MOBILE STREAMS PLC
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2021
1
Company registration number:
03696108
Registered office:
125 Wood Street
London
EC2V 7AW
Directors:
Secretary:
Bankers:
Auditor:
Nominated Adviser:
Broker:
Registrar:
Bob Moore (Chairman)
Mark Epstein (Chief Executive Officer)
Sri Ramakrishna Uthayanan (Finance Director)
Nigel Burton (Non-Executive Director)
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
6
12
15
20
24
25
26
27
28
35
51
55
56
57
60
3
Chairman’s Statement
The Board of Mobile Streams plc presents its audited accounts for the financial year ended 30 June 2021.
In the year to 30 June 2021 Mobile Streams continued to offer games and other content direct to consumers across a
wide range of mobile devices in three emerging markets, whilst focusing resources on the growth of Streams Data, the
data insight and intelligence platform launched in 2020. Market conditions in Argentina in particular had an adverse
effect on revenues, leading to increased losses. However, the net revenues of Streams Data for the year of £137k
exceeded the £85k net revenues of the legacy content business.
Group revenue for the year ended 31 June 2021 was £395k (2020: £636k). Trading EBITDA (calculated as profit
before tax, interest, amortisation, depreciation, share based payment expense and impairment of assets) was negative
£940k for the year (2020: negative £610k). Loss before tax was £1,032k (2020: £1.563m loss, of which £953k was
loss on derecognition of subsidiaries). Most of the reduction in revenues is attributable to challenging trading
conditions in Argentina. Revenue in Argentina (which equated to 58% of Group revenue) on a constant currency basis
decreased by 15.8% from AR$36m to AR$30m.
The Directors do not propose payment of a dividend (2020: £Nil). The Group had a net cash balance of £1.7m, with a
bank debt of £50k, at 30 June 2021 (2020: £1.3m cash with no debt).
The Group’s principal business remains the generation of revenues through relationships with mobile operators and
content aggregators. Since the year end, using the Stream Data platform and in partnership with Quanta Media Group
(“QMG” or “Quanta”), the Company has launched its LiveScores football 365 service in Mexico, Argentina and Brazil.
These launches have enabled the Group to reinvigorate and reverse the decline of the content business.
In November 2019 the Company announced that it would launch a new data insight and intelligence platform, called
Streams, based on licensing of the KrunchData platform. The Streams business provides bespoke data and marketing
services to the B2B (business to business) market and targets customers in the US, LatAm and Europe. The Company
announced the launch of the Streams SaaS ("Software as a Service") platform in July 2020, and since October 2020
customers have been able to access the service and pay for it online.
The Board believes that the LiveScores services and Streams Data offering create significant opportunities for the
Company to deliver growth in shareholder value via newly developed products and services. The Board continues to
examine additional sources to broaden the appeal of its content business The main focus for the current year will be
growing and developing the product and sales pipelines for these businesses.
During the year, the Company raised £2.2m before expenses through a Placing in March 2021 and a further £69k as a
result of warrant exercises by investors in October 2020, December 2020 and April 2021. The Placing in March 2021
demonstrated strong investor support for the Group’s strategy.
In March 2021 the Group acquired a 49% interest in KrunchData Limited ("Krunch") for £735k in cash and shares,
with an option to acquire the remaining 51% at any time in the following two years for £735k, again in cash and shares
(together the "Transaction"). As part of the Transaction, it was agreed that the revenue share agreement, under which
the share of the revenues from Streams Data received by the Company would reduce from 100% to 50% from January
2022, would be terminated immediately. The Directors consider that the Group exercises control over Krunch, as the
shareholders of Krunch are Directors and Senior Managers as well as shareholders of the Group, and because the Group
has the right to acquire the remaining 51% at any time prior to March 2023 on fixed terms.
Also in March 2021, the Group announced that Quanta had signed a major contract to use the Streams data platform.
It became clear that there were multiple opportunities to drive revenue growth via the partnership with Quanta, as a
result of which the Group announced that to accelerate development of these opportunities and advance Quanta's
business plans, the Group would provide Quanta a Convertible Loan Note of £250,000 (the "Loan"), with a further
£250,000 to be made available subject to achieving various agreed milestones, centred around Quanta’s entrance to
key markets.
The Directors have carefully monitored the impact of the Covid-19 pandemic, including the current rapid spread of the
Omicron variant, 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 Data 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.
4
The Directors have prepared a cashflow forecast which indicates that the current cash balances of £1.4m are expected
to cover the Company’s working capital requirements for the foreseeable future.
Bob Moore
Chairman
30 December 2021
5
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
STRATEGIC REPORT
Operating review
Mobile Streams' performance during the financial year ended 30 June 2021 combined continued decline in revenues
from the legacy content business with growth in revenues from the Streams Data platform.
Group revenue for the year ended 30 June 2021 was £395k (2020: £636k). The gross profit of £222k (2020: £163k)
increased by 36%. The gross profit margin increased from 25.6% to 56.2% as a result of the growth of the Streams
Data business.
Mobile Operator sales
Mobile Operator revenues from the legacy content business were generated mainly in Argentina, with small
contributions from Mexico and India. 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
throughout the year this remained the foundation of the content business.
The Group announced the first customer for the Streams Data platform in April 2020, the National Emergencies Trust,
with first revenues invoiced shortly before the year end of June 2020. During the year to June 2021 revenues grew to
£137k (2020: £6k), all from Enterprise customers which receive a bespoke service.
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 15.8% in Argentine Pesos terms
from AR$36m to AR$30m. As a result of the Peso devaluation in the year of 35%, the revenues expressed in Sterling
show a 54% decrease from £493k to £229k, equating to 46.4% of Group revenues.
Revenues in India represented 2.4% of Group revenues. Indian revenues have been reducing due to the reduction in
marketing campaigns and significant market changes.
Revenues in the UK generated by Streams Data grew to £136k (2020: £6k), representing 34.7% of Group revenues.
The remainder of Group revenues in the UK were generated by KrunchData.
Financial review
Group revenue for the year ended 30 June 2021 was £395k, a 37.8% decrease on the previous year (2020: £636k).
Gross profit was £222k, an increase of 36% during the year (2020: £163k). The gross profit margin increased from
25.6% to 56.2% on account of increased revenue of the Streams data business.
The Depreciation charge was £ 95k (2020: £Nil). The amortisation charge comprises the amortisation of intangible
assets, the useful lives of which are 5 years (2020: £Nil).
Selling, marketing and administrative expenses were £50k, (2020: £Nil).
The Group recorded a loss after tax and before minority interests of £1,017k for the year ended 30 June 2021 (2020
loss: £1,563k of which £953k was loss on derecognition of subsidiaries). Basic earnings per share decreased to a loss
of 0.070 pence per share (2020: loss of 0.379 pence per share). Adjusted earnings per share (excluding interest,
depreciation, amortisation, impairments and share compensation expense) decreased to a loss of 0.070 pence per share
(2020: loss of 0.379 pence per share).
The Group had cash of £1.715m at 30 June 2021, with a bank debt (Bounce Back Loan) of £50k. The loan was used
for Krunch working capital. (2020: £1.34m of cash with no debt).
6
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
STRATEGIC REPORT
Key performance indicators (“KPI’s”)
The KPIs used by the Group are Gross profit as a percentage of revenue, Trading EBITDA**, and variances in revenue
and profit. These KPIs are reviewed on a regular basis, at both the business unit and country level, and managed largely
by reference to budgets and reforecasts.
Earnings before tax, interest, amortisation, depreciation, share compensation expense and impairment of assets
(Trading EBITDA) is calculated by adding back all tax, interest, amortisation, depreciation, share compensation
expense and impairment of assets entries in the consolidated income statement to profit after tax.
Gross profit as a percentage of revenue is a measure of our profitability. Gross profit was £222k for the year ended on
30 June 2021 (2020: £163k). The Gross profit margin was 65% for the year ended on 30 June 2020 (2020: 25.6%).
Trading EBITDA was a loss of £941k for the year ended on 30 June 2021 (2020: loss of £610k).
