30 September 2022

Mirada plc

("Mirada", "the Company" or "the Group")

Final results for the year ended 31 March 2022

Mirada (AIM: MIRA), a leading provider of integrated software solutions for digital TV operators and broadcasters, announces its audited final results for the year ended 31 March 2022.

Financial Highlights

* EBITDA is defined as earnings before interest, tax, depreciation, amortisation and share-based payments

** Net Debt is defined as Gross Debt minus Cash

Operational Highlights

Post-period Highlights

José-Luis Vázquez, CEO of Mirada, commented:

"To have delivered these results despite the effects of the pandemic continuing to be felt for much of the period is testament to quality of the products and services we provide, the dedication of our people, the resilience of our model and the improvements made to our operational infrastructure.

Looking ahead, with our end markets now operating normally and a pipeline that has rapidly grown to record levels, we are optimistic about our prospects. It can often take several months to convert prospects but, as we move through the new financial year, some lead times are drawing to an end and we are confident of securing our first major new wins since the pandemic. There remains an air of uncertainty around the broader economic environment but, at present, we are not seeing any signs of the demand in our end markets slowing.

We have invested heavily and developed several strategic initiatives ahead of the curve that position us at the centre of emerging TV and video service trends. Assuming the worst of the pandemic is now behind us, I am confident Mirada is equipped to return to its pre-Covid trajectory and grow in a meaningful and sustainable way."

Annual Report and Accounts

The Company's Annual Report and Accounts will be made available on the Company's website www.mirada.tv later today and will be posted to shareholders today.

About Mirada  

 Mirada is a leading provider of products and services for Digital TV Operators and Broadcasters. Founded in 2000 and led by CEO José Luis Vázquez, the Company prides itself on having spent over 20 years as a pioneer in the Digital TV market. Mirada's core focus is on the ever-growing demand for TV Everywhere for which it offers a complete suite of end-to-end modular products across multiple devices, all with innovative state-of-the-art UI designs. Mirada's products and solutions, acclaimed for unparalleled flexibility and optimal time to market, have been deployed by some of the biggest names in digital media and broadcasting including Televisa, ATN International, Telefonica, Sky, Virgin Media, BBC, ITV, Skytel and France Telecom Orange. Headquartered in London, Mirada has commercial representation across Europe, Latin America and Southeast Asia and operates technology centres in the UK, Spain and Mexico. For more information, visit  www.mirada.tv .     

Chief Executive Officer's Report

Emerging strongly from the pandemic 

This is a robust set of results that bodes well for the future given the impact of Covid meant virtually no new business activity took place in the first half of the year and our ability to source and negotiate new business was impeded for much of the second.

I am proud of the efforts of our teams and particularly encouraged by the way we were able to strengthen and deepen our relationships with existing customers in the period, with licences across our base increasing 50% over FY21. Working closely with them throughout, not only did we support them through tough times, we helped them continue moving forwards with their respective growth strategies.

While the market recovery in the second half was somewhat stop-start as the pandemic continued to impact sentiment and logistics, appetite for our products and services steadily increased, our sales pipeline reached record levels, and we were able to make progress in advancing opportunities (albeit at a slower pace than originally anticipated).

As we move through the new financial year and with our new global sales strategy bedded in, we are now beginning to convert some significant opportunities such as those with Mongolian telco Skytel, a relevant Indian telco and TV provider in India and a major telco in Latin America and are confident in our ability to continue in a similar vein. This, combined with continued revenue momentum from existing customers, has led to a growing sense of stabilisation in the business and optimism that we are now back on track.

Continued operational and commercial progress

Despite the challenges, particularly in the first half, we made encouraging progress in rolling out our new global sales strategy which centres around partnering with local experts to provide greater and more targeted access to international markets. We now have an established presence in Asia-Pacific that has already delivered major new business leads, and with several exciting prospects referred by our sales team, resellers and partners, pipelines are growing across the board, particularly in India. In November 2021, we signed a significant reseller deal with Shift 2 Stream, a TV as a Service provider active in North America and the Caribbean, enabling us to expand our reach into North America and strengthening our presence in the Caribbean, both of which are important target markets for Mirada. 

