MOBILE STREAMS PLC
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2020
1
Company registration number:
03696108
Registered office:
125 Wood Street
London
EC2V 7AW
Directors:
Secretary:
Bankers:
Auditor:
Nominated Adviser:
Broker:
Registrar:
Nigel Burton (Chairman)
Mark Epstein (Chief Operating Officer)
Charles Goodfellow (Non-Executive Director)
Pennsec Limited
125 Wood Street
London
EC2V 7AW
National Westminster Bank plc
30 Market Place
Newbury
RG14 5AG
PKF Littlejohn LLP
15 Westferry Circus
Canary Wharf
London
E14 4HD
Beaumont Cornish Limited
Building 3
566 Chiswick High Road
London
W4 5YA
Peterhouse Capital Limited
3rd Floor
80 Cheapside
London
EC2V 6EE
Computershare
The Pavilions
Bridgwater Road
Bristol
BS13 8AE
Corporate web site:
www.mobilestreams.com
2
Contents
Chairman’s statement
Strategic report
Directors’ report
Corporate Governance Statement
Independent Auditors Report on the Consolidated Financial Statements
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated cash flow statement
Summary of significant accounting policies
Notes to the consolidated financial statements
Independent Auditors Report on the Company Financial Statements
Company statement of financial position
Company statement of changes in equity
Company accounting policies
Notes to the company financial statements
4
5
12
15
20
24
25
26
27
28
33
46
50
51
52
53
3
Chairman’s Statement
The Board of Mobile Streams plc presents its audited accounts for the financial year ended 30 June 2020.
In the year to 30 June 2020 Mobile Streams continued to offer games and other content direct to consumers across a
wide range of mobile devices in three emerging markets. Market conditions in Argentina in particular, the peso
devaluation, had an adverse effect on revenues, leading to increased losses. As a result of the reductions in revenue, a
comprehensive cost-cutting programme was undertaken during the year.
Group revenue for the year ended 30 June 2020 was £0.6m (2019: £1.3m). Trading EBITDA (calculated as profit
before tax, interest, amortisation, depreciation, share compensation expense and impairment of assets) was negative
£0.6m for year (2019: negative £0.7m). Loss before tax was £1.6m (2019: £0.6m loss). Most of the reduction in
revenues is attributable to challenging trading conditions in Argentina. Revenue in Argentina (which equated to 77%
of Group revenue) on a constant currency basis decreased by 25% from AR$48m to AR$36m.
The Directors do not propose payment of a dividend (2020: £Nil). The Group had a net cash balance of £1.3m, with
no debt, at 30 June 2020 (2019: £0.1m cash with no debt).
The Group’s principal business remains the generation of revenues through relationships with mobile operators and
content aggregators, and the Board expects that in the current financial year the majority of revenues are again likely
to be generated in Latin America.
In November 2019 the Company announced that it would launch a new data insight and intelligence platform, called
Streams, based on licensing of the Krunch Data platform. The Streams business provides bespoke services to the B2B
(business to business) market and targets customers in the US, LatAm and Europe. Following the year end, the
Company announced the launch of the Streams SaaS ("Software as a Service") platform on 6 July, and since 14 October
customers have been able to access the service and pay for it online.
The Board believes that the Streams data offering is the largest opportunity for the Company to deliver growth in
shareholder value via newly developed products and services. The main focus for the current year will be growing and
developing the product and sales pipeline.
The traditional content delivery side of the business still brings in ongoing revenue and therefore will be continued,
however the majority of investment going forwards will be in growing the new data insight and intelligence business.
During the year, 5 subsidiaries were closed (Singapore, Australia, Chile, Appitalism and The Nickels Group). The
effect of the derecognition was duly exposed in the statements.
During the year, the Company raised £1.76m before expenses through Placings in November 2019, April 2020 and
May 2020. The Placing in November 2019 was accompanied by the appointment of new advisers and a strengthening
of the Board. The Placings in April and May followed a three month suspension in trading of the shares whilst the new
management prepared audited accounts, hampered by the failure of previous management to make adequate
preparations. The share issues in April and May demonstrated strong investor support for the strategy of growing the
Streams data insight and intelligence platform, based on licensing of the Krunch Data platform.
The Directors have considered the impact of the Covid-19 pandemic on the business, and at the time of writing revenues
have not been affected. All our staff work from home, and the online nature of the existing business, both in terms of
content delivery and revenue collection, means that we do not envisage any disruption to that business unless a
prolonged economic downturn results in a rise in cancellations. The Streams business is also largely remote, although
in the short term face to face marketing has been impacted and demand could be affected as clients themselves respond
to the ongoing effects of the pandemic.
The Directors have prepared a cashflow forecast which indicates that the amount raised during the year to 30 June is
expected to cover the Company’s working capital requirements for the foreseeable future.
Nigel Burton
Chairman
15 December 2020
4
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
STRATEGIC REPORT
Operating review
Mobile Streams' performance during the financial year ended 30 June 2020 was driven primarily by its Mobile Internet
subscription sales in Argentina and India.
Group revenue for the year ended 30 June 2020 was £0.6m (2019: £1.3m). The gross profit of £0.2m (2019: £0.5m)
decreased by 67%. The gross profit margin decreased from 37.5% to 25.6% as a result of higher impact of the marketing
(direct to consumer) costs related to its Mobile Internet division.
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, whilst using independent portals, as well as the open mobile internet, more
actively.
Mobile Internet sales
The Argentine Peso devalued significantly during the period, affecting the revenues when expressed in GBP. We
continue to work with our longest standing billing partner locally and this remains the foundation of the overall
business.
The Indian mobile market has stabilised after the last years development. During 2020, network connections have
continued improving throughout the country, lowered prices for data and had an impact on the financial results of other
carriers.
Our largest customer in India merged their Indian businesses, disrupting the Company’s ability to monetise its services
as platforms were merged and new contracts concluded.
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 year on year partially because of consumer preferences and greater
competition.
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.
The mobile operator revenue stream is now immaterial to the overall Group given its decline and the shift to mobile
internet sales.
Sales by Territory
Operations in Argentina were extremely challenging in the year as a result of general market conditions and regulation
in the local market for mobile content subscriptions. Revenues in Argentina decreased 25% in Argentine Pesos terms
from AR$48m to AR$36m. As a result of the Peso devaluation in the year of 26.9%, the revenues expressed in Sterling
show a 42.6% decrease from £0.9m to £0.5m, equating to 77% of Group revenues.
Revenues in India represented 19.5% of the revenues of the Group. Indian revenues have been reducing due to the
reduction in marketing campaigns. Trading was more challenging than anticipated because of policy changes at one of
the Group’s key partners and lower revenue from another.
Financial review
Group revenue for the year ended 30 June 2020 was £0.6m, a 52.4% decrease on the previous year (2019: £1.3m).
Gross profit was £0.2m, a decrease of 67% during the year (2019: £0.5m). The gross profit margin decreased from
37.5% to 25.6% on account of increased efficiency of marketing (Direct to Consumer) costs related to Mobile Internet.
5
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
STRATEGIC REPORT
Selling, marketing and administrative expenses were £Nil, a 100% decrease (2019: £0.2m).
The Group recorded a loss after tax of £1.6m for the year ended 30 June 2020 (2019 loss: £0.4m). Basic earnings per
share decreased to a loss of 0.379 pence per share (2019: loss of 0.368 pence per share). Adjusted earnings per share
(excluding interest, depreciation, amortisation, impairments and share compensation expense) decreased to a loss of
0.379 pence per share (2019: loss of 0.362 pence per share).
The Group had cash of £1.34m at 30 June 2020, with no debt (2019: £0.12m of cash with no debt).
Financial performance
Revenue
Gross profit
Selling and Marketing Costs
Administrative Expenses*
Trading EBITDA**
Depreciation and Amortisation
Impairments
Share Based Compensation
Operating loss
Loss on derecognition of subsidiaries
Finance Income
Finance Expense
Loss before tax
Year to 30 June
2020
£000's
636
163
(773)
(610)
-
-
-
(610)
(953)
-
-
(1,563)
Year to 30 June
2019
£000's
1,335
501
(239)
(930)
(668)
(3)
-
(3)
(674)
-
113
(4)
(565)
* Administrative expenses exclude amortisation, depreciation and share compensation expense.
** Calculated as profit before tax, interest, amortisation, depreciation, share compensation expense and impairment of assets.
Key performance indicators (“KPI’s”)
Gross profit as a percentage of revenue is a measure of our profitability. Gross profit was £0.2m for the year ended on
30 June 2020 (2019: £0.5m). The KPIs used by the Group are Trading EBITDA**, variance in revenue and gross
profit. These KPIs are reviewed on a regular basis, largely by reference to budgets and reforecasts. Trading EBITDA
was a loss of £0.6m for the year ended on 30 June 2020 (2019: loss of £0.7m).
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 consolidated income statement are added back to profit after tax in
calculating this measure.
Although revenue in Argentina decreased by 42.6% during the year, like-for-like revenue on a constant currency basis
decreased by 25%.
Gross profit as a percentage of revenue is a measure of the Group’s profitability. Gross profit margin was 25.6% for
the year ended on 30 June 2020 (2019: 37.5%).
**EBITDA is a non-IFRS measure and is calculated as profit before tax, interest, amortisation, depreciation, share compensation
expense and impairment of assets.
6
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
STRATEGIC REPORT
Strategy
The Group’s principal business remains the generation of revenues through relationships with mobile operators and
content aggregators, using the Group’s expertise in selling content to consumers in developing markets.
In November 2019 the Company announced that it would launch a new data insight and intelligence platform, called
Streams, based on licensing of the Krunch Data platform. The main focus for the current year will be in growing and
developing the product and sales pipeline.
