News blog

Motive Television

  • BY: Andrew Hore |
  • POSTED: 14/09/2015 |

Putting Apple in the headline of an announcement has pushed up the share price of Motive Television so don’t be surprised if Bergen Asset Management decides to convert another tranche of its loan note. 

The share price rose 0.04p to 0.26p, which is still well below the adjusted share price of 0.38p prior to last month’s 100-for-one share consolidation. A capital reorganisation was required to issue more shares because the share price was already heading towards the par value, which is the minimum that shares can be issued at. The par value is 0.005p a share.

That was the second share consolidation in little more than six months. The share price has fallen by more than 90% since the previous share consolidation in February.

Prior to the latest consolidation, Bergen converted £280,000 of debt into 3.73 billion shares at 0.0075p a share. There is still £476,534 owed to Bergen. At the current share price there could be an additional 180 million shares issued – and possibly more. There are currently 222.6 million shares in issue.

In 2014, revenues were flat at £1.14m. To put that in perspective the directors’ remuneration was £420,000 with nearly 50% of that going to chief executive Leonard Fertig. The full year loss, excluding impairment charges, was £4.62m, while the cash outflow was around £2.6m before fund raisings. Net debt was £3.57m at the end of 2014 – mainly convertible loan notes some of which have been subsequently converted but most of them mature at the end of 2015.

The most noticeable thing about revenues is that the television content production side, which is barely ever mentioned, increased its revenues. The digital TV technology business revenues fell from £805,000 to £646,000. This means that the business which is the focus of Motive TV is contracting and it makes most of the Motive TV loss. There have been contracts signed since then that should provide additional revenues but the facade of digital television side being a growth business is dented by the figures in the annual report.

The one attraction of Motive TV is that the parent company has tax losses of £12.4m with additional tax losses in subsidiaries. Motive TV does not expect to generate cash from operations until mid-2016.

Motive TV is making its Tablet TV product available on the Apple TV platform. 

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