for its entertainment content, termination, non-renewal or significant
renegotiation of a contract could result in lower revenue.
The Group continues to enter into new content licensing arrangements to mitigate these risks.
Competition
Competition from alternative providers could adversely affect operating results through either price pressures, or
lost custom. Products and pricing of competitors are continuously monitored to ensure the Group is able to react
quickly to changes in the market.
Fluctuations in currency exchange rates
Approximately 99% of the Group’s revenue relates to operations outside the UK. The Group is therefore exposed
to foreign currency fluctuations and the financial condition of the Group may be adversely impacted by foreign
currency fluctuations. See note 24 on page 47 “Foreign currency risk”.
The Group has operations in Europe, Asia Pacific, North America and Latin America and recently in India. As a
result, it faces both translation and transaction currency risks.
7
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
STRATEGIC REPORT
Currency exposure is not currently hedged, though the Board continuously reviews its foreign currency risk
exposure and potential means of combating this risk.
Dependencies on key executives and personnel
The success of the business is substantially dependent on the Executive Directors and senior management team.
The Group has incentivised all key and senior personnel with share options and has taken out a Key Man insurance
policy on its Chief Executive Officer, Simon Buckingham.
Intellectual property rights
The protracted and costly nature of litigation may make it difficult to take a swift or decisive action to prevent
infringement of the Group’s intellectual property rights.
Although the Directors believe that the Group’s content and technology platform and other intellectual property
rights do not infringe the IP rights of others, third-parties may assert claims of infringement which could be
expensive to defend or settle. The Group holds suitable insurance to reduce the risk and extent of financial loss.
Technology risk
A significant portion of the future revenues are dependent on the Group’s technology platforms. Instability or
interruption of availability for an extended period could have an adverse impact on the Group’s financial position.
Mobile Streams has invested in resilient hardware architecture and continues to maintain software control processes
to minimise this risk.
Management controls and reporting procedures and execution
The ability of the Group to implement its strategy in a competitive market requires effective planning and
management control systems. The Group’s future growth will depend upon its ability to expand whilst improving
exposure to operational, financial and management risk.
Going concern risk
The current uncertain economic climate and changing market place may impact the Group’s cash flows and thereby
its ability to pay its creditors as they fall due.
In the past financial year in India, the focus has been very much on growing the active paying weekly subscriber base
on our download and online games services. The marketing team responsible for the success we have had in Latin
America have had to be very flexible with their investment strategy over the period as the mobile market in India is
ever evolving.
The Group had cash balances of £2.3m at the year-end (2015: £1.4m) and no borrowings. Marketing spend in India
can be managed with flexibility depending on the cash balances. Management can also implement cost savings
initiatives in order to reduce the cash burn.
A principal responsibility of management is to manage liquidity risk, as detailed in note 24 to the financial statements.
The Group uses annual budgeting, forecasting and regular performance reviews to assess the longer term profitability
of the Group and make strategic and commercial changes as required ensuring cash resources are maintained. Although
there was a significant fall in revenues and a loss for the year ending 30 June 2017, the Group actively manages its use
of cash, particularly marketing and other expenditure, and having reviewed the resulting cash flow forecasts for the
12-month period from date of approval of these Financial Statements, the Directors have a reasonable expectation that
the Group has sufficient resources to continue in operational existence for the foreseeable future. The Board consider
Mobile Streams to be a going concern. No material uncertainties or events that may cast significant doubt about the
ability of the Group to continue as a going concern have been identified by the Directors.
8
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
STRATEGIC REPORT
Financial risk management objectives and policies
The Group uses various financial instruments. These include cash and various items, such as trade receivables and
trade payables that arise directly from its operations. The numerical disclosures relating to these policies are set out in
notes to the financial statements.
The existence of these financial instruments exposes the Group to a number of financial risks, which are described
in more detail below. The Group does not currently use derivative products to manage foreign currency or interest
rate risks.
The main risks arising from the Group's financial instruments are market risk, currency risk, liquidity risk and credit
risk. The Directors review and agree policies for managing each of these risks and they are summarised below.
These policies have remained unchanged from previous periods.
Market risk
Market risk encompasses three types of risk, being currency risk, fair value interest rate risk and price risk. In this
review interest rate and price risk have been ignored as they are not considered material risks to the business.
Liquidity risk
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs
and to invest cash assets safely and profitably.
The Group currently has no borrowing arrangements in place and prepares cash flow forecasts which are reviewed
at Board meetings to monitor liquidity.
Credit risk
The Group's principal financial assets are bank deposits, cash and trade receivables. The credit risk associated with
the bank deposits and cash is limited as the counterparties have high credit ratings assigned by international credit-
rating agencies. The principal credit risk arises therefore from the Group's trade receivables. Most of the Group’s
trade receivables are large mobile network operators or media groups. Whilst historically credit risk has been low
management continuously monitors its financial assets and performs credit checks on prospective partners.
The Argentina Division delivered a decreased revenue performance according to the projections. The division
represented 83.7% of the revenues of the Group.
Argentina revenue decreased 51.1% in Argentine Pesos terms; from AR$188 Million to AR$92 Million; but the
reported British Pound figures shows a 58.1% decrease in revenue; from £11.2m to £4.6m.
Future developments
Looking ahead to the remainder of 2017 and beyond, our primary objectives are to secure mobile billing with the
9
Argentina 12 months to June 302017201620172016AR$'000AR$'000£'000£'000Revenue 91.648 187.634 4.681 11.198
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
STRATEGIC REPORT
leading seven or eight mobile operators in India, progressively increase marketing spend to grow the subscriber base,
enhance our content and service offer by partnering with local Indian companies and launching our browser based
(utilising HTML5) games service to become the leading destination for games in India. Mobile Streams has recently
gone live with a fourth carrier billing connection in India, extending our addressable audience to around 700 million
potential mobile users. The Indian mobile market is growing rapidly, the entrance of Reliance Jio 4G network into the
market this year and the upcoming spectrum auction means the primary obstacle of poor data connectivity is being
addressed.
The Company sees potential for browser based gaming in both Latin America and India. This HTML5 content works
well across all devices including Android, Apple, Tizen and Windows Phone. Devices in emerging markets often have
limited memory capable to store downloadable applications so browser based gaming is attractive in the region.
Browser based content is not available from Google Play and the App Store, providing differentiation from these
competing offerings.
Potential impact of Brexit
The outcome of the UK’s vote to leave the European Union and trigger article 50 is unlikely to materially impact the
Group at an operational level with almost all of the Group’s revenues derived from customers based outside of the EU.
The Strategic Report, encompassing pages 4 to 10, was approved by the Board and signed on its behalf by:
E Benasso
Chief Financial Officer
10
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
DIRECTORS REPORT
Items dealt with in the Strategic report
• Business review
• Principal risks and uncertainties
• Future developments
The principal activity of the Group is the sale of content for distribution on mobile devices. The Company is registered
in England and Wales under company number 03696108.
Results and dividends
The trading results and the Group's financial position for the year ended 30 June 2017 are shown in the attached
financial statements, and are discussed further in the Strategic Report.
The Directors have not proposed a dividend for this year (2016: £nil).
Directors and their interests
The present membership of the Directors of the Company (the “Board” or the “Directors”), together with their
beneficial interests in the ordinary shares of the Group, is set out below. All Directors served on the Board
throughout the year, except for M Carleton who resigned on 20 January 2017.
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Shares held or controlled by DirectorsOrdinary Ordinary shares of shares of £0.002 each£0.002 each30 June 201730 June 2016S Buckingham 12.385.500 10,382,500M Carleton (resigned 20 January 2017).--P Tomlinson 40.000 40.000 R Parry 181.183 181.183 T Maunder 5.000 5.000 E Benasso--
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
DIRECTORS REPORT
Options
The table below summarises the exercise terms of the various options over ordinary shares of £0.002 (year ended
30 June 2016: £0.002) which have been granted and were still outstanding at 30 June 2017.
The remuneration of the Directors for the year amounted to £ 329,000 (2016: £ 328,000). The remuneration of the
highest paid Director was £ 242,000 (2016: £ 202,000).
The remuneration of each of the Directors for the period ended 30 June 2017 is set out below:
Benefits comprise medical health insurance.
Going Concern
The current uncertain economic climate and changing market place may impact the Group’s cash flows and thereby
its ability to pay its creditors as they fall due.
In the past financial year in India, the focus has been very much on growing the active paying weekly subscriber base
on our download and online games services. The marketing team responsible for the success we have had in Latin
America have had to be very flexible with their investment strategy over the period as the mobile market in India is
ever evolving.
The Group had cash balances of £2.3m at the year-end (2015: £1.4m) and no borrowings. Marketing spend in India
can be managed with flexibility depending on the cash balances. Management can also implement cost savings
initiatives in order to reduce the cash burn.
A principal responsibility of management is to manage liquidity risk, as detailed in note 24 to the financial statements.
The Group uses annual budgeting, forecasting and regular performance reviews to assess the longer term profitability
of the Group and make strategic and commercial changes as required ensuring cash resources are maintained. Although
there was a significant fall in revenues and a loss for the year ending 30 June 2017, the Group actively manages its use
of cash, particularly marketing and other expenditure, and having reviewed the resulting cash flow forecasts for the
12-month period from date of approval of these Financial Statements, the Directors have a reasonable expectation that
the Group has sufficient resources to continue in operational existence for the foreseeable future. The Board consider
Mobile Streams to be a going concern. No material uncertainties or events that may cast significant doubt about the
ability of the Group to continue as a going concern have been identified by the Directors.