Share Issue
In November 2019, the Group issued 249,738,938 shares at a value of 0.113 pence per share. In April 2020, the Group
issued 98,437,500 shares at a value of 0.08 pence per share. In May 2020, the Group issued 182,812,500 shares at a
value of 0.08 pence per share, and 333,333,333 shares at a value of 0.3 pence per share, and 143,500,000 shares at a
value of 0.2 pence per share. The share issues in April and May demonstrated strong investor support for the strategy
of growing the Streams data insight and intelligence platform, based on licensing of the Krunch Data platform.
The Group’s source of capital is the parent company’s equity shares. The Group has not raised debt financing in the
past and does not expect to do so in the future.
The total number of shares in issue as at 30 June 2020 was 1,148,574,804 (30 June 2019: 140,752,533) with a par value
of £0.002 per share. All issued shares are fully paid.
In November 2019, shareholders approved the proposal to sub-divide the entire existing share capital, both issued and
to be issued, consisting of ordinary shares of 0.2 pence nominal value each, into ordinary Shares of 0.01 pence nominal
value each and deferred shares of 0.19 pence nominal value each, thus enabling the company to lawfully implement
the placing at the issue price.
Each new ordinary share resulting from the share reorganisation had the same rights (including voting and dividend
rights and rights on a return of capital) as each existing ordinary share except that they have a nominal value of 0.01
pence each.
The deferred shares have very limited rights which are deferred to the ordinary shares and will effectively carry no
value as a result. Accordingly, the holders of the deferred shares are not entitled (unless they also hold ordinary shares)
to receive notice of, attend or vote at general meetings of the Company, nor be entitled to receive any dividends or any
payment on a return of capital until at least £10,000,000 has been paid on each ordinary share.
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. The Group is seeking to mitigate this risk by broadening
its overall offering.
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
7
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
STRATEGIC REPORT
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. Argentina had an inflation rate of 42.76% for the period July 2019 – June 2020 and the Argentinian
economy is designated as a hyper-inflationary. See note 20 “Foreign currency risk”
The Group has operations in India and Latin America. As a result, it faces both translation and transaction currency
risks.
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 Directors and senior management team. The risks have
been mitigated by strengthening the Board and management team during the year.
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
In common with the Going Concern disclosures in the Group financial statements, the Company financial statements
have been prepared on a going concern basis, which assumes that the Group and the Company will continue in
operational existence for the foreseeable future, being 12 months from the date of sign-off of these accounts.
The Group and Company use 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 2020, the Group
actively manages its use of cash, particularly marketing and other expenditure.
8
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
STRATEGIC REPORT
After consideration of the above, the Directors consider that the continued adoption of the going concern basis is
appropriate.
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
the 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.
Revenues
Revenues in Argentina decreased 25% in Argentine Pesos terms from AR$48m to AR$36m. As a result of the Peso
devaluation in the year of 26.9%, the revenues expressed in Sterling show a 42.6% decrease from £0.9m to £0.5m,
equating to 77% of Group revenues.
Revenues in India represented 19.5% of the revenues of the Group. The Indian Rupee remained stable during the last
12 months with a devaluation of 5.4% to the British Pound.
Future developments
In November 2019 the Company announced that it would launch a new data insight and intelligence platform, called
Streams, based on licensing of the Krunch Data platform. The Streams business provides bespoke services to the B2B
(business to business) market and targets customers in the US, LatAm and Europe. The Streams business secured its
first paying client in April 2020, with further clients signed in June 2020. Following the year end, the Company
announced the launch of the Streams SaaS ("Software as a Service") platform on 6 July, and since 14 October customers
have been able to access the service and pay for it online.
9
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
STRATEGIC REPORT
The Board believes that the Streams data offering is the largest opportunity for the Company to deliver growth in
shareholder value via newly developed products and services. The main focus for the current year will be growing and
developing the product and sales pipeline.
Potential impact of Brexit
The UK’s exit from the European Union is unlikely to impact the Group materially at an operational level, as almost
all of the Group’s revenues are derived from customers based outside the EU.
Section 172 Companies Act disclosure
When making decisions, the Directors of the Company must act in a way they consider, in good faith, is most likely to
promote the success of the Company for the benefit of its members as a whole, while also considering the broad range
of stakeholders who interact with and are impacted by the business. Throughout the year, while discharging their duties,
section 172(1) requires a Director to have regard, amongst other matters, to the:
likely consequences of any decisions in the long term
interests of the company’s employees
need to foster the company’s business relationships with suppliers, customers and others
impact of the company’s operations on the community and environment
desirability of the company maintaining a reputation for high standards of business conduct, and
need to act fairly as between members of the company.
In discharging their section 172(1) duties, the Directors have had regard to the factors set out above, as well as other
factors relevant to the decisions being made. The Board acknowledges that not all decisions made will necessarily
result in a positive outcome for all stakeholders, nevertheless the Board aims to ensure that the decisions made are
consistent and intended to promote the Company’s long-term success.
Examples of how the Directors have engaged with the Company’s stakeholders with regard to section 172(1) are
detailed below:
Shareholders
The Board aims to build long term shareholder value by pursuing the stated strategy. RNS updates are provided as
required, and in addition Directors respond to all queries received from investors, within the necessary regulatory and
commercial constraints.
Employees
The Board strives to maintain and develop a culture where all employees feel valued and included. The Board has
engaged with employees, within the limits resulting from the Covid-19 pandemic. The company supports the
professional and personal development of employees, which are viewed as fundamental to the continued success of
the company.
Suppliers, customers and others
The Board recognises that it is crucial that the company delivers a reliable service to its customers. Strong relationships
with suppliers are maintained, including by seeking to pay suppliers within their agreed terms wherever possible.
The Board regards compliance will all relevant regulatory frameworks with the upmost importance. As a data and
telecommunications business it is essential that the company fully complies with data protection and other regulations
across all territories in which it operates. Audit and Compliance functions report to the Board on a regular basis.
Training and monitoring are continually developed and open communication between the Board and stakeholders is
encouraged.
Community and environment
Mobile Streams is aware of the different environments in which it operates. Furthermore, the company has responded
pragmatically to the Covid-19 pandemic, in particular to ensure the safety of our employees and other key stakeholder
groups mentioned above.
10
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
STRATEGIC REPORT
The Strategic Report was approved by the Board and signed on its behalf by:
Nigel Burton
Chairman
15 December 2020
11
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
DIRECTORS’ REPORT
Items dealt with in the Strategic Report
• Business review
• Principal risks and uncertainties
• Future developments
The principal activities of the Group are the sale of content for distribution on mobile devices and provision of data
insight and intelligence platforms and services. 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 2020 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 (2019: £Nil).
Directors and their interests
The Directors of the Company (the “Board” or the “Directors”), who served during the year, together with their
beneficial interests in the ordinary shares of the Group, as at 30 June 2020, are set out below. All Directors served on
the Board throughout the year.
Shares held or controlled by Directors
Nigel Burton
Mark Epstein
Charles Goodfellow
Enrique Benasso (resigned 1 October 2019)
S Buckingham (resigned 6 December 2019)
P Tomlinson (resigned 2 April 2020)
J Bill (resigned 26 November 2019)
Ordinary
shares of
£0.001 each
Ordinary
shares of
£0.001 each
30 June 2020
30 June 2019
8,849,557
-
-
-
-
-
-
-
-
-
-
12.385.500
40.000
10.000
The current Directors of the Company are listed below in the Corporate Governance Statement.
Options
The table below summarises the exercise terms of the various options over ordinary shares of 0.01 pence (2019: 0.20
pence) which have been granted and were still outstanding at 30 June 2020.
Options Held at
1 July 2019
Options Granted
during the
period
Options
exercised during
the period
Options Held at
30 June 2020
Exercise price
Earliest date from
which exercisable
Latest expiry
date
E Benasso
285,000
-
-
285,000
0.180
13 June 2015
12 June 2024
Number
Number
Number
Number
£
The remuneration of the Directors for the year amounted to £275k (2019: £316k). The remuneration of the highest paid
Director was £79,000 (2019: £253,000).
The remuneration of each of the Directors and Senior Management for the period ended 30 June 2020 is set out below:
12
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
DIRECTORS’ REPORT
Salary
Fees
Benefits
Post
employment
benefits
Other Long
Term benefits
Termination
Benefits
Year to 30
June 2020
Total
Year to 30
June 2019
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
S Buckingham *
44
32
3
M Epstein
T Gutteridge #
A Jamieson #
C Goodfellow
N Burton
P Tomlinson *
J Bill *
E Benasso *
23
23
23
23
23
-
-
-
-
-
-
-
50
31
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
79
253
-
-
-
-
-
-
-
-
23
-
23
-
23
-
23
23
-
-
31
25
- 10
28
50
Total
209
63
3
-
-
-
275
316
* Resigned during the year
# Senior management (non-Board role)
Benefits comprise medical health insurance. All items are considered short term in nature.
The three Directors appointed during the year, namely Nigel Burton, Charles Goodfellow and Mark Epstein and two
senior employees Annabel Jamieson and Tom Gutteridge, all agreed to annual remuneration of £30,000 each, and also
agreed to accept payment for their services in Ordinary Shares, subject to deduction and payment of all necessary taxes,
until such time as the Directors are satisfied that the Company is able to make these payments out of operating cashflow.
As outlined in the Placing Circular dated 30 March 2020, to defer the cash costs (principally National Insurance and
PAYE taxes) to the Company it has been agreed that the issue of these Ordinary Shares will be deferred until the
interim results to 31 December 2020 are issued in early 2021, at the Placing Price. The table includes the accrued
director’s fees for the year corresponding to the period from 26 November 2019 to 30 June 2020.
