Forbidden Technologies plc (AIM: FBT), the AIM-quoted owner and developer of the market leading cloud video platform, Forscene, announces its interim results for six months ended 30 June 2014.
- Significantly strengthened workforce including doubling of R&D headcount and recruitment of additional sales and technical support staff
- Good progress in North America with initial sales made and an impressive pipeline
- Establishment of Consumer Products division with social platform on course for Q4 release
- Cash and short term investments of GBP6,446,339
Commenting on the results, Stephen Streater, Forbidden Technologies CEO, said:
"The industry shift towards cloud-based workflows continues and, with a number of new staff appointments, growing momentum in North America, and the development of an exciting new consumer offering well underway, we remain confident in Forbiddens ability to grow in the second half and beyond."
Forbidden Technologies plc
Tel: +44 (0)20 8879 7245
Stephen Streater, CEO
Cenkos Securities plc (Nominated Adviser and Broker)
Tel: +44 (0)20 7397 8900
Bobbie Hilliam, Corporate Finance
Alex Aylen, Sales
Redleaf Polhill (Financial PR)
Tel: +44 (0)20 7382 4730
About Forbidden Technologies plc
Forbidden Technologies plc (AIM: FBT, www.forbidden.co.uk) floated in February 2000. The Company develops and markets the powerful cloud video platform, Forscene, which is used by broadcasters, in professional web video, in education and by consumers. Forscene is one of the world's most advanced browser-based and mobile applications.
The six-month period to 30 June 2014 was one of significant investment into the business following last summers fundraising activity. As anticipated, operating expenses in the period rose from GBP538,191 to GBP1,461,888. Almost half the increase (GBP474,000) resulted from increased staff costs including the doubling of R&D headcount and the recruitment of additional sales and technical support staff. GBP184,000 was spent setting up and staffing our new US subsidiary, a venture which is making good progress, while further recruitment costs, professional services, and marketing added a further GBP356,000. The resulting overall loss was GBP1,157,890 compared with GBP189,618 in the corresponding period last year.
Forbidden has led the emergence of cloud in the video editing industry through its disruptive technologies. The cloud is now having a disruptive effect on the video editing market. This has led a historically strong market player to take defensive action. Conservative executives are exercising caution as they decide which way to turn. Partly as a result of this, revenue in the period was GBP348,077 compared with GBP401,278 in the corresponding period last year. Later start dates for some major broadcast series and slow take up of new opportunities in Sports have also contributed.
We remain confident that a generational shift to cloud-based workflows is ongoing and that we are taking the right steps to take advantage of this.
The balance sheet remains strong with cash and short term investments of GBP6,446,339 at the end of the period.
We have continued to improve our flagship product, Forscene, by broadening the technology to include a media asset management interface (to extend access to existing technology within the Forbidden cloud platform), an editor re-skin and third-party integration.
During the period, we have made rapid progress on the design and development of our planned entry into the consumer market with our social platform and its app. In the two months since his appointment as Consumer Products Director, Aziz Musa, has made significant progress including the creation of the brand name eva and the obtaining of the web address eva.co. eva has published its initial web page today and visitors are invited to apply to take part in the Alpha testing of the product. A full launch is planned for the fourth quarter making use of a freemium business model to acquire a significant number of monthly active users as efficiently as possible.
Although revenue in the period is lower than the previous year, we consider the contributory factors to be short term and remain confident of our strategy. Our pipeline in North America is impressive and initial sales have been made, with significant growth expected in the second half and continuing into 2015.