**EBITDA is a non-IFRS measure and is calculated as profit before tax, interest, amortisation, depreciation, share compensation
expense and impairment of assets.
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. Since the year
end, using the Stream Data platform and in partnership with Quanta Media Group, the Company has launched its
LiveScores football 365 service in Mexico, Argentina and Brazil. These launches have enabled the Group to
reinvigorate and reverse the decline of the content business.
In November 2019 the Company announced that it would launch a new data insight and intelligence platform, called
Streams, based on licensing of the KrunchData 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 2020 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 LiveScores services and Streams Data offering create significant opportunities 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 pipelines for these businesses.
Share Issue
As a result of warrant exercises by shareholders, the Group issued 4,100,000 shares at a value of 0.5 pence per share
and 4,000,000 shares in October 2020 and a further 8,500,000 and 11,061,946 shares at 0.2 pence and 0.13 pence per
share respectively.
In March 2021 the Group issued 880,000,000 shares at a value of 0.25 pence per share in a Placing to investors, raising
£2.2m before expenses.
In March 2021 the Group issued 90,384,615 shares at 0.26 pence per share to the owners of KrunchData Limited as
part of the agreement to acquire 49% of KrunchData Limited.
In April 2021, as a result of warrant exercises by shareholders, the Group issued 14,062,500 shares at a value of 0.08
pence per share.
In April 2021 the Group issued 182,812,500 shares at 0.08 pence per share to Directors and Senior Managers to cover
their net remuneration from November 2019 to 30 March 2021.
In June 2021 the Group issued 11,053,480 shares at 0.25 pence per share to Directors and Senior Managers to cover
their net remuneration from 1 April to 30 June 2021.
7
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
STRATEGIC REPORT
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
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 65% 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 50.2% for the period July 2020 to June 2021 and the Argentinian
economy is designated as hyper-inflationary. See note 17 “Foreign currency risk”
The Group has operations in Latin America and India. 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 makes use of market leading cloud based infrastructure, and where necessary 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.
8
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
STRATEGIC REPORT
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 to ensure that cash resources are
maintained.
After consideration of the above, and as explained in greater detail in the Directors’ Report and Note 1 of these
accounts, 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.
Other than the £50k Bounce Back Loan taken out by KrunchData to use for working capital needs, 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 15.8% in Argentine Pesos terms from AR$36m to AR$30m. As a result of the Peso
devaluation in the year of 35%, the revenues expressed in Sterling show a 54% decrease from £493k to £229k, equating
to 58.0% of Group revenues.
Revenues in India represented 3.0% of the revenues of the Group. The Indian Rupee devalued during the last 12 months
with a devaluation of 18% to the British Pound.
9
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
STRATEGIC REPORT
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 KrunchData 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 2020, and since 14 October
2020 customers have been able to access the service and pay for it online.
Since the year end, using the Stream Data platform and in partnership with Quanta Media Group (“QMG” or “Quanta”),
the Company has launched its LiveScores football 365 service in Mexico, Argentina and Brazil. These launches have
enabled the Group to reinvigorate and reverse the decline of the content business.
The Board believes that the LiveScores services and Streams Data offering create significant opportunities 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 pipelines for these businesses.
Impact of Brexit
The UK’s exit from the European Union has not affected 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 provide regular interviews and updates, and respond to all queries received from
investors, all 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.
10
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
STRATEGIC REPORT
The Board regards compliance will all relevant regulatory frameworks with the upmost importance. As a data and
communications 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.
The Strategic Report was approved by the Board and signed on its behalf by:
Bob Moore
Chairman
30 December 2021
11
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
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 2021 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 (2020: £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
Bob Moore (appointed 23 July 2021)
Sri Ramakrishna Uthayanan (appointed 23 July 2021)
Ordinary
shares of
0.01 pence each
Ordinary
shares of
0.01 pence each
30 June 2021
30 June 2020
94,218,906
61,369,350
38,773,196
-
-
8,849,557
-
-
-
-
The current Directors of the Company are listed below in the Corporate Governance Statement.
The remuneration of each of the Directors and Senior Management for the period ended 30 June 2021 is set out below:
Salary
Fees
Benefits
Post
employment
benefits
Other Long
Term benefits
Termination
Benefits
Year to 30
June 2021
Total
Year to 30
June 2020
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
M Epstein
T Gutteridge #
A Jamieson #
C Goodfellow
N Burton
R Moore ~
R Uthayanan ~
E Benasso *
Total
125
125
125
125
125
-
-
-
-
-
-
-
-
42
667
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 125
23
- 125
23
- 125
23
- 125
23
- 125
23
-
-
-
-
-
-
-
42
50
-
-
-
667
165
* Resigned 1 October 2019
~ Appointed 23 July 2021
# Senior management (non-Board role)
12
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
DIRECTORS’ REPORT
Benefits comprise medical health insurance. All items are considered short term in nature.
The three Directors appointed in November 2019, 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 was agreed that the issue of these Ordinary Shares would be deferred
until the interim results to 31 December 2020 were issued in early 2021, at the then Placing Price of 0.08p. Whilst the
number of shares to be issued remained fixed, the taxable value of these shares at the time of issue on 30 June 2021,
had increased as a result of the intervening share price rise. The table includes the accrued directors’ fees for the year
corresponding to the period from 26 November 2019 to 30 June 2020, reflecting the full taxable value of these fees.
As explained in the RNS dated 30 April 2021, with effect from 1 April 2021, the above named Directors and senior
employees reverted to their original contractual arrangements, which state that until such time as the Board determines
otherwise, fees will be paid quarterly or half yearly in Ordinary Shares, priced at the Volume Weighted Average Price
(“VWAP”) of the Ordinary Shares for the period to which the payment relates, after deduction and payment of all
necessary taxes.
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 to ensure that cash resources are
maintained. Although there was a significant fall in revenues and a loss for the year ending 30 June 2021, the Group
actively manages its use of cash, particularly marketing and other expenditure.
During the year the Directors kept costs carefully controlled whilst continuing to grow the Streams data insight and
intelligence 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. During the year the Company announced the launch of the Streams SaaS
("Software as a Service") platform on 6 July 2020, and since 14 October 2020 customers have been able to access the
service and pay for it online. Further enterprise level clients have also been secured. The Group’s forecasts assume that
Streams will represent a growing proportion of revenues. Since the year end additional revenues have been generated
using the Stream Data platform and in partnership with Quanta Media Group (“QMG” or “Quanta”), through the
Company’s launch of its LiveScores football 365 service in Mexico, Argentina and Brazil. These launches have
enabled the Group to reinvigorate and reverse the decline of the content business.
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.
After consideration of the above, the Directors consider that the continued adoption of the going concern basis is
appropriate – See note 1.
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 United Kingdom (“UK”) and have elected under company
law to prepare the Company Financial Statements in accordance with IFRS as adopted by the UK.
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:
13
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
DIRECTORS’ REPORT
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 2021
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.
No material governance related matters occurred during the financial year ended 30 June 2021.
The appointment of Bob Moore and Sri Ramakrishna Uthayanan as Directors on 23 July was announced on 26 July
2021.
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
partnership with Quanta 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, CEO 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
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
15
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
DIRECTORS’ REPORT
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
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
16
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
DIRECTORS’ REPORT
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 CEO Mark Epstein, Finance Director Sri Ramakrishna Uthayanan and
three Non-Executive Directors, Bob Moore (Chairman), 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 a
Remuneration Committee, and a Nominations Committee, particulars of which appear hereafter. 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 notes that the QCA recommends a balance between executive and non-executive Directors and recommends
that there be two independent non-executives. Bob Moore, 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.
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 five Directors led by Chairman Bob Moore 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 Robert Dennis Moore, Non-Executive Chairman
Bob is a UK qualified lawyer (Barrister, called to the bar at Middle Temple 1981) with over 35 years’ business,
commercial and legal experience, including as Head of International Legal Affairs at Enterprise Oil plc (a UK FTSE
100 company until its acquisition by Shell in 2002) and as Co-founder and Commercial Director of Granby Oil & Gas
plc, which was listed on AIM from 2005 until its sale in 2008. Bob has subsequently co-founded, and is Managing
Director of, several private engineering and energy businesses based in the UK and Luxembourg.