Going Concern
The financial statements have been prepared on a going concern basis. The Directors acknowledge that there is an
uncertainty over the ability of the Group to meet its funding requirements having incurred a net loss for the year of
£1.6m.
Following the successful placing and Board changes in November 2019, the Directors have reduced costs further, and
have launched a new data insight and intelligence platform, called Streams. The Streams business provides bespoke
services to the B2B (business to business) market and targets customers in the US, LatAm and Europe. The Streams
business secured its first paying client in April 2020, with further clients signed in June 2020. Following the year end,
the Company announced the launch of the Streams SaaS ("Software as a Service") platform on 6 July, and since 14
October customers can access the service and pay for it online. The Group’s forecasts assume that Streams will
represent a growing proportion of revenues.
The Directors have prepared a cashflow forecast which indicates that existing resources are expected to cover the
Company’s working capital requirements for the foreseeable future.
The Directors believe, that based on these developments and the forecasts and projections prepared, that sufficient
liquid resources are available for the Company to continue to operate as a going concern for the foreseeable future,
and that the Company will be able to access adequate capital to operate successfully.
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. Company law requires the
Directors to prepare Group and Company Financial Statements for each financial year. The Directors are required by
the AIM Rules of the London Stock Exchange to prepare Group Financial Statements in accordance with International
Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”) and have elected under company
13
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
DIRECTORS’ REPORT
law to prepare the Company Financial Statements in accordance with IFRS as adopted by the EU.
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 Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
Group’s and the Company’s transactions and disclose with reasonable accuracy at any time the financial position of
the Group and the Company and enable them to ensure that the Financial Statements, and the Directors’ Remuneration
Report comply with the Companies Act 2006 and Article 4 of the IAS Regulation. They are also responsible for
safeguarding the assets of the Group and 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 Group‘s auditor is
unaware, and
The Directors have taken all steps that they ought to have taken as directors 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
PKF Littlejohn UK LLP have indicated their willingness to continue in office.
14
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
DIRECTORS’ REPORT
Corporate Governance Statement
The Board is committed to maintaining high standards of corporate governance.
The Company’s Corporate Governance Statement, which includes full details of the recognised corporate governance
code which the Company complies with and an explanation of any departure from the code, is maintained on its
website, as required by AIM rules. The information is reviewed at least once per annum and the website includes the
date on which the information was last reviewed. The most recent review has been undertaken during the process of
preparing the Annual Report and Financial Statements.
As a company whose shares are traded on AIM, the Board seeks to comply with the Quoted Companies Alliance’s
Corporate Governance Code (“the QCA Code”). In addition, the Directors have adopted a code of conduct for dealings
in the shares of the Company by directors and employees and are committed to maintaining the highest standards of
corporate governance. Nigel Burton, in his capacity as Non-Executive Director, has assumed responsibility for
ensuring that the Company has appropriate corporate governance standards in place and that these requirements are
followed and applied within the Company as a whole. The corporate governance arrangements that the Board has
adopted are designed to ensure that the Company delivers long term value to its shareholders and that shareholders
have the opportunity to express their views and expectations for the Company in a manner that encourages open
dialogue with the Board. The Board recognises that its decisions regarding strategy and risk will impact the corporate
culture of the Company as a whole and that this will impact the performance of the Company. The Board is very aware
that the tone and culture set by the Board will greatly impact all aspects of the Company as a whole and the way that
employees behave. A large part of the Company’s activities is centred upon what needs to be an open and respectful
dialogue with employees, clients and other stakeholders. Therefore, the importance of sound ethical values and
behaviours is crucial to the ability of the Company successfully to achieve its corporate objectives. The Board places
great importance on this aspect of corporate life and seeks to ensure that this flows through all that the Company does.
The resignation of Enrique Benasso as a Director was announced in October 2019. In November 2019 the resignation
of Jonathan Bill as a Director and the appointment of Nigel Burton, Charles Goodfellow and Mark Epstein to the Board
as Directors were announced, at the same time Peter Tomlinson stepped down as Non-Executive Chairman and was
replaced by Nigel Burton. The resignation of Simon Buckingham as a Director and CEO was announced in December
2019. Mr. Tomlinson resigned as Director on 2 April 2020.
No other material governance related matters occurred during the financial year ended 30 June 2020.
The Company’s Corporate Governance report, which can also be found on the website, follows.
Corporate Governance Report
The QCA Code sets out 10 principles that should be applied. These are listed below together with a short explanation
of how the Company applies each of the principles:
Principle One
Business Model and Strategy
The Board has concluded that the highest medium and long term value can be delivered to its shareholders by the
adoption of a single strategy for the Company. The Company will seek to grow its business organically, aided by the
JV Agreement with Krunch, and will seek out further complementary partnerships and acquisitions that create
enhanced value.
Principle Two
Understanding Shareholder Needs and Expectations
The Board is committed to maintaining good communication and having constructive dialogue with its shareholders.
The Company has close ongoing relationships with its private shareholders. Institutional shareholders and analysts
have the opportunity to discuss issues and provide feedback at meetings with the Company. In addition, all shareholders
are encouraged to attend the Company’s Annual General Meeting. Investors also have access to current information
on the Company though its website, www.mobilestreams.com, and via Mark Epstein, COO who is available to answer
investor relations enquiries.
Principle Three
Considering wider stakeholder and social responsibilities
The Board recognises that the long-term success of the Company is reliant upon the efforts of the employees of the
Company and its contractors, suppliers, regulators and other stakeholders. The Board has put in place a range of
15
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
DIRECTORS’ REPORT
processes and systems to ensure that there is close oversight and contact with its key resources and relationships. For
example, all employees of the Company participate in a structured Company-wide annual assessment process which
is designed to ensure that there is an open and confidential dialogue with each person in the Company to help ensure
successful two way communication with agreement on goals, targets and aspirations of the employee and the Company.
These feedback processes help to ensure that the Company can respond to new issues and opportunities that arise to
further the success of employees and the Company. The Company has close ongoing relationships with a broad range
of its stakeholders and provides them with the opportunity to raise issues and provide feedback to the Company.
Principle Four
Risk Management
In addition to its other roles and responsibilities, the Audit and Compliance Committee is responsible to the Board for
ensuring that procedures are in place and are being implemented effectively to identify, evaluate and manage the
significant risks faced by the Company. The risk assessment matrix below sets out those risks, and identifies their
ownership and the controls that are in place. This matrix is updated as changes arise in the nature of risks or the controls
that are implemented to mitigate them. The Audit and Compliance Committee reviews the risk matrix and the
effectiveness of scenario testing on a regular basis. The following principal risks and controls to mitigate them, have
been identified:
Activity
Risk
Impact
Control(s)
Management
Recruitment and retention
of key staff
Reduction in operating
capability
Stimulating and safe
working environment
Regulatory
adherence
Breach of rules
Censure or withdrawal of
authorisation
Strategic
Damage to reputation
Inability to secure new
capital or clients
Balancing salary with
longer term incentive plans
Strong compliance regime
instilled at all levels of the
Company
Effective communications
with shareholders coupled
with consistent messaging
to our customers
Robust compliance
Inadequate disaster
recovery procedures
Loss of key operational and
financial data
Secure off-site storage of
data
Financial
Liquidity, market and
credit risk
Inability to continue as
going concern
Robust capital management
policies and procedures
Reduction in asset values
Inappropriate controls and
accounting policies
Incorrect reporting of
assets
Appropriate authority and
investment levels as set by
Treasury and Investment
Policies
Audit and Compliance
Committee
The Directors have established procedures, as represented by this statement, for the purpose of providing a system of
internal control. An internal audit function is not considered necessary or practical due to the size of the Company and
16
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
DIRECTORS’ REPORT
the close day to day control exercised by the executive directors. However, the Board will continue to monitor the need
for an internal audit function. The Board works closely with and has regular ongoing dialogue with the Company
financial controller and has established appropriate reporting and control mechanisms to ensure the effectiveness of its
control systems.
Principle Five
A Well Functioning Board of Directors
As at the date hereof the Board comprised, the COO Mark Epstein and two Non-Executive Directors, Nigel Burton
and Charles Goodfellow. Biographical details of the current Directors are set out within Principle Six below. Executive
and Non-Executive Directors are subject to re-election at intervals of no more than three years. The letters of
appointment of all Directors are available for inspection at the Company’s registered office during normal business
hours.
The Board meets at least eight times per annum. It has established an Audit and Compliance Committee and a
Remuneration Committee, particulars of which appear hereafter. The Board has agreed that appointments to the Board
are made by the Board as a whole and so has not created a Nominations Committee. The Non-Executive Directors are
considered to be part time but are expected to provide as much time to the Company as is required. The Board considers
that this is appropriate given the Company’s current stage of operations. It shall continue to monitor the need to match
resources to its operational performance and costs and the matter will be kept under review going forward. The Board
notes that the QCA recommends a balance between executive and non-executive Directors and recommends that there
be two independent non-executives. Nigel Burton and Charles Goodfellow are considered to be Independent Directors.
Further commentary in relation to the board’s assessment of independence is set out within Principle Six below.
The Directors are of a view that the Company does not currently require a separate CFO to be appointed to the board
due to the current scale of operations and financial experience of the directors. In particular the Company’s non-
executive Chairman, Nigel Burton, has significant experience as Chief Financial Officer to a number of private and
public companies. The Company’s CFO, Enrique Benasso, reports to the board. The Board will continue to monitor
this position.
