Interim results for the six months to 30 June 2011

Forbidden Technologies, the AIM quoted developer and marketer of a leading cloud based video platform, is pleased to announce its Interim Results for the six months to 30 June 2011.

Financial Highlights

  • Revenue for the period up 8% to £181,839 (H1 2010: £167,858)
  • Gross profit for the period was £155,950 (H1 2010: £158,375)
  • Operating costs for the period increased to £318, 842 (H1 2010: £214,730)
  • Operating loss for the period was £157,200 (H1 2010: £53,853)
  • Strong balance sheet with cash and cash equivalents at £929,538 (H1 2010: £137,553)

Post Period Highlights

  • Upgraded Clesh software to enables publishing direct to YouTube site
  • Partnered with EVS to provide IBC Television News connected workflow

Vic Steel, Chairman of Forbidden Technologies, commented:

“Looking ahead, the Company expects to see continuing growth in the broadcast post production market as more Producers adopt FORscene and repeat orders are placed by satisfied users. The now frequent extension of FORscene use into editing underpins the value of the FORscene platform as we enter new value-added markets where editing plays a more important role.”,

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For further information please visit www.forbidden.co.uk (where a copy of the interim results is available) or contact:

Forbidden Technologies plc
Stephen Streater, CEO
Tel: +44 (0)20 8879 7245

Brewin Dolphin
Neil Baldwin, Nominated Advisor
Tel: +44 (0)845 213 4726

Bishopsgate Communications
Deepali Schneider / Natalie Quinn
Tel: +44 (0)20 7562 3350

Chairmans Statement

I am pleased to announce that revenue in the six months to 30 June 2011 was up 8.3% to £181,839, compared to £167,858 in the six months to 30 June 2010. UK post production grew by 94% within these figures despite the poor economic conditions, increasing the diversification of Forbiddens sources of income both geographically and by customer. This expansion is a strong indication of FORscenes growing acceptance in the broadcast market where the FORscene platform is increasingly being adopted by major productions.

The loss before tax for the six month period, at £157,200, was £100,000 greater than in the six months to 30 June 2010, as Forbidden started to invest funds from its recent share issues. The increase was largely attributable to Administrative Expenses, which rose from £214,730 in the first half of 2010 to £318,842 in the six months to 30 June 2011. Planned staff increases in Business Development and Customer Support, the cost of share options (under IFRS 2) and the capitalisation and amortisation of development costs accounted for 90% of the increase.

The Balance Sheet at 30 June 2011 remains strong with £929,538 of cash and cash equivalents, representing a reduction of £94,073 over the six month period.

Outlook

Looking ahead, the Company expects to see continuing growth in the broadcast post production market as more Producers adopt FORscene and repeat orders are placed by satisfied users. The now frequent extension of FORscene use into editing underpins the value of the FORscene platform as we enter new value-added markets where editing plays a more important role.

Although projects from Systems Integrators are proving to have very long gestation periods, the Company is not dependent on this source for continuing growth.

Having increased resources in Business Development, the Company has added News and Sport as strategic target sectors. The ability to shoot, edit and publish video in the Cloud enables faster and more cost-efficient workflows in both News and Sport where accessibility and speed are of the essence. This is already recognised in our recently announced relationships with EVS and ENPS. Access from tablets and mobile phones enables new workflows, including outside traditional broadcast where the Web continues to expand its reach. The Company will reflect these advances by putting increasing effort and resources into these routes to market over the coming months and years.

Forbidden has made improvements to its publishing offer, and our USA partner BIM anticipates expanding its coverage of TV stations in the coming months, using FORscene technology.

With Facebook and YouTube publishing enabled from Android smartphones and tablets, as well as from the Web, the Company believes that Clesh and FORscene can now aspire to provide their State-of-the-Art tools for consumer video editing and publishing for both sites.

Summary

In summary, as the Cloud achieves widespread recognition and acceptance, Forbidden is well placed to prosper in five large market sectors:

  • Broadcast;
  • Professional Web video;
  • User-generated video;
  • News; and
  • Sport.

FORscene and Clesh offer world-leading video tools for each of these global markets, with increasing recognition reflected in the quality of the trade partners it attracted at the recent IBC 2011 trade show. The Company has the confidence and determination to exploit its technological lead to the benefit of both customers and shareholders.

A PDF of the full results, including figures, is available here.