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.
Dr Nigel John Burton, Non-Executive Director
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
17
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
DIRECTORS’ REPORT
Non-Executive Director of BlackRock Throgmorton Trust plc and AIM listed companies DeepVerge plc, eEnergy
Group plc, Location Sciences plc and Microsaic Systems 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.
Sri Ramakrishna Uthayanan, Finance Director
Rama is a UK qualified accountant with over 35 years’ audit and accounting experience, including as Finance Director
of AIM listed The People’s Operator plc from 2016 until 2019. He has been Finance Director at KrunchData Limited,
the Company’s 49% subsidiary since December 2018.
Mr Moore, 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
18
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
DIRECTORS’ REPORT
appropriate delegations of authority which set out matters which are reserved to the Board. The Chairman is responsible
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 Bob Moore, who chairs this committee, and Charles Goodfellow.
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 Bob Moore, who chairs this committee, and Charles Goodfellow. 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 Bob Moore, who chairs this committee, and Charles Goodfellow.
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, CEO, 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
Bob Moore
Chairman
30 December 2021
19
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
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 2021
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 accounting standards in conformity with
the requirements of the Companies Act 2006.
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 2021 and of its loss for the year then
ended;
have been properly prepared in accordance with international accounting standards in conformity with the
requirements of the Companies Act 2006; 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
In auditing the financial statements, we have concluded that the director’s use of the going concern basis of accounting
in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the group’s
ability to continue to adopt the going concern basis of accounting included reviewing and challenging managements
prepared forecast model and any scenario planning undertaken thereon.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions
that, individually or collectively, may cast significant doubt on the group’s ability to continue as a going concern for a
period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant
sections of this report
Our application of materiality
The group materiality for the financial statements as a whole was set at £38,800 (2020: £23,000) based on 4% of loss
before tax (2020: 4% of loss before tax). Loss before tax was used as the basis for materiality as the group, following
the continued management decision toward diversifying its business model the group therefore being in a transitory
state. Performance materiality was calculated at 70% (£27,160, 2020: £16,100) of materiality for the financial
statements as a whole as 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
£1,940 as well as differences below this threshold that, in our view, warranted reporting on qualitative grounds.
Our approach to the 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
20
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF MOBILE STREAMS PLC
components of the group, a full scope audit was performed on the complete financial information of four components
(UK, Argentina, Streams Data and Krunch Data) 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.
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
Acquisition Accounting (Referring to Krunch Data
49% interest) - Note 16
Based on our planning procedures we have determined
there is a risk that the acquisition of Krunch data has
not been accounted for correctly in accordance with
IFRS 3 Business Combinations.
We have assessed the key underlying risks as.
Accounting treatment and valuation of
Goodwill and identifiable intangible assets
arising on acquisition
Management assessment of whether any
impairment has been incurred on these
acquired assets and Goodwill at year end
Recoverability of Convertible Loan Note issued to
Quanta Media Group - Note 22
A Convertible loan note was issued to Quanta Media
Group (a £250k loan intended to fund them through
their pre-IPO phase, with a possible second tranche of
£250k)
Based on our planning procedures we have determined
there is a risk that the balance is not fully recoverable
and requires management
the
recoverability and any potential requirement to create a
provision for the balance
judgement as
to
We performed the following procedures
Reviewed the accounting treatment and
considered whether it was in accordance with
IFRS 3
Obtained, reviewed and challenged
management’s assessment and valuation of
Goodwill and separately identifiable intangible
assets acquired.
Reviewed and challenged managements
impairment assessment and ensured correct
treatment of any impairment incurred.
We performed the following procedures
Obtained and challenged management’s
assessment of recoverability
Reviewed the Convertible Loan Note
agreement and ensured the loan note was
correctly accounted for in accordance with the
terms of the agreement
Challenged the underlying information and
assumptions
Ensured the convertible loan note has been
correctly accounted for in line with signed
agreement and financial reporting framework
21
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF MOBILE STREAMS PLC
Other information
The other information comprises the information included in the annual report, other than the financial statements and
our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.
Our opinion on the group financial statements does not cover the other information and, except to the extent otherwise
explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to
read the other information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially
misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine
whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report that
fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors’ report for the financial year for which the 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in
line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including
fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
22
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF MOBILE STREAMS PLC
We obtained an understanding of the group and the sector in which it operates to identify laws and regulations
that could reasonably be expected to have a direct effect on the financial statements. We obtained our
understanding in this regard through discussions with management and application of cumulative audit
knowledge and experience of the sector.
We determined the principal laws and regulations relevant to the group in this regard to be those arising from
AIM rules, Companies Act 2006 and local employment and tax law.
We designed our audit procedures to ensure the audit team considered whether there were any indications of
non-compliance by the group with those laws and regulations. These procedures included, but were not
limited to:
o
enquiries of management and review of minutes.
We also identified the risks of material misstatement of the financial statements due to fraud. We considered,
in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls,
that the potential for management bias was identified in relation to:
o
o
the impairment of goodwill and intangible assets and we addressed this by challenging the
assumptions and judgements made by management when auditing that significant accounting
estimate; and
the allocation of value between intangible assets acquired and goodwill on the acquisition of Krunch
and we addressed this by challenging the assumptions and judgements made by management when
auditing that significant accounting estimate.
As in all of our audits, we addressed the risk of fraud arising from management override of controls by
performing audit procedures which included, but were not limited to: the testing of journals; reviewing
accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions
that are unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those
leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases
the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial
statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding
irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion,
omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s
report.
Other matter
We have reported separately on the parent company financial statements of Mobile Streams Pls for the year
ended 30 June 2021.
23
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
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
30 December 2021
15 Westferry Circus
Canary Wharf
London E14 4HD
24
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Revenue
Cost of sales
Gross profit
Selling and marketing costs
Administrative expenses *
Operating Loss
Loss on derecognition of subsidiaries
Finance income
Loss before tax
Tax expense
Loss for the year
Attributable to:
Equity shareholders of Mobile Streams plc
Non-Controlling interests
Year ended
30 June 2021
£000’s
395
(173)
222
(50)
(1,208)
(1,036)
13
13
13
13
13
Year ended
30 June 2020
£000’s
636
(473)
163
-
(773)
(610)
-
4
(1,032)
(953)
-
(1,563)
7
-
(1,032)
-
(1,563)
(1,017)
(15)
(1,032)
(1,563)
-
(1,563)
-
(1,032)
956
(607)
Other comprehensive income
Amounts which may be reclassified to profit & loss
Exchange differences on translating foreign operations 24
Total comprehensive loss for the year attributable to equity
shareholders of Mobile Streams plc
Earnings per share
Basic earnings per share
Diluted earnings per share
Pence per share
Pence per share
6
6
(0.070)
(0.070)
(0.379)
(0.379)
* Administrative expenses include Depreciation, Amortisation and Impairment £95k (year ended 30 June 2020: £Nil);
and other administrative expenses £1.1m (year ended 30 June 2020: £0.8m).