As the Company grows and develops the board will periodically review its corporate governance framework to ensure
it remains appropriate for the size, complexity and risk profile of the Company
Attendance at Board and Committee Meetings
The Company shall report annually on the number of Board and committee meetings held during the year and the
attendance record of individual Directors. To date in the current financial year the Directors have a 100% record of
attendance at such meetings. In order to be efficient, the Directors meet formally and informally both in person and by
telephone. During the year there were 8 Board meetings, with all directors being present at all meetings. The volume
and frequency of such meetings is expected to continue at a similar rate. The Audit and Compliance Committee met
three times and the Remuneration Committee, met twice, in each case with all members present.
Principle Six
Appropriate Skills and Experience of the Directors
The Board currently consists of four Directors led by Chairman Nigel Burton and, in addition, the Company has
contracted the outsourced services of Pennsec Limited to act as the Company Secretary. The Company believes that
the current balance of skills in the Board as a whole, reflects a very broad range of commercial and professional skills
across geographies and industries and each of the Director’s has experience in public markets. As demonstrated below
in the descriptions of each Director, the Board has the necessary commercial, financial and legal skills required for the
effective leadership of the Group.
The Board recognises that it currently has a limited diversity and this will form a part of any future recruitment
consideration if the Board concludes that replacement or additional directors are required.
Each Director undertakes a mixture of formal and informal continuing professional development as necessary to ensure
that their skills remain current and relevant to the needs of the Group.
Mr Charles Edouard Goodfellow, Non-Executive Director
Charles Goodfellow has over 30 years’ experience in the London capital markets, having worked initially in equity
sales and then in corporate finance for various London investment banks and corporate finance specialists. He
specialises in assisting smaller companies across a range of sectors in raising growth capital, as well as targeting
industry partners capable of taking strategic stakes and control.
17
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
DIRECTORS’ REPORT
Dr Nigel John Burton, Non-Executive Chairman
Following over 14 years as an investment banker at leading City institutions including UBS Warburg and Deutsche
Bank, including as the Managing Director responsible for the energy and utilities industries, Nigel spent 15 years as
Chief Financial Officer or Chief Executive Officer of a number of private and public companies. Nigel is currently a
Non-Executive Director of AIM listed companies Digitalbox plc, Corcel plc and eEnergy plc.
Mr Mark Alexander Epstein, Chief Operating Officer
Mark is an experienced CEO, director, entrepreneur, expert in marketing, communications, technology and mobile.
Mark is the co-founder of Krunch.ai a next generation insight and intelligence platform, IgniteAMT a digital
transformation company and IgniteCAP an incubation and investment business. Mark also co-founded and was CEO
on its AIM listing of The People’s Operator PLC, a cause-based mobile phone network that had operations the UK and
USA. Prior to that Mark co-founded Mass1 which he grew into one of the UK’s most successful campaign agencies.
He has also held numerous senior management positions in his career.
Dr Burton and Mr Goodfellow are considered to be independent directors of the Company. In coming to this
conclusion, the board has taken a number of matters into consideration including:
the absence of previous employment or material business relationships with the Company and its
Shareholders;
that none are party to any performance related share schemes; and service length with the Company.
Principle Seven
Evaluation of Board Performance
The Board has undertaken an internal review of the Board, the Committees and individual Directors, in the form of
peer appraisal and discussions, to determine their effectiveness and performance as well as the Directors’ continued
independence.
The evaluation concluded that the Board demonstrates the appropriate level of skills, knowledge and performance for
the size and nature of the Group. The Directors will continue to review the need to strengthen the Board as the Group
develops.
Principle Eight
Corporate Culture
The Board recognises that its decisions regarding strategy and risk will impact the corporate culture of the Company
as a whole and that this will impact the performance of the Company. The corporate governance arrangements that the
Board has adopted are designed to ensure that the Company delivers long term value to its shareholders and that
shareholders have the opportunity to express their views and expectations for the Company in a manner that encourages
open dialogue with the Board. The Board recognises that their decisions regarding strategy and risk will impact the
corporate culture of the Company as a whole and that this will impact the performance of the Company. The Board is
very aware that the tone and culture set by the Board will greatly impact all aspects of the Company as a whole and
the way that employees behave. A large part of the Company’s activities is centred upon what needs to be an open and
respectful dialogue with employees, clients and other stakeholders. Therefore, the importance of sound ethical values
and behaviours is crucial to the ability of the Company to successfully achieve its corporate objectives.
The Board places great import on this aspect of corporate life and seeks to ensure that this flows through all that the
Company does. The Directors consider that at present the Company has an open culture facilitating comprehensive
dialogue and feedback and enabling positive and constructive challenge. There is frequent dialogue between the
Directors and senior management of the principal operating subsidiaries. The Board monitors the corporate culture
through a mix of formal and informal feedback, based on which the Board is confident that a healthy culture consistent
with the principles adopted exists.
The Company has adopted, with effect from the date on which its shares were admitted to AIM, a code for Directors’
and employees’ dealings in securities which is appropriate for a company whose securities are traded on AIM and is
in accordance with the requirements of the Market Abuse Regulation which came into effect in 2016.
Principle Nine
Maintenance of Governance Structures and Processes
Ultimate authority for all aspects of the Company’s activities rests with the Board, the respective responsibilities of
the Chairman and Chief Operating Officer arising as a consequence of delegation by the Board. The Board has adopted
appropriate delegations of authority which set out matters which are reserved to the Board. The Chairman is responsible
18
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
DIRECTORS’ REPORT
for the effectiveness of the Board, while management of the Company’s business and primary contact with
shareholders has been delegated by the Board to the Chief Executive Officer.
Audit and Compliance Committee
The Audit and Compliance Committee comprises Dr Nigel Burton and Charles Goodfellow and Nigel Burton chairs
this committee. The Audit and Compliance Committee has primary responsibility for monitoring the quality of internal
controls and ensuring that the financial performance of the Company is properly measured and reported. It receives
reports from the executive management and auditors relating to the interim and annual accounts and the accounting
and internal control systems in use throughout the Company. The Audit and Compliance Committee shall meet not
less than twice in each financial year and it has unrestricted access to the Company’s auditors.
Remuneration Committee
The Remuneration Committee comprises Nigel Burton and Charles Goodfellow, and Charles Goodfellow chairs this
committee. The Remuneration Committee reviews the performance of the executive directors and employees and
makes recommendations to the Board on matters relating to their remuneration and terms of employment. The
Remuneration Committee also considers and approves the granting of share options pursuant to the share option plan
and the award of shares in lieu of bonuses pursuant to the Company’s Remuneration Policy.
Nominations Committee
The Nominations Committee comprises Nigel Burton and Charles Goodfellow, and Nigel Burton chairs this
committee.
Non-Executive Directors
The Board has adopted guidelines for the appointment of Non-Executive Directors which have been in place and which
have been observed throughout the year. These provide for the orderly and constructive succession and rotation of the
Chairman and non-executive directors insofar as both the Chairman and non-executive directors will be appointed for
an initial term of three years and may, at the Board’s discretion believing it to be in the best interests of the Company,
be appointed for subsequent terms. The Chairman may serve as a Non-Executive Director before commencing a first
term as Chairman.
In accordance with the Companies Act 2006, the Board complies with: a duty to act within their powers; a duty to
promote the success of the Company; a duty to exercise independent judgement; a duty to exercise reasonable care,
skill and diligence; a duty to avoid conflicts of interest; a duty not to accept benefits from third parties and a duty to
declare any interest in a proposed transaction or arrangement.
Principle Ten
Shareholder Communication
The Board is committed to maintaining good communication and having constructive dialogue with its shareholders.
The Company responds to all shareholders who contact the Directors, and as a result has positive ongoing relationships
with a wide range of shareholders. All shareholders and analysts have the opportunity to discuss issues and provide
feedback at meetings with the Company. The Company also provides shareholder updates whenever appropriate using
both regulatory and other channels. In addition, all shareholders are encouraged to attend the Company’s Annual
General Meeting.
Investors also have access to current information on the Company though its website, www.mobilestreams.com, and
via Mark Epstein, COO, who is available to answer investor relations enquiries.
The Company includes, when relevant, in its annual report, any matters of note arising from the audit or remuneration
committees.
On behalf of the Board
Nigel Burton
Chairman
15 December 2020
19
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF MOBILE STREAMS PLC
Opinion
We have audited the group financial statements of Mobile Streams Plc (the ‘group’) for the year ended 30 June 2020
which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial
Position, the Consolidated Statement of Changes in Equity and the Consolidated Statements of Cash Flows and notes
to the financial statements, including a summary of significant accounting policies. The financial reporting framework
that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as
adopted by 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 2020 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
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.
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 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.
Our application of materiality
The group materiality for the financial statements as a whole was set at £23,000 (2019: £21,000) based on 4% of loss
before tax (2019: 1.5% of revenue). Loss before tax was used as the basis for materiality as the Group, following the
management change in the year, is diversifying its business model and is therefore in a transitionary phase and revenue
is no longer the key driver. Performance materiality was calculated at 70% (£16,100) of materiality for the financial
statements as a whole as this was a there is still inherent risk within the accounting function of the Group.
We have agreed with those charged with governance that we would report any individual audit difference in excess of
£1,050 as well as differences below this threshold that, in our view, warranted reporting on qualitative grounds.
An overview of the scope of our audit
In designing our audit, we determined materiality and assessed the risk of material misstatement in the group financial
statements. In particular, we looked at areas involving significant accounting estimates and judgements by the directors
including the valuation of share options. These areas were however not considered to constitute Key Audit Matters.
We also addressed the risk of management override of internal controls, including evaluating whether there was
evidence of bias by the directors that represented a risk of material misstatements due to fraud. Of the seven reporting
components of the Group, a full scope audit was performed on the complete financial information of three components
(UK, Argentina and India) and, for the other components, a limited scope review was performed.
