Interim results for the six months to 30 June 2012

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 2012.

Highlights

  • Revenue for the period up 91% to £348,159 (H1 2011: £181,839)
  • Gross profit for the period was £282,548 (H1 2011: £155,950)
  • Administrative expenses for the period increased to £442,756 (H1 2011: £318,842), principally reflecting planned increases in personnel
  • Loss for the period was £156,908 (H1 2011: £157,200)
  • Strong, debt free balance sheet with net cash of £617,100 (31 December 2011: £692,494)
  • Powerful entry into sports with YouTube and NBC

Vic Steel, Chairman of Forbidden Technologies, commented:

“First-half revenue from the News and Sport sector grew by 124% to £208,064 against the first half of 2011, reflecting the successful penetration of this dynamic growth market by the FORscene cloud platform.

As demonstrated by the licensing to YouTube and use by NBC this summer, FORscene is achieving widespread recognition and acceptance as a leading cloud-based video platform. Forbidden is well placed to capitalise on the growth opportunities in its target sectors over the coming years, not only in the UK, but also in multiple overseas geographic locations.”

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For further information please visit www.forbidden.co.uk or contact:


Forbidden Technologies plc

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


N+1 Brewin, Nominated Adviser

Aubrey Powell / Derrick Lee
Corporate Finance
Tel: +44 (0)20 3201 3170


Cenkos Securities plc, Broker
Adrian Hargrave, Corporate Finance
Alex Aylen, Sales
Tel: +44 (0)20 7397 8900

Bishopsgate Communications
Nick Rome / Sam Allen: +44 (0)20 7562 3350
forbidden@bishopsgatecommunications.com

Chairman's Statement

I am pleased to report that revenue in the six months to 30th June 2012 increased by 91% to £348,159 compared to £181,839 in the six months to 30th June 2011.

The UK broadcast post-production sector continued to provide strong growth for the FORscene platform with revenue increasing by 79% over the corresponding period last year to £137,414 as new customers came on board and as others extended the use of FORscene into more advanced levels of editing. We are encouraged by the extension of use of the FORscene platform by professional users as the benefits of using the platform are being more widely recognised and experienced.

First-half revenue from the News and Sport sector grew by 124% to £208,064 against the first half of 2011, reflecting the successful penetration of this dynamic growth market by the FORscene cloud platform. A key driver of this growth has been the licence agreement with YouTube relating to the major sporting event this summer.

Administrative expenses increased from £318,842 in the six months to 30th June 2011 to £442,756 in the six months to 30th June 2012. This was principally due to the recruitment of additional human resource including a Digital Marketeer, an internal Video Producer / Editor (to produce both training videos and promotional videos), and additional Research and Development staff. A modest provision against bad debts has also been included.

The loss for the six months to 30th June 2012 of £156,908 is similar to that incurred in the comparable period (2011: £157,200).

The balance sheet continues to be strong, debt free, with a positive cash balance of £617,100, and a net cash outflow in the six months to 30th June 2012 of £75,394.

Outlook

Forbidden Technologies is showing the characteristics of a growth company. Our scaleable cloud architecture is demonstrating that it can handle growth in usage well.

FORscene is expected to continue its expansion in the broadcast post-production sector as more producers adopt new workflows that benefit from extended use of the FORscene platform.

In News and Sport, the rapid migration of video from broadcast to web-based and mobile media provides exciting opportunities for FORscene, with our customers benefiting from the speed and cost effectiveness that it can provide. The introduction of FORscene Server Lite opens up the corporate video sector and we have signed our first significant customer.

In our Social Media Consumer sector, our Android mobile app version of Clesh has a steadily growing number of users. The FORscene platform already supports web and mobile publishing, which the Board believes will be key growth areas.

IBC, Europe's biggest trade show for broadcasters, takes place in Amsterdam in early September. Forbidden will be involved in the production of IBC TV news, and will jointly host presentations in the workflow theatre on three of the five days of the convention. These presentations, with a different FORscene partner each day, will provide valuable exposure of successful applications of our FORscene platform to a broad audience of potential customers in broadcast TV series, news and sport.

In summary, as demonstrated by the licensing to YouTube and use by NBC this summer, FORscene is achieving widespread recognition and as a leading cloud-based video platform. Forbidden is well placed to capitalise on the growth opportunities in its target sectors over the coming years, not only in the UK, but also in multiple overseas geographic locations.

Vic Steel

Chairman