The financial statements were approved by the Board of Directors on 30 December 2021 and are signed on its behalf
by:
Bob Moore
Chairman
25
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Assets
Non-Current
Goodwill
Other intangible assets
Other asset
Current
Trade and other receivables
Cash and cash equivalents
Total assets
Equity
Called up share capital
Share premium
Translation reserve
Retained earnings
Equity attributable to equity holders of Mobile Streams plc
Non-Controlling Interest
Total equity
Current liabilities
Trade and other payables
Bank debt
Total liabilities
Year ended
30 June 2021
£000’s
Year ended
30 June 2020
£000’s
Note
21
21
22
360
569
250
-
-
-
1,179
-
8
9
325
1,715
221
1,340
2,040
1,561
3,219
1,561
11
567
16,765
(3,050)
(11,467)
382
14,126
(3,050)
(10,463)
2,815
995
1
-
2,816
995
10
23
353
50
566
-
403
566
403
566
Total equity and liabilities
3,219
1,561
26
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Balance at 30 June 2019
Called up
share capital
Share
premium
Translation
reserve
Retained
earnings
Total Equity
Non-
Controlling
Interest
£000’s
280
£000’s
12,610
£000’s
(4,005)
£000’s
(8,974)
£000’s
-
£000’s
(89)
Balance at 1 July 2019
280
12,610
(4,005)
(8,974)
Issue of shares
Transactions with owners
102
102
1,516
1.516
-
-
73
73
Loss for the 12 months ended 30 June 2020
Exchange differences on translating foreign
operations
Total comprehensive income for the year
-
-
-
-
-
955
(1,563)
-
-
-
955
(1,563)
Balance at 30 June 2020
382
14,126
(3,050)
(10,463)
Balance at 1 July 2020
Total comprehensive income for the 12 months
ended 30 June 2021
382
-
14,126
-
(3,050)
-
(10,463)
(1,017)
382
14,126
(3,050)
(11,480)
Transactions with owners
Warrants reserve
Issue of shares
Non-controlling interest on acquisition of
subsidiary
-
185
-
-
2,639
-
-
-
-
13
-
-
Balance at 30 June 2021
567
16,765
(3,050)
(11,467)
-
-
-
-
-
-
-
-
(15)
(15)
-
-
16
1
(89)
1,691
1,691
(1,563)
955
(608)
995
995
(1,032)
(37)
13
2,824
16
2,816
27
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
CONSOLIDATED CASH FLOW STATEMENT
Operating activities
Loss before taxation
Adjustments:
Amortisation of intangible assets
Interest received
Changes in trade and other receivables
Changes in trade and other payables
Profit (loss) on deregistration of subsidiaries
Exchange differences
Total cash generated in operating activities
Investing activities
Additions to other intangible assets internal
Acquisitions - consideration
Acquisitions – cash acquired
Other Investments
Interest received
Net Cash used in investing activities
Financing activities
Equity fundraise (net of expenses paid)
Bank loan
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
2021
£000’s
Year ended
30 June
2020
£000’s
(1,032)
(1,563)
95
(4)
(104)
(213)
-
30
(1,228)
-
-
126
15
953
36
(433)
(304)
(500)
11
(250)
4
(1,039)
-
-
-
-
-
-
2,592
50
2,642
1,658
-
1,658
375
1,340
1,225
115
21
8
10
21
16
22
23
Cash and cash equivalents, end of year
9
1,715
1,340
Reconciliation of net debt is shown in Note 23.
Non-cash investing and financing transactions during the year-ended 30 June 2021 comprise:
In March 2021, 90,384,615 Ordinary Shares were issued at 0.26 pence per share each as part of the consideration for
the Group’s acquisition of a 49% interest in KrunchData Limited ("Krunch").
28
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
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 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 30 December 2021.
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 2021. They have been prepared in accordance with applicable International Financial Reporting
Standards as adopted by the UK 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 UK.
The financial statements have been prepared under the historical cost convention.
Business combinations
The Group applies the acquisition method to account for business combinations. The consideration transferred for the
acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the
acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset
or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition
date. The Group recognises any non-controlling interest in the acquire on an acquisition by acquisition basis, either at
fair value or at the noncontrolling interest’s proportionate share of the recognised amounts of acquiree’s identifiable
net assets. Acquisition related costs are expensed as incurred.
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.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited
exceptions, measured initially at their fair values at the acquisition date. The Group recognises any non-controlling
interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling
interest’s proportionate share of the acquired entity’s net identifiable assets.
The separate financial statements and related notes of the Company on pages 57-62 are prepared in accordance with
FRS 101.
29
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
GROUP ACCOUNTING POLICIES
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.
(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.
Goodwill
Goodwill arising on the acquisition of a subsidiary undertaking is determined as the difference between the fair value
of the assets, including any intangible assets arising on acquisition, and liabilities acquired, and the fair value of
consideration paid. Goodwill, which is classified as an intangible asset with an indefinite life, is subject to an annual
impairment review. Further detail of the goodwill arising on the acquisition of KrunchData Limited can be found in
note 21: Goodwill and Intangible Assets and note 15: Related party transactions, and note 16: Business Combination.
Intangible assets
An intangible asset arising from the Company's product development is recognised if, and only if, the Company can
demonstrate all of the following:
•
•
•
the technical feasibility of completing the intangible asset so that it will be available for use or sale
its intention to complete the intangible asset and use or sell it
its ability to use or sell the intangible asset
30
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
GROUP ACCOUNTING POLICIES
•
•
•
how the intangible asset will generate probable future economic benefits
the availability of adequate technical, financial and other resources to complete the development and
to use or sell the intangible asset
its ability to measure reliably the expenditure attributable to the intangible asset during its
development
Intangible assets are amortised on a straight line basis over their useful lives of five years. Amortisation is charged to
the income statement from when the asset becomes available to use. Where no internally generated intangible asset
can be recognised, development expenditure is recognised as an expense in the period in which it is incurred.
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 and Company use annual budgeting, forecasting, scenario planning and regular performance reviews to
assess the longer-term profitability of the Group and make strategic and commercial changes as required to ensure that
cash resources are maintained.
The Directors consider that the Streams data insight and intelligence platform will increase revenues in the current
year. The Streams business provides bespoke services to the B2B (business to business) market, and a SaaS ("Software
as a Service") platform for customers not requiring a bespoke service.
Also, since the year end, additional revenues have been generated through the Company’s launch of its LiveScores
football 365 service, in partnership with Quanta Media Group (“QMG” or “Quanta”), in Mexico, Argentina and Brazil.
These launches have enabled the Group to reinvigorate and reverse the decline of the content business.
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, up to and beyond the point at which the Group is
expected to become consistently profitable. Management have also performed scenario planning thereon.
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 have not yet been adopted
by the UK):
Amendments to IAS 1: Presentation of Financial Statements – Classification of Liabilities as Current or
Noncurrent (effective date not yet confirmed)*
Amendments to IFRS 3: Business Combinations – Reference to Conceptual Framework (effective 1 January
2022)*
Amendments to IAS 16: Property, Plant and Equipment (effective 1 January 2022)*
Amendments to IAS 37: Provisions, Contingent Liabilities and Contingent Assets (effective 1 January 2022)*
Annual Improvements to IFRS Standards 20182020 Cycle (effective 1 January 2022)*
Amendments to IAS 8: Accounting Policies, Changes to Accounting Estimates and Errors (effective date not
yet confirmed)*
Amendments to IAS 12: Income Taxes – Deferred Tax arising from a Single Transaction (effective date not
yet confirmed)*
31
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
GROUP ACCOUNTING POLICIES
*subject to UK endorsement
The effect of these new and amended Standards and Interpretations which are in issue but not yet mandatorily effective
is not expected to be material.
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
Classification
a) Financial assets and financial liabilities are recognised in the consolidated statement of financial position
when the Company becomes party to the contractual provisions of the instrument. Financial assets are de-
recognised when the contracted rights to the cash flows from the financial asset expire or when the contracted
rights to those assets are transferred. Financial liabilities are de-recognised when the obligation specified in
the contract is discharged, cancelled or expired. Financial assets and financial liabilities are initially measured
at their fair value. Transaction costs attributable to the acquisition of a financial asset or financial liability are
added or deducted from the fair value of the financial asset or financial liability. At each reporting date,
financial assets are reviewed to assess whether there is objective evidence of impairment. If any such evidence
exists, impairment loss is determined and recognised based on the classification of the financial asset.
b) Loans and receivables (including trade receivables, prepayments, deposits, loans and other receivables, cash
and bank balances) are non-derivative financial assets with fixed or determinable payments that are not quoted
on an active market. At each reporting date subsequent to initial recognition, loans and receivables are carried
at amortised cost using the effective interest method, unless when there is objective evidence that the asset is
impaired. Impairment is measured as the difference between the asset's carrying amount and the present value
of estimated future cash flows discounted at the original effective interest rate. Impairment losses are reversed
32
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
GROUP ACCOUNTING POLICIES
in subsequent periods when an increase in the asset's recoverable amount can be related objectively to an
event occurring after the impairment is recognised, subject to a restriction that the carrying amount of the
asset at the date the impairment is reversed does not exceed what the amortised cost would have been had the
impairment not been recognised.
c) Trade and other receivables are recognised at their fair value. Appropriate provisions for estimated
irrecoverable amounts are recognised in the statement of comprehensive income when there is objective
evidence that the assets are impaired.
d) Cash and cash equivalents comprise cash on hand and demand deposits held on call with banks. Cash and
cash equivalents are shown in note 18.
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.
e) 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.
f)
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
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.
33
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
GROUP ACCOUNTING POLICIES
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.
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.
Loans and borrowings
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the
effective interest rate method. Gains and losses are recognised in the income statement when the liabilities are
derecognised as well as through the effective interest rate method (EIR) amortisation process. Amortised cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortisation is included in finance costs in the income statement.
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
34
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
GROUP ACCOUNTING POLICIES
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.
d) Warrants reserve in accordance with International Financial reporting Standard 2 (IFRS2).
35
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS AND ASSUMPTIONS
When applying the Group’s accounting policies, it is necessary that management makes a number of accounting
estimates, judgements and assumptions about the future. 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 critical judgements that have been made in arriving at the amounts recognised in the consolidated financial
statements are discussed below. The Directors of the Group have determined that there are no critical accounting
estimates, judgements and assumptions associated with the Group’s activities, other than as outlined below
Valuation and asset lives of separately identifiable intangible assets
Based on the information available, the management have made the appropriate judgements in respect of the estimated
useful economic lives of the intangible assets, which are typically judged to be 5 years from the point at which the
assets becomes available for use. These judgements are compared with available comparative information of similar
businesses. See Note 21: Goodwill and Intangible assets.
The assets’ residual values and useful economic lives are reviewed and valuations are adjusted, if appropriate, at each
balance sheet date.
Valuation of acquired assets at fair value
Intangible assets acquired through a business combination are initially measured at fair value at the acquisition date
and then amortised over their useful economic lives. Subsequent expenditure is capitalised only when it increases the
future economic benefits embodied in the specific asset to which it relates.
Details of the various assets acquired in the Krunch acquisition asset are provided in Note 16 Business combination.
Management made an assesment on Krunch Data Ltd before the acquisition and considered the on-going project under
development jointly with the Company staff. It was considered that the best valuation practice was to split the amount
equally between Goodwill and Intangible assets. See Note 21: Goodwill and Intangible assets.
The major separate identifiable asset acquired in the transaction was the Streams Data Platform, a software
development project in progress. The Directors judged the fair value of the software platform acquired to be the present
value of the remaining contractual income flows discounted at the Group’s cost of capital of 15%, and this resulted in
an initial value recognised of £360,000. This amount is disclosed in note 21.
The fair value of all other assets acquired and shown in note 16 was reviewed by management and was judged to be
largely in line with the book value in KrunchData Limited at the point of acquisition.
Goodwill on the Krunch transaction was then calculated to be £360,000.
The Directors have reviewed the value of Goodwill and intangible assets acquired through the Krunch transaction.
Based on the budgeted and forecast revenues and profitability of the Streams Data business, and the newly launched
content businesses which use the Streams Data platform, the value of goodwill and intangible assets acquired are fully
supported at year end by these forecasts.
Impairment of goodwill and other intangible assets
Management make judgements as to whether or not goodwill or other intangible assets are impaired. The calculation
of the value requires the Directors to estimate the future cash flows expected to arise from the cash-generating unit.
According to the NPV model used, the management needs to use a suitable discount rate in order to calculate present
value. The carrying amount of goodwill at 30 June 2021 was £360k, and of other intangibles was £569k. The model
36
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
used was a sensitivity analysis of a discounted cash flow, using a discount rate of 15% per year and an average revenue
growth rate of 215% per year.
See Note 21: Goodwill and Intangible Assets.
Capitalisation of development costs
Included within Intangible Assets, Note 21, are costs capitalised in connection with KrunchData platform. These costs
are based on management’s view of the development team’s time spent on the projects and considering the
requirements of IAS 38 “Intangible Assets”. Development costs are amortised over the life of the project once it has
been released to the commercial environment. The carrying value is tested for impairment when there is an indication
that the value of the assets might be impaired.
The key estimates involved include the time spent by personnel on development of the projects, and the judgement of
management that the costs will be recovered in future based on the success of these developments.
KrunchData control
As outlined in notes 15 and 16, in March 2021 the Group acquired a 49% interest in KrunchData Limited ("Krunch")
for £735,000, comprising £500,000 cash and 90,384,615 Ordinary Shares issued at 0.26p each (being the closing
market price on 24 March), with an option to acquire the remaining 51% at any time in the following two years for
£765,000 (together the "Transaction"). As announced on 23 March 2021, the rationale for the acquisition was to enable
the Company to secure the systems, software and IP required to continue operating the Streams Data business, and to
reduce future costs by terminating the previous revenue share agreement immediately. See Note 15: related party
transactions.
The Directors judge that the Group exercises control over Krunch, as the shareholders of Krunch are Directors and
Senior Managers as well as shareholders of the Group, and because the Group has the right to acquire the remaining
51% at any time prior to March 2023 on fixed terms. Frequent meetings are held with Krunch management, including
a formal review of progress on a monthly basis. Board meetings are held by the Krunch Board of Directors.
The Directors have also reviewed the value and the nature of the intangible assets (platform and software development
costs) acquired as a result of the transaction, and made judgements about the fair value of these assets, as outlined in
note 21.
Quanta Loan Note
As announced on 31 March 2021, the Group provided a Convertible Loan Note of £250,0000 (the "Loan") to Quanta,
with a further £250,000 to be made available subject to achieving various agreed milestones, centred around its entrance
to key markets. The Directors have reviewed the management accounts, projections and assurances received from
Quanta, and based on these consider that the Loan will be recoverable in its entirety either through repayment or
conversion by the redemption date of 31 December 2022.
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
2021
£000's
45
-
45
2020
£000's
82
-
82
37
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3. OPERATING LOSS
Operating loss is stated after charging the following items:
Depreciation and amortisation
Loss on foreign currency
2021
£000's
95
30
125
2020
£000's
-
55
55
4. 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 2021
are detailed in the Directors Report on pages 12-19.
5. DIRECTORS AND EMPLOYEES
Staff costs including Directors during the year were as follows:
Wages and salaries
Social security costs
Share options cost
2021
£000's
592
4
-
2020
£000's
356
6
-
596
362
Share options cost were Nil during the period (FY2020: Nil). There were no share options awarded, exercised, lapsed
or surrendered during the period by the Management.
Development costs capitalised during the period
360
-
Employee costs included in the capitalised development costs were £101k (FY2020: £Nil.)
The average number of employees during the year was as follows:
Management
Administration
6. EARNINGS PER SHARE (‘EPS’)
2021
2020
Number
Number
6
-
6
4
-
4
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 2021 4m (2020:
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.
38
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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 earnings per share
Diluted earnings per share
2021
Pence per share
(0.070)
(0.070)
2020
Pence per share
(0.379)
(0.379)
Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below.
2021
£000's
2020
£000's
Loss for the year
(1,017)
(1,563)
For adjusted earnings per share
Loss for the year
Add back: share compensation expense
Add back: depreciation and amortisation
Adjusted loss for the year
Weighted average number of shares
For basic earnings per share
Exercisable share options
For diluted earnings per share
Adjusted earnings per share
Adjusted earnings per share
£000's
(1,017)
-
95
(922)
£000's
(1,563)
3
-
(1,560)
Number of shares
1,452,332,184
-
1,452,332,184
Number of
shares
411,881,204
-
411,881,204
Pence per share
Pence per share
(0.063)
(0.063)
(0.379)
(0.379)
39
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
7. 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:
2021
£'000
-
2020
£'000
-
-
-
Origination & reversal of timing differences: (Deferred tax charge/(credit) (Note 7))
-
-
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% (19%)
Adjustment in respect of prior years - foreign tax
Prior year tax adjustments - deferred tax
Deferred tax not recognised
Tax credit
-
-
-
-
2021
£'000
2020
£'000
(1,032)
(1,563)
(196)
(297)
-
-
196
-
-
297
-
-
Tax loss carried forward
2,585
2,409
No deferred tax asset has been recognised due to uncertainty as to when future profits will be generated against which to relieve
said assets.
8. TRADE AND OTHER RECEIVABLES
Trade receivables
Accrued receivables
Other debtors
Other assets
The carrying value of receivables is considered a reasonable approximation of fair value.
2021
£000's
59
6
165
95
2020
£000's
30
11
180
-
325
221
40
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
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
2021
£000’s
2020
£000’s
28
12
31
1
-
28
(29)
59
2021
£000’s
29
16
-
2
29
(29)
30
2020
£000’s
49
-
(20)
29
29
Trade and other receivables that are not impaired are considered to be collectible within the Group’s payment terms,
negotiated with each customer.
The receivables includes a balance of £36k with Quanta Group; not collected as at 30 June 2021.
9. CASH AND CASH EQUIVALENTS
Cash and cash equivalents include the following components:
Argentina´s cash at bank and in hand
Other companies
Cash at bank and in hand
2021
£000’s
18
1,697
2020
£000’s
52
1,288
1,715
1,340
The credit ratings of National Westminster Bank plc, where all cash is held, are:
Short-Term Rating
Long-Term Rating
Moody's
S&P
Fitch
JCR
P-1
A-1
F1
-
A1+/A1
A
A+
A+
41
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
10. TRADE AND OTHER PAYABLES
Trade payables
Other payables
Accruals and deferred income
2021
£000’s
130
133
90
353
2020
£000’s
317
59
190
566
All amounts are current. The carrying values are considered to be a reasonable approximation of fair value.
11. SHARE CAPITAL
Called up share capital
Share premium
Translation reserve
Retained earnings
Equity attributable to equity holders of Mobile Streams plc
Non-Controlling Interest
Total
2021
£000’s
567
16,765
(3,050)
(11,467)
2020
£000’s
382
14,126
(3,050)
(10,463)
2,815
995
1
-
2,816
995
The total number of Ordinary Shares in issue as at 30 June 2021 was 2,354,549,845 with a par value of 0.01 pence per
share (30 June 2020: 1,148,574,804 with a par value of 0.01 pence per share). All issued shares are fully paid. In
addition, there are 140,753,533 Deferred Shares of 0.19 pence nominal value each in issue. The Deferred Shares, as
their name suggests, have very limited rights which are deferred to the Ordinary Shares and effectively carry no value
as a result. Accordingly, the holders of the Deferred Shares are not entitled to receive notice of, attend or vote at general
meetings of the Company, nor are they 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 Deferred Shares will not be admitted to trading on AIM
or any other market.
The Group’s main source of capital is the parent company’s equity shares. The Group’s policy is to retain sufficient
authorised share capital so as to be able to issue further shares to fund acquisitions, settle share-based transactions and
raise new funds. Share based payments relate to employee share options schemes. The schemes have restrictions on
headroom so as not to dilute the value of issued shares of the Company. The Group has not raised debt financing in
the past and 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
2021
Year ended
2020
140,752,533
1,148,574,804
1,205,975,041
1,007,822,271
2,354,549,845 1,148,574,804
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.
As a result of warrant exercises by shareholders, the Group issued 4,100,000 shares at a value of 0.5 pence per share
and 4,000,000 shares in October 2020 and a further 8,500,000 and 11,061,946 shares at 0.2 pence and 0.13 pence per
share respectively.
42
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
In March 2021 the Group issued 880,000,000 shares at a value of 0.25 pence per share in a Placing to investors, raising
£2.2m before expenses.
In March 2021 the Group issued 90,384,615 shares at 0.26 pence per share to the owners of KrunchData Limited as
part of the agreement to acquire 49% of KrunchData Limited.
In April 2021, as a result of warrant exercises by shareholders, the Group issued 14,062,500 shares at a value of 0.08
pence per share.
In April 2021 the Group issued 182,812,500 shares at 0.08 pence per share to Directors and Senior Managers to cover
their net remuneration from November 2019 to 30 March 2021.
In June 2021 the Group issued 11,053,480 shares at 0.25 pence per share to Directors and Senior Managers to cover
their net remuneration from 1 April to 30 June 2021.
The share premium recognised during the year was £2,639,000. 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. Share issues costs
were £165k in the year.
12. 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
to investors participating in Placings.
Range of exercise
prices
Weighted
average
exercise price
(£)
2021
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
2020
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 awarded, exercised, lapsed or surrendered during the year ended 30 June 2021 (2020: Nil).
The total charge for the year relating to employee share-based payment plans was £Nil (2020: £Nil).
13. SEGMENT REPORTING
As at 30 June 2021, 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 two principal business activities: the sale of mobile content
through Multi-National Organisation’s (Mobile Operator 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.
43
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
£000's
Europe Asia Pacific North America
Mobile Operator Services
-
12
-
Latin
America
246
Consol
Group
-
258
Other Service fees
Total Revenue
Cost of sales
Gross profit
Selling, marketing and administration
expenses
236
-
-
-
(99)
137
236
12
-
246
(99)
395
-
(7)
-
(166)
-
(173)
236
5
-
80
(99)
222
(1,003)
(34)
1
(127)
-
(1,163)
Trading EBITDA*
(767)
(29)
1
(47)
(99)
(941)
Depreciation, amortisation and impairment
(77)
-
-
-
(18)
(95)
Share based compensation
-
-
-
-
-
Profit (loss) for derecognition of subsidiaries
-
-
-
-
-
-
-
4
-
-
-
-
-
(844)
(29)
1
(43)
(117)
(1,032)
-
-
-
-
-
-
(844)
(29)
1
(43)
(117)
(1,032)
-
-
4
-
Finance income
Finance expense
Loss before tax
Taxation
Loss after tax
Segmental assets
3,238
8
-
105
(132)
3,219
Segmental liabilities
262
31
4
106
-
403
The segmental results for the year ended 30 June 2020 were as follows:
£000's
Europe
Asia Pacific North America
Mobile Operator 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) on derecognition of subsidiaries
Finance income
Finance expense
Loss before tax
Taxation
Loss after tax
-
-
-
-
-
-
-
(177)
-
-
-
-
(818)
-
-
-
-
42
-
-
(589)
-
(82)
-
(837)
-
(55)
-
-
-
(953)
-
-
(1,563)
-
-
-
-
-
(589)
(82)
(837)
(55)
-
(1,563)
Segmental assets
Segmental liabilities
* Earnings before interest, tax, depreciation, amortization, impairments of assets and share compensation
1,299
349
51
45
1
5
210
167
-
-
1,561
566
44
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
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
2021
£000’s
2020
£000’s
395
636
395
636
(1,032)
(1.563)
(1,032)
(1.563)
3,219
-
1.561
-
3,219
1.561
403
-
566
-
403
566
14. CAPITAL COMMITMENTS
The Group had no capital commitments as at 30 June 2021 other than the further £250,000 to be made available subject
to achieving various agreed milestones under the Quanta Loan Note as disclosed in Note 22 (30 June 2020: £Nil).
15. RELATED PARTY TRANSACTIONS
Key Management
The only related party transactions comprising the remuneration of senior management are disclosed in the
Remuneration Committee Report.
Related Parties
During the year the Company made payments of £391,500 to KrunchData 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.
Igniteamt Limited is a company where Mark Epstein (Board member) has a beneficial interest. Up to June 30 2021,
KrunchData Limited had a debtor balance of £ 93,525 and a creditor balance of £63,000.
45
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
16. BUSINESS COMBINATION
Acquisition of Krunch Data Limited
On 29 March 2021 the Group acquired a 49% interest in KrunchData Limited ("Krunch") for £735,000, comprising
£500,000 cash and 90,384,615 Ordinary Shares issued at 0.26p each (being the closing market price on 24 March),
with an Option to acquire the remaining 51% at any time in the following two years for £765,000 (together the
"Transaction"). As part of the Transaction, it was agreed that the revenue share agreement, under which the share of
the revenues from Streams Data received by the Company would reduce from 100% to 50% from January 2022, would
be terminated immediately.