The group’s key accounting function is based in Argentina and our audit was performed from our office with regular
contact with relevant personnel throughout. No component auditors were used in the audit.
20
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF MOBILE STREAMS PLC
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period and include the most significant assessed risks of material misstatement
(whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy,
the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed
in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Key Audit Matter
How the scope of our audit responded to the key audit
matter
Going concern (refer to significant accounting
policies)
Based on our planning procedures we have determined
there is uncertainty surrounding going concern for the
Group. Whilst the cash position of the Group has
increased from fund raising activities in the year,
revenue has fallen by 52% and the Group’s operations
are not cash generative.
As a result, there is the risk that it is not appropriate to
prepare the financial statements on the going concern
basis
We performed the following procedures
Obtained and critically analysed cash flow
forecasts, management accounts, and budgets
from management for a period of at least 12
months from the date of signing the financial
statements and challenged management in
relation to assumptions within the forecasts;
Performed sensitivity analysis on the cash
flow forecast;
Reviewed documents for reasonableness by
to actual
comparing previous forecasts
results;
Considered the current available financial
headroom with reference to the current cash
balances and confirmed existence, legality
and enforceability of any financial support
arrangements;
Reviewed meeting minutes for any references
to financial difficulties;
Reviewed RNS
releases
and discuss
subsequent events and future plans with
management;
Considered the impact of COVID-19 on
going concern; and
Ensured
sufficient
disclosure
of
Management's assessment of the impact of
COVID-19 and the measures being taken to
mitigate the risks its poses.
Other information
The other information comprises the information included in the annual report, other than the financial statements and
our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the group 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 financial statements, our
21
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF MOBILE STREAMS PLC
responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the 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 in the 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors’ report for the financial year for which the
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 by exception
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.
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
As explained more fully in the directors’ responsibilities statement, 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 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.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
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 Pls for the year ended 30
June 2020.
22
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF MOBILE STREAMS PLC
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those
matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone, other than the company and the company's members as
a body, for our audit work, for this report, or for the opinions we have formed.
Joseph Archer (Senior Statutory Auditor)
For and on behalf of PKF Littlejohn LLP
Statutory Auditor
15 December 2020
15 Westferry Circus
Canary Wharf
London E14 4HD
23
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Note
Year ended
Year ended
30 June 2019
30 June 2020
£000’s
£000’s
Revenue
Cost of sales
Gross profit
Selling and marketing costs
Administrative expenses *
Operating Loss
Profit (loss) on derecognition of subsidiaries
Finance income
Finance expense
Loss before tax
Tax expense
Loss for the year
17
17
17
17
17
4
5
9
636
(473)
1,335
(834)
163
(773)
501
- (239)
(936)
(610)
(674)
(953)
-
-
-
113
(4)
(1,563)
(565)
-
(1,563)
151
(414)
Attributable to:
Equity shareholders of Mobile Streams plc
(1,563)
(414)
Earnings per share
Basic earnings per share
Diluted earnings per share
Pence per
share
(0.379)
(0.379)
Pence per share
(0.368)
(0.368)
8
8
* Administrative expenses include Depreciation, Amortisation and Impairment £Nil (year ended 30 June 2019: £1k);
Share Based Compensation £3k (year ended 30 June 2019: £3k). Other administrative expenses £0.8m (year ended 30
June 2019: £0.9m).
Year ended
30 June 2020
Year ended
30 June 2019
£000’s
£000’s
Loss for the year
Amounts which may be reclassified to profit & loss
Exchange differences on translating foreign operations
(1,563)
(414)
956
(219)
Total comprehensive loss for the year
(607)
(633)
Total comprehensive loss for the year attributable to:
Equity shareholders of Mobile Streams plc
(607)
(633)
24
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Assets
Current
Trade and other receivables
Cash and cash equivalents
Total assets
Equity
Equity attributable to equity holders of Mobile Streams plc
Called up share capital
Share premium
Translation reserve
Retained earnings
Total equity
Current
Trade and other payables
Total liabilities
Year ended
30 June 2020
£000’s
Year ended
30 June 2019
£000’s
Note
11 221 347
12 1,340 115
1,561 462
1,561 462
15 382 280
14,126 12,610
(4,005)
(8,974)
(3,050)
(10,463)
995
(89)
13 566 551
566 551
566 551
Total equity and liabilities
1,561 462
The notes on pages 33 to 45 form part of these financial statements.
The financial statements were approved by the Board of Directors on 15 December 2020 and are signed on its behalf
by:
Nigel Burton
Chairman
25
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Called up share
capital
£000’s
200
200
-
80
80
-
-
-
-
280
280
Equity attributable to equity holders of Mobile Streams plc
Total Equity
Share premium
£000’s
12,550
12,550
-
60
60
-
-
-
Translation
reserve
£000’s
(3,786)
(3,786)
-
-
-
-
-
(219)
Retained
earnings
£000’s
(8,563)
(8,563)
3
-
3
-
(414)
-
£000’s
401
401
3
140
143
-
(414)
(219)
-
12,610
12,610
(219)
(4,005)
(4,005)
(414)
(8,974)
(8,974)
(633)
(89)
(89)
Balance at 30 June 2018
Balance at 1 July 2018
Credit for share based payments
New Equity
Transactions with owners
Disposal of subsidiary
Loss for the 12 months ended 30 June 2019
Exchange differences on translating foreign
operations
Total comprehensive loss for the year
Balance at 30 June 2019
Balance at 1 July 2019
New Equity
Transactions with owners
Disposal of subsidiary
Loss for the 12 months ended 30 June 2020
-
-
102
102
1,516
1,516
-
-
-
-
-
-
73
73
-
(1,563)
1,691
1,691
-
(1,563)
Exchange differences on translating foreign
operations
Total comprehensive loss for the year
Balance at 30 June 2020
-
-
956
-
956
-
382
-
14,126
956
(3,050)
(1,563)
(10,463)
(607)
995
26
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
CONSOLIDATED CASH FLOW STATEMENT
Operating activities
Loss before taxation
Adjustments:
Share based payments
Depreciation
Interest received
Interest paid
Changes in trade and other receivables
Changes in trade and other payables
Loss on foreign exchange
Tax paid
Exchange (losses)
Total cash generated in operating activities
Investing activities
Additions to property, plant and equipment
Interest received
Interest paid
Net Cash generated from investing activities
Financing activities
Equity fundraise (net of expenses paid)
Net Cash generated from financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Year ended
30 June
2020
£000’s
Year ended
30 June
2019
£000’s
(1,563)
(565)
4
5
-
-
-
-
126
15
953
-
36
(433)
3
3
(113)
4
557
(859)
(62)
(141)
(1,173)
4
5
-
-
-
-
-
113
(4)
109
1,658
1,658
140
140
1,225
115
(924)
1,039
Cash and cash equivalents, end of year
12
1,340
115
No net debt reconciliation has been shown as the Company has no debt.
27
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
GROUP ACCOUNTING POLICIES
Mobile Streams plc (the Company) and its subsidiaries (together 'the Group') sell digital content, primarily for
distribution on mobile 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 125 Wood Street, London, EC2V 7AW.
The Company is listed on the London Stock Exchange's Alternative Investment Market.
These consolidated financial statements were approved for issue by the Board of Directors on 15 December 2020.
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 2020. 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 financial statements have been prepared under the historical cost convention.
Consolidation
Control is achieved where the Company is exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its power over the entity. 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 on pages 50-55 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 consolidated 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. Upon settlement, amounts that have arisen are taken directly to profit or loss.
Foreign currency balances are translated at the year-end using exchange rate prevailing at the year-end.
28
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
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 consolidated 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).
Hyper-inflationary currencies
The Argentinian economy is designated as a hyper-inflationary. The financial statements of the Argentinian subsidiary
are stated in terms of the purchasing power at the end of the reporting period through the selection of a general price
index before translation into the Group’s presentation currency being GBP.
Going Concern
The financial statements have been prepared on a going concern basis, which assumes that the Group and the Company
will continue in operational existence for the foreseeable future, being 12 months from the date of sign-off of these
accounts.
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 2020, the Group actively manages its use
of cash, particularly marketing and other expenditure. Post year-end and following the change in Directors the Group
raised funds through the issue of new equity.
After consideration of the above the Directors consider that the continued adoption of the going concern basis is
appropriate.
New standards and interpretations not yet adopted
At the date of approval of these financial statements, the following standards and interpretations which have not
been applied in these financial statements were in issue but not yet effective (and in some cases had not been
adopted by the EU):
- Amendments to References to Conceptual Framework in IFRS Standards – effective from 1 January 2020
- Definition of Material (Amendments to IAS 1 and IAS 8) – effective from 1 January 2020
- Amendment to IFRS 3 Business Combinations – effective 1 January 2020*
- Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-
current – effective 1 January 2022*
*subject to EU endorsement
The effect of all other new and amended Standards and Interpretations which are in issue but not yet mandatorily
effective is not expected to be material.
29
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
GROUP ACCOUNTING POLICIES
Taxation
Current tax is the tax currently payable based on taxable profit for the year.
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 consolidated
income statement, 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) Classification
The Group classifies its financial assets as receivables. The classification depends on the purpose for which the
financial assets were acquired. Management determines the classification of its financial assets at initial recognition.
Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market. They are included in current assets, except for maturities greater than 12 months after the Statement of
Financial Position date. These are classified as non-current assets. The Group’s receivables comprise trade and other
receivables and cash and cash equivalents in the Statement of Financial Position.
b) Recognition and Measurement
Financial assets are initially measured at fair value plus transactions costs. Receivables are subsequently carried at
amortised cost using the effective interest method, except for short term receivables.
c) Impairment of Financial Assets
The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset, or a
group of financial assets, is impaired. A financial asset, or a group of financial assets, is impaired, and impairment
losses are incurred, only if there is objective evidence of impairment as a result of one or more events that occurred
30
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
GROUP ACCOUNTING POLICIES
after the initial recognition of the asset (a “loss event”), and that loss event (or events) has an impact on the estimated
future cash flows of the financial asset, or group of financial assets, that can be reliably estimated.
The criteria that the Group uses to determine that there is objective evidence of an impairment loss include:
significant financial difficulty of the issuer or obligor;
a breach of contract, such as a default or delinquency in interest or principal repayments;
the disappearance of an active market for that financial asset because of financial difficulties;
observable data indicating that there is a measurable decrease in the estimated future cash flows from a
portfolio of financial assets since the initial recognition of those assets, although the decrease cannot yet be
identified with the individual financial assets in the portfolio; or
for assets classified as available-for-sale, a significant or prolonged decline in the fair value of the security
below its cost.
Assets carried at amortised cost
The amount of impairment is measured as the difference between the asset’s carrying amount and the present value of
estimated future cash flows (excluding future credit losses that have not been incurred), discounted at the financial
asset’s original effective interest rate. The asset’s carrying amount is reduced, and the loss is recognised in the
Statement of Comprehensive Income. As a practical expedient, the Group may measure impairment on the basis of an
instrument’s fair value using an observable market price.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to
an event occurring after the impairment was recognised (such as an improvement in the debtor’s credit rating), the
reversal of the previously recognised impairment loss is recognised in the Statement of Comprehensive Income.
Financial Liabilities
Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group becomes a
party to the contractual provisions of the instruments. Financial liabilities are initially measured at fair value, net of
transactions costs. They are subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Group or Company’s contractual obligations expire, are cancelled or
are discharged. The Group’s financial liabilities consist of trade and other payables.
Cash and Cash Equivalents
For the purpose of the cash flow statements, cash and bank overdrafts comprise cash at bank and in hand.
Revenue recognition
Under IFRS 15, Revenue from Contracts with Customers, five key points to recognise revenue have been assessed:
Step 1: Identify the contract(s) with a customer;
Step 2: Identify the performance obligations in the contracts;
Step 3: Determine the transaction price;
Step 4: Allocate the transaction price to the performance obligations in the contract; and
Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation.
31
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
GROUP ACCOUNTING POLICIES
The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the entity, and specific criteria have been met for each of the Group’s activities, as
described below.
The Group bases its estimates on historical results, taking into consideration the type of customer, the type of
transaction and the specifics of each arrangement. Where the Group makes sales relating to a future financial period,
these are deferred and recognised under ‘deferred revenue’ on the Statement of Financial Position.
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’). Service
providers also may receive settlement for their services in the form of share-based payments.
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 services
provided to the Company settled by share-based payments are either fair valued in same manner as those for employees
or, if available, by reference to the cash equivalent of those services.
The cost of equity-settled transactions is recognised in the consolidated 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
consolidated 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.
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.
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.
32
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. 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.
1.1 CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS AND ASSUMPTIONS
The directors of the group have determined that there are no critical accounting estimates, judgements and assumptions
associated with the group’s activities.
2. SERVICES PROVIDED BY THE GROUP'S AUDITOR
The Group (including its overseas subsidiaries) obtained the following services from the Group's auditor and network
firms:
Fees payable to the Company’s auditor and its associates for the audit of the parent
company and consolidated accounts
Non-Audit services:
Fees payable to the Company's auditor and its associates for other services:
Tax compliance
3. OPERATING LOSS
Operating loss is stated after charging the following items:
Depreciation
Loss on foreign currency
4. FINANCE INCOME
Interest receivable
5. FINANCE EXPENSE
Interest expense
Year ended
2020
£000's
Year ended
2019
£000's
82
-
82
42
3
45
Year ended
2020
£000's
Year ended
2019
£000's
-
55
55
3
(117)
(114)
Year ended
2020
£000's
Year ended
2019
£000's
-
-
113
113
2020
£000's
2019
£000's
-
- (4)
(4)
33
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
6. 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 2020
are detailed in the Directors Report on pages 12-19.
7. DIRECTORS AND EMPLOYEES
Staff costs including Directors during the year were as follows:
Wages and salaries
Social security costs
The average number of employees during the year was as follows:
Management
Administration
2020
£000's
2019
£000's
356
892
6
51
362
943
Year ended
2020
Number
Year ended
2019
Number
4
-
4
8
1
9
8. EARNINGS PER SHARE (‘EPS’)
Basic earnings 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. For the year ended 30 June 2020, 4m (2019:
4m) options over ordinary shares have been excluded from the calculations of earnings per share; the options were
non-dilutive in both years as the company was loss-making.
Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below.
The adjusted EPS figures have been calculated to reflect the underlying profitability of the business by excluding non-
cash charges for depreciation, amortisation, impairments and share compensation charges.
Basic loss per share
Diluted loss per share
(0.379) (0.368)
(0.379) (0.368)
Year ended
2020
Pence per share
Year ended
2019
Pence per share
34
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below.
2020
£000's
2019
£000's
Loss for the year
(1,563) (414)
For adjusted earnings per share
£000's
£000's
Loss for the year
(1,563) (414)
Add back: share compensation expense
Add back: depreciation and amortisation
Adjusted loss for the year
3
-
3
3
(1,560) (408)
Weighted average number of shares
For basic earnings per share
Exercisable share options
For diluted earnings per share
Adjusted Loss per share
Adjusted diluted Loss per share
Number of shares Number of shares
411,881,204
-
112,588,149
-
411,881,204
112,588,149
Pence per share
Pence per share
(0.379) (0.362)
(0.379) (0.362)
35
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
9. INCOME TAX
The tax (credit)/charge is based on the profit before tax for the year and represents:
Foreign tax on profits of the period
Total current tax
Deferred tax:
2020
2019
£'000
£'000
- (225)
- (225)
Origination & reversal of timing differences: (Deferred tax charge/(credit) (Note 17))
- 74
Total Deferred tax
Total Tax benefit
Factors affecting the tax charge for the period
Loss on ordinary activities before tax
Loss multiplied by weighted average tax rate applicable
of corporation tax in the United Kingdom of 19%
Adjustment in respect of prior years - foreign tax
Prior year tax adjustments - deferred tax
Deferred tax not recognized
Tax credit
10. DIVIDENDS
No dividends were paid or proposed during the current year or prior year.
11. TRADE AND OTHER RECEIVABLES
Trade receivables
Accrued receivables
Other debtors
- 74
- (151)
2020
2019
£'000
£'000
(1,563) (565)
(297)
(107)
-
(225)
- 74
297 107
- (151)
2019
£000's
2019
£000's
30
11
180
221
63
57
227
347
The carrying value of receivables is considered a reasonable approximation of fair value.
36
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
In addition, some of the unimpaired trade receivables are overdue as at the reporting date. The age profile of trade
receivables is as follows:
Within terms
Not more than 30 days
Overdue
Not more than 3 months
More than 3 months but not more than 6 months
More than 6 months but not more than 1 year
More than 1 year
Provision for doubtful debts
Opening provision for doubtful debts
Change in provision during the year
Closing provision for doubtful debts
2020
£000’s
2019
£000’s
12
58
16
-
2
29
(29)
30
62
8
23
244
(49)
347
2020
£000’s
2019
£000’s
49
157
(20)
(108)
29
49
Trade and other receivables that are not impaired are considered to be collectible within the Group’s payment terms,
negotiated with each customer.
37
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
12. CASH AND CASH EQUIVALENTS
Cash and cash equivalents include the following components:
Argentina´s cash at bank and in hand
Other companies
2020
£000’s
52
1,288
2019
£000’s
67
48
Cash at bank and in hand
1,340
115
13. TRADE AND OTHER PAYABLES
Trade payables
Other payables
Accruals and deferred income
2020
£000’s
2019
£000’s
317
59
190
271
119
161
566
551
All amounts are current. The carrying values are considered to be a reasonable approximation of fair value.
14. DEFERRED TAX ASSETS AND LIABILITIES
Balance 30
June 2018
Recognised in
consolidated
income
statement
Balance 30
June 2019
Recognised in
consolidated
income
statement
Translation
Adjustment
Balance 30
June 2020
£000’s
£000’s
£000’s
£000’s
£000’s
£000’s
Deferred tax asset:
- Expenses accrued
- Royalties
- Bonus provisions
- Others
Deferred tax asset
13
20
-
41
74
(13)
(20)
-
(41)
(74)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The deferred tax asset credit was reversed due to uncertainty over the timing of future taxable profits. The balance in
the prior year resulted from unpaid intercompany balances in Argentina, which were completely written-off during the
year to 30 June 2020.
15. SHARE CAPITAL
The Company only has one class of share. The total number of shares in issue as at 30 June 2020 was 1,148,574,804
with a par value of 0.01 pence per share (30 June 2019: 140,752,533 with a par value of 0.20 pence 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
38
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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 does not expect to do so in the future.
Allotted, called up and fully paid
In issue at 1 July
Issued during year
In issue at 30 June
Year ended
2020
Year ended
2019
140,752,533
1,007,822,271
1,148,574,804
100,752,533
40,000,000
140,752,533
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.
In November 2019, the Group issued 249,738,938 shares at a value of 0.113 pence per share. In April 2020, the Group
issued 98,437,500 shares at a value of 0.08 pence per share. In May 2020, the Group issued 182,812,500 shares at a
value of 0.08 pence per share, and 333,333,333 shares at a value of 0.3 pence per share, and 143,500,000 shares at a
value of 0.2 pence per share.