12
Options Held at Options Held at Latest expiry 01 July 201630 June 2017dateNumberNumberNumberNumber£R G Parry250.000 --250.000 0,343 23 March 201222 March 2021E Benasso250.000 35.000 - 285.000 0,180 13 June 201512 June 2024Options Granted During the periodOptions exercised During the periodExercise priceEarliest date from which exercisableYear to 30 June 2017Year to 30 June 2016SalaryFees BenefitsTotalTotal£'000£'000£'000£'000£'000S D Buckingham236 -6 242 202 T Maunder20 -- 20 20 R G Parry16 14 - 30 30 P Tomlinson-20 - 20 20 E Benasso51 -- 51 56 Total323 34 6 363 328
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
DIRECTORS REPORT
Directors’ responsibilities statement
The Directors are responsible for preparing the Strategic Report, the Director’s Report and the Financial Statements in
accordance with applicable laws 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 parent company financial statements in accordance with United Kingdom Generally
Accepted Accounting Practice (United Kingdom Accounting Standards and applicable laws) including FRS 101
Reduced disclosure Framework, and the consolidated accounts in accordance with International Financial Reporting
Standards as adopted by the European Union (IFRS). 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 and profit or loss of the
Company and Group for that period. In preparing these financial Statements, the Directors are required to:
Select suitable accounting policies and then apply them consistently.
Make judgements and estimates that are reasonable and prudent.
State whether applicable UK Accounting Standards and lFRSs have been followed. subject to any
material departures disclosed and explained in the financial statements, and
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that
the Group and the parent Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
Group and parent Company‘s transactions and disclose with reasonable accuracy at any time the financial position of
the Group and the parent Company and enable them to ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of both the Group and the parent Company and hence
for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors confirm that
So far as each Director is aware, there is no relevant audit information of which the Company‘s auditor
is unaware, and
The Directors have taken all steps that they ought to have taken to make themselves aware of any
relevant audit information and to establish that the auditor is aware of that information.
This confirmation is given pursuant to section 418 of the Companies Act 2006 and should be interpreted in accordance
with and subject to those provisions.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on
the Group's website Legislation in the United Kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Auditor
Grant Thornton UK LLP has indicated their willingness to continue in office.
On behalf of the Board
E Benasso
Chief Financial Officer
13
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF MOBILE STREAMS PLC
Opinion
Our opinion on the group financial statements is unmodified.
We have audited the group financial statements of Mobile Streams Plc for the year ended 30 June 2017 which comprise
the Accounting policies, the Consolidated income statement, the Consolidated statement of comprehensive income,
the Consolidated statement of financial position, the Consolidated statement of changes in equity, the Consolidated
cash flow statement and notes to the consolidated financial statements. The financial reporting framework that has
been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted
by the European Union.
In our opinion the group financial statements:
give a true and fair view of the state of the group’s affairs as at 30 June 2017 and of its loss for the year then
ended;
have been properly prepared in accordance with IFRSs as adopted by the European Union; and
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
group financial statements section of our report. We are independent of the group 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.
Who we are reporting to
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.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report
to you where:
the directors’ use of the going concern basis of accounting in the preparation of the group financial
statements is not appropriate; or
the directors have not disclosed in the financial statements any identified material uncertainties that may
cast significant doubt about the group’s ability to continue to adopt the going concern basis of accounting
for a period of at least twelve months from the date when the financial statements are authorised for issue.
Overview of our audit approach
Overall materiality: £28,000, which represents 0.5% of the group's revenue
Key audit matter identified as revenue cut-off
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
group financial statements of the current period and include the most significant assessed risks of material misstatement
(whether or not due to fraud) that we identified. These matters included those that 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 group financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
14
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF MOBILE STREAMS PLC
KEY AUDIT MATTER
HOW THE MATTER WAS
ADDRESSED IN THE AUDIT
Revenue cut-off
Growth in revenue is a key
performance indicator for the group,
being a key measure of how the group
is growing its business. We identified
revenue cut-off as one of the most
significant assessed risks of material
misstatement (whether or not due to
fraud) that required special audit
attention.
Our audit work included, but was not restricted to:
Obtaining an understanding of the group’s
process for recognising revenue in accordance
with the stated accounting policy
Assessing whether the group’s accounting
policy for revenue recognition is in accordance
with IFRSs as adopted by the European Union;
and
Substantively testing a sample of accrued
revenue balances, tracing them to post year-
end invoices and receipt of payment, to assess
whether they were recognised in accordance
with the policy.
The group's accounting policy on revenue is shown
on page 24 and related disclosures are included in
notes to the financial statements 2.1 and 21.
Key observations
No material reportable matters were noted as a
result of our audit procedures.
Our application of materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the
economic decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality in
determining the nature, timing and extent of our audit work and in evaluating the results of that work.
We determined materiality for the audit of the group financial statements as a whole to be £28,000, which was 0.5%
of group revenue. This benchmark is considered the most appropriate because whilst revenue has declined it continues
to be a key performance indicator for the group.
Materiality for the current year is lower than the level that we determined for the year ended 30 June 2016 to reflect
the reduction in revenue.
We use a different level of materiality, performance materiality, to drive the extent of our testing and this was set at
75% of financial statement materiality for the audit of the group financial statements.
We also determine a lower level of specific materiality for directors' remuneration and related party transactions.
We determined the threshold at which we will communicate misstatements to the audit committee to be £1,550. In
addition, we will communicate misstatements below that threshold that, in our view, warrant reporting on qualitative
grounds.
An overview of the scope of our audit
Our audit approach was a risk-based approach founded on a thorough understanding of the group's business, its
environment and risk profile and in particular included:
evaluation by the group audit team of identified components to assess the significance of that component and to
determine the planned audit response based on a measure of materiality. For example, significance as a percentage
of the group's total assets, revenues and profit before taxation or significance based on qualitative factors;
15
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF MOBILE STREAMS PLC
the two significant components identified were Mobile Streams Plc (as the parent company) and Mobile Streams
de Argentina SRL which represented 83% of group revenues. A combination of targeted procedures and analytical
review procedures were performed on all other components – including targeted procedures performed on Indian
revenue as it represented a further 7% of group revenues ; and
performing substantive procedures on significant transactions which included journal entries, individual material
balances and disclosures, the extent of which was based on various factors such as our overall assessment of the
control environment and our evaluation of the design and implementation of controls around significant risk.
Other information
The Directors are responsible for the other information. The other information comprises the information included in
the annual report† set out on pages 3 to 14, other than the financial statements and our auditor’s report thereon. Our
opinion on the 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. In connection with our audit of the
group financial statements, our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the group financial statements or our knowledge obtained in 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 there is a material misstatement of the group financial statements
or a material misstatement of the other information. 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.
Our opinion on other matters prescribed by the Companies Act 2006 is unmodified
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 group
financial statements are prepared is consistent with the group 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 under the Companies Act 2006
In the light of the knowledge and understanding of the group and its environment obtained in the course of the audit,
we have not identified material misstatements in the strategic report or the directors’ report.
Matters on which we are required to report by exception
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:
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.
Responsibilities of directors for the financial statements
As explained more fully in the Directors’ responsibilities statement set out on page 13, the Directors are responsible
for the preparation of the group 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 group financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the group financial statements, the directors are responsible for assessing the group’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 to cease operations, or have no realistic alternative
but to do so.
16
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF MOBILE STREAMS PLC
Auditor’s responsibilities for the audit of the group financial statements
Our objectives are to obtain reasonable assurance about whether the group 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 group financial statements.
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.
Other matter
We have reported separately on the parent company financial statements of Mobile Streams Plc for the year ended 30
June 2017. That report includes how we applied the concept of materiality in planning and performing our audit of the
parent company.
Christopher Smith
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
22/11/17
17
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
GROUP ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The Group financial statements consolidate those of the parent company and all of its subsidiary undertakings drawn
up to 30 June 2017. They have been prepared in accordance with applicable International Financial Reporting
Standards as adopted by the EU and with those parts of the Companies Act 2006 applicable to companies reporting
under IFRS. All references to IFRS in these statements refer to IFRS as adopted by the EU.
The historical cost convention has been applied as set out in the accounting policies.
Consolidation
Subsidiaries are all entities over which the Group has the power to govern the operating and financial policies generally
accompanying a shareholding of more than half of the voting rights. Subsidiaries are fully consolidated from the date
on which control is transferred to the Group. They are de-consolidated from the date on which control is lost.
Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated in
full. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset
transferred. Subsidiaries' accounting policies have been changed where necessary to ensure consistency with the
policies adopted by the Group.
The separate financial statements and related notes of the Company are presented on pages 54-61, which are prepared
in accordance with FRS 101.
Foreign currency translation
(a) Presentational currency
The consolidated and parent company financial statements are presented in British pounds. The functional currency of
the parent entity is also British pounds.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date
the transaction occurs. Any exchange gains or losses resulting from these transactions and the translation of monetary
assets and liabilities at the consolidated statement of financial position date are recognised in the income statement,
except to the extent that a monetary asset or liability represents a net investment in a subsidiary when exchange
differences arising on translation are recognised in equity within the translation reserve. Amount due from or to
subsidiaries are treated as part of net investment in the subsidiary when settlement is neither planned nor likely to occur
in the foreseeable future.
Foreign currency balances are translated at the year-end using exchange rate prevailing at the year-end.