Also in November 2021, driven mainly by the continued success of our relationship with Mexican telco giant izzi Telecom, we announced that we had surpassed the deployment of one million set-top boxes ("STBs") powered by our Android TV Operator Tier offering. Using 2021 statistics published by technology research firm Omdia, Mirada STBs constituted approximately 5% of the expected 20 million global Android TV Operator Tier STBs at the time. By period end, deployments of Mirada-powered Android TV set-to-boxes worldwide had increased to approximately 1.5 million and by August 2022, that figure surpassed 2 million. 

To have rolled out our Android TV Operator Tier STBs at such a rate despite the global chipset shortage and installation challenges posed by the pandemic is both a great achievement and strong validation of our decision to back this technology. Omdia forecasts that 50 million Android TV Operator Tier STBs will be in use in 2024 and, with existing and prospective customers actively considering replacing their legacy platforms, we continue to be confident in our ability to consolidate our market share. 

Ideally positioned versus technology trends

The Directors believe that market trends continue to move in Mirada's favour. Super-aggregation, which involves consolidating video streaming services and traditional linear channels into a single viewing experience, remains the dominant strategy for Pay TV operators looking to adapt to the industry disruption caused by the emergence of Netflix, Amazon Prime Video and other content providers. 

At the same time, with the landscape for these direct-to-consumer ("D2C") content providers becoming increasingly competitive and dominant players such as Netflix approaching saturation point, they themselves are becoming more and more reliant on super-aggregation as a method of customer acquisition and retention, alongside tactics such as limiting account sharing and creating new advertising-driven subscription tiers. Super-aggregation plays a key role in increasing subscriber loyalty, which at present is an important priority for these providers.

This mutually beneficial relationship between Pay TV operators and content providers means super-aggregation is set to be an enduring trend and Mirada's proposition puts it right at the centre.  

The Directors believe that Mirada's flagship software, Iris, now boasts one of the most comprehensive sets of integrated content providers available, with all the key players including Disney+, Amazon Prime Video, Netflix, HBO, Fox and more represented. This is a technically challenging feat to achieve and maintain - particularly in the small and medium operator space - giving Mirada a strong competitive advantage as we look to capitalise on improved trading conditions.

At the same time, Android TV, Google's operating system ("OS"), continues to cement its position as the OS of choice for set-top boxes and other devices, due to its versatility, reliability, and ability to quickly and conveniently deliver the premium content and multiscreen functionality needed to reduce churn and increase premium subscriptions and viewing times. According to a February 2022 report by streaming analytics provider Conviva, Android TV is the fastest-growing TV platform, with 42% growth in the final quarter of 2021 compared to the same period in 2020. 

Mirada boasts an enviable track record of large-scale deployments and has established itself as one of the world's preeminent providers of the technology, with well over 2 million of its Android TV-powered STBs currently in circulation. 

Geographic expansion facilitated by new sales strategy

Our decision to sell into international markets via local resellers has provided us with access to a wealth of new international opportunities that would otherwise have been difficult to reach. The success we are having in India is a great example of this. A hugely populous nation with a burgeoning middle class, research by Omdia forecasts the Indian Pay TV market to grow by nearly 30% over the next five years, with the average revenue per user ("ARPU") increasing by 35% by 2025. With a substantial addressable market and a well-connected presence on the ground sourcing new prospects, we continue to expect India, and the wider APAC region, to become key markets for Mirada in the coming years. 

We are currently working to replicate the success of the APAC reseller strategy in the rest of the world, starting with the Americas. According to a recent report, again by Omdia, Pay TV is the largest video entertainment segment by revenue across all of Latin America, worth $15 billion annually as at calendar year 2022, a 4% increase over 2021. In addition, Digital TV Research points to OTT TV revenues doubling by 2027, reaching $14 billion annually. As in South-East Asia, economic growth in key Latin American territories has led to the emergence of a middle class with extra disposable income and an appetite for advanced video entertainment options. With a strong existing reputation in the region and the prospect of greater access through the new sales strategy, Mirada is well-positioned to capitalise.   

People and board update

I would like to take this opportunity to again thank everyone associated with Mirada for their efforts through the year. At times it was another difficult period for them and their families and yet they rose to the challenges posed by the pandemic, demonstrating real perseverance and resolve. Our people are our greatest asset and I feel fortunate to have such a talented, dedicated and hard-working team, particularly against the backdrop of an extremely competitive labour market.