The Group’s source of capital is the parent company’s equity shares. The Group has not raised debt financing in the
past and does not expect to do so in the future.
The total number of shares in issue as at 30 June 2020 was 1,148,574,804 (30 June 2019: 140,752,533) with a par value
of 0.01 pence per share (2019: 0.2 pence per share). All issued shares are fully paid.
In November 2019, shareholders approved the proposal to sub-divide the entire existing share capital, both issued and
to be issued, consisting of ordinary shares of 0.2 pence nominal value each, into ordinary Shares of 0.01 pence nominal
value each and deferred shares of 0.19 pence nominal value each, thus enabling the company to lawfully implement
the placing at the issue price.
Each new ordinary share resulting from the share reorganisation had the same rights (including voting and dividend
rights and rights on a return of capital) as each existing ordinary share except that they have a nominal value of 0.01
pence each.
The deferred shares have very limited rights which are deferred to the ordinary shares and will effectively carry no
value as a result. Accordingly, the holders of the deferred shares are not entitled (unless they also hold ordinary shares)
to receive notice of, attend or vote at general meetings of the Company, nor be entitled to receive any dividends or any
payment on a return of capital until at least £10,000,000 has been paid on each ordinary share.
The share premium recognised during the year was £1,516,000. This premium corresponds to the difference between
the nominal value at the time of the share issue and the corresponding proceeds of the share issue.
16. 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
is 10 years. Exercise of an option is subject to continued employment. Options are valued at the date of grant using
the Black-Scholes option pricing model. The options detailed below do not include the warrants issued by the
Company.
39
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Range of exercise
prices
2020
Weighted
average
exercise price
(£)
Number of
Shares (000's)
£0 - £0.50
0.282
1,014
£0.51 - £1.00
0.640
3,487
Weighted average
remaining life
(years):
Contractual
2.3
1.1
2019
Weighted average
exercise price (£)
Number of
Shares (000's)
Weighted average
remaining life
(years):
Contractual
0.282
1,014
3.3
0.640
3,487
2.1
No share options were exercised during the year ended 30 June 2020 (2019: Nil).
The total charge for the year relating to employee share-based payment plans was £3k (2019: £3k), all of which related
to equity-settled share-based payment transactions.
17. SEGMENT REPORTING
As at 30 June 2020, 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 Board of Directors. 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 data insight and intelligence platforms and services (Other Service Fees).
All operations are continuing and all inter-segment transactions are priced and carried out at arm’s length.
£000's
Europe Asia Pacific North America
Mobile Operator Services
Mobile Internet Services
Other Service fees
Total Revenue
-
-
6
124
-
4
-
-
Latin
America
502
-
-
Consol
Group
-
-
-
630
-
6
6
124
4
502
-
636
Cost of sales
-
(27)
-
(446)
-
(473)
Gross profit
Selling, marketing and administration expenses
6
(595)
97
(2)
4
(23)
56
(153)
-
-
163
(773)
Trading EBITDA*
(589)
95
(19)
(97)
-
(610)
Depreciation, amortisation and impairment
Share based compensation
Profit (loss) for derecognition of subsidiaries
Finance income
Finance expense
Loss before tax
Taxation
Loss after tax
-
-
-
-
-
-
-
(177)
-
-
-
-
(818)
-
-
-
-
42
-
-
-
-
-
-
(953)
-
-
(589)
-
(82)
-
(837)
-
(55)
-
-
-
(1,563)
-
(589)
(82)
(837)
(55)
-
(1,563)
Segmental assets
Segmental liabilities
1,299
349
51
45
1
5
210
167
-
-
1,561
566
40
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The segmental results for the year ended 30 June 2019 were as follows:
£000's
Europe
Asia Pacific North America
Mobile Operator Services
Mobile Internet Services
Total Revenue
Cost of sales
Gross profit
Latin
America
-
Consol
Group
-
12
3
-
9
-
423
-
900
-
1,323
3
423
9
900
-
1,335
-
(173)
(3)
(658)
-
(834)
3
250
6
242
-
501
Selling, marketing and administration expenses
1,152
409
(1,098)
(1,630)
-
(1,167)
Trading EBITDA*
1,155
659
(1,092)
(1,388)
-
(666)
Depreciation, amortisation and impairment
-
-
-
(3)
(3)
Share based compensation
(5)
-
-
-
-
(5)
Finance income
Finance expense
Loss before tax
Taxation
Loss after tax
-
-
-
113
113
(38)
-
35
(1)
-
(4)
1,112
659
(1,057)
(1,279)
-
(565)
-
-
-
151
-
151
1,112
659
(1,057)
(1,128)
-
(414)
Segmental assets
Segmental liabilities
34
27
18
383
-
462
187
117
3
244
-
551
* Earnings before interest, tax, depreciation, amortization, impairments of assets and share compensation
41
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
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:
Segment revenues
Total segment revenues
Group’s revenues
Segment results
Total segment Loss after tax
Group’s Loss after tax
Segment assets
Total segment assets
Consolidation eliminations
Group’s assets
Segment liabilities
Total segment liabilities
Consolidation eliminations
Group’s liabilities
2020
£000’s
2019
£000’s
636 1,335
636 1,335
(1,563)
(414)
(1,563)
(414)
1,561 462
-
-
1,561 462
566 551
-
-
566 551
Revenue in Argentina represents 77% of the total revenue of the Group (2019: 65%); then India 19.5% (2019: 31%), Mexico 2.3%
(2019: 3.1%) and the rest of the companies 1.2%. One main customer in Argentina comprises 77% of total Group revenue (2019:
65%).
18. CAPITAL COMMITMENTS
The Group has no capital commitments as at 30 June 2020 (30 June 2019: £Nil).
19. RELATED PARTY TRANSACTIONS
Key Management
The only related party transactions that occurred during the year were the remuneration of senior management disclosed
in the Remuneration Committee Report.
Related Parties
During the year the Company made payments of £70,000 to Krunch Data Limited (“Krunch”), a company in which
Mark Epstein (Board member) has a beneficial interest. These payments were made in accordance with the joint
venture agreement dated 22 November 2019 (the “JV Agreement”), as described in the Circular dated 6 November
2019. In November 2020 it was agreed to extend the initial revenue split arrangements in the JV Agreement (whereby
the Company retains 100% of revenues) until the end of 2021. Under the JV agreement, MOS will also continue to
pay Krunch client set up costs and the costs of data clean-up and agreed software development at cost.
20. 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
42
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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 Argentine Peso, Mexican Peso and Indian Rupee.
Currently no hedging instruments are used. 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.
Nominal amounts
£
£
£
£
£
£
£
£
USD
AUS
ARS
Other
USD
AUS
ARS
Other
2020
000’s
2019
000’s
Financial assets
Financial liabilities
Short-term exposure
1
-
200
61
18
-
366
44
(5)
-
(123)
(89)
(3)
-
(190)
(171)
(4)
-
77
(28)
15
-
176
(127)
Percentage movements for the period in the exchange rates for the British Pound to US Dollar, Australian Dollar and
Argentine Peso are below. These percentages have been determined based on the average exchange rates during the
period.
US Dollar
Argentine Peso
Liquidity risk
2020
4%
-27%
2019
4%
-31%
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 2020, the Group’s financial liabilities were all current and have contractual maturities as follows:
30 June 2020
Trade and other payables
Within 6 months
£000’s
566
6 to 12 months
£000’s
-
The maturity of the Group’s financial liabilities, which were all current at the previous year end, was as follows:
Trade and other payables
Capital Management Disclosures
Within 6 months
6 to 12 months
£000’s
390
£000’s
-
43
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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 issue new shares.
The Group considers its capital to comprise the following:
Ordinary Share capital
Share premium
translation reserve
Retained earnings
21. FINANCIAL INSTRUMENTS
2020
£000's
2019
£000's
382
280
14,126
12,610
(3,050)
(4,005)
(10,463)
(8,974)
995
(89)
The Company’s financial instruments comprise primarily cash and various items such as trade debtors and trade
payables which arise directly from operations. The main purpose of these financial instruments is to provide working
capital for the Company’s operations. The Company does not utilise complex financial instruments or hedging
mechanisms.
The tables below set out the Group’s accounting classification of each class of its financial assets and liabilities.
Financial Assets
Accrued Receivables
Trade receivables
Cash and Cash equivalents
Total
Financial Liabilities
Trade Creditors
Accrued content costs
Other Accrued liabilities
Total
2020
£000’s
11
28
1,340
1,379
(317)
(63)
(127)
(507)
2019
£000’s
57
63
115
235
(271)
(91)
(70)
(432)
All of the above financial assets’ carrying values are approximate to their fair values, as at 30 June 2020 and 2019.
In the view of management, all of the above financial liabilities’ carrying values approximate to their fair values as at
30 June 2020 and 2019.
22. ULTIMATE CONTROLLING PARTY
The Directors do not consider there to be an ultimate controlling party due to the composition of the share register.
23. EVENTS AFTER THE REPORTING DATE
The Directors have considered the impact of the Covid-19 pandemic on the business, and at the time of writing revenues
have not been affected. All our staff work from home, and the online nature of the existing business, both in terms of
44
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
content delivery and revenue collection, means that we do not envisage any disruption to the business unless a
prolonged economic downturn results in a rise in cancellations. Marketing of the Streams Data platform is also largely
remote, although in the short term demand could be affected as clients themselves respond to the ongoing situation.
45
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MOBILE STREAMS PLC
Opinion
We have audited the financial statements of Mobile Streams Plc (the ‘parent company’) for the year ended 30 June
2020 which comprise the parent company Statement of Financial Position, the parent company Statement of Changes
in Equity and notes to the financial statements, including a summary of significant accounting policies. 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 2020;
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
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 financial statements in the UK, including the FRC’s Ethical Standard
as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Conclusions relating to going concern
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 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.