18
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
GROUP ACCOUNTING POLICIES
(c) Group companies
The financial results and position of all group entities that have a functional currency different from the presentation
currency of the Group are translated into the presentation currency as follows:
i
ii
iii
assets and liabilities for each consolidated statement of financial position are translated at the closing
exchange rate at the date of the consolidated statement of financial position.
income and expenses for each income statement are translated at average exchange rates (unless it is not a
reasonable approximation to the exchange rate at the date of transaction)
all resulting exchange differences are recognised as a separate component of equity (cumulative translation
reserve)
Property, plant and equipment
All property, plant and equipment (PPE) is stated at cost, less accumulated depreciation and impairment losses. Cost
includes expenditure that is directly attributable to the purchase of the items.
Depreciation is calculated to write off the cost of property, plant and equipment less estimated residual value on a
straight line basis over its estimated useful life. The following rates and methods have been applied:
Plant and equipment
Office furniture
33% straight line
Between 10% and 33% straight line
Each asset's residual value and useful life is reviewed, and adjusted if required, at each consolidated statement of
financial position date. The carrying amount of an asset is written down immediately to its recoverable amount if the
carrying amount is greater than its estimated recoverable amount.
Gains/losses on disposal of assets are determined by comparing proceeds received to the carrying amount. Any
gain/loss is recognised in the income statement.
19
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
GROUP ACCOUNTING POLICIES
Going Concern
The current uncertain economic climate and changing market place may impact the Group’s cash flows and thereby
its ability to pay its creditors as they fall due.
In the past financial year in India, the focus has been very much on growing the active paying weekly subscriber base
on our download and online games services. The marketing team responsible for the success we have had in Latin
America have had to be very flexible with their investment strategy over the period as the mobile market in India is
ever evolving.
The Group had cash balances of £2.3m at the year-end (2015: £1.4m) and no borrowings. Marketing spend in India
can be managed with flexibility depending on the cash balances. Management can also implement cost savings
initiatives in order to reduce the cash burn.
A principal responsibility of management is to manage liquidity risk, as detailed in note 24 to the financial
statements. The Group uses annual budgeting, forecasting and regular performance reviews to assess the longer term
profitability of the Group and make strategic and commercial changes as required ensuring cash resources are
maintained. Although there was a significant fall in revenues and a loss for the year ending 30 June 2017, the Group
actively manages its use of cash, particularly marketing and other expenditure, and having reviewed the resulting
cash flow forecasts for the 12-month period from date of approval of these Financial Statements, the Directors have a
reasonable expectation that the Group has sufficient resources to continue in operational existence for the foreseeable
future. The Board consider Mobile Streams to be a going concern. No material uncertainties or events that may cast
significant doubt about the ability of the Group to continue as a going concern have been identified by the Directors.
Standards and Amendments to existing standards effective 1 January 2016
New standards effective for accounting periods commencing on 1 January 2016 are:
Amendments to IFRS 11: Accounting for
Acquisitions of Interests in Joint Operations
1 January 2016
Applicable for financial years beginning on/after
Annual Improvements to IFRSs 2012-2014 Cycle
1 January 2016
Amendments to IAS 16 and IAS 41: Bearer Plants 1 January 2016
Amendments to IAS 27: Equity Method in Separate
Financial Statements
Disclosure Initiative: Amendments to IAS 1
Presentation of Financial Statements
Amendments to IFRS 10, IFRS 12 and IAS 28:
Applying the consolidation exception for investing
entities.
1 January 2016
1 January 2016
1 January 2016
20
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
GROUP ACCOUNTING POLICIES
Standards, interpretations and amendments to published standards that are not yet effective and have not
been adopted early by the Group
A number of the new standards, amendments to standards and interpretations are effective for annual periods beginning
after 1 January 2017, and have not been applied in preparing these consolidated financial statements. Those which
are/may be relevant to the Group and expected to have significant effect on the consolidated financial statements of
the Group are set out below The Group is yet to assess the full impact of these changes.
• IFRS 9 Financial Instruments addresses the classification, measurement and recognition of financial assets and
financial liabilities. It replaces the guidance in IAS 39 that relates to the classification and measurement of financial
instruments The standard is effective for accounting periods beginning on or after 1 January 2018 Early adoption is
permitted subject to EU endorsement.
• IFRS 15 Revenue from contracts with customers deals with revenue recognition and establishes principles for
reporting useful information to users of financial statements. The standard replaces IAS 18 Revenue and 1AS 11
Construction contracts and related interpretations. The standard is effective for annual periods beginning on or after 1
January 2018 and earlier application is permitted subject to EU endorsement.
• IAS12 Income Taxes - amendments regarding the recognition of deferred tax assets for unrealised losses. The
standard is effective for annual periods beginning on or after 1 January 2017.
• IFRS 2 Share-based payments ("SBP") provides clarification concerning the treatment of vesting and non-vesting
conditions. It also clarifies the treatment when tax laws oblige an entity to withhold an amount for an employee's tax
obligation associated with a SBP and to transfer that amount to the tax authority on the employee's behalf. Finally the
amendment provides further guidance on accounting for modifications of options. The standard is effective for
accounting periods beginning on or after 1 January 2018.
With the exception of IFRS 15, the Directors do not expect that the adoption of the Standards and amendments listed
above will have a material impact on the financial statements of the Group in the future periods
The impact that IFRS 15 will have on the financial statements is yet to be quantified. The Group has different
contractual arrangements with each of its clients which will require detailed review in order to assess the changes
the Group will need to make to its revenue recognition policies once the standard is implemented. The Management
will review and analyse the impact before the next fiscal year close (30 June 2018). The impact will be disclosed
in the next financial statements.
Intangible assets
(a) Goodwill
Goodwill represents the excess of the cost of a business combination over the fair value of net identifiable assets of the
acquired entity at the date of acquisition. This goodwill for subsidiaries is included in intangible assets. Goodwill is
tested annually for impairment and carried at cost less accumulated impairment losses. Goodwill is allocated to cash-
generating units for impairment testing.
(b) Assets acquired through business combinations
These consist of customer relationships, technology based assets and non-compete agreements acquired through
business combinations. To meet this definition, the intangibles must be identifiable either by being separable, or by
arising from contractual or other legal rights. Intangibles acquired through business combinations are recognised at
fair value. Where a reliable estimate of useful life of the intangible can be obtained, the intangible asset is to be
amortised using the straight line basis, over the useful life. Where there is an indication of impairment of intangibles,
the intangible will be tested for impairment. The estimated useful lives of these assets are:
Customer relationships
Technology based assets
3 years
3 years
21
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
GROUP ACCOUNTING POLICIES
Non-compete agreements
3.5 years
(c) Media content and Media platform development
Media content and Media platform development represent intangible assets that have been acquired from third parties
and also that are internally generated, including capitalised direct staff costs. Content and platform expenditure is
charged against income in the year in which it is incurred unless it meets the recognition criteria of IAS 38 Intangible
Assets. To meet the criteria of an intangible asset the Group must demonstrate the following criteria:
-
-
-
-
-
-
the technical feasibility of completing the asset so that it will be available for use,
its intention to complete the intangible (or sell it),
its ability to use or sell the intangible,
that the intangible will generate future economic benefit,
that adequate resources are available to complete the intangible, and
the expenditure can be reliably measured.
Intangible assets, if capitalised, are amortised on a straight-line basis over the period of the expected benefit.
Amortisation commences when the asset is ready for use.
(d) Appitalism
Appitalism development represents intangible assets that have been internally generated, including capitalised direct
staff costs. To meet the intangible asset criteria the group must demonstrate the technical feasibility of completing the
asset so that it will be available for use, its intention to complete the intangible (or sell it), its ability to use or sell the
intangible, that the intangible will generate future economic benefit, adequate resources to complete the intangible and
the expenditure can be reliably measured. Intangible assets, if capitalised, are amortised on a straight line basis, and
reviewed annually for indicators of impairment.
(e) Software
Software represents assets that have been acquired from third parties. To meet the criteria for recognition the intangible
asset must be both identifiable and either separable, or arise from contractual or other legal rights. Intangible assets
acquired from third parties are stated at cost less accumulated amortisation and impairment losses. Where a reliable
estimate of useful life of the intangible can be obtained, the intangible asset is to be amortised using the straight line
basis, over the useful life. Where there is an indication of impairment of intangible assets with a definite life, the
intangible will be tested for impairment. The estimated useful life of acquired software is 2 years.
Amortisation is included in “Administrative expenses” in the income statement.
Impairment of assets
Assets that have an indefinite useful life, such as goodwill, are not subject to amortisation, but are instead tested
annually for impairment and also tested whenever an event or change in situation indicates that the carrying amount
may not be recoverable. Assets that are subject to amortisation are also tested for impairment whenever an event or
change in situation indicates that the carrying amount may not be recoverable. An impairment loss is recognised in the
income statement as the amount by which the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is determined by the higher of the fair value of an asset less costs to sell and the value in use. In
order to assess impairment, assets are grouped at the lowest levels for which separate cash flows can be identified (cash
generating units).
Impairment charges are included in the “Administrative expenses” in the income statement.
Taxation
Current tax is the tax currently payable based on taxable profit for the year.
22
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
GROUP ACCOUNTING POLICIES
Deferred income tax is provided, using the liability method, on temporary differences arising between the tax base of
assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax is not
provided on the initial recognition of goodwill, nor on the initial recognition of an asset or liability unless the related
transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences
associated with shares in subsidiaries is not provided if reversal of these temporary differences can be controlled by
the Group and it is probable that reversal will not occur in the foreseeable future.