Post-period on 1 April 2022, we announced that Francis Coles stepped down as Chairman and a director of the Company for family reasons. As I mentioned at the time, Francis played an important role in the transition of Mirada to a product model and provided valuable guidance as we grew our footprint internationally. I am grateful for his support over the years and, on behalf of everyone at Mirada, would like to again wish him and his family all the best for the future. 

Following Francis' departure, I stepped into the role of Interim Chairman. The Board continues to make good progress in finding Francis' successor, and in seeking to appoint a further non-executive director and will make a further announcement at the appropriate time.

Financial overview

Revenue was broadly flat at $11.02 million (FY21: $11.13 million), with significant growth in licences from existing customers (50% growth over FY21) offsetting, what the Directors to believe to be, a temporary reduction in professional services and delays to new contracts caused by the pandemic. Development revenue decreased to $3.70 million (FY21: $5.61 million). Licence revenues grew strongly to $5.35 million (FY21: $3.57 million).

Gross profit was also broadly flat at $10.25 million (FY21: $10.84 million) and operating losses increased to $2.72 million (FY21: $2.59 million). Staff costs decreased to $6.48 million (FY21: $7.10 million), supported by the majority of our costs being incurred in Euros and the appreciation of the US dollar. Other administrative expenses increased to $2.12 million (FY21: $2.05 million).

Adjusted EBITDA (as defined in Note 7) was $1.65 million (FY21: $1.70 million). A tax credit was recognised in the period of $0.03 million (FY21: $0.17 million) from Mirada Iberia's research and innovation tax deductions. Net loss for continued activities was $2.87 million (FY21: loss of $2.99 million).

Net Debt increased to $8.59 million (FY21: $7.07 million). Long-term interest-bearing loans and borrowings and related party loans and interest increased to $6.66 million (FY21: $5.40 million) and short-term borrowings increased to $1.95 million (FY21: $1.78 million) - see note 9 for further details. Trade receivables increased from $1.83 million to $2.07 million.

On 27 September 2021, the Company announced the extension from €1.3 million to €3.0 million of the facility granted by a related party, of which €2.27 million was utilised at 31 March 2022. The facility is being provided by Leasa Spain, S.L.U. ("Leasa" or the "Lender"). The Lender is incorporated in Spain and ultimately owned by Mr Ernesto Luis Tinajero Flores who has a total beneficial interest in 87.21% of Mirada's share capital. The term of the Facility was extended until 30 November 2023 ("Maturity Date"), although the Company retains the option to repay any drawn amounts earlier.

Other intangible assets have decreased by $0.27 million.

The Group generated $2.86 million of cash in operating activities in the year (FY21: $3.15 million) and spent a further $3.99 million (FY21: $4.17 million) in investing activities.

Growing new business momentum with major new contracts signed post-period

In recent weeks, we announced the first major contract win since the onset of the pandemic and the company has two more significant deals with new customers in late stage, one in India where terms have been agreed and one in Latin America.

With a large TV operator and telecoms company in India, Mirada has agreed a five-year contract and is expecting to be able to implement it and start the project in the new year following receipt of the initial payment.  Mirada will deliver a hybrid DVB ("Digital Video Broadcasting")/OTT ("Over-the-Top") Android TV Operator Tier platform, powered by its flagship Iris solution. The platform will provide viewers with on-demand content as well as linear TV on set-top boxes and on other devices such as smartphones, tablets, computers and smart TVs. The deal marks Mirada's continued expansion in the Asia-Pacific market, where it is seeing an increasing number of new opportunities and demonstrates the success of the Company's new sales and marketing strategy.

Mirada is also in advanced negotiations for a contract to provide Pay TV services and ad-based entertainment platform available in public spaces to a Pay TV Operator in Latin America. The Pay TV contract will be delivered via a SaaS model, an important part of Mirada's growth strategy, with the potential for revenue to increase as the customer expands its subscriber base. The expected contract includes initial set-up fees for Mirada, followed by subscriber fees on a monthly basis (with a minimum revenue guaranteed) once the service goes live. The entertainment platform contract would see the Group's Iris solution deployed for the first time as an ad-based service available in public spaces, such as in government buildings, parks, train stations and airports.