Our application of materiality
The company materiality for the financial statements as a whole was set at £21,445 (2019: £18,000). Loss before tax
was used as the basis for materiality as the Group, following the management change in the year, is diversifying its
business model and is therefore in a transitionary phase and revenue is no longer the key driver. Performance
materiality was calculated at 70% (£15,015) of materiality for the financial statements as a whole.
We have agreed with those charged with governance that we would report any individual audit difference in excess of
£1,072 (2019: £900) as well as differences below this threshold that, in our view, warranted reporting on qualitative
grounds.
An overview of the scope of our audit
In designing our audit, we determined materiality and assessed the risk of material misstatement in the group financial
statements. In particular, we looked at areas involving significant accounting estimates and judgements by the directors.
These areas were however not considered to constitute Key Audit Matters. We also addressed the risk of management
46
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MOBILE STREAMS PLC
override of internal controls, including evaluating whether there was evidence of bias by the directors that represented
a risk of material misstatements due to fraud.
Key audit matters
Key Audit Matter
Going concern (refer to significant accounting
policies)
Based on our planning procedures we have determined
there is uncertainty surrounding going concern for the
Company. Whilst the cash position of the Group has
increased from fund raising activities in the year,
revenue has fallen by 52% and the Group’s operations
are not cash generative. The Company is reliant on the
underlying performance of its subsidiaries to continue
as a going concern.
As a result, there is the risk that it is not appropriate to
prepare the financial statements on the going concern
basis
How the scope of our audit responded to the key audit
matter
We performed the following procedures
Obtained and critically analysed cash flow
forecasts, management accounts, and budgets
from management for a period of at least 12
months from the date of signing the financial
statements and challenged management in
relation to assumptions within the forecasts;
Performed sensitivity analysis on the cash flow
forecast;
Reviewed documents for reasonableness by
comparing previous forecasts to actual results;
Considered
the current available financial
headroom with reference to the current cash
balances and confirmed existence, legality and
enforceability of
support
any
arrangements;
financial
Reviewed meeting minutes for any references
to financial difficulties;
Reviewed RNS releases and discuss subsequent
events and future plans with management;
Considered the impact of COVID-19 on going
concern; and
Ensured sufficient disclosure of Management's
assessment of the impact of COVID-19 and the
measures being taken to mitigate the risks its
poses.
Other information
The other information comprises the information included in the annual report, other than the financial statements and
our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the parent company
financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our
report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial
statements, our responsibility is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to
47
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MOBILE STREAMS PLC
be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are
required to determine whether there is a material misstatement in the 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
•
•
the information given in the strategic report and the directors’ report for the financial year for which the 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.
Matters on which we are required to report by exception
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.
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
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 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 financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
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
48
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MOBILE STREAMS PLC
We have reported separately on the group financial statements of Mobile Streams Plc for the year ended 30 June 2020.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those
matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone, other than the company and the company's members as
a body, for our audit work, for this report, or for the opinions we have formed.
Joseph Archer (Senior Statutory Auditor)
15 Westferry Circus
For and on behalf of PKF Littlejohn LLP
Canary Wharf
Statutory Auditor
15 December 2020
London E14 4HD
49
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
COMPANY STATEMENT OF FINANCIAL POSITION
Fixed assets
Investments in subsidiaries
Total fixed assets
Current assets
Debtors
Cash and cash equivalents
Total current assets
30 June 2020
£000’s
30 June 2019
£000’s
1
-
-
-
-
2 40
1,259
24
10
1,299
34
Creditors: amounts falling due within one year
3 (349)
(187)
Current Liabilities
(349)
(187)
(Net Liabilities) / Net assets
950
(153)
Capital and reserves
Called up share capital
Share premium
Profit and loss account
Shareholders deficit / Shareholders funds
4 382
5 14,126
280
12,610
(13,558)
(13,043)
950
(153)
The parent Company has taken advantage of Section 408 of the Companies Act 2006 and has not included its own
Statement of Comprehensive Income account in these financial statements. The parent Company’s recognised loss for
the year ended 30 June 2020 was £588k.
The notes on pages 52 to 55 form part of these financial statements.
The financial statements were approved by the Board of Directors on 15 December 2020.
Nigel Burton
Chairman
50
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2020
Share
capital
account
£000
Share
premium
account
£000
Profit
and loss
account
£000
Total
£000
200
12,550
(14,477)
(1,727)
80
60
-
140
-
-
1,431
1,431
At 1 July1 2018
New equity issue
Loss for the year
Share based payments - share options
-
-
3
3
At 30 June 2019
At 1 July1 2019
New equity issue
Loss for the year
280
12,610
(13,043)
(153)
280
12,610
(13,043)
(153)
102
1,516
73
1,691
-
-
(588)
(588)
At 30 June 2020
382
14,126
(13,558)
950
51
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO COMPANY FINANCIAL STATEMENTS
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.
Going concern
In common with the Going Concern disclosures in the Group financial statements, the Company financial statements
have been prepared on a going concern basis, which assumes that the Group and the Company will continue in
operational existence for the foreseeable future, being 12 months from the date of sign-off of these accounts.
The Group and Company use 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 2020, the Group
actively manages its use of cash, particularly marketing and other expenditure.
After consideration of the above the Directors consider that the continued adoption of the going concern basis is
appropriate.
INVESTMENTS IN SUBSIDIARIES
Investments in subsidiaries are stated in the Company’s consolidated statement of financial position at cost less
provisions for impairment.
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 recognised loss for the year ended 30 June
2020 was £588,000 (2019: £1,413,000).
52
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO COMPANY FINANCIAL STATEMENTS (CONTINUED)
1. INVESTMENT IN SUBSIDIARY COMPANIES
30 June 2020
£000’s
30 June 2019
£000’s
Cost
3,636
3,636
Accumulated impairment
(3,636)
(3,636)
Net Book Value after impairment
-
-
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:
Subsidiary
Mobile Streams Inc.
Appitalism, Inc.
Mobile Streams de Argentina SRL
Mobile Streams Chile Limitada
Mobile Streams Columbia Limitada.
Mobile Streams of Mexico de CV
The Nickels Group Inc.
Mobile Streams Venezuela SA
Mobile Streams Australia Pty Limited
Mobile Streams (Hong Kong) Limited
Mobile Streams Singapore Limited
Mobile Streams India Private Limited
Streams Data Limited
Proportion held
Directly by
Mobile
Streams plc
By other
Group
companies
Total held
by Group
Country of
incorporation
Status
100%
100%
50%
50%
50%
50%
-
100%
-
100%
-
-
50%
50%
50%
50%
100%
-
100%
-
100%
-
99.99%
100%
-
-
100%
100%
100%
100%
100%
100%
100%
USA
Dormant
USA
Closed
Argentina
Chile
Colombia
Mexico
USA
Active
Closed
Dormant
Active
Closed
100%
Venezuela
Closed
100%
Australia
Closed
100%
Hong Kong
Dormant
100%
Singapore
Closed
99.99%
India
Active
100%
UK
Active
All the subsidiaries’ issued shares were ordinary shares and their principal activities were the distribution of licensed
mobile phone content and the provision of data insight and intelligence platforms and services.
The registered offices addresses are:
Mobile Streams plc
125 Wood Street
London
EC2V 7AW
Mobile Streams, Inc.
PO Box 471191
Celebration
FL 34747-4679
53
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO COMPANY FINANCIAL STATEMENTS (CONTINUED)
Mobile Streams Australia PTY LTD
ABN: 11 095 019 748
Level 13, Macquarie House
167 Macquarie St
Sydney NSW 2000
AUSTRALIA
Mobile Streams Hong Kong Limited
B8, 10/F Proficient Industrial Center
6 Wang Kwun Rd
Kowloon Bay, Hong Kong
Mobile Streams Singapore PTE LTD
House 101 - Upper Cross Street #05-35
People´s Park Centre
Singapore 058357
Mobile Streams Argentina SRL
Viamonte 1815 3rd Floor appt G
Ciudad Autonoma de Buenos Aires
Republica Argentina
Mobile Streams India:
2106, Wing A, Bldg/2, Raheja Willows, CHS L,
Birchwood, Akruli Rd, Kandivali East, Maharashtra,
India
Mobile Streams Colombia
AV. CRA 13 No. 69-74 OF. 701
Municipio Bogota D.C..
Colombia
Mobile Streams Mexico
Calle Florencia No. 57, 3° Piso,
Colonia Juarez, Delegacion Cuauhtemoc, Ciudad de Mexico, C.P. 06600.
Mexico
Streams Data Limited
125 Wood Street
London
EC2V 7AW
54
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2020
NOTES TO COMPANY FINANCIAL STATEMENTS (CONTINUED)
2020
£000’s
2019
£000’s
-
24
40
-
40
24
2020
£000’s
2019
£000’s
225
129
124
58
349
187
2. DEBTORS
Trade debtors
Other debtors
We estimate these receivables are fully recoverable during the next year.
3. CREDITORS
Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income
4. SHARE CAPITAL
For details of share capital refer to note 15 to the Group financial statements.
5. SHARE PREMIUM ACCOUNT
For details of share capital refer to note 15 to the Group financial statements.
6. CAPITAL COMMITMENTS
The Company has no capital commitments at 30 June 2020 (2019: Nil).
7. CONTINGENT LIABILITIES
As at 30 June 2020 there were no contingent liabilities (2019: Nil).
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 2020 was as follows:
Management
Administration
Year ended
2020
Number
Year ended
2019
Number
3
-
3
2
-
2
55