Deferred income tax is determined using tax rates known by the consolidated statement of financial position date and
that are expected to apply when the deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available
against which the temporary differences can be utilised. Deferred tax liabilities are provided in full. There is no
discounting of assets or liabilities.
Changes in deferred tax assets or liabilities are recognised as a component of the tax expense in the income statements,
except where they relate to items that are charged or credited directly to equity or other comprehensive income, in
which case the related deferred tax is also charged or credited directly to equity or other comprehensive income.
Provisions
Provisions, including those for legal claims, are recognised when the Group has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of economic benefits will be required to settle the
obligation and the amount can be reliably estimated.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the
present obligation at the consolidated statement of financial position date. The discount rate used to determine the
present value reflects current market assessments of the time value of money and the risks specific to the liability.
Financial Assets
a) Cash and cash equivalents
Cash and cash equivalents include cash on hand, demand deposits held with financial institutions and other short-
term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
b) Trade and other receivables
Trade receivables are included in trade and other receivables in the consolidated statement of financial position. Trade
receivables are recognised initially at fair value and later measured at amortised cost using the effective interest method,
less any provision for impairment. An impairment provision for trade receivables is established when there is objective
evidence that the Group will not be able to collect all amounts due according to the terms of the receivables. The
provision is calculated as the difference between the receivable's carrying amount and the present value of estimated
future cash flows, discounted at the original effective interest rate.
The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is
recognised in the income statement. Subsequent recoveries of amounts previously written off are credited in the income
statement
Financial Liabilities
Financial liabilities are obligations to pay cash or deliver other financial assets and are recognised when the Group
becomes a party to the contractual provisions of the instrument. All financial liabilities are recorded initially at fair
value, net of direct issue costs.
A financial liability is derecognised only when the obligation is extinguished, that is, when the obligation is
discharged or cancelled or expires.
23
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
GROUP ACCOUNTING POLICIES
The Group's financial liabilities consist of trade and other payables, which are measured subsequent to initial
recognition at amortised cost using the effective interest rate method.
All interest-related charges are reported in the income statement as finance costs.
Revenue recognition
As at 30 June 2017, the Group was organised into four geographical segments: Europe, North America, Latin America,
and Asia Pacific. Revenues are from external customers only and are generated from three principal business activities:
the sale of mobile content through Mobile Operator Services (Mobile Operator Sales), the sale of mobile content over
the internet (Mobile Internet Sales) and the provision of consulting and technical services (Other Service Fees).
Revenue includes the fair value of sale of goods and services, net of value added tax, rebates and discounts and after
eliminating intercompany sales within the Group. Revenue is recognised as follows:
a) Mobile Operator Sales & Mobile Internet Sales
Revenue from the sale of goods is recognised when a Group entity has delivered media content to the end consumer,
who has accepted the product and collectability of the related receivable is reasonably assured from the customer.
b) Other Service Fees
Revenue is recognised in the accounting period in which the services are rendered, by reference to the stage of
completion of the specific transaction, on the basis of the actual service provided as a proportion of the total services
to be provided.
c) Interest Income
Interest receivable is recognised in the income statement using the effective interest method. If the collection of interest
is considered doubtful, it is deferred and excluded from interest income in the income statement.
d) Deferred Income
Revenue that has been collected from customers but where the above conditions are not met is recorded in the Statement
of Financial Position under accruals and deferred income and released to the income statement when the conditions
are met.
Share based payments
Employees (including Directors) of the Group receive remuneration in the form of share-based payment transactions,
whereby employees render services in exchange for shares or rights over shares (‘equity-settled transactions’).
The Group has applied the requirements of IFRS 2 Share-based Payments to all grants of equity instruments.
The cost of equity settled transactions with employees is measured by reference to the fair value at the grant date of
the equity instruments granted. The fair value is determined by using the Black-Scholes model.
The cost of equity-settled transactions is recognised in the income statement, together with a corresponding increase
in retained earnings, over the periods in which the performance conditions are fulfilled, ending on the date on which
the relevant employees become fully entitled to the award (‘vesting date’). At each consolidated statement of financial
position date before vesting the cumulative expense is calculated, representing the extent to which the vesting period
has expired and management’s best estimate of the achievement or otherwise of non-market conditions and of the
number of equity instruments that will ultimately vest. Market conditions are taken into account in determining the
fair value of the options granted, at grant date, and are subsequently not adjusted for. The movement in cumulative
expense since the previous consolidated statement of financial position date is recognised in the income statement,
with a corresponding entry in equity.
24
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
GROUP ACCOUNTING POLICIES
No expense or increase in equity is recognised for awards that do not ultimately vest. Awards where vesting is
conditional upon a market condition are treated as vesting irrespective of whether or not the market condition is
satisfied, provided that all other performance conditions are satisfied.
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are charged to the share premium account.
Leased assets
In accordance with IAS 17, all the Group’s leases are determined to be operating leases and the payments made under
them are charged to the income statement on a straight line basis over the lease term. Lease incentives are spread over
the term of the lease.
Operating leases are leases in which the risks and rewards of ownership are not transferred to the lessee.
Equity balances
a) Called up share capital
Called up share capital represents the aggregate nominal value of ordinary shares in issue.
b) Share premium
The share premium account represents the incremental paid up capital above the nominal value of ordinary shares
issued.
c) Translation Reserve
The translation reserve represents the cumulative translation adjustments on translation of foreign operations.
25
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
26
CONSOLIDATED INCOME STATEMENTYear ended 30 June 2017 Year ended 30 June 2016 £000’s£000’sRevenue215.695 12.786 21 (3.942) (9.256) 211.753 3.530 21 (769) (1.333) 21 (2.598) (3.048) (1.614) (851) 598 118 6 (2) (4) (1.518) (737) 10 (209) (569) (1.727) (1.306) Attributable to equity shareholders of Mobile Streams plc (1.727) (1.306) Loss per share Pence per share Pence per share Basic loss per share9(2,620) (3,519) Diluted loss per share9(2,620) (3,519) Finance incomeLoss before taxTax expenseLoss for the year* Administrative expenses include Depreciation, Amortisation and Impairment £19k (ended 30 June 2016: £59k); Share Based Compensation £118k (ended 30 June 2016: £146k). Other administrative expenses £2.4m (ended 30 June 2016: £2.9m).Finance expenseAttributable to:Operating LossCost of salesGross profitSelling and marketing costsAdministrative expenses *
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
27
Year ended 30 June 2017Year ended 30 June 2016£000’s£000’s(1.728) (1.306) Amounts which may be reclassified to profit & loss(103) (1.017) (1.831) (2.323) (1.831) (2.323) Loss for the yearExchange differences on translating foreign operationsTotal comprehensive loss for the yearTotal comprehensive loss for the year attributable to:Equity shareholders of Mobile Streams plc
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
The financial statements were approved by the Board of Directors on 22 November 2017 and are signed on its behalf
by:
E Benasso
Chief Financial Officer
Company registration number: 03696108
28
20172016£000’s£000’sAssets1216 20 Deferred tax asset17155 189 171 209 Current141.571 2.576 152.260 1.367 3.831 3.943 4.002 4.152 Equity18182 74 12.463 10.579 (3.253) (3.150) (7.553) (5.943) 1.839 1.560 Current161.649 1.595 514 997 2.163 2.592 2.163 2.592 Total equity and liabilities4.002 4.152 Total liabilitiesProperty, plant and equipmentTrade and other receivablesCash and cash equivalentsTotal assetsEquity attributable to equity holders of Mobile Streams plcRetained earningsTotal equityTrade and other payablesCalled up share capitalShare premiumTranslation reserveNon- CurrentCurrent tax liabilities
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
29
Called up share capitalShare premiumTranslation reserve Retained earningsTotal Equity£000’s£000’s£000’s£000’s£000’sBalance at 30 June 201574 10.579 (2.133) (4.782) 3.738 Balance at 1 July 201574 10.579 (2.133) (4.782) 3.738 Credit for share based payments- - - 145 145 Transactions with owners- - - 145 145 Loss for the 12 months ended 30 June 2016- - - (1.306) (1.306) Exchange differences on translating foreign operations- - (1.017) - (1.017) Total comprehensive loss for the year- - (1.017) (1.306) (2.323) Balance at 30 June 201674 10.579 (3.150) (5.943) 1.560 Balance at 1 July 201674 10.579 (3.150) (5.943) 1.560 Credit for share based payments- - - 118 118 New Capitalization108 1.884 - - 1.992 Transactions with owners108 1.884 - 118 2.110 Loss for the 12 months ended 30 June 2017- - - (1.728) (1.728) Exchange differences on translating foreign operations- - (103) - (103) Total comprehensive loss for the year- - (103) (1.728) (1.831) Balance at 30 June 2017182 12.463 (3.253) (7.553) 1.839 Equity attributable to equity holders of Mobile Streams Plc
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
CONSOLIDATED CASH FLOW STATEMENT
Page 30
Year ended 30 June 2017Year ended 30 June 2016 £000’s£000’sOperating activitiesLoss before taxation(1.518) (737) Adjustments:Share based payments118 146 Depreciation419 59 Impairments4- - Interest received5(98) (118) Interest paid62 Changes in trade and other receivables1.005 304 Changes in trade and other payables54 13 Tax paid(692) (237) Total cash generated in operating activities(1.110) (570) Investing activitiesAdditions to property, plant and equipment12(15) (8) Interest received598 118 Interest paid6(2) Net Cash generated from investing activities81 110 Financing activitiesIssue of share capital (net of expenses paid)1.969 - Net Cash generated from financing activities1.969 - Net change in cash and cash equivalents940 (460) Cash and cash equivalents at beginning of year1.367 2.098 Exchange (losses) on cash and cash equivalents(47) (271) Cash and cash equivalents, end of year152.260 1.367
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL INFORMATION
Mobile Streams Plc (the Company) and its subsidiaries (together 'the Group') sell digital content, primarily for
distribution on wireless devices. The Group has subsidiaries in Europe, Asia, North America and Latin America. The
Group has made various strategic acquisitions to build its market share in these regions.