Encouraging start to FY23

The contract wins described in the above section have been achieved alongside a strong start to trading from existing customers in FY23. The first quarter ended 30 June 2022 saw a marked increase in subscriber-based licence fees, with over 2 million set-top boxes now deployed using Mirada's technology. This has translated into revenues for the quarter of approximately $3.1 million (2021: $3.1 million) and adjusted EBITDA of $0.9 million (2021: $0.7 million).

Confidence in delivering continued, sustainable growth in the new financial year and beyond

To have delivered these FY22 results despite the effects of the pandemic continuing to be felt for much of the period is testament to quality of the products and services we provide, the dedication of our people, the resilience of our model and the improvements made to our operational infrastructure. 

We continued to support our customers as they worked to realise their growth ambitions, and while new business activity across the market suffered a major setback because of the Covid 19 pandemic - particularly in the first half - we were able to offset this by securing a significant increase in licences across our existing base.  

As the second half progressed, we saw a recovery in appetite across our target markets and, although there were pandemic-related challenges along the way and it can take several months for a new agreement to be signed in our industry, our sales pipeline quickly grew to the largest it has ever been. Encouragingly, as demonstrated by the post-period agreements with Mongolian telco Skytel and a telco in India, and late-stage negotiations in Latin America, we are now beginning to get those deals over the line. 

There remains an air of uncertainty around the broader economic environment but, at present, we are not seeing any signs of the demand in our end markets slowing. Our outlook as things stand remains unchanged from the trading update issued in May - that the new financial year will be one of significant commercial progress.

We have invested heavily and developed several strategic initiatives ahead of the curve that position us at the centre of emerging TV and video service trends. Assuming the worst of the pandemic is now behind us, I am confident Mirada is equipped to return to its pre-Covid trajectory and grow in a meaningful and sustainable way.

José-Luis Vázquez
Chief Executive Officer

29^th September 2022

Note 3.b to the financial statements set out further below provides details on going concern and which indicates that the Company will require additional funding prior to 31 March 2023.

Consolidated Statement of Comprehensive Income for the year ended 31 March 2022

Consolidated Statement of Financial Position as at 31 March 2022

Consolidated Statement of changes in equity for the year ended 31 March 2022

Consolidated Statement of Cash Flows for the year ended 31 March 2022

Selected notes to financial statements year ended 31 March 2022

1.        General information

Mirada plc is a company incorporated in the United Kingdom. The address of the registered office is 3rd Floor Chancery House, St Nicholas Way Sutton, Surrey SM1 1JB.  The nature of the Group's operations and its principal activities are the provision and support of products and services in the Digital TV and Broadcast markets.

2.        Changes in accounting policies

a.         New and amended standards mandatory for the first time for the financial periods beginning on or after 1 April 2021

The International Accounting Standards Board (IASB) issued various amendments and revisions to International Financial Reporting Standards and IFRIC interpretations. The amendments and revisions were applicable for the year ended 31March 2022 but did not result in any material changes to the Financial Statements of the Group.

b.         New Standards, interpretations and amendments not yet effective

There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the group has decided not to adopt early.

The following amendments are effective for the period beginning 1 January 2022:

* Subject to endorsement

The Group has not early adopted any of the above standards and the directors are assessing the impact on future financial statements. There are no other IFRS or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Group.

3.         Significant accounting policies

a.         Basis of accounting

These consolidated financial statements have been prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and UK-adopted International Accounting Standards (UK IASs).

The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss, assets held for sale measured at fair value less costs to sell; and defined benefit pension plans for which the plan assets are measured at fair value.

All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest thousand currency units, unless otherwise stated.

The preparation of consolidated financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in Note 4.

b.         Going concern

These financial statements have been prepared on the going concern basis. The Directors have reviewed the Company and Group's going concern position taking account of its current business activities, budgeted performance and the factors likely to affect its future development, which are set out in this Annual report, and include the Group's objectives, policies and processes for managing its capital, its financial risk management objectives, its exposure to credit and liquidity risks and the impact of the COVID-19 pandemic.

