B2B digital music firm Omnifone Limited has published its latest financial results, for its fiscal year ending 30 April 2013. They reveal turnover jumping 58.9% year-on-year to £46.9m, but the company slipped from an annual profit of £2.9m in its 2012 financial year to a loss of £6.1m in its 2013 period. Over the last four years, Omnifone’s total losses have amounted to £40.6m, although the latest year is at least an improvement on the £15.7m and £21.8m losses posted in its 2010 and 2011 respectively. The results, published through Companies House in the UK, reveal that Omnifone’s cost of sales rose by 246.9% from £7.2m in its fiscal 2012 to £25m in its fiscal 2013. But that wasn’t the key factor in the company’s slide back into the red: after those costs were taken into account, its gross profit of £22.3m was only slightly down on the previous year, while the company reported a modest operating profit of £68.4k before exceptional items. Exceptional? Yes, Omnifone’s results reveal a review of the performance of Rara, the consumer-focused streaming service that launched in late 2011 as a spin-off from the company. “Following a review of the performance of related parties Rara Media Limited and Rara Media Group Limited during the year ended 30 April 2013 and to the date of these financial statements management have assessed the recoverable amount of balances owed by the related parties as £nil,” explained Omnifone’s annual report. “As a result the net balance owed by these parties at 30 April 2013 of £6,654,179 was written off to the P&L.”
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