The Company is a public limited company incorporated and domiciled in the United Kingdom. The address of its
registered office is 14 Cleveland Grove, Newbury, Berkshire, RG14 1XF
The Company is listed on the London Stock Exchange's Alternative Investment Market.
These consolidated financial statements have been approved for issue by the Board of Directors on 22 November 2017.
2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are evaluated on a regular basis and are based on historical experience and other factors,
such as expectations of future events that are believed to be reasonable under the circumstances.
2.1 CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS AND ASSUMPTIONS
The Group makes estimates and assumptions concerning the future. These estimates, by definition, will rarely equal
the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Estimates
(a) Accrued revenue and accrued content costs
Estimation is required by management to determine the value of accrued revenue and accrued content cost liability
which is based on the content delivery to its customers. Due to the timing of confirmation of delivery of content to its
customers from the service providers, management estimation is applied to determine the level of accrued revenue and
accrued content liability to be recognised within the financial statements until confirmation is received.
Judgement
(b) Income taxes
The Group is subject to income taxes in various jurisdictions. Judgement is required in determining the worldwide
provision for income taxes. There are many transactions/calculations for which the ultimate tax determination is
uncertain during the ordinary course of business. Where the final tax outcome is different to what is initially recorded,
such differences will impact the income tax and deferred tax provisions.
(c) Deferred taxation
Judgement is required by management in determining whether the Group should recognise a deferred tax asset.
Management consider whether there is sufficient certainty its tax losses available to carry forward will ultimately be
offset against future earnings, this judgement impacts on the degree to which deferred tax assets are recognised. The
deferred tax credit is produced by the Argentina subsidiary, which has been profitable and paid income tax return along
the years.
Page 31
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3. SERVICES PROVIDED BY THE GROUP'S AUDITOR AND NETWORK FIRMS
During the year ended 30 June 2017 the Group (including its overseas subsidiaries) obtained the following services
from the Group's auditor and network firms:
4. OPERATING LOSS/ (PROFIT)
Page 32
Year ended 2017Year ended 2016£000's£000's51 69 Non-Audit services:Fees payable to the Company's auditor and its associates for other services: Interim statement review9 11 Tax compliance and advisory services6 12 66 92 Fees payable to the Company’s auditor and its associates for the audit of the parent company and consolidated accountsOperating (loss)/profit is stated after charging the following items:Year ended 2017Year ended 2016Notes£000's£000'sDepreciation1219 59 Loss on foreign currency3 (402) 22 (343)
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
5. FINANCE INCOME
6. FINANCE EXPENSE
7. DIRECTORS’ AND OFFICERS’ REMUNERATION
The Directors are regarded as the key management personnel of Mobile Streams Plc.
Charges in relation to remuneration received by key management personnel for services in all capacities during the
year ended 30 June 2017 are as follows:
8. DIRECTORS AND EMPLOYEES
Staff costs during the year were as follows:
Page 33
2017 2016£000's£000'sInterest receivable98 118 20172016£000's£000'sInterest expense(2) (4) KEY MANAGEMENT REMUNERATION20172016£000’s£000’sShort- term employee benefits - benefits6 - - salaries/remuneration357 328 363 328 2017 2016£000's£000'sWages and salaries1.520 2.012 Social security costs137 225 1.657 2.237
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The average number of employees during the year to 30 June 2017 was as follows:
9. LOSS PER SHARE
Basic loss per share is calculated by dividing the loss or profit attributable to equity holders of the company by the
weighted average number of ordinary shares in issue during the period. The options this year are not-dilutive as loss-
making.
Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below.
Page 34
BENEFITSEuropeAsia PacificNorth AmericaLatin AmericaGroupBenefits(5) (5) (4) (53) (67) PRIOR YEARBENEFITSEuropeAsia PacificNorth AmericaLatin AmericaGroupBenefits(2) (4) (17) (67) (90) Year ended 2017Year ended 2016NumberNumberManagement6 7 Administration16 40 22 47 Year ended 2017Year ended 2016Pence per sharePence per shareBasic loss per share(2,620) (3,519) Diluted loss per share (2,620) (3,519)
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For year ended 30 June 2017, 4m (2016: 3.17m) potential ordinary shares has been excluded from the calculations of
earnings per share as they are anti-dilutive.
The adjusted EPS has been calculated to reflect the underlying profitability of the business by excluding non-cash
charges for depreciation, amortisation, impairments and share compensation charges.
Page 35
20172016£000's£000'sLoss for the year(1.727) (1.306) For adjusted earnings per share£000's£000'sLoss for the year(1.727) (1.306) Add back: share compensation expense118 146 Add back: depreciation and amortisation 19 59 Adjusted loss for the year(1.590) (1.101) Weighted average number of shares Number of sharesNumber of sharesFor basic earnings per share65.910.376 37.114.283 Exercisable share options- - For diluted earnings per share65.910.376 37.114.283 Pence per sharePence per shareAdjusted Loss per share(2,414) (2,967) Adjusted diluted Loss per share(2,414) (2,967)
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
10. INCOME TAX EXPENSE
The tax charge is based on the profit before tax for the year and represents:
Page 36
20172016£'000£'000Foreign tax on profits of the period176473Total current tax 176473Deferred tax:Origination & reversal of timing differences: (Deferred tax charge/(credit) (Note 17)33 96 Tax on (loss)/profit on ordinary activities209569Factors affecting the tax charge for the periodLoss on ordinary activities before tax(1.518) (737) Loss multiplied by standard rateof corporation tax in the United Kingdom of 20.75%/24%(315) (153) Effects of:Adjustment for tax-rate differences(39) 177 Expenses not deductible for tax purposes (33) (96) Expenses not deductible others subsidiaries 402 217 Other(120) 271 Current tax charge for the period209569ComprisingCurrent tax expense176473 33 96 209569Provision for deferred tax (Deferred tax asset)Provision brought forward189285Current Year(33) (96) Traslation adjustment(1) - Deferred tax provision/(asset) carried forward155189Relating toExpenses deducted in Argentina on a paid basis155189Provision for deferred tax155189Deferred tax (expense), income, resulting from the origination and reversal of temporary differences
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
11. DIVIDENDS
No dividends were paid or proposed during the current year or prior year.
12. PROPERTY, PLANT AND EQUIPMENT
13. GOODWILL AND INTANGIBLE ASSETS
The Group impaired in full the remaining value of goodwill attributable to Mobile Streams (Hong Kong) Limited and
its subsidiaries in Singapore and Australia which make up the Asia Pacific operating segment at June 2014.
Page 37
Office furniture, plant and equipment£000’sCostAt 1 July 2016556 Additions15 Translation adjustments(0) At 30 June 2017571 DepreciationAt 1 July 2016536 Provided in the year19 Translation adjustments- At 30 June 2017555 Net book value at 30 June 201716 Office furniture, plant and equipment£000’sCostAt 1 July 2015568 Additions8 Translation adjustments(20) At 30 June 2016556 DepreciationAt 1 July 2015474 Provided in the year59 Translation adjustments3 At 30 June 2016536 Net book value at 30 June 201620
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Other intangible assets
Mobile Streams’ other intangible assets comprised acquired customer relationships, technology based assets and non-
compete agreements. These assets are fully amortised.
Page 38
Media platform development and softwareMedia contentAppitalismOther intangiblesSubtotalGoodwillTotal£000’s£000's£000's£000’s£000's£000's£000'sCostAt 1 July 20162.348 332 337 2.364 5.381 2.670 8.051 At 30 June 20172.348 332 337 2.364 5.381 2.670 8.051 Accumulated amortisation and impairmentAt 1 July 20162.348 332 337 2.364 5.381 2.670 8.051 At 30 June 20172.348 332 337 2.364 5.381 2.670 8.051 Net book value at 30 June 2017- - - - - - - Media platform development and softwareMedia contentAppitalismOther intangiblesSubtotalGoodwillTotal£000’s£000's£000's£000’s£000's£000's£000'sCostAt 1 July 20152.348 332 337 2.364 5.381 2.670 8.051 At 30 June 20162.348 332 337 2.364 5.381 2.670 8.051 Accumulated amortisation and impairmentAt 1 July 20152.348 332 337 2.364 5.381 2.290 7.671 Impairment- - - - - 380 380 At 30 June 20162.348 332 337 2.364 5.381 2.670 8.051 Net book value at 30 June 2016- - - - - - -
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
14. TRADE AND OTHER RECEIVABLES
The carrying value of receivables is considered a reasonable approximation of fair value.
In addition, some of the unimpaired trade receivables are past due as at the reporting date. The age profile of trade
receivables is as follows:
Provision for doubtful debts reconciliation
Trade and other receivables that are not past due or impaired are considered to be collectible within the Group’s
normal payment terms.