Based on our review of going concern position, we believe that there are material uncertainties relating to going concern assumptions for the Group and the company on the grounds that future sources of funding or supporting evidence are not available at the date of approval of the financial statements.  We have considered a period of at least twelve months from the date of approval of the financial statements. We acknowledge that the Group requires additional funding, and we are in the process of exploring opportunities to raise additional funding and optimistic that we will be able to raise sufficient funds.

As at 31 March 2022, the Group had cash and cash equivalents of $0.03m (2021: $0.11m), had net current liabilities of $1.39m (2021: $0.23m) and net assets of $4.73m (2021: $7.90m.). In the year ended 31 March 2022, the Group generated net cash from operating activities of $2.86m (2021: $3.15m), realised a loss for the year of $2.87m (2021: $2.99m).

The €1.30 million credit facility, granted by Leasa Spain, S.L.U. ("the Lender") on 4 June 2019, was increased up to €3.0 million and its Maturity Date was extended until 30 November 2022. In addition, the Facility was novated from Mirada Iberia to Mirada Plc. On 23 September 2022 this was extended until 30 November 2023. All other terms of the Facility remain unchanged.  The Lender is controlled by Mr. Ernesto Luis Tinajero Flores, who also owns 87.21% of the voting rights of Mirada.

The Directors have prepared detailed cash flow forecasts for the period to at least 31 December 2023.  The Directors regularly review the detailed forecasts of sales, costs and cash flows. The assumptions underlying the forecasts are challenged, varied and tested to establish the likelihood of a range of possible outcomes, including reasonable cash flow sensitivities. The expected figures are carefully monitored against actual outcomes each month and variances are highlighted and discussed at Board level.  From a technology point of view, the Group is also offering and developing the most advanced features in the market, providing services to a growing subscriber base in our core markets.  To this end a base case cash flow forecast has been prepared which takes into account the following key assumptions:

The Company expects to announce in the coming weeks a contract win to provide Pay TV services and an ad-based entertainment platform available in public spaces to a Pay TV Operator in Latin America.

The Directors have also considered several downside scenarios, including a scenario where all revenue growth from new customers is removed and a reverse stress test.  The purpose of the reverse stress test for the Group is to test at what point the cash facilities would be fully utilised if the assumptions in the Director's base case forecasts are altered.  This reverse stress test includes both a removal of all revenue growth from new customers and a reduction of contracted revenue from existing customers for the forecast period, resulting in an overall reduction of revenue of c.20%, as well as the removal of any potential future funding and the receipt of the US$0.3m Research and Development tax credits anticipated.  In the event that the performance of the Group is not in line with the projections, and more akin to one of our downside scenarios, including the worst-case scenario, action will be taken by management immediately to address any potential cash shortfall for the foreseeable future.  The actions that could be taken by the Directors include both a review and restructuring of employment related costs, including the deferral of any potential bonuses due to employees.  These measures alone could save at least $1.5m in operating costs and therefore cash flows, although they would compromise the company's future growth.  Further, the Directors could also negotiate access to other sources of finances from the Group's lenders.  Given the Director's current relationship with lenders and their recent success in negotiations with these financial institutions, whilst there are no binding agreements currently in place, negotiations are in very advanced stages for additional funding.   Therefore, the Directors are confident that any additional funding required would be obtained. 

Overall, the sensitised cash flow forecasts demonstrate that the Group will be able to pay its debts as they fall due for the period to at least 31 December 2023 based on a potential fundraising of up to $2.0 million during the period. The Directors are, therefore, satisfied that the financial statements should be prepared on the going concern basis.

4.     Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group's accounting policies the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.

a.    Key judgements

The following are the critical judgements that the directors have made in the process of applying the Group's accounting policies that has the most significant effect on the amounts recognised in the financial statements.

·      Presenting financial information in USD

The reporting currency is US Dollar due to the growing exposure to the US Dollar, as all major contracts and most of the new potential deals for the Group are denominated in this currency. The board therefore believes that USD financial reporting provides the best presentation of the group's financial position, funding and treasury functions, financial performance and its cash flows.  Coupled with the evolution of the business, the group's shareholder base is now largely comprised of investors to whom financial reporting in GBP is of limited relevance. Internally, the board also bases its performance evaluation and many investment decisions on USD financial information.