Details of the purchase consideration, the net assets acquired, and goodwill are as follows:
Shares
No.
Total consideration
Cash
Consideration shares
90,384,615
Fair value of
consideration
£
500,000
235,000
735,000
The table below summarises the recognised amounts of assets and liabilities assumed at the date of acquisition (29
March 2021) of KrunchData Limited. The fair value of these assets and liabilities was reviewed by management and
was judged to be in line with the book value in KrunchData Limited at the point of acquisition.
Fair value
Intangible assets
Platform development and software
Cash and Cash equivalents
Other assets
Total assets
Liabilities
Other creditors
Bank Loan
Corporate tax payable
Total Liabilities
Net identifiable assets acquired
49% share acquisition
2021
£000’s
42
11
110
163
72
50
10
132
31
15
Net identifiable assets acquired
15
Add: Software Intangible asset
Add: Goodwill
360
360
735
46
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Acquisition consideration
Cash consideration - 49%
Less cash balances acquired (49%)
Net outflow of cash - investing activities
2021
£000’s
500
(5)
495
17. RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group is exposed to currency and liquidity risk, which result from both its operating and investing activities. The
Group's risk management is coordinated in close co-operation with the Board and focuses on actively securing the
Group's short to medium term cash flows by minimising the exposure to financial markets. The most significant
financial risks to which the Group is exposed are described below. Also refer to the accounting policies.
Foreign currency risk
The Group is exposed to transaction foreign exchange risk. The currencies where the Group is most exposed to
volatility are 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
Financial assets
Financial liabilities
Short-term exposure
2021
000’s
USD
£
AUS
£
ARS Other
£
£
USD
£
2020
000’s
AUS
£
ARS
£
Other
£
-
(4)
-
-
103
(61)
9
(77)
1
(5)
-
-
200
(123)
61
(89)
(4)
-
42
(68)
(4)
-
77
(28)
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
2021
-12%
-35%
2020
4%
-27%
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.
47
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at 30 June 2021, the Group’s financial liabilities were all current and have contractual maturities as follows:
30 June 2021
Trade and other payables
Within 6 months
£000’s
130
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:
30 June 2020
Trade and other payables
Capital Management Disclosures
Within 6 months
£000’s
566
6 to 12 months
£000’s
-
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.
18. FINANCIAL INSTRUMENTS
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.
Financial assets and financial liabilities are initially measured at amortised cost. Transaction costs attributable to the
acquisition of a financial asset or financial liability are added or deducted from the value of the financial asset or
financial liability.
The tables below set out the Group’s accounting classification of each class of its financial assets and liabilities.
Financial Assets at amortised cost
Accrued Receivables
Trade receivables
Cash and Cash equivalents
Quanta loan note
Financial Liabilities at amortised cost
Trade Creditors
Accrued content costs
Other Accrued liabilities
2021
£000’s
6
59
1,715
250
2,030
(130)
(54)
(169)
(353)
2020
£000’s
11
28
1.340
-
1,379
(317)
(63)
(127)
(507)
All receivables are expected to be received in full, and all payables are expected to be paid in full. Cash and cash
equivalents comprise cash on hand and demand deposits held on call with banks. Therefore, in the view of management,
all of the above financial assets’ carrying values are stated at their amortised cost, as at 30 June 2021 and 2020.
48
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
19. ULTIMATE CONTROLLING PARTY
The Directors do not consider there to be an ultimate controlling party due to the composition of the share register.
20. EVENTS AFTER THE REPORTING DATE
The Directors continue to review the impact of the Covid-19 pandemic, including the current rapid spread of the
Omicron variant, 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 have not experienced and 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.
21. GOODWILL AND INTANGIBLE ASSETS
The goodwill reflects the retention of the economic value accruing to the Company from its acquisition of KrunchData
Limited.
Cost
At 1 July 2020
Acquired on acquisition of subsidiary
Additions
At 30 June 2021
Accumulated amortisation and impairment
Cost
At 1 July 2020
Acquired on acquisition of subsidiary
Additions
At 30 June 2021
Intangibles acquired
Platform development and
software
Intangibles
added
internally
Streams
Eliminations
Subtotal
Goodwill
Total
£000’s
£000’s
£000’s
£000’s
£000's
£000's
-
-
47
-
47
-
-
47
360
360
360
407
(99)
(99)
621
668
360
360
981
1,028
-
-
-
(4)
(95)
(99)
-
-
(4)
-
(4)
-
(95)
(99)
-
-
(95)
(99)
Net book value at 30 June 2021
360
308
(99)
569
360
929
Goodwill and the intangible assets held by the Group arose on the acquisition of KrunchData Limited, which is
described in note 21.
The Company's internally developed software relates to the Streams Data platform. The Group tests goodwill annually
for impairment, or more frequently if there are indications that goodwill might be impaired. The recoverable amount
is determined from value in use calculations. The key assumptions, which are the long-term growth rates, the discount
rates and the cash flow forecasts were derived from the most recent financial budgets approved by management
covering a three-year period.
A sensitivity analysis was performed using a range of lower growth and higher discount rate assumptions. The central
case rates applied were:
• Long term (three year) average growth rate 215% per year
• Discount rate / cost of capital 15%
The discount rates used are based on comparative businesses weighted average cost of capital. No issues were identified
that required an impairment.
22. OTHER ASSET
49
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As announced on 31 March 2021, the Group provided Quanta a Convertible Loan Note of £250,0000 (the "Loan"),
with a further £250,000 to be made available subject to achieving various agreed milestones, centred around its entrance
to key markets. The Directors have reviewed the management accounts, projections and assurances received from
Quanta, and based on these consider that the Loan will be recoverable in its entirety either through repayment or
conversion by the redemption date of 31 December 2022.
23. LOANS AND BORROWINGS
The Directors believe the book value of loans and borrowings approximates fair values. Books values are:
Current
Bounce Back Loan
2021
£
50,000
Non-Current
-
Total Loans and borrowings
50,000
Prior to its acquisition by the Group, KrunchData Limited obtained a loan from Metro Bank PLC. The purpose of the
Loan is to finance working capital and investment in the business and to support trading or commercial activity in the
United Kingdom. The duration of this fixed sum loan agreement is 72 months from the loan drawdown date. The
interest rate which applies to the loan agreement is 2.5% (fixed) per annum. No repayments of capital or interest are
required during the first 12 months after the date draw down, as the loan is under the terms of the Bounce Back Loan
scheme offered by the UK Government, which covers the interest payments on behalf of the Company for that period.
24. EXCHANGE DIFFERENCES ON TRANSLATING FOREIGN OPERATIONS
During FY 2020, 5 subsidiaries were closed (Singapore, Australia, Chile, Appitalism (USA) and The Nickels Group
(USA)). These entities had Foreign Exchange equity reserves recorded due to Intercompany transactions, according to
IAS 21. The effect of the derecognition was disclosed in the FY 2020 Financial statements comprehensive income.
During FY 2021 the FX reserve transactions are Nil, as no subsidiaries were closed during the year, all the remaining
subsidiaries remain operational.
50
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
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
2021 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 2021;
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
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting
in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the parent
company’s ability to continue to adopt the going concern basis of accounting included reviewing and challenging
managements prepared forecast model and any scenario planning undertaken thereon.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions
that, individually or collectively, may cast significant doubt on the parent company's ability to continue as a going
concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant
sections of this report.
Our application of materiality
The parent company materiality for the financial statements as a whole was set at £30,130 (2020: £21,445). Loss before
tax was used as the basis for materiality as the parent company, following the continued management shift toward
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% - £21,090, (2020: 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
£1,507 (2020: £1,072) as well as differences below this threshold that, in our view, warranted reporting on qualitative
grounds.
Our approach to the audit
In designing our audit, we determined materiality and assessed the risk of material misstatement in the parent company
financial statements. In particular, we looked at areas involving significant accounting estimates and judgements by
the directors. 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.
51
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
INDEPENDENT AUDITOR’S REPORT 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
Acquisition Accounting (Referring to Krunch Data
49% interest) - Note 16
Based on our planning procedures we have determined
there is a risk that the acquisition of Krunch data has
not been accounted for correctly in accordance with
IFRS 3 Business Combinations.
We have assessed the key underlying risks as.
Accounting treatment and valuation of
Goodwill and identifiable intangible assets
arising on acquisition
Management assessment of whether any
impairment has been incurred on these
acquired assets and Goodwill at year end
Recoverability of Convertible Loan Note issued to
Quanta Media Group - Note 22
A Convertible loan note was issued to Quanta Media
Group (a £250k loan intended to fund them through
their pre-IPO phase, with a possible second tranche of
£250k)
Based on our planning procedures we have determined
there is a risk that the balance is not fully recoverable
and
the
recoverability and any potential requirement to create a
provision for the balance
requires management
judgement as
to
We performed the following procedures
Reviewed the accounting treatment and
considered whether it was in accordance with
IFRS 3
Obtained, reviewed and challenged
management’s assessment and valuation of
Goodwill and separately identifiable intangible
assets acquired.
Reviewed and challenged managements
impairment assessment and ensured correct
treatment of any impairment incurred.
We performed the following procedures
Obtained and challenged management’s
assessment of recoverability
Reviewed the Convertible Loan Note
agreement and ensured the loan note was
correctly accounted for in accordance with the
terms of the agreement
Challenged the underlying information and
assumptions
Ensured the convertible loan note has been
correctly accounted for in line with signed
agreement and financial reporting framework
Other information
The other information comprises the information included in the annual report, other than the financial statements and
our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.
Our opinion on the parent company financial statements does not cover the other information and, except to the extent
otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our
responsibility is to read the other information and, in doing so, consider whether the other information is materially
52
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MOBILE STREAMS PLC
inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears
to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are
required to determine whether this gives rise to a material misstatement in the financial statements themselves. If,
based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
•
•
the information given in the strategic report and the directors’ report for the financial year for which the 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in
line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including
fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
53
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MOBILE STREAMS PLC
We obtained an understanding of the group and the sector in which it operates to identify laws and regulations
that could reasonably be expected to have a direct effect on the financial statements. We obtained our
understanding in this regard through discussions with management and application of cumulative audit
knowledge and experience of the sector.
We determined the principal laws and regulations relevant to the group in this regard to be those arising from
AIM rules, Companies Act 2006 and local employment law.
We designed our audit procedures to ensure the audit team considered whether there were any indications of
non-compliance by the group with those laws and regulations. These procedures included, but were not
limited to:
o
enquiries of management and review of minutes.
We also identified the risks of material misstatement of the financial statements due to fraud. We considered,
in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls,
that the potential for management bias was identified in relation to:
o
the impairment of assets and we addressed this by challenging the assumptions and judgements
made by management when auditing that significant accounting estimate.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those
leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases
the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial
statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding
irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion,
omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities.This description forms part of our auditor’s
report.
Other matter
We have reported separately on the group financial statements of Mobile Streams plc for the year ended 30 June 2021.
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
30 December 2021
15 Westferry Circus
Canary Wharf
London E14 4HD
54
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
COMPANY STATEMENT OF FINANCIAL POSITION
Fixed assets
Other Asset
Investments in subsidiaries
Total fixed assets
Current assets
Debtors
Cash and cash equivalents
Total current assets
Creditors
30 June 2021
£000’s
30 June 2020
£000’s
250
1
735
-
985
-
2
501
1,658
40
1,259
2,159
1,299
Creditors: amounts falling due within one year
3
(117)
(349)
Current Liabilities
(117)
(349)
(Net Liabilities) / Net assets
3,027
950
Capital and reserves
Called up share capital
Share premium
Profit and loss account
Shareholders deficit / Shareholders funds
4
5
567
16,765
(14,305)
382
14,126
(13,558)
3,027
950
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 2021 was £688k.
The notes on pages 57 to 60 form part of these financial statements.
The financial statements were approved by the Board of Directors on 30 December 2021.
Bob Moore
Chairman
55
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
COMPANY STATEMENT OF CHANGES IN EQUITY
Share
capital
account
£000
280
102
Share
premium
account
£000
12,610
1,516
Profit
and loss
account
£000
(13,043)
73
At 1 July 2019
New equity issue
Loss for the year
-
-
(588)
At 30 June 2020
382
14,126
(13,558)
Total
£000
(153)
1,691
(588)
-
950
At 1 July 2020
New equity issue
Loss for the year
At 30 June 2021
185
2,639
567
16,765
(59)
(688)
(14,305)
2,765
(688)
3,027
56
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
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 specifically in respect of the judgements and estimates used in considering the impairment of investments
which is considered alongside that of impairment of intangible assets.
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
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 and Company use annual budgeting, forecasting, scenario planning and regular performance reviews to
assess the longer-term profitability of the Group and make strategic and commercial changes as required to ensure that
cash resources are maintained. Although there was a significant fall in revenues and a loss for the year ending 30 June
2021, the Group kept costs carefully controlled, particularly marketing and administrative expenditure,
The Directors expect that the Streams data insight and intelligence platform will increase revenues in the current year.
The Streams business provides bespoke services to the B2B (business to business) market, and a SaaS ("Software as a
Service") platform for customers not requiring a bespoke service.
Also, since the year end, additional revenues have been generated through the Company’s launch of its LiveScores
football 365 service, in partnership with Quanta Media Group (“QMG” or “Quanta”), in Mexico, Argentina and Brazil.
These launches have enabled the Group to reinvigorate and reverse the decline of the content business.
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, up to and beyond the point at which the Group is
expected to become consistently profitable.
57
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO COMPANY FINANCIAL STATEMENTS (CONTINUED)
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. The recoverability of investments is considered to be a key judgement and estimate and
these are considered alongside those considered at a Group level in respect of the recoverability of Intangible assets
(See 1.1).
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
2021 was £688k (2020: £588k).
1. INVESTMENT IN SUBSIDIARY COMPANIES
Cost
Additions
Accumulated impairment
30 June 2021
£000’s
30 June 2020
£000’s
3,636
735
(3,636)
3,636
(3,616)
Net Book Value after impairment
735
-
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:
Proportion held
Subsidiary
Mobile Streams Inc.
Directly by Mobile
Streams plc
100%
By other Group
companies
Total held by
Group
100%
Country of
incorporation
USA
Status
Dormant
Mobile Streams de Argentina SRL
Mobile Streams Columbia Limitada.
Mobile Streams of Mexico de CV
Mobile Streams India Private Limited
Streams Data Limited
KrunchData Limited
50%
50%
50%
99.99%
100%
49%
-
50%
50%
50%
-
-
-
100%
100%
100%
99.99%
100%
49%
Argentina
Active
Colombia
Dormant
Mexico
India
UK
UK
Active
Active
Active
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
58
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO COMPANY FINANCIAL STATEMENTS (CONTINUED)
Mobile Streams, Inc.
PO Box 471191
Celebration
FL 34747-4679
KrunchData Limited
2 Blue Cedars
Warren Road, Banstead
Surrey SM7 1NT
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
59
MOBILE STREAMS PLC
Annual report for the year ended 30 June 2021
NOTES TO COMPANY FINANCIAL STATEMENTS (CONTINUED)
2021
£000’s
36
30
435
501
2020
£000’s
-
40
-
40
2021
£000’s
52
65
2020
£000’s
225
124
117
349
2. DEBTORS
Trade debtors
Other debtors
Intercompany 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 11 to the Group financial statements.
5. SHARE PREMIUM ACCOUNT
For details of share capital refer to note 11 to the Group financial statements.
6. CAPITAL COMMITMENTS
The Company has no capital commitments at 30 June 2021 (2020: Nil).
7. CONTINGENT LIABILITIES
As at 30 June 2021 there were no contingent liabilities (2020: Nil).
8. RELATED PARTY TRANSACTIONS
During the year the Company remunerated the Directors and Officers as disclosed in note 5 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 2021 was as follows:
Management
Administration
5
-
5
Year ended
Year ended
2021
Number
2020
Number
3
-
3
60