Page 39
20172016£000's£000'sTrade receivables297 555 Accrued receivables146 434 Other debtors1.128 1.587 1.571 2.576 20172016£000’s£000’sWithin termsNot more than 30 days212 238OverdueNot more than 3 months6 97 More than 3 months but not more than 6 months6 2 More than 6 months but not more than 1 year24 154 More than 1 year200 256 Provision for doubtful debts(151) (192) 297 555 20172016£000’s£000’sOpening provision for doubtful debts192 173Change in provision during the year(41) 19 151 192Closing provision for doubtful debts
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
15. CASH AND CASH EQUIVALENTS
Cash and cash equivalents include the following components:
16. TRADE AND OTHER PAYABLES
All amounts are current. The carrying values are considered to be a reasonable approximation of fair value.
17. DEFERRED TAX ASSETS AND LIABILITIES
The majority of the deferred tax asset credit was produced from unpaid intercompany balances in Argentina. This
temporary difference is expected to be reversed once the balances are repaid. No deferred tax asset has been recognised
in respect of surplus tax losses available for carry forward due to uncertainty over the timing of future taxable profits.
There are gross losses available within the Group for carry forward of £2.3m.
Page 40
20172016£000’s£000’sArgentina´s cash at bank and in hand 6541178Other companies1.606189Cash at bank and in hand2.260 1.367 20172016£000’s£000’sTrade payables368 349 Other payables150 161 Accruals and deferred income1.131 1.085 1.649 1.595 Balance 30 June 2015Recognised in income statementBalance 30 June 2016Recognised in income statementTraslation AdjustmentBalance 30 June 2017£000’s£000’s£000’s£000’s£000’s£000’sDeferred tax asset: - Expenses accrued58 (35) 23 (9) - 14 - Royalties89 (36) 53 (5) - 48 - Bonus provisions- - - - - - - Others138 (26) 112 (19) - 93 Deferred tax asset 285 (96) 189 (33) - 155 Deferred tax liability: - On intangible assets- - - - - -
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
18. SHARE CAPITAL
The Company only has one class of share. The total number of shares in issue as at 30 June 2017 is 91,593,533 (30
June 2016: 37,114,283) with a par value of £0.002 per share. All issued shares are fully paid.
The Group’s main source of capital is the parent company’s equity shares. The policy which is met by the Group is to
retain sufficient authorised share capital so as to be able to issue further shares to fund acquisitions, settle share based
transactions and raise new funds. Share based payments relate to employee share options schemes. The schemes have
restrictions on headroom so as not to dilute the value of issued shares of the Company. The Group has not raised debt
financing in the past and expects not to do so in the future.
Allotted, called up and fully paid
Other Reserves
Share Premium Account
The balance in the share premium account represents the proceeds received above the nominal value on the issue of
the Company's equity share capital.
Translation Reserve
The Translation reserve contains the exchange differences arising on translating foreign operations.
19. SHARE BASED PAYMENTS
The Group operates three share option incentive plans – an Enterprise Management Incentive Scheme, a Global Share
Option Plan and an ISO Sub Plan - in order to attract and retain key staff. The remuneration committee can grant
options over shares in the Company to employees of the Group. Options are granted with a fixed exercise price equal
to the market price of the shares under option at the date of grant and are equity settled, the contractual life of an option
Page 41
20172016£000's£000'sAuthorised298138149,082,791 ordinary shares of £0.002 each (30 June 2016: 69,150,000)Allotted, called up and fully paid:91,593,533 ordinary shares of £0.002 each (30 June 2016: 37,114,283)18374Year ended 2017Year ended 2016In issue at 1 July 201637.114.283 37.114.283 Issued54.479.250 - In issue at 30 June 201791.593.533 37.114.283
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
is 10 years. Exercise of an option is subject to continued employment. Options are valued at date of grant using the
Black-Scholes option pricing model.
On 31 December 2016, 500,000 options were granted to Company personnel. Strike value was £0.05 per option.
The volatility of the Company's share price on the date of grant was calculated as the average of volatilities of share
prices of companies in the Peer Group on the corresponding date. The volatility of share price of each company in the
Peer Group was calculated as the average of annualised standard deviations of daily continuously compounded returns
on the Company's stock, calculated over 1, 2, 3, 4 and 5 years back from the date of grant, where applicable. The risk-
free rate is the yield to maturity on the date of grant of a UK Gilt Strip, with term to maturity equal to the life of the
option. The expected life of an employee share option is 5 years.
The calculation model includes these variables:
Expected volatility: 86.7%
Expected dividends: 0 (Nil)
Risk free interest rate: 1.99%
Share options in issue at the year-end under the various schemes are:
1.
2.
3.
Personal to the Option Holder and are not transferable, or assignable.
Shall not be exercisable on or after the tenth anniversary of the grant date.
Subject to the rules of the Plans, the Options shall Vest as follows – Options vest at 33.3% per year:
33.3% vest on the First Anniversary of the grant of option;
A second 33.3% vest on the Second Anniversary of the grant of option; and
The last 33.33% vest on the Third Anniversary of the grant of option.
No share options were exercised during the year ended on 30 June 2017. (2016: Nil).
Page 42
Weighted average remaining life (years):Weighted average remaining life (years):ContractualContractual£0 - £0.500,28210144,30,28 1.014 5,30 £0.51 - £1.000,64034873,10,740 2.987 4,00 20172016Range of exercise pricesWeighted average exercise price (£)Number of Shares (000's)Weighted average exercise price (£)Number of Shares (000's)
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The total charge for the year relating to employee share based payment plans was £118k (2016: £147k), all of which
related to equity-settled share based payment transactions.
20. OPERATING LEASES
The Group operating leases for land and buildings were cancelled before the end of the year.year.
The Hong Kong office was closed in December 2016 and the lease agreement was terminated. The Argentina office
lease contract expired on May 31 2016 and it was replaced by a shared office space with monthly fee, with a
contract cancelabble with a 30 days notice, so no future minimum lease payments are applicable.
Lease payments recognised as an expense during the period amount to £108k (2016: £222k).
21. SEGMENT REPORTING
As at 30 June 2017, the Group was organised into 4 geographical segments: Europe, North America, Latin American,
and Asia Pacific. The operating segments are organised, managed and reported to the Chief Operating Decision Maker
based on their geographical location. Revenues are from external customers only and generated from three principal
business activities: the sale of mobile content through Multi-National Organisation’s (Mobile Operator Services), the
sale of mobile content over the internet (Mobile Internet Services) and the provision of consulting and technical
services (Other Service Fees).
All operations are continuing and all inter-segment transactions are priced and carried out at arm’s length.
Page 43
20172016£000's£000'sFuture minumum lease payments under non-cancelabble operating leasesWithin one year- 11 In two-five years- - In more than five years- - - 11 Land and Buildings
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The segmental results for the year ended 30 June 2017 are as follows:
Page 44
£000'sEuropeAsia PacificNorth AmericaLatin AmericaGroupMobile Operator Services34 2 48 - 84 Mobile Internet Services- 398 4 5.195 5.597 Other Service fees10 - 3 1 14 Total Revenue44 400 55 5.196 5.695 Cost of sales(8) (260) (12) (3.662) (3.942) Gross profit36 140 43 1.534 1.753 Selling, marketing and administration expenses(596) (442) (120) (2.072) (3.230) Trading EBITDA*(560) (302) (77) (538) (1.477) Depreciation, amortisation and impairment- - (19) - (19) Share based compensation(118) - - - (118) Finance income- - - 98 98 Finance expense(2) - 1 (1) (2) Loss before tax(680) (302) (95) (441) (1.518) Taxation(84) - - (125) (209) Loss after tax(764) (302) (95) (566) (1.727) Segmental assets 1.370 314 175 2.143 4.002
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The segmental results for the year ended 30 June 2016 are as follows:
* Earnings before interest, tax, depreciation, amortization, impairments of assets and share compensation
Page 45
£000'sEuropeAsia PacificNorth AmericaLatin AmericaGroupMobile Operator Services31 6 58 80 175 Mobile Internet Services- 21 11 12.552 12.583 Other Service fees23 - - 5 28 Total Revenue54 27 69 12.637 12.786 Cost of sales(33) (29) (30) (9.165) (9.256) Gross profit21 (2) 39 3.472 3.530 Selling, marketing and administration expenses(557) (317) (113) (3.189) (4.176) Trading EBITDA*(536) (318) (74) 283 (646) Depreciation, amortisation and impairment- (1) (0) (57) (58) Share based compensation(146) - - - (146) Finance income/expense- - - 113 113 Loss before tax(682) (319) (74) 338 (737) Taxation- - - (569) (569) Loss after tax(682) (319) (74) (231) (1.306) Segmental assets 84 117 179 3.772 4.152 Segmental liabilities161 (34) 296 2.168 2.592
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The totals presented in the Group’s operating region segments reconcile to the Group's key financial figures as
presented in its financial statements as follows:
2
2006
Revenue in Argentina represents 83.7% of the total revenue of the Group; then Mexico 8.6%, India 7.1% and the rest
of the companies 0.5%. One main customer in Argentina comprises the 56.9% of the total Group revenue.
Page 46
20172016£000’s£000’sSegment revenuesTotal segment revenues5.695 12.786 Group’s revenues5.695 12.786 Segment resultsTotal segment Loss after tax (1.727) (1.306) Group’s Loss after tax(1.727) (1.306) Segment assetsTotal segment assets4.002 4.152 Consolidation eliminations- - Group’s assets4.002 4.152 Segment liabilitiesTotal segment liabilities2.163 2.592 Consolidation eliminations- - Groups’s liabilities2.163 2.592
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
INTEREST REVENUE
Interest Revenue for the year ended 30 June 2017 was £98k (2016: £118k)
DEFERRED TAX
The deferred tax credit was produced by the Argentina subsidiary, which was profitable along the years.
22. CAPITAL COMMITMENTS
The Group has no capital commitments as at 30 June 2017 (30 June 2016: £Nil).
23. RELATED PARTY TRANSACTIONS
Key Management
The only related party transactions that occurred during the year were the remuneration of senior management disclosed
in note 7.
24. RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group is exposed to currency and liquidity risk, which result from both its operating and investing activities. The
Group's risk management is coordinated in close co-operation with the Board and focuses on actively securing the
Group's short to medium term cash flows by minimising the exposure to financial markets. The most significant
financial risks to which the Group is exposed are described below. Also refer to the accounting policies.
Foreign currency risk
The Group is exposed to transaction foreign exchange risk. The currencies where the Group is most exposed to
volatility are US Dollars, Australian Dollars, Argentine Peso, Mexican Peso and Colombian Peso.
Currently, there is generally an alignment of assets and liabilities in a particular market and no hedging instruments
are used. In Latin American markets cash in excess of working capital is converted into a hard currency such as
US Dollars, except in Argentina, where domestic regulations prevented companies from acquiring US Dollars until
December 2015. Given this situation, the Argentine subsidiary is considering other alternatives to hedge a possible
Page 47
Year ended 30 June 2017DEFERRED TAXEuropeAsia PacificNorth AmericaLatin AmericaGroupDeferred Tax- - - 155 155 Year ended 30 June 2016DEFERRED TAXEuropeAsia PacificNorth AmericaLatin AmericaGroupDeferred Tax- - - 189 189
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
devaluation of local currency. The Company will continue to review its currency risk position as the overall
business profile changes.
Foreign currency denominated financial assets and liabilities, which are all short-term in nature and translated into
local currency at the closing rate, are as follows.
Percentage movements for the period in regards to the British Pound to US Dollar, Australian Dollar and Argentine
Peso exchange rates are as follows. These percentages have been determined based on the average market volatility
in exchange rates during the period.
Page 48
USDAUSARSOtherUSDAUSARSOtherNominal amounts££££££££Financial assets129 60 1.437 389 126 59 2.672 336 Financial liabilities (297) (50) (943) (606) (295) (46) (1.477) (612) Short-term exposure(168) 10 494 (217) (169) 13 1.195 (276) 2017000’s2016000’s20172016US Dollar3%17%Australian Dollar6%14%Argentine Peso-6%-28%Effect of possible changes in currency rates£'000£'000Currency: GBPEffect on ProfitEffect on EquityEffect of a 10% US Dollar devaluation (against the GBP)(128) (128) Effect of a 10% US Dollar Appreciation (against the GBP)128 128 Effect of a 10% Australian Dollar devaluation (against the GBP)75 75 Effect of a 10% Australian Dollar appreciation (against the GBP)(75) (75) Effect of a 20% Peso devaluation (against the GBP)(179) (179)
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Liquidity risk
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs.
Management prepares cash flow forecasts which are reviewed at Board meetings to ensure liquidity. The Group
has no borrowing arrangements.
As at 30 June 2017, the Group’s financial liabilities were all current and have contractual maturities as follows:
The maturity of the Group’s financial liabilities, which were all current at the previous year end, was as follows:
Capital Management Disclosures
Management assesses the Group’s capital requirements in order to maintain an efficient overall financing structure
while avoiding excessive leverage. The Group manages the capital structure and makes adjustments to it in the
light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain
or adjust the capital structure, the Group could return capital to shareholders or issue new shares.
The Group considers its capital to comprise the following:
Page 49
Year ended 2017Year ended 2016£000's£000'sForeign currency(3) 402 Trade and other payables30 June 20176 to 12 months£000’s518£000’sWithin 6 months-Trade and other payables30 June 2016510-£000’s£000’s6 to 12 monthsWithin 6 months20172016£000's£000'sOrdiary Share capital183 74 Share premium12.463 10.579 translation reserve(3.253) (3.150) Retained earnings(7.553) (5.943) 1.840 1.560
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
25. FINANCIAL RISK MANAGEMENT
The Group’s financial assets and financial liabilities, as defined by IAS 32, are categorised as follows:
Management have assessed that the fair value of cash and short term deposits, trade receivables, accrued receivables,
trade payables and accrued payables approximate to their carrying amounts as those items have short term maturities.
26. EVENTS AFTER THE REPORTING PERIOD
Directors resignation
Tim Maunder presented his resignation to the Board of Directors, to be effective after the Annual General Meeting.
Roger Parry communicated he would be leaving the board after the AGM as well. Mark Carleton resigned from the
Board of Directors on 20 January 2017.
Page 50
20172016£000’s£000’sFinancial AssetsAccrued Receivables146 434 Trade receivables297 554 Cash and Cash equivalents2.260 1.367 Group’s revenues2.703 2.355 Financial LiabilitiesTrade Creditors(368) (349) Accrued content costs(630) (676) Other Accrued liabilities(501) (409) Group’s assets(1.499) (1.434)
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF MOBILE STREAMS PLC
Opinion
Our opinion on the parent company financial statements is unmodified.
We have audited the parent company financial statements of Mobile Streams Plc for the year ended 30 June 2017
which comprise the parent company accounting policies, the Company statement of financial position, the Company
Statement of Changes in Equity and notes to the financial statements. The financial reporting framework that has been
applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial
Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
In our opinion the parent company financial statements:
give a true and fair view of the state of the parent company’s affairs as at 30 June 2017;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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 parent company financial statements section of our report. We are independent of
the parent company in accordance with the ethical requirements that are relevant to our audit of the parent company
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.
Who we are reporting to
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.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report
to you where:
the directors’ use of the going concern basis of accounting in the preparation of the parent company financial
statements is not appropriate; or
the directors have not disclosed in the financial statements any identified material uncertainties that may cast
significant doubt about the parent company’s ability to continue to adopt the going concern basis of accounting
for a period of at least twelve months from the date when the financial statements are authorised for issue.
Overview of our audit approach
Overall materiality: £25,000, which represents 1% of the company's net assets capped at 90% of group
materiality
The parent company is a holding company: and
No key audit matters were identified.
Key audit matters
We identified no key audit matters in relation to the audit of the parent company financial statements.
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MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
Our application of materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the
economic decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality in
determining the nature, timing and extent of our work and in evaluating the results of that work.
We determined materiality for the audit of the parent company financial statements as a whole to be £25,000, which is
1% of net assets capped at 90% of group materiality. This benchmark is considered the most appropriate because the
company is a holding company.
Materiality for the current year is lower than the level that we determined for the year ended 30 June 2016 to reflect
the lower group audit materiality.
We use a different level of materiality, performance materiality, to drive the extent of our testing and this was set at
75% of financial statement materiality.
We also determine a lower level of specific materiality for as appropriate, for example, directors' remuneration and
related party transactions.
We determined the threshold at which we will communicate misstatements to the audit committee to be £1,550. In
addition, we will communicate misstatements below that threshold that, in our view, warrant reporting on qualitative
grounds.
An overview of the scope of our audit
Our audit approach was a risk-based approach founded on a thorough understanding of the company's business, its
environment and risk profile.
Our audit report on the group financial statements includes details regarding the overview of the scope of our audit.
Other information
The directors are responsible for the other information. The other information comprises the information included in
the annual report set out on pages 3 to 14, other than the financial statements and our auditor’s report thereon. Our
opinion on the 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. In connection with our audit of the
parent company financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the parent company financial statements or our knowledge
obtained in 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 there is a material misstatement of the parent
company financial statements or a material misstatement of the other information. 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.
Our opinion on other matters prescribed by the Companies Act 2006 is unmodified
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 parent
company financial statements are prepared is consistent with the parent company financial statements; and
the strategic report and the directors’ report have been prepared in accordance with applicable legal
requirements.
Matter on which we are required to report under the Companies Act 2006
In the light of the knowledge and understanding of 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.
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MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
Matters on which we are required to report by exception
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.
Responsibilities of directors for the financial statements
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of
the 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 parent company financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the parent company financial statements, the directors are responsible for assessing 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 parent company or to cease operations,
or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the parent company financial statements
Our objectives are to obtain reasonable assurance about whether the parent company 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 parent company financial statements.
A further description of our responsibilities for the audit of the parent company 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.
Other matter
We have reported separately on the group financial statements of Mobile Streams Plc for the year ended 30 June 2017.
That report includes details of the group key audit matters; how we applied the concept of materiality in planning and
performing our audit; and an overview of the scope of our audit.
Christopher Smith
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
22/11/17
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MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
COMPANY ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Statement of compliance
These financial statements have been prepared in accordance with applicable accounting standards and in accordance
with Financial Reporting Standard 101 – “Reduced Disclosure Framework” (FRS 101) The principal accounting
policies adopted in the preparation of these financial statements are set out below. These policies have all been applied
consistently throughout the year unless otherwise stated.
The financial statements have been prepared on a historical cost basis. The financial statements are presented in Sterling
(£) and have been presented in round thousands (£’000).
In preparing these financial statements the Company has taken advantage of all disclosure exemptions conferred by
FRS 101. Therefore these financial statements do not include:
1. A statement of cash flows and related notes
2. The requirements of IAS 24 related party disclosures to disclose related party transactions entered in to
between two or more members of the group as they are wholly owned within the group.
3. The effect of future accounting standards not adopted.
4. Certain share based payment disclosures.
5. Disclosures in relation to impairment of assets.
6. Disclosures in respect of financial instruments (other than disclosures required as a result of recording
financial instruments at fair value).
Additionally, the consolidated Group prepares accounts under IFRS which should be read in conjunction with these
statements.
Basis of preparation
The financial statements have been prepared on the historical cost basis. The principal accounting policies are set out
below. The company has applied the exemption under section 408 of the Companies Act 2006 and has not included
the individual profit and loss account statement in the financial statements.
INVESTMENTS IN SUBSIDIARIES
Investments in subsidiaries are stated in the Company’s consolidated statement of financial position at cost less
provisions for impairment.
DEFERRED TAXATION
Deferred tax is recognised on all timing differences where the transactions or events that give the Company an
obligation to pay more tax in the future, or a right to pay less tax in the future, have occurred by the consolidated
statement of financial position date. Deferred tax assets are recognised when it is more likely than not that they will
be recovered.
Deferred tax is measured using rates of tax that have been enacted or substantively enacted by the b consolidated
statement of financial position date. Deferred tax assets and liabilities are not discounted.
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MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
COMPANY ACCOUNTING POLICIES
FOREIGN CURRENCIES
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary
assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the consolidated statement
of financial position date. All exchange differences are dealt with through the profit and loss account.
OPERATING LEASES
Rentals in respect of leases are charged to the profit and loss account in equal amounts over the lease term.
SHARE BASED PAYMENTS
Employees (including Directors) of the Group receive remuneration in the form of share-based payment transactions,
whereby employees render services in exchange for shares or rights over shares (‘equity-settled transactions’).
Equity settled transactions
The Group has applied the requirements of IFRS 2 “Share Based Payments” to all grants of equity instruments.
The cost of equity settled transactions with employees is measured by reference to the fair value at the grant date of
the equity instruments granted. The fair value is determined by using the Black-Scholes model.
The cost of equity-settled transactions is recognised, together with a corresponding increase in retained earnings, over
the periods in which the performance conditions are fulfilled, ending on the date on which the relevant employees
become fully entitled to the award (‘vesting date’). At each consolidated statement of financial position date before
vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired and
management’s best estimate of the achievement or otherwise of non-market conditions and of the number of equity
instruments that will ultimately vest. Market conditions are taken into account in determining the fair value of options
granted, at grant date, and are not subsequently adjusted for. The movement in cumulative expense since the previous
consolidated statement of financial position date is recognised in the income statement, with a corresponding entry in
equity.
No expense or increase in equity is recognised for awards that do not ultimately vest. Awards where vesting is
conditional upon a market condition are treated as vesting irrespective of whether or not the market condition is
satisfied, provided that all other performance conditions are satisfied.
Financial Assets
a) Cash and cash equivalents
Cash and cash equivalents include cash on hand, demand deposits held with financial institutions and other short-
term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
b) Trade and other receivables
Trade receivables are included in trade and other receivables in the company statement of financial position. Trade
receivables are recognised initially at fair value and later measured at amortised cost using the effective interest method,
less any provision for impairment. An impairment provision for trade receivables is established when there is objective
evidence that the company will not be able to collect all amounts due according to the terms of the receivables. The
provision is calculated as the difference between the receivable's carrying amount and the present value of estimated
future cash flows, discounted at the original effective interest rate.
The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is
recognised in the income statement. Subsequent recoveries of amounts previously written off are credited in the income
statement
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MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
COMPANY ACCOUNTING POLICIES
Financial Liabilities
Financial liabilities are obligations to pay cash or deliver other financial assets and are recognised when the company
becomes a party to the contractual provisions of the instrument. All financial liabilities are recorded initially at fair
value, net of direct issue costs.
A financial liability is derecognised only when the obligation is extinguished, that is, when the obligation is
discharged or cancelled or expires.
The company’s financial liabilities consist of trade and other payables, which are measured subsequent to initial
recognition at amortised cost using the effective interest rate method.
All interest-related charges are reported in the income statement as finance costs.
COMPANY PROFIT AND LOSS ACCOUNT
The parent Company has taken advantage of Section 408 of the Companies Act 2006 and has not included its own
profit and loss account in these financial statements. The parent Company’s recognized loss for the year ended June
30 2017 was £ 1,768,711.
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MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
COMPANY STATEMENT OF CHANGES IN EQUITY
The parent Company has taken advantage of Section 408 of the Companies Act 2006 and has not included its own
profit and loss account in these financial statements. The parent Company’s recognized loss for the year ended 30 June
2017 was £ 1,768,711.
The financial statements were approved by the Board of Directors on 22 November 2017.
E Benasso
Chief Financial Officer
Company registration number: 03696108
Page 57
30 June 201730 June 2016£000’s£000’sFixed assets1 20 20 20 20 Current assetsDebtors2 1.016 1.903 1.364 297 7 2.387 1.939 3 (267) (161) 2.120 1.778 2.140 1.798 4 183 74 5 12.463 10.579 5 (10.506) (8.855) 2.140 1.798 Others assetsInvestments in subsidiariesTotal fixed assetsCash and cash equivalentsShare premiumProfit and loss accountShareholders fundsTotal current assetsCreditors: amounts falling due within one yearNet current assetsNet assetsCapital and reservesCalled up share capital
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
COMPANY STATEMENT OF CHANGES IN EQUITY
Page 58
For the year ended 30 June 2017Share Share Share basedProfitcapital premium paymentand lossaccountaccountreserveaccountTotal£000£000£000£000£000At 1 July1 201474 10.579 393 (9.852) 1.194 Gain/(loss) for the year421 421 Share based payments - share options219 219 At 30 June 201574 10.579 612 (9.431) 1.834 At 1 July1 201574 10.579 612 (9.431) 1.834 Loss for the year(182) (182) Share based payments - share options146 146 At 30 June 201674 10.579 758 (9.613) 1.798 At 1 July1 201674 10.579 758 (9.613) 1.798 New capitalizazion109 1.884 1.993 Loss for the year(1.769) (1.769) Share based payments - share options118 118 At 30 June 2017183 12.463 876 (11.382) 2.140
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO COMPANY FINANCIAL STATEMENTS
1. INVESTMENT IN SUBSIDIARY COMPANIES
Investments in subsidiaries are reviewed for impairment when events indicate the carrying amount may not be
recoverable and are accounted for in the Company’s financial statements at cost less accumulated impairment losses.
Investments in Subsidiary undertakings comprise:
All the subsidiaries’ issued shares were ordinary shares and their principal activities were the distribution of licensed
mobile phone content.
Page 59
30 June 201730 June 2016£000’s£000’s3.636 3.636 Accumulated impairment(3.616) (3.616) Net Book Value after impairment 20 20 CostDirectly by Mobile Streams PlcBy other Group companiesTotal held by GroupMobile Streams Inc.100%- 100%Appitalism, Inc.100%- 100%Mobile Streams de Argentina SRL50%50%100%Mobile Streams Chile Ltda.50%50%100%Mobile Streams de Colombia Ltda.50%50%100%Mobile Streams of Mexico S De RL De CV50%50%100%The Nickels Group Inc.- 100%100%Mobile Streams Venezuela SA100%- 100%Mobile Streams Australia Pty Limited- 100%100%Mobile Streams (Hong Kong) Limited100%- 100%Mobile Streams Singapore Limited- 100%100%Mobile Streams India Private Limited99,99%- 99,99%Proportion held
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO COMPANY FINANCIAL STATEMENTS (CONTINUED)
2. Debtors
We estimate these receivables are fully recoverable during the next year.
3. Creditors: amounts falling due within one year
4. SHARE CAPITAL
For details of share capital refer to note 18 to the Group financial statements.
5. SHARE PREMIUM ACCOUNT
6. CAPITAL COMMITMENTS
The Company has no capital commitments at 30 June 2017 (2016: Nil).
7. CONTINGENT LIABILITIES
As at 30 June 2017 there were no contingent liabilities (2016: Nil).
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20172016£000’s£000’sTrade debtors 25 29 Amounts owed by Group undertaking991 1.874 1.016 1.903 20172016£000’s£000’sTrade creditors184 69 Accruals and deferred income83 92 267 161 Share Premium£000’sAt 1 July 201510.579 Premium on shares issued in yearAt 30 June 201610.579 At 1 July 2016Premium on shares issued in year1.884 At 30 June 201712.463
MOBILE STREAMS PLC
Financial Statements for the year ended 30 June 2017
NOTES TO COMPANY FINANCIAL STATEMENTS (CONTINUED)
8. RELATED PARTY TRANSACTIONS
During the year the Company remunerated the Directors and Officers as disclosed in note 7 in the consolidated financial
statements.
The company is taking advantage of the exemption per IAS 24 which does not require disclosure of transactions entered
into between members of a group when one of the transacting parties is a wholly owned subsidiary.
9. DIRECTORS AND EMPLOYEES
The average number of employees during the year to 30 June 2017 was as follows:
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Year ended 2017Year ended 2016NumberNumberManagement2 3 Administration- - 2 3