·      Capitalised development costs

Any internally generated intangible asset arising from the Group's development projects are recognised only once all the conditions set out in the accounting policy Internally Generated Intangible Assets are met. The amortisation period of capitalised development costs is determined by reference to the expected flow of revenues from the product based on historical experience. Furthermore, the Group reviews, at the end of each financial year, the capitalised development costs for each product for indications of any loss of value compared to net book value at that time. This review is based on expected future contribution less the total expected costs.

The Group capitalises spend on development of new software and the delivery of innovative software.  Management exercises judgement in establishing both the technical feasibility of completing an intangible asset which can be sold, and the degree of certainty that a market exists for the asset, or its output, based on feedback from existing and potential customers, for the generation of future economic benefits.  In addition, amortisation rates are based on estimates of the useful economic lives and residual values of the assets involved.

·      Impairment of goodwill and intangibles

Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which goodwill has been allocated. The value in use calculation requires the Group to estimate the future cash flows expected to arise from the cash-generating units and the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the cash-generating unit. This includes the directors' best estimate on the likelihood of current deals in negotiation not yet concluded. Consequently, the outcome of negotiations may vary materially from management expectation. 

5.     Revenue from contracts with customers

Licenses revenue are including both contract licenses and SaaS revenue.

Contract balances

The following table provides information about contract assets (included as accrued income) and contract liabilities (included as deferred income) from contracts with customers:

The movement in the contract assets and liabilities during the year is set out below:

Contract assets ('accrued income') and contract liabilities ('deferred income') are included within 'Trade and other receivables' and 'deferred income' respectively on the face of the Statement of Financial Position.  They arise from the Group's revenue contracts, where work has been performed in advance of invoicing customers, and where revenue is received in advance of work performed.  Cumulatively, payments received from customers at each balance sheet date do not necessarily equate to the amount of revenue recognised on the contracts.

6.     Segmental reporting

Reportable segments

The chief operating decision maker for the Group is ultimately the board of directors. For financial and operational management, the board considers the Group to be organised into two operating divisions based upon the varying products and services provided by the Digital TV & Broadcast. The products and services provided by each of these divisions are described in the Strategic Report. The segment headed other relates to corporate overheads, assets and liabilities.

Segmental results for the year ended 31 March 2022 are as follows:

$1.027 million (2021: $0.744 million) disclosed as "Other" comprises employment, legal, accounting and other central administrative costs incurred at a Mirada Plc level.

The segmental results for the year ended 31 March 2021 are as follows:

The Group has a major customer in the Digital TV and Broadcast segment that generates revenues amounting to 10% or more of total revenue that account for $8.45 million of $11.02m total revenue. This is approximately 77% of all revenue (2021: $7.9 million, out of $11.03m) of the total Group revenues.

Segment assets and liabilities are reconciled to the Group's assets and liabilities as follows:

Assets allocated to a segment consist primarily of operating assets such as property, plant and equipment, intangible assets, goodwill and receivables.

Liabilities allocated to a segment comprise primarily trade payables and other operating liabilities.

7.   Expenses by nature

            This has been arrived at after charging:

Total R&D expenditure capitalised as intangible assets amounts to $4.13m (2021: $4.12m).

The total lease expense not subject to IFRS 16 for short-term as well as low-value leases amounts to $0.220 (2021: $0.253).

Analysis of auditors' remuneration is as follows:

Reconciliation of operating profit for continuing operations to adjusted earnings before interest, taxation, depreciation and amortisation:

These APM are not International Finacial Reporting Standard measures.

8.   Loss per share

After the cancellation of share premium approved by the General Meeting on 10 September 2019, the Company has 41,483 (2021: 41,483) potentially dilutive ordinary shares arising from share options issued to staff. However, in 2022 and 2021 the loss attributable to ordinary shareholders and weighted average number of ordinary shares for the purpose of calculating the diluted earnings per ordinary share are identical to those used for basic earnings per ordinary share.  This is because the exercise of share options would have the effect of reducing the earning per ordinary share and is therefore anti-dilutive.

9.     Non-current liabilities

Other loans relate to loans received by the Group's Spanish operation to assist in funding the continued development of the Group's Digital TV products.

Capital risks have been analysed in the Director's report in the Annual Report and Accounts. 

Net Debt

Net Debt is calculated based on short term loans, long terms loans and cash and cash equivalents: