Mirada reports drop in full year earnings

The company - which supplies products and services in digital TV and broadcast - reported adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £1.50m in the year ended 31 March 2016, compared to £1.55m the previous year.

The group’s net loss widened to £0.40m from £0.18m the prior year.

The company blamed higher amortisation charges of £1.63m, up from £1.19m in 2015, due to increased product investment particularly in flagship multi-screen video platform Iris.

Delays to the commercial roll out of its digital TV project with South American media group Televisa also affected results.

Mirada chief executive Jose-Luis Vazquez said "delays resulting from the integration of the Televisa five cable networks under the Izzi brand shifted the balance of the company revenue mix for the full year towards professional services associated with additional change requests from the customer".

"Now we are at a new stage in our relationship with Televisa and the board believes that we will increasingly benefit from subscriber-based license fees as our product is rolled out across their networks."

Yet revenues still rose to £6.02m from £5.66m, driven by the provision of professional services relating to the conclusion of the Televisa project.

Net debt rose to £3.48m from £2.61m as a result of increased product investment, delays in the full Televisa commercial roll out and currency exchange factors.

Vazquez added: "We are currently competing for most of the major live projects in the Latin America region, and are confident that our product quality, proven expertise, and the reference provided by our major deployment with Televisa, will be key strengths in the decision-making process. Meanwhile, our partners and local representatives are building our pipeline in other regions, especially South East Asia and Eastern Europe.

"We believe we are extremely well positioned to convert this growing pipeline and this, combined with our expectation of increasing revenues as our software is rolled out across Televisa's network, gives us great confidence for the future."

Shares tumbled 17.71% to 4.32p at